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Home My WebLink AboutItem 07CITY OF LAKEVILLE, MINNESOTA 2012 Preliminary Budget and 2013 Estimated Budget Table of Contents Page Executive Summary Budget Message1 Distinguished Budget Presentation Award24 Elected and Appointed Officials25 Organizational Structure26 Relationships between Departments and Funds27 Financial and Budget Policies28 2012 Budget Development Process and Calendar32 Description of City Funds and Accounting Structure33 Property Tax Levy Information35 General Fund Fund Balance Discussion43 Schedule of Revenues, Expenditures, and Changes in Fund Balance44 Schedule of Revenues General Property Taxes45 Licenses and Permits46 Intergovernmental47 Charges for Services48 Court Fines, Investment Income, Miscellaneous, and Other Financing50 Department/Program Budget Descriptions and Expenditures General Government Mayor and Council51 Committees and Commissions53 City Administration55 City Clerk57 Legal Counsel59 Planning60 Community and Economic Development62 Inspections64 General Government Facilities66 Finance68 Information Systems70 Human Resources72 Insurance74 Public Safety Police75 Fire78 Public Works Engineering80 Streets83 i CITY OF LAKEVILLE, MINNESOTA 2012 Preliminary Budget and 2013 Estimated Budget Table of Contents (continued) Page General Fund (continued) Parks and Recreation Parks 86 Recreation89 Arts Center92 Special Revenue Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances94 Fund Balance Discussion97 Communications Fund98 Economic Development Fund101 Debt Service Funds Description102 Debt Financing and Obligations103 Debt Issuance, Legal Debt Limits104 Credit Rating105 Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances106 Fund Balance Discussion111 General Obligation Debt Fund112 General Obligation Special Assessments Fund113 Tax Increment Fund114 State-Aid Street Fund115 Water Revenue Fund116 Arena Revenue Fund117 HRA Lease Revenue Fund118 Combined Schedule of Governmental Debt Service Requirements119 Capital Projects Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances120 Fund Balance Discussion125 Municipal State Aid Street Fund127 Capital Improvement Plan Projects127 Pavement Management Fund128 Capital Improvement Plan Projects129 Improvement Construction Fund130 Capital Improvement Plan Projects131 Storm Sewer Fund132 Capital Improvement Plan Projects133 Water Fund134 Capital Improvement Plan Projects135 ii CITY OF LAKEVILLE, MINNESOTA 2012 Preliminary Budget and 2013 Estimated Budget Table of Contents (continued) Page Capital Projects Funds (continued) Sanitary Sewer Fund136 Capital Improvement Plan Projects137 Park Dedication Fund138 Capital Improvement Plan Projects139 Trail Improvement Fund140 Capital Improvement Plan Projects140 Tax Increment Fund141 Capital Improvement Plan Projects142 Building Fund143 Capital Improvement Plan Projects144 Equipment Fund145 Capital Improvement Plan Projects147 Enterprise Funds Liquor Fund148 Utility Fund Overall152 Water Operation155 Sanitary Sewer Operation158 Street Light Operation161 Environmental Resources163 Internal Service Funds Municipal Reserves Fund167 Compensation Liability Fund169 Appendices Map of Lakeville170 Community Profile171 Number of City Employees (Full Time Equivalent)174 Commercial and Industrial Building Permits Issued - Years 2010 and 2009178 Capital Improvement Plans 2012-2016179 Transportation185 Utility Infrastructure194 Parks, Recreation, and Open Space210 Facilities218 Equipment229 Glossary of Budget Terms238 iii Executive Summary September 6, 2011 To the Honorable Mayor, Members of the City Council and the Citizens of Lakeville: It is our pleasure to present the Preliminary 2012 Budget and Estimated 2013 Budget. The City budget is a policy document which reflects the programs and services deemed important and necessary for the health, safety and welfare of the community by the City Council. The document provides a financial framework for all of the programs and services the City provides. The City of Lakeville has, over the past several years, been confronted with economic and financial challenges similar to those of our residents and businesses. Beginning in mid-2008 and again in early 2009, the City responded to the challenges by modifying or eliminating many services resulting in the downsizing of its operations by 6% and reducing personnel by 10%. The effort to limit budget growth continued with the 2010 and 2011 budgets. No new programs or services were included in the adopted budgets. The process of evaluation and modification of services has been an on-going effort. In early 2011, the City Council and staff again revised the budget and budget process. The 2011 budget was amended by st the City Council at its March 21 meeting. 7KHSUHOLPLQDU\±EXGJHW reflects a continuation of the program and service levels established by the City Council over the past several years. The budget also focuses on City efforts to improve the economic base of the community; adjusting to business and resident expectations; and investing in people, technologies and processes which are cost effective and prepare for a brighter future. At the same time, the preliminary budget proposes several new initiatives in which staff seeks Council direction. The following is a succinct overview of some of those major initiatives. 1 Major Initiatives Community Visioning. Appropriations are provided in the Communications Fund budget ($30,000) for a facilitator and forum to enable the City Council and Community to establish a visioning process intended to provide a strategic direction for the future of the City. Community Survey. In order to clearly identify the expectations of our community businesses and residents, a community survey is provided in the Communications Fund budget ($30,000). The results of the survey will provide factual data to be utilized in the visioning process. Economic Development Marketing. An economic development marketing strategy was approved in 2011 and is in the process of implementation. Following the development of the strategy, there is a need to fund the implementation of the strategy. The marketing program is proposed to be financed in 2012 ($30,000) and 2013 ($20,000) by the Liquor Fund. The preliminary budget also includes $25,000 per year commencing in 2012 for the City to be a member of the Minneapolis and St. Paul Regional Development Partnership. The objective of the Partnership is to improve the abilities of the Twin Cities Metropolitan Region to compete for new and expanding businesses. Office Technology. Microsoft Office 2003 is proposed to be replaced in the coming year with Microsoft Office 2010. The 2003 product is no longer supported by Microsoft and is not compatible with more modern versions of the program. An analysis of alternative programs has revealed compatibility problems and has been deemed ineffective in many ways. The Equipment Fund budget provides for the replacement of network switches, Voice Over IP servers and exchange servers software which will be financed with a transfer ($148,416) from the Communications Fund. Police Cyber Crime Investigations. The Police Department Investigations unit will have enhanced capability to investigate computer related crimes with the proposed acquisition of software ($12,390) with Liquor Funds accounted for in the Equipment Fund. The training and computer support are provided from the *HQHUDO)XQG±3ROLFH'HSDUWPHQWEXGJHW Police Shooting Range. The closure and environmental cleanup of the M.A.C. shooting range site has resulted in the Police Department traveling to the SCALE facility in Jordan for P.O.S.T certified firearms training. The preliminary budget also includes appropriations ($18,216) for firearms training at the newly completed Gander Mountain firearms facility. The Gander Mountain and SCALE facilities result in a broader range of training opportunities as well as less travel and overtime. 2 Volunteer Firefighters. A new rookie class of volunteer firefighters (approximately 10 new firefighters) is inFOXGHGLQWKH*HQHUDO)XQG±)LUH Department budget to replace those who have retired or resigned from the fire service. Fire Officer Training. The fire officers serve part-time but are responsible for the leadership of almost 90 volunteer firefighters. Training is provided ($4,000) LQWKH*HQHUDO)XQG±)LUH'HSDUWPHQWEXGJHWWRKRQHWKHGHSDUWPHQW¶V leadership skills. Fire Department Class A Uniforms. The Fire Department has requested Council consideration and funding ($9,625) for Class A uniforms for all volunteer firefighters. The Class A uniform is the style which is worn at special occasions such as funerals. Employee Training and Development. Budget reductions over the last several years included a significant reduction in employee training and development. Over time this reduction in training has impacted employee knowledge and skills. To ensure adequate professional training for the future, $25,000 has been provided each year in the Human Resources Department to partially begin funding of employee training. The City Administrator will be responsible for approval of training requests after working with department directors to establish how best to use the infusion of funds. Wages and Benefits. Most employees and firefighters have not had an adjustment in wage ranges in recent years. The Council may wish to consider and provide direction in the areas of wages and benefits for employees and firefighters. Pavement Management and Street Reconstruction. 7KHFRPPXQLW\¶V roadway infrastructure system is aging and deteriorating. The Council approved a pavement management and street reconstruction program in addition to a financing policy in 2010 which established a framework for the future. The 2012 and 2013 budget provides for approximately $7.9 and $6.3 million respectively for street maintenance and reconstruction. The program will result in tax levies, special assessments and debt issuance. Heritage Center. The City Council, at its June work session, authorized a continuation of the planning efforts to repurpose the former police station into a facility to accommodate expanded programming for the Senior Center, Lakeville Historical Society and Lakeville Yellow Ribbon. The $1.12 million construction costs are accounted for in the Building Fund and financed with non-tax revenue sources. 3 New Meeting Room. The Council work sessions and other public meetings (such as Economic Development Commission) meet in Lake Marion Conference Room. The conference room is not well designed or flexible enough to accommodate large groups of attendees. The Council may wish to consider other alternatives. The preliminary budget sets aside $20,000 from the Communications Fund to analyze alternatives for reconfiguring space in City Hall for greater efficiencies and an improved large conference room. Other Considerations The recession has had long term constraints on the fiscal capacities of our community. The following is a succinct overview of the programs and projects which are not included in the preliminary budget. Voice Activated Dictation. The estimated 2013 budget includes the replacement of the police dictation system. The staff will continue to research in the coming year the feasibility and cost effectiveness of voice activated dictation systems. Electrical Inspection. The current budget provides for electrical inspections to be performed by City personnel. The City Council has, however, had previous discussions related to the possibility of contracting the service rather than utilizing City personnel. As the Council considers this alternative the budget can be modified. CJIIN. The City of Lakeville has for more than a decade, been an active member of the CJIIN consortium, which provides report writing and software integration services for the Police Department. The Police Department has recommended a discontinuation of its participation because the new software available through LOGIS will provide adequate levels of functionality for the department. CJIIN is managed and controlled by Dakota County. Council Training and Development. The City Council may wish to consider at some point in the future, whether or not it wishes to appropriate financing for professional services to assist in goal-setting or team development efforts. Parks Playground Equipment. The Parks system playground equipment is aging. There is currently no funding identified in the 5-year plan for replacing playground equipment. Options for financing include, but are not limited to pay- as-you-go tax levy, referendum or unencumbered General Fund balances. 4 Budget Overview Municipalities organize their financial activities into separate³IXQGV´LQRUGHUWRSURSHUO\ 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 WRDFKLHYHWKH&RXQFLO¶VJRDOVLQWKHmost cost-effective manner possible. General Fund The General Fund of a government unit serves as the primary reporting vehicle for current government operations. The General Fund, by definition, accounts for all current financial resources not required by law or administrative action to be accounted for in another fund. A succinct summary of the 2012 preliminary and 2013 estimated budget are as follows: 5 The General Fund 2011 budget anticipated a fund balance which was 40% of expenditures; however, the 2010 actual fund balance (carried forward to 2011) exceeded the objective by $774,138. The 2012 preliminary budget and 2013 estimated budget is premised on the assumption that the 2010 fund balance carry over would be appropriated to reduce the General Fund tax levy by approximately $291,000 and $483,000 in 2012 and 2013 respectively. The preliminary budget is premised on an assumed continuation of slow residential and business growth for the coming years. Revenues are premised on the assumption of residential growth increasing by approximately 125 single family dwellings per year. Licenses and permits (2013) include $185,000 of Cable TV Franchise fees. There are no proposed adjustments to the fee structure. General Fund expenditures are proposed to increase by $587,999 and $447,218 in each of the next two years. The salient factors affecting the budget are as follows: General government. The budget is proposed to increase by $153,554 in 2012 due to Presidential Elections, Finance Department staffing, organization wide software maintenance agreements, gas and electric utility costs during the remodeling at the former police station, employee compensation market study and organization wide staff training and development. Public safety. Public safety appropriations are proposed to increase by $98,677 in 2012 primarily attributable to a new police officer in 2012; the Fire Department rookie class in 2013 is the primary reason for the $121,919 increase in 2013. Public works. The street department budget includes a new street maintenance position in October 2012 which is one of the primary reasons for the $33,130 increase in Public Works expenses. Parks and recreation. 7KH³QHZ´6HQLRU&HQWHULVDQWLFLSDWHGWREHFRPSOHWHG in late 2012 and fully operational in 2013. A discussion of the factors affecting each of the program budgets is provided within the General Fund section of the budget documentaWLRQ7KHPDMRULW\RIWKH&LW\¶VEXGJHW especially in the General Fund, is related to personnel costs and services. 6 The 2012 preliminary budget includes a new Police Patrol Officer, a Street Maintenance position and increasing the two part-time accounting positions in Finance to full-time. Personnel costs also take into consideration step increases for newly hired replacement employees. There are no new positions proposed in the General Fund for 2013. Since mid-2008, the City has adjusted its budget as a result of economic conditions. Since services and costs are primarily derived from personnel services, there has been a corresponding reduction in the City staffing levels in the last several years. The following table illustrates the changes in General and Special Revenue Fund employees since 2007. 7 The reduction in personnel and services occurred in 2008 and 2009 in spite of the increases in demand for services such as police protection, traffic enforcement, increased lane miles of streets and more parks facilities. POPULATION 58,000 57,000 57,079 56,704 56,329 56,000 55,954 55,772 55,000 54,828 54,000 53,829 53,000 52,000 2007200820092010201120122013 Year 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 and Economic Development Funds are self supporting from user fees and grants. The Communications Fund 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. The Communications Fund also provides appropriations for the initiatives to finance the community survey ($30,000) and the City Council / Community visioning process ($30,000) in 2012. Professional service ($20,000) relative to designing a City Hall meeting room is also provided in the budget. A transfer is proposed from the Communications Fund of $148,416 (2012) to the Equipment Fund to finance technology equipment. Franchise fees ($185,000) will be appropriated to the General Fund in 2013. 8 The Economic Development Fund 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. The fund has a balance of $70,798 at the end of 2013. 9 Debt As of July 1, 2011, the City of Lakeville has approximately $85.85 million of debt outstanding. The City will be issuing general obligation improvement bonds in the coming years to finance the street reconstruction projects. The debt will be repaid with property taxes (proposed to be amortized over a 10 year period) and special assessments to the benefitted properties. $VXPPDU\RIWKH³QHZ´GHEWLVVXHVLVDVIROORZV The preliminary budget also includes the retirement of $1.775 million of HRA Public Facility Lease Revenue Bonds of 2002A, effective February 1, 2012. The retirement of the debt is proposed to be financed by the Liquor Fund. The debt was initially issued in 2002 to finance the construction of Fire Station #4. The construction of future liquor stores is being contemplated. The land acquisition would be financed with the existing cash balance; the building and furnishings would be financed with the issuance of debt. The scope and schedule of investment in future stores has yet to be determined. 10 7KHFLW\¶VRXWVWDQGLQJGHEWLVUHSDLGIURPa myriad of revenue sources including but not limited to special assessments, connection charges, liquor fund revenues, ice arena revenues, tax increments, state aid street payments and property taxes. Approximately half of the debt is paid for from property taxes with the remaining half paid from other revenue sources such as water connection charges, state aid for street construction, special assessments, tax increments and liquor funds. Revenues of $10.7 million are required to pay the debt obligations in 2011. Capital Projects Funds The Capital Projects Funds account for financial resources appropriated to the acquisition of capital facilities and equipment, except those financed by Enterprise Funds. The Municipal State Aid Street Fund accounts for the annual allotment from the State of Minnesota Municipal State Aid Street construction account. The preliminary budget provides $760,815 and $1,968,750 in 2012 and 2013 respectively for the Dodd Boulevard rd project from 183 Street to Hayes Avenue. The five year Capital Improvement Plan contemplates financing the construction of a round-about at County Road 50 and County Road 60 with State Aid funds in 2014. 11 The Pavement Management Fund¶VSULPDU\SXUSRVHLVWRDFFRXQWIRUSDYHPHQW management activities relating to cracksealing, patching, seal coating and overlays. These major maintenance projects are financed primarily with property taxes and Municipal State Aid Street Maintenance Funds. The Improvement Construction Fund accounts primarily for the reconstruction of roads which are no longer cost effective to maintain. Benefitted property owners are specially assessed for 40% of the typical residential street reconstruction; the remaining 60% of street reconstruction costs is financed with property tax levies. General Obligation Improvement bonds are issued to finance the projects with the special assessments and property tax levies pledged to the repayment of the debt. 12 The tax levy for each bond issue is proposed to be amortized over a 10 year period. The estimated tax levies for the street reconstruction projects debt retirement described on page 12 is as follows: Street reconstruction projects for the next three years will be focused in the Valley Park area between Cedar Avenue and Flagstaff Avenue immediately north of Dodd Boulevard. The Building Fund accounts for construction and major maintenance improvements related to government buildings. The preliminary Building Fund budget includes major maintenance projects to be financed in the coming years from the proceeds of the sale of land to Life Time Fitness and other non-tax revenues. The ABLE Fire Training Facility and the replacement of the City Hall roof-top HVAC units will be financed from the Liquor Fund ($640,000) in 2013. A detailed list of the improvements is included in the Capital Improvement Plans 2012-2016 of the Appendix, pages 179-237. A summary of improvements for the coming years is as follows: 13 The Equipment Fund accounts for the acquisition and replacement of vehicles and equipment. All departments evaluated the overall condition of thH&LW\¶VIOHHWDQG equipment. In many cases, the expected useful life of these assets has been extended on the condition that there was no adverse increase in repairs or operating costs. Equipment acquisition for general government purposes, such as police, fire, streets, parks, and technology, are financed primarily with property tax levies. The levies are reduced by non-tax revenues such as sale of assets and transfers from the Liquor Fund. The Liquor Fund and Communications Fund contributions ($857,618 and $688,278 in 2012 and 2013 respectively) result in moderating the tax levies in 2012 and 2013. Although the exact amounts and designations are yet to be determined, it is anticipated that Liquor Funds will continue to be major contributors to reducing future tax levies. The 2012 and 2013 fund balances in the Equipment Fund provide an excellent financial resource for mitigating tax levy increases in future years. The 5 year capital improvement plan is premised on the assumption that equipment will be financed without the issuance of debt unless the equipment has a useful life of more than 20 years and the acquisition results in a significant increase in taxes. In such cases it is recommended that the Council issue short term debt. In 2015, the proposed replacement of a fire truck ($700,000) may be financed with short term debt. Enterprise Funds Enterprise Funds are self-supporting from retail sales and user charges. Operations are managed in much the same way as private enterprises. 14 Liquor Fund sales is anticipated to continue to increase at a modest pace in spite of the intense competition. Net operating income is anticipated to attain $1.54 and $1.57 million in 2012 and 2013 respectively. The Liquor Fund will continue to pay (to the General Fund) its proportionate share of property taxes (not including fiscal disparities and State of Minnesota) in the form of PILT (payments in lieu of taxes) for the Kenrick and Galaxie Liquor Stores. 7KH/LTXRU)XQGVXSSRUWRI,QGHSHQGHQW6FKRRO'LVWULFWIRUWKH³6FKRRO &RPPXQLW\3UHYHQWLRQ6SHFLDOLVW´3URJUDPKDs been subject to Council discussion over the course of the past year. The $18,288 is included in the budget consistent with prior years. The Liquor Fund has grown over the past decade to become the #1 municipal liquor operations in the State of Minnesota. Upon completion of the Liquor Study in early fall, and assuming the Council determines it appropriate to continue liquor operations, the staff recommends the City Council authorize the preparation of a long term operations plan which includes investment in future stores. In anticipation of a continued vision for long-term success of liquor operations consistent with that of the past decade, the capital outlay budget includes appropriations for land acquisition. 15 The Liquor Fund net income is proposed to be appropriated to the following purposes for the coming years. Utility Fund - Water Operations The water operations are responsible for more than $100 million of infrastructure including wells, towers, water mains and the water treatment facility. Major maintenance projects proposed in the coming years are as follows: The water operations service 20,000 more residents today then it did in 1996 when the water treatment facility was constructed. Financing is provided for a Water Treatment Facility Master Plan Update ($33,000) in 2012 to better prepare the City for its future water production needs. Major maintenance projects in 2012 include painting of the Airlake Water Tower and replacement of the watermain on Galaxie Avenue. A transfer of $170,000 to the Water Trunk Fund each year for the next four years is proposed in order to provide adequate cash balances for debt service payments. 16 There are no proposed increases in water rates for the coming year. 8WLOLW\)XQG±6DQLWDU\6HZHU2SHUDWLRQV The treatment and disposal of sanitary sewer effluent is primarily the responsibility of the Metropolitan Council Environmental Services. The City is responsible for maintenance of the system infrastructure such as sanitary sewer lines and lift stations. Periodic maintenance and cleaniQJRIWKH&LW\¶VPLOHVRIVDQLWDU\VHZHUOLQHVRQD regular schedule over a four year period, in order to prevent sewer backup, is a high priority. A full time maintenance position is SURSRVHGVWDUWLQJLQPLG±LQRUGHUWR achieve the basic infrastructure maintenance. The position will be primarily responsible for cleaning of sanitary sewer lines utilizing a sewer jetter. The sewer jetter acquisition ($176,506) is also included in the 2013 budget. Major maintenance projects include inflow and infiltration mitigation efforts, lift station rehabilitations and lining of the Lake Marion sanitary sewer main in 2012. The sanitary sewer operation change in working capital is summarized as follows: 17 Sanitary Sewer Operations ,QFUHDVH,QFUHDVH 20122013 GHFUDVH GHFUDVH Revenues User charges for services4,350,064$ $ 4,374,011 $ 27,947$ 23,947 Expenditures MCES sewer charges2,884,184 2,884,184 (66,306) - Personnel674,460 693,499 2,920 19,039 Commodities79,566 79,655 (478) 89 Contractual and other svs223,118 224,703 7,395 1,585 Major maintenance595,000 136,000 502,400 (459,000) Capital outlay18,155 235,438 (41,797) 217,283 Transfers, net116,482 116,924 7442 Total expenditures4,590,965 4,370,403 404,141 (220,562) Net increase/(decrease)(240,901) 3,608 (376,194) 244,509 Working capital - January 12,624,457 2,383,556 135,293 (240,901) Working capital - December 312,383,556$ $ 2,387,164 $ (240,901)$ 3,608 8WLOLW\)XQG±6WUHHW/LJKWV2SHUDWLRQV The purpose of the Street Light Operations is to provide adequate lighting for public safety on city streets. Electricity costs charged by Dakota Electric Association (DEA) and Xcel Energy are more than 95% of the total budget. The electric utilities have not, as of yet, established their rates for 2012. Any increase in electric utility costs will result in a corresponding rate adjustment for Lakeville residents and businesses. The following is a summary of the preliminary budget. 18 8WLOLW\)XQG±(QYLURQPHQWDO5HVRXUFHV The Environmental Resources Operations provide a wide range of environmental services which are described in a subsequent section including surface water management and the city wide recycling efforts. Significant projects provided for in the budget are as follows: There are no proposed changes to the surface water management fees. The following is a summary of the preliminary budget. The Environmental Resources Fund was accounted for as a Special Revenue Fund in prior years. However, the Fund is reclassified as an Enterprise Fund in 2011 as a result of changes to governmental accounting standards board pronouncements. 19 Utility Fund Rates There are currently no proposed changes to utility rates. However, potential cost increases by the electric utilities (Dakota Electric Association and Xcel Energy) may necessitate increases in street lighting rates. Internal Service Funds The Municipal Reserves Fund is used to account for thH&LW\¶VULVNPDQDJHPHQW program relating to general liability, excess liability, property, and casualty insurance costs which are charged to other City departments on a cost reimbursement basis. The proposed 2012 and 2013 reimbursements (transfers from other funds) are substantially less than prior years due to favorable claims history and stability in insurance premiums charged by LMCIT. A summary of the preliminary budget is as follows. 20 The Compensation Liability Fund accounts for the accrued liability of employee benefits attributed to severance compensation. Personnel costs are financed with charges for services paid by the General and Special Revenue Funds. The objective of the fund is to maintain the net assets at a level of approximately 50% of the accrued liabilities. The Compensation Liability Fund was accounted for as a Special Revenue Fund in prior years. However, the Fund will be reclassified as an Internal Service Fund in 2011 as a result of changes to governmental accounting standards board pronouncements. Taxes The challenges for 2012 and 2013 are the continued tax increases due equipment replacement, street reconstruction projects and overall operations for City services such as police, fire, streets and park system maintenance. 21 The overwhelming share of City taxes pay for the operating costs of providing services such as police, fire, street maintenance, and parks and recreation. In July 2011, the Governor and Legislature approved the replacement of the Market Value Homestead Credit (MVHC) program with the Market Value Exclusion program effective for 2012 and beyond. The original intent of the Market Value Homestead Credit program was to give residential property owners a property tax credit of up to $304. The state would thus reimburse cities, counties and school districts for the reduction in tax revenues due to the credit given to homeowners. However, when the State struggled with its budget (8 out the last 10 years), many cities, such as Lakeville, did not receive their reimbursements from the State of Minnesota. Lakeville therefore has had to increase its tax levy to offset the loss of revenues. The on-going budget constraints compelled the State to eliminate the Market Value Homestead Credit starting in 2012. The Market Value Homestead Credit levy is therefore eliminated from the preliminary 2012 and 2013 tax levy. The General Fund budget anticipated a fund balance which was 40% of expenditures. The 2010 actual fund balance however, exceeded the 40% objective by $774,138. The 2012 preliminary budget and 2013 estimated budget is premised on the assumption that the 2010 fund balance carry over would be appropriated to reduce the General Fund tax levy by approximately $291,000 and $483,000 in 2012 and 2013 respectively. Budget Process Two open houses will be conducted where department staff and City Council will be available to address attendee questions and concerns relative to the budget and/or services. A budget presentation meeting will also be offered to the Chamber of Commerce Public Policy (formerly Government Affairs) Committee. Final approval of the Tax Levy and Budget in scheduled for December 5. 22 th 1. 4 week September Presentation to Chamber of Commerce Public Policy Committee 2.October 5 Presentation at Public Open House 3.November 9 Presentation at Public Open House 4.December 5 Truth in Taxation public hearing Budget and tax levy information will be available on the City web-site. Messages articles as well as cable TV programs will provide information to the public regarding the public presentations. Irrespective of the scheduled public meeting events, residents are encouraged to continue communicating their questions, comments and concerns with City staff and/or City Council Members. The City staff looks forward to City CRXQFLOGLUHFWLRQRQHVWDEOLVKLQJWKH± Prliminary Budget. Respectfully submitted, Steven C. Mielke City Administrator 23 24 CITY OF LAKEVILLE, MINNESOTA Elected and Appointed Officials Elected Officials Mayor Mark Bellows Council Member Laurie Rieb Council Member Kerrin Swecker Council Member Matt Little Council Member Colleen Ratzlaff LaBeau Appointed Officials City Administrator Steven C. Mielke Finance Director/Treasurer Dennis Feller City Clerk Charlene Friedges Police Chief Thomas Vonhof Fire Chief Michael Meyer Operations and Maintenance Director 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 25 CITY OF LAKEVILLE, MINNESOTA Organization Structure December 31, 2011 &LWL]HQVRI/DNHYLOOH 0D\RUDQG&LW\&RXQFLO Housing and Redevelopment Authority City Attorney Economic Parks, Recreation Development & Natural Cable TV Board Lakeville Area Finance Planning ResourcesArts Center Board Commission Commission Committee Committee City Administrator Communications Human Planning Community EngineeringOperations Parks and 2II6DOH Police Finance Fire Resources and and Recreation /LTXRU Economic Maintenance Development Labor Communication Inspection Planning Building AccountingPlan ReviewStreets Development Investigation Relations Accounts PreventionDesign Maintenance Zoning Inspection Utilities Patrol Compensation ReceivableSuppression Economic Inspection Physical Planning Benefits Animal Accounts Survey Facilities Recreation Development Recruitment Control Payable Special Fleet Arts Center Utility Billing AssessmentsManagement Information G.I.S. Environmental Systems Resources and Recycling 26 CITY OF LAKEVILLE, MINNESOTA Relationships Between Departments and Funds December 31, 2011 Community General andOperations GovernmentEconomicandParks andOff-Sale FundsAdmin.DevelopmentFinancePoliceFireEngineeringMaintenanceRecreationLiquor General FundXXXXXXXX Special Revenue Funds: CommunicationsX Economic DevelopmentX Debt Service Funds:X Capital Projects Funds: Municipal State-aidX Pavement Mgmt.XX Improvement Const.X Storm SewerXX WaterXX Sanitary SewerXX Park DedicationX Trail ImprovementX Tax IncrementXX BuildingXXXXXX EquipmentXXXX Enterprise Funds: LiquorX UtilityXX Internal Service Fund: Municipal ReservesX Compensation LiabilityX 27 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 DYDLODEOH ³0HDVXUDEOH´PHDQVWKHDPRXQWRIWKHWUDQVDFWLRQFDQEHGHWHUPLQHGDQG³DYDLODEOH´ 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 fXQG¶VRSHUDWLRQV5HYHQXHVDUH 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, the Internal Service Municipal Reserves Fund and Compensation Liability Fund. $EXGJHWLVQRWDGRSWHGIRUWKH&LW\¶VFiduciary Agency Fund. 7KH&LW\¶VDXGLWHGILQDQFLDOVWDWHPHQWXVHVthe modified accrual basis of accounting for all governmental funds (at the fund level), and uses the accrual basis of accounting for all proprietary funds. 28 FINANCIAL AND BUDGET POLICIES (continued) Operating Budgets 7KH&LW\¶VRSHUDWLQJEXGJHWSROLF\VHWVIRUWKguidance with respect to balanced operating budgets, with an overriding goal of achieving structural balance over a longer-term period, while recognizing that in certain periods, revenues and expenditures may not be equal. A balanced budget for the General Fund is defined as revenues and other sources equal to or exceeding operating expenditures and other uses. Other sources can include that portion of General Fund balance that is allowed to be budgeted for use SHUWKH&LW\¶VIXQGEDODQFHSROLF\7KHEXGJHW 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 Funds shall be sufficient to support such activities, with no trend of operating deficits. Budget amounts are as originally adopted or as amended by City Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is at the department level for the General Fund and total expenditures level 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. 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). 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 during the budget process. Sensitivity to market rates will also be considered in setting fees. 29 FINANCIAL AND BUDGET POLICIES (continued) 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 WRWKHJUDQW¶VSXUSRVHDQGWR provide an overall budgetary review of grant proposals. Investment income shall be budgeted conservatively. Investments Investments made by the City will be in conformance with the City of /DNHYLOOH¶V,QYHVWPHQW 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. ,WLVWKH&LW\¶VSROLF\WRLQYHVWDOODYDLODEOHPRQLHVDWFRPSHWLWLYHLQWHUHVWUDWHVFRRUGLQDWHG ZLWKSURMHFWLRQVRIWKH&LW\¶VRSHUDWLQJDQGSURJram 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 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 adHTXDWHWRSURWHFWWKH&LW\¶VFDSLWDOLQYHVWPHQW 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. 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. 30 FINANCIAL AND BUDGET POLICIES (continued) Debt 7KH&LW\¶VGHEWSROLF\SURYLGHVJXLGDQFHWRHQVXUHthat 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 &LW\¶VWD[DEOHPDUNHW value. Fund Balance Fund balance or net assets are terms used to defiQHWKHGLIIHUHQFHEHWZHHQDIXQG¶VDVVHWVDQGLWV liabilities. Fund balance is used in governmental fund types and net assets are used in proprietary fund types. The &LW\¶V*HQHUDO)XQGunreserved fund balance, designated for working capital as of the end of the year, should equaOWRRIWKHQH[W\HDU¶VEXGJHWHG expenditures. Fund balance may be used for the following: Provide flexibility if State law significantly liPLWVWKH&LW\¶VWD[LQJDQGVSHQGLQJSRZHUV This could include legislation regarding levy limits, property tax freezes, levy referendum requirements, etc. Provide flexibility if the State eliminates or reduces State revenue including fire pension aid, police pension aid, aid for streets, or PERA pension aid. Provide some protection for future funding needs of the capital improvement plan including possible liquor operations legislation. 6XSSRUWWKH&LW\¶VERQGUDWLQJ 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 inWKH&LW\¶VRSHUDWLQJ environment. 31 2012 BUDGET DEVELOPMENT PROCESS AND CALENDAR 6WDWH6WDWXWHVORFDORUGLQDQFHVDQGWKH&LW\¶V 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 2012 budget process: March 2011 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 2011 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 2011 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 2011 th City Council approval of preliminary budget and property tax levy on September 6. th Preliminary property tax levy certified to Dakota County by September 19. October 2011 Open house to provide public the opportunity to ask questions and present comments on th October 5. November 2011 City Council work session to review changes to the proposed budget. Open house to provide public the opportunity to ask questions and present comments on th November 9. Dakota County sends a notice to taxpayers indicating their property tax and the date of each WD[LQJMXULVGLFWLRQ¶s budget hearing. December 2011 &LW\&RXQFLOKROGVD³7UXWKLQ7D[DWLRQ´ public hearing on the final budget and final th property tax levy on December 5. 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 19. th Final property tax levy certified to Dakota County by December 20. 32 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 propriHWDU\IXQGW\SHV 7KH&LW\¶VILVFal 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 of the City. Special Revenue Funds The special revenue funds are used to account for the proceeds of specific revenue sources that are designated or legally restricted to expenditures for specified purposes. Special revenue funds utilized by the City include the following: Communications Economic development Debt Service Funds The debt service funds are used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs not funded by proprietary fund type operations. The property taxes fund and special assessments fund are considered to be major funds of the City. Debt service funds utilized by the City include the following: Property taxes Special assessments Tax increment State-aid Water revenue Arena revenue HRA lease revenue Capital Projects Funds The capital projects funds are used to account for financial resources to be used for the acquisition of equipment, construction of major capital facilities and infrastructure, or other long-term projects. The City prepares a 5-year capital improvement plan 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. 33 DESCRIPTION OF CITY FUNDS AND ACCOUNTING STRUCTURE Governmental Fund Types (continued) Capital Projects Funds (continued) As such, appropriations for uncompleted capital projects are not available for re- appropriation in subsequent years. The municipal State Aid fund and improvement construction fund are considered to be major funds of the City. Capital projects funds utilized by the City include the following: Municipal State-aid Pavement management Improvement construction Storm sewer Water Sanitary sewer Park dedication Trail improvement Tax increment Building Equipment Proprietary Fund Types Budgets are appropriated for the following proprietary funds through which functions of WKH&LW\¶VSURSULHWDU\DFWLYLWLHVDUHIXQGHGSUimarily through retail sales and user charges. Enterprise Funds The enterprise funds are used to account for operations (a) that are financed and RSHUDWHGLQDPDQQHUVLPLODUWRSULYDWHEXVLQHVV±ZKHUHWKHLQWHQWRIWKH governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis are to be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. The liquor fund and utility fund are considered to be major funds of the City. Internal Service Funds The internal service funds are used to account for the financing of goods or services provided by one City department to other City departments. The City utilizes the municipal reserves fund and the compensation liability fund as internal service funds. 34 PROPERTY TAXES Tax Levy The preliminary 2012 tax levy is $23,376,570 which is a $660,802 (2.7%) decrease. The primary reason for the decrease is the State of Minnesota 2011 legislative replacement of the Market Value Homestead Credit program with a Market Value Exclusion program. A discussion of the legislative changes is discussed below. The preliminary tax levy takes into consideration decreases for General Fund operations ($118,215), debt for equipment acquisitions ($325,863) and the fire station #4 debt payments which are proposed to be called and paid entirely by the Liquor Fund. Tax levy increases are proposed as a result of the debt service requirements due to the Street Reconstruction program ($319,816) and equipment acquisitions and replacements ($161,878). The estimated 2013 tax levy is $23,999,701 which is a $623,131 increase. The primary reason for the increase is General Fund operations ($542,184), debt service payments for street reconstruction program ($151,258) and the equipment acquisition and replacement program ($175,916). The tax levy is proposed to be reduced by $991,636 and $1,006,727 in 2012 and 2013 respectively with contributions from the Liquor Fund. The preliminary 2012 tax levy and estimated 2013 tax levy are as follows: 35 PROPERTY TAXES (continued) The tax levy for street reconstruction debt service will be a factor for tax levy increases in 2012, 2013 and future years. Benefitted property owners are specially assessed for 40% of the typical residential street reconstruction; the remaining 60% of street reconstruction costs is financed with property tax levies. General Obligation Improvement bonds are issued to finance the projects with the special assessments and property tax levies pledged to the repayment of the debt. In order to mitigate the adverse tax impact to residents and businesses, the preliminary budget assumes the issuance of General Obligation Improvement Bonds with the City share of cost being amortized over a 10 year period. Property Tax: Levy limits The City Council, at it June 6 meeting, approved participation in the Performance Measures program which exempts the City of Lakeville from levy limits. Market Value Homestead Credit: State-aid - Property Tax Relief The Market Value Homestead Credit was created in 2001 to give residential property owners a property credit of up to $304 for homes valued at $76,000. For Homesteads with market values over $76,000, the credit is reduced by .09 percent of the excess market value. Homesteads with market value of $413,800 and higher do not receive a credit. Non-residential properties are also not eligible to receive the credit. The following is an example of how property taxes are calculated in 2011 and prior years with the Market Value Homestead Credit law. The original intent of the law was for the State to reimburse cities, counties and school district for the reduction in tax revenues due to the credit given to homeowners. However, when the State struggled with its budget (8 out the last 10 years), many cities, such as Lakeville, did not 36 PROPERTY TAXES (continued) receive their full reimbursements from the State of Minnesota. Lakeville therefore has had to increase its tax levy to offset the loss of revenues. In July 2011, the Governor and Legislature approved the replacement of the Market Value Homestead Credit (MVHC) program with a Market Value Exclusion program effective for 2012 and beyond. The Market Value Homestead Credit levy is therefore eliminated from the City of Lakeville preliminary 2012 and estimated 2013 tax levy. Market Value Exclusion To buffer the adverse tax impact for residential properties as a result of eliminating the Market Value Homestead Credit, the legislature created the Market Value Exclusion program. Eligibility of the exclusion mimics the Market Value Homestead Credit program. The program reduces the taxable market value by $30,400 for a $76,000 home. The exclusion decreases by 9% percent for the value in excess of $76,000. Homesteads with a market value in of $413,800 and higher do not receive a credit. Non-residential properties are also not eligible to receive the credit. $WWKHWLPHRIWKLVGRFXPHQW¶VSXEOLFDWLRQWKHUHis insufficient data available to determine the RXWFRPHRI&LW\RI/DNHYLOOH¶Vproposed 2012 tax levy on the various property values or classes. It is reasonable to assume, however, that the replacement of the Market Value Homestead Credit with the Market Value Exclusion program will haYHPLQLPDOLPSDFWRQWKH&LW\RI/DNHYLOOH¶V share of taxes on residential properties. The assumption is based on the fact that unlike previous years, the City of Lakeville will not be levying for the loss of market value homestead credit in 2012. Hence, the elimination of the Market Value Homestead Credit is offset by the reduction in the proposed 2012 tax levy ($788,027) for the Market Value Homestead Credit. The tax impact of the new law on high value residential (over $413,800 market value) or non-residential property is unknown at this time. 37 PROPERTY TAXES (continued) Tax Levy Analysis 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. 38 PROPERTY TAXES (continued) 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. 39 PROPERTY TAXES (continued) The following is a comparison of the 2012 and 2013 tax levies as applied to the various General Fund departments, equipment acquisitions, pavement management, and debt service. $Percent 2013Increase/Increase/ (Decrease)(Decrease) Tax Levy Mayor and Council91,374$ 1,152$ 1.3% Committees and Commissions59,039 1,645 2.9% City administration267,421 167 0.1% City Clerk108,191 (62,366) (36.6%) Finance426,959 998 0.2% Information systems387,026 12,589 3.4% Human resources256,734 (3,182) (1.2%) Insurance213,550 887 0.4% Legal counsel62,295 259 0.4% Planning272,195 (4,932) (1.8%) Community and economic development283,936 5,168 1.9% 333,255 (30,276) General government facilities(8.3%) 2,761,975 (77,891) Total general government (2.7%) Police7,194,810 99,209 1.4% 1,085,641 39,591 Fire3.8% 8,280,451 138,800 Total public safety1.7% Engineering278,419 88,484 46.6% 2,429,743 82,946 Streets3.5% 2,708,162 171,430 Total public works 6.8% Parks2,045,128 (7,815) (0.4%) Recreation312,944 20,843 7.1% 202,115 3,758 Arts Center1.9% 2,560,187 16,786 Total parks and recreation0.7% 601,594 257,044 Contingency74.6% 16,912,369 506,169 Total general fund operations3.1% Equipment acquisitions889,222 196,840 28.4% 1,016,505 (232,083) Pavement Management(18.6%) 1,905,727 (35,243) Total capital projects(1.8%) Street Improvement Bonds2,587,297 151,258 6.2% Capital Improvement Bonds - Police980,113 18,917 2.0% Capital Improvement Bonds - CMF906,506 23,506 2.7% Park Bonds417,722 1,191 0.3% Ice Arena Bonds284,070 3,037 1.1% 5,897 (45,704) Arts Center Bonds(88.6%) 5,181,605 152,205 Total debt service 3.0% 623,131$ $ 23,999,701 Total City wide levy2.7% 40 PROPERTY TAXES (continued) The following is a graphic representation of the changes in the 2013 tax levy from the 2012 tax levy by the various programs and debt service. 41 PROPERTY TAXES (continued) Tax Base Due to the recent enactment of the market value exclusion law, the tax base data is not available at the time of publication of this document. 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 SHUFHQWDJHRIHDFKSDUFHO¶VPDUNHWYDOXH7Ke following is an overview of the major property classes and class rates. Class Rates Property Type 2012 Residential Homestead Up to $500,000 1.00% Over $500,000 1.25% Residential Non-homestead Single Unit Up to $500,000 1.00% Over $500,000 1.25% 1-3 unit and undeveloped land 1.25% Market Rate Apartments Regular 1.25% Commercial/Industrial/Public Utility Up to $150,000 1.50% Over $150,000 2.00% Electric Generation 2.00% Machinery Seasonal Recreational Residential Up to $500,000 1.00% Over $500,000 1.25% Agricultural Land & Buildings Homestead Up to $500,000 1.00% Over $500,000 1.00% Remainder of Farm Up to $790,000 0.55% Over $790,000 1.00% Non-homestead 1.00% The State of Minnesota has sole responsibility for the tax structure of the various property classes. 42 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 7KH)XQG%DODQFH3ROLF\VWDWHV³7KH&LW\¶VXQUHVHUYHGIXQGEDODQFH±GHVLJQDWHGIRUZRUNLQJ FDSLWDODVRIWKHHQGRIWKH\HDU±VKRXOGequal 40% to 50% of WKHQH[W\HDU¶VEXGJHWHG H[SHQGLWXUHV´ The fund balance represents the amount of funds required to operate during the first six months RIWKH\HDU7KH&LW\¶VPRVWVLJQLILFDQWUHYHQXHVRXUFHV±WD[HVDQGLQWHUJRYHUQPHQWDOUHYHQXH ±GRQRWSURYLGHDSSUHFLDEOHUHYHQXHVuntil 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 factRULQGHWHUPLQLQJWKH&LW\¶VERQGUDWLQJDQG resulting interest costs. The General Fund 2011 budget anticipated a fund balance which was 40% of expenditures; however, the 2010 actual fund balance (carried forward to 2011) exceeded the objective by $774,138. The 2012 preliminary budget and 2013 estimated budget is premised on the assumption that the 2010 fund balance carry over would be appropriated to reduce the General Fund tax levy by approximately $291,000 and $483,000 in 2012 and 2013 respectively. The appropriation of the 2010 fund balance to the reduction of tax levies results in a 42.4% and 40.0% fund balance to expenditure ratio for 2012 and 2013 respectively. 43 44 (continued) 45 (continued) 46 General Fund Schedule of Revenues and Other Financing Sources (Uses) 201120122013 2010Amended2011ProposedEstimated ActuaBudgetEstimateBudgetBudget l Intergovernmental State-aid police337,53$ 337,5816$ 337,581$ 337,581$ 337,581$ State-aid fire relief199,224 190,20 190,2099 190,209 190,209 State-aid streets373,801 374,962 State-aid pensions21,303 21,303 21,303 21,303 21,303 State POST Board grant 21,0118,642 18,6160 18,61 18,616 6 State Drug Task Force grant14,050 State performance aid7,834 7,834 State gun range environmental grant 27,200 State Police protective vests grant 2,1001,702 2,100 2,100 2,100 State fire traininggrant3,098 State ski trail grant 1,613 grant 20200 2000 200 200 State snowmobile trail maint. Federal traffic safety project 10,345 Federal DWI enforcemen t 504 Federal operation nite-cap 2,872 Federal underage consumption/Poss grant 1,300 Federal highway enforcement 19,447 Fed. CDBG community development 40,0005,535 Federal Safe Routes to School gran t 5,612 Dakota Communications Center rebate 65,529 County Police special operations trainin g 3,122 -41,900 - - - County recycling grant 961,4151,113,285 637,209 577,843 577,843 Total intergovernmental (continued) 47 General Fund Schedule of Revenues and Other Financing Sources (Uses) 201120122013 d2011ProposedEstimated 2010Amende ActuaBudgetEstimateBudgetBudget l Charges for services General government Rezoning fees2,500$ 75$ 1,500$ 1,000$ 1,500$ 0 g fees8,360 4,500 5,200 4,900 5,400 Plattin Variance fees1,050 60 2500 250 250 PUD application fees2,000 50 500 1,000 1,000 0 s 2,4004,300 3,400 3,200 3,200 CUP fee Home occupation fees25 500 3000 400 400 Planner fees20,653 24,00 38,000 42,000 46,000 0 pection department fees 13,257,913 10,5288 7,962 8,328 Ins General government service charge20,75 3,4485 3,348 3,348 3,348 Tree escrow fund administratio 1,20050 450 500 500 n2 ging tax fee6,950 6,500 6,500 6,750 6,750 Lod Fiscal Agent - Dakota Comm. Ctr.59,400 60,58 61,8008 61,800 63,03 6 Fiscal Agent - Arenas16,000 32,000 32,000 32,000 32,000 Investment management fees 27,3926,597 27,3955 28,21 28,217 7 Sale of maps/copies214 20 2000 200 200 150 149 151 151 606 Finance charges 177,989178,050 191,520 193,678 200,280 Total general government Public safety Police department charges70,991 52,77 76,0995 76,099 75,85 5 SRO - ISD 194 contributions153,034 153,98 153,9855 153,98 153,985 5 Animal pickup 3,426 3,876 3,876 3,876 3,876 Animal storage6,21 7,2397 7,239 7,239 7,239 Animal rabies 3,952,666 2,6107 2,610 2,610 Restitution1,955 3,000 3,000 3,000 3,000 Forfeiture - sale of assets 14,4042,078 30,0000 30,000 30,000 Fire contracts32,270 33,24 33,2400 34,240 35,270 Fire department charges4,146 1,750 2,800 2,800 2,800 12,12311,885 12,123 12,300 12,490 ALF Ambulance - admin. charge 286,345328,668 324,972 326,149 327,125 Total public safety (continued) 48 General Fund Schedule of Revenues and Other Financing Sources (Uses) 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgeBudge tt Charges for services (continued) Public works Engineering platting - preliminary$ 1,5016,935$ 9,0000$ 9,00$ 9,000$ 0 Engineering platting - final4,270 1,200 5,500 5,500 5,500 Engineering plan review5 5,939 7,000 7,000 7,000 ,000 Engineering drawing/base map prep 1,5001,950 1,50 1,500 0 Engineering developer insp. fees24,899 1,000 15,000 20,000 25,000 Engineering developer cont. admin.40,77 10,007 25,0000 30,00 35,000 0 Engineering Imp. Proj. design variable68 50,460 73,560 107,800 56,600 ,200 Engineering Imp. Proj. const. inspect.77,017 56,800 50,400 89,625 63,300 Engineering street reconstruction projects40,000 89,80 68,000 0 Engineering G.I.S. fees5 4,875 4,200 4,200 4,200 ,200 Special assessment admin. charge83,498 60,162 65,608 62,810 65,577 Special assessment searches45 300 3000 30 300 0 Document/map sales359 20 5000 50 500 0 Bid plan/spec. deposits593 500 600 600 600 Street department charges11 12,638 12,000 12,000 12,000 ,000 Credit River - Judicial Road maint.2,396 2,746 2,746 2,746 2,746 Developer street signs installation 2,4003,327 2,400 2,400 2,400 208,568348,383 315,554 445,581 358,823 Total public works Parks, recreation and arts center Brochure advertising 76,600 7,050 7,050 7,050 ,050 Youth activities138,77 112,585 112,5822 112,582 112,582 Youth activities donations536 Youth sport surcharge27,865 36,70 32,0000 32,00 32,000 0 pecial events13 13,920 13,391 13,391 13,391 ,391 Youth s Youth special events donations1,150 1,400 1,400 1,400 1,400 Adult activities62,942 70,45 70,4500 70,45 70,450 0 Puppet wagon donations3 3,000 3,870 3,350 3,000 ,000 Safety Camp2,626 3,000 3,000 3,000 3,000 y Camp donations1 1,100 1,100 1,100 1,100 ,100 Safet Senior Center donations47 4700 47 470 0 Senior Center dues/activities22,296 Senior Center excursions12 20,846 20,000 20,000 20,000 ,000 Ritter Farm Park ELC 6,6829,522 6,682 6,682 6,682 Excursions12,237 7,920 7,920 7,920 7,920 12,58212,214 9,606 9,606 9,606 Tennis lessons Total recreation programs305,333 297,197 289,001 288,651 310,947 Park rental/maint./tournament fees27,231 29,903 27,231 27,231 27,231 Tree sales (net) 54,963 3,000 3,841 3,841 ,841 Senior Center membership surcharge4,355 4,010 4,010 4,010 4,010 440490 440 440 440 Senior Center rentals 336,550342,372 324,523 324,173 346,469 Total parks and recreation (continued) 49 General Fund Schedule of Revenues and Other Financing Sources (Uses) 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Charges for services (continued) Parks, recreation and arts center (continued) Arts center program fees79,263$ 68,25$ 71,0000$ 72,000$ 74,000$ Arts center on-sale 5,0004,470 5,000 5,000 139,600145,119 155,731 160,100 160,600 Arts center rental/event admissions 212,320224,382 231,731 237,100 239,600 Total arts center 548,870566,754 556,254 561,273 586,069 Total parks, recreation and arts center 1,221,7721,421,855 1,388,300 1,526,681 1,472,297 Total charges for services 294,026295,496 275,877 279,301 296,455 Court fines 125,17596,958 92,400 91,795 104,313 Investment income Miscellaneous Disposal of assets11,732 9,445 5,150 5,150 5,150 g 40400 4000 400 400 Park rental farmin Donations48,647 27,281 9,977 8,145 8,314 Antenna site leases44,355 44,581 44,495 45,162 45,839 -67 - - - Other 81,707105,201 60,022 58,857 59,703 Total miscellaneous Other financing sources (uses) - Transfers Special Revenue From Communications Fund42,069 42,551 41,691 42,793 42,891 151,9919 From Environmental Resources Fund148,46 Debt Service To Special Assessments Fund(107,490) Capital Projects gement Fund(140,374) To Pavement Mana To Building Fund(52,136) To Equipment Fund(1,285,791) To Trail Improvement Fund(1,400,000) Enterprise From Liquor Fund 143,814 144,95 144,9690 182,434 218,449 From Utility Fund260,339 271,725 401,753 409,259 413,724 Agency Escrow - Police Canine11,581 44,43543,140 44,435 45,767 47,141 From Internal Service - Muni. Res. Fund (2,347,960) 655,652 632,848 680,253 733,786 Total other financing (net) 50 MAYOR AND COUNCIL Program Description: The Mayor and City Council are the legislative and governing body of the City of Lakeville. The Mayor and four City Council Members are elected at-large; the Mayor 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 provides day- to-day City operations. Services: Represents the People of Lakeville. limited to levying taxes, adopting a budget, disbursement of public monies, Exercises legislative authority through and issuance of debt. the enactment of ordinances, policies, and resolutions. Formulates policies that will help the City prepare for the future and adjust to &RQGXFWVWKH&LW\¶VLQWHUJRYHUQPHQWDO 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 Directs 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 Provides leadership by promoting ideas work of municipal associations such as and programs which serve the the League of Minnesota Cites. community. +DVWKHIXOODXWKRULW\RYHUWKH&LW\¶V financial affairs, including but not 51 MAYOR AND COUNCIL (continued) Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services48,621$ 49,32$ 49,7427$ 49,752$ 49,754$ Commodities 50- 50 50 50 43,33154,711 42,886 44,922 45,731 Other charges and services $ 92,708103,332$ 92,678$ 94,724$ 95,535$ Total Revenue sources $ 92,708103,332$ 92,678$ 94,724$ 95,535$ Taxes and other public funds Budget Factors: 3HUVRQQHOVHUYLFHVThere are no changes to the Mayor and Council salary structure for 2012 or 2013. &RPPRGLWLHVThere are no changes in commodities for 2012 and 2013. 2WKHUFKDUJHVDQGVHUYLFHVThe other charges and services budget increases are primarily attributable to organizational dues for those organizations which provide administrative and legislative guidance including the League of Minnesota Cities ($26,972), Municipal Legislative Commission ($10,000) and the I-35 Alliance ($3,000). The 2012 budget also provides appropriations of $750 per council member for miscellaneous expenses. 52 COMMITTEES AND COMMISSIONS Program Description: The City has a number of committees which provide recommendations to the City Council relating primarily to policy issues. Committees include Planning, Economic Development, Finance, Lakeville Area Arts Center, Parks Recreation and Natural Resources, Lakeville Yellow Ribbon, Cable TV Board and the Pan-O-Prog community celebration. Services: Advise City Council relative to policy issues. Staff support of the annual Pan-O-Prog community celebration. Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services44,02$ 45,7510$ 45,741$ 47,53$ 48,898$ 4 Commoditie 21776 1159 1864 1924 981 s,,,,, 36,581 16,756 16,941 17,167 33,541 Other charges and services $ 84,49179,337$ 64,361$ 66,403$ 68,042$ Total Revenue sources Miscellaneous28,621$ 27,281$ 5,481$ 5,645$ 5,814$ Other financing sources 501,998 500 500 500 0 56,71048,718 58,380 60,258 61,728 Taxes and other public funds $ 84,49179,337$ 64,361$ 66,403$ 68,042$ Total 53 COMMITTEES AND COMMISSIONS (continued) Budget Factors: 3HUVRQQHOVHUYLFHVThe personnel services budget increases are primarily due to staffing for Pan-O-Prog events and the establishment of the Finance Committee which will begin meetings in the fall of 2011. The Pan-O-Prog budget only includes overtime cost; it does not include work performed during regular scheduled work hours. &RPPRGLWLHVThe commodities budget increases are attributable to Pan-O-Prog signage. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services are anticipated to increase in both 2012 and 2013. The increases are attributable to the appreciation dinner for the new Finance Committee and waste disposal at Pan-O-Prog. The decrease in the 2011 estimate from the th 2011 budget relates to the July 4 fireworks display where, in prior years, the City solicited and collected donations to cover the costs of the display. The pyrotechnics contract and solicitation of donations is the responsibility of the Pan-O-Prog organization in 2011 and future years. 54 CITY ADMINISTRATION Program Description: The City Administration Department, under the direction of the City Administrator, is charged with implementing policy and direction established by the City Council. It is the responsibility of the City Administrator to provide the overall direction for the City organization in accordance with policies established by the City Council. Other responsibilities are to ensure that City operations are conducted efficiently and effectively such that City Council and citizen concerns are addressed. The department also develops recommendations to the City Council regarding programs, operations and policies. In addition, the City Administrator presents, reviews and monitors the annual operating budget for the City. This leadership helps to ensure that 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 as 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: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate City Administrator 1.01.01.01.0 1.0 Assistant to City Administrator 0.50.50.50.5 0.5 Executive Administrative Assistant/ Deputy Clerk 1.01.01.01.0 1.0 Total 2.5 2.5 2.5 2.5 2.5 55 CITY ADMINISTRATION (continued) Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services304$ 309,349$ 306,035$ 308,401$ 308,853$ ,866 Commodities353 900 900 900 900 Other charges and services7,997 11,49 10,2172 10,74 10,7632 2,069 1,383 1,032 - - Capital outlay $ 323,496312,699$ 318,901$ 321,527$ 320,529$ Total Revenue sources Other financing sources41$ 42,224$ 42,027$ 40,027$ 40,937$ ,930 281,469271,475 276,874 280,590 279,599 Taxes and other public funds $ 323,496312,699$ 318,901$ 321,527$ 320,529$ Total Budget Factors: 3HUVRQQHOVHUYLFHVThe personnel services budget increases are the results of a compensation liability distribution and workers compensation insurance. &RPPRGLWLHVThere is no change in commodities for either 2012 or 2013. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services budget will increase in 2012 and 2013. These increases are due to conference expenses and cellular services. &DSLWDORXWOD\The 2012 capital outlay is attributable to a Microsoft Office upgrade. 56 CITY CLERK Program Description: The City Clerk is a statutory office that is responsible for City records management, election administration, legal notification to the public, the issuance of licenses and permits, and the preparation and retention of 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: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget EstimateBudget Estimate City Clerk 1.01.01.01.0 1.0 Total 1.01.01.01.0 1.0 Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services102$ 100,048$ 99,764$ 104,588$ 100,248$ ,368 Commodities1 300,150 300 1 300,900 Other charges and services51,451 13,650 14,280 61,36 12,4507 254369 254 11,553 47,025 Capital outlay $ 114,968155,018$ 114,422$ 179,068$ 160,143$ Total Revenue sources Other financing sources$ -$ -$ -$ 47-$ ,025 114,968155,018 114,422 179,068 113,118 Taxes and other public funds $ 114,968155,018$ 114,422$ 179,068$ 160,143$ Total 57 CITY CLERK (continued) Budget Factors: 3HUVRQQHOVHUYLFHVThere were no elections in 2011 and therefore personnel costs overall will increase in 2012 but will decrease in 2013 as a result of the absence of elections. &RPPRGLWLHVCommodities will increase in 2012 because of the Presidential elections and decrease in 2013 due to the absence of elections. 2WKHUFKDUJHVDQGVHUYLFHVElection judges are considered contract employees. As such, the increase in 2012 and corresponding decrease in 2013 is primarily related to election activities. &DSLWDORXWOD\Capital outlay is attributable to three additional touch screen voting stations and three additional voting tabulators in 2012 and twenty replacement voting tabulators in 2013. 58 LEGAL COUNSEL Program Description: 7KH&LW\$WWRUQH\¶VRIILFHKDVWKHVWDWXWRU\UHsponsibility 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 KDQGOHWKH&LW\¶VOHJDO 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: 201120122013 posedEstimated 2010Amended2011Pro ActualBudgetEstimateBudgetBudget Expenditures $ 65,13263,109$ 65,132$ 65,132$ 65,132$ Other charges and services Revenue sources $ 65,13263,109$ 65,132$ 65,132$ 65,132$ Taxes and other public funds Budget Factors: 2WKHUFKDUJHVDQGVHUYLFHVThe $65,132 budget for 2012 and 2013 is consistent with the 2011 budget and historical trends. 59 PLANNING Program Description: The Planning Department offers a variety of services to preserve and enhance the quality of life for those who live and work in the community. The department guides the physical development of Lakeville in a manner that promotes sustained and managed growth and protects the health, safety and general welfare of its residents. The department oversees all the short and long term land use, zoning and development activities as required by State Statute. The Planning Department provides technical support to the Planning Commission and City Council. In 2010, the Planning Department was also responsible for developing programs that promote DQGH[SDQGWKHFRPPXQLW\¶VHQYLURQPHQWDOUecycling awareness. Beginning in 2011, this responsibility was performed by the Environmental Resources Department. Services: Administer comprehensive planning and Coordinate development review with development regulations and policies as other City departments and outside adopted by the City of Lakeville and the agencies. laws of the State of Minnesota. Initiate dialogue in response to emerging Administer development review and community issues. process permits consistent with land use, Respond to public inquires accurately subdivision and environmental and in a timely manner. regulations. Process applications in a timely, thorough and accurate manner. Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate Planning Director 1.01.01.01.0 1.0 Associate Planners 1.51.51.51.5 1.5 Administrative Assistant 0.50.50.50.5 0.5 Total 3.03.03.03.0 3.0 60 PLANNING (continued) Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services325$ 326,551$ 322,179$ 324,301$ 324,879$ ,891 Commodities 326,309 2,650 2,010 2,210 ,210 Other charges and services39,758 16,379 15,439 15,439 15,439 5,572- 3,514 1,377 - Capital outlay $ 351,780391,618$ 343,264$ 343,905$ 342,540$ Total Revenue sources governmental$ 41,900$ -$ -$ -$ - Inter Charges for services39,327 33,450 49,350 52,950 57,950 318,330310,391 293,914 290,955 284,590 Taxes and other public funds $ 351,780391,618$ 343,264$ 343,905$ 342,540$ Total Budget Factors: 3HUVRQQHOVHUYLFHVIncreases in the personnel services budgets are due to compensation liability distribution and workers compensation insurance. &RPPRGLWLHVCommodities will increase in 2012 and be held constant in 2013. The 2012 increase is primarily for operating supplies. The decrease in the 2011 estimate is due to centralizing toner purchases. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services are anticipated to be unchanged for 2012 and 2013. The decrease in 2011 estimate is mainly due to printing costs associated with public hearing notices for ordinance amendments and City projects. &DSLWDORXWOD\The 2012 capital outlay is attributable to Microsoft Office upgrades. 61 COMMUNITY AND ECONOMIC DEVELOPMENT Program Description: The Community and Economic Development Department is responsible for services that promote business and development that supports the overall economic vitality of the community. Department services include business development, redevelopment, promotion and business retention; real estate sale and acquisitions, economic development strategic planning, and transportation improvement advocacy including transit facilities and service. Services: Coordinate with the Dakota County Serve as a liaison to the business CDA to administer HUD funded community. Community Development Block Grant Staff and coordinate the activities of the programs 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 for the City Council, economic development. Economic Development Commission Coordinate with State and local agencies 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 WKURXJKWKH&LW\¶VGHYHORSPHQWSURFHVV Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget EstimateBudget Estimate Community and Econ. Dev. Director 1.01.01.01.0 1.0 Economic Development Specialist 1.01.01.01.0 1.0 Administrative Assistant 0.50.50.50.5 0.5 Total 2.52.52.52.5 2.5 62 COMMUNITY AND ECONOMIC DEVELOPMENT (continued) Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services248$ 252,645$ 251,287$ 253,128$ 253,105$ ,113 Commodities104 350 250 205 205 71,1802 66,048 Other charges and services20,999 16,463 55,88 - 1,942 1,942 688 - Capital outlay $ 271,042269,748$ 309,202$ 325,178$ 319,366$ Total Revenue sources Intergovernmental$ 5,535$ 40-$ ,000$ -$ - Miscellaneous2,659 - 2,500 2,500 2,500 Other financing sources - - 30- 20,000 ,000 271,042261,554 266,702 292,678 296,866 Taxes and other public funds 271,042$ 309,202$ 325,178$ 319,366$ $ 269,748 Total Budget Factors: 3HUVRQQHOVHUYLFHVIncreases in the personnel services budgets are due to compensation liability distribution and workers compensation insurance. &RPPRGLWLHV The commodities decrease in 2012 is related to office supplies and remain unchanged for 2013. 2WKHUFKDUJHVDQGVHUYLFHV The contractual expenses are primarily related to development and implementation of a marketing strategy as well as participation in the Minneapolis/St Paul Regional Economic Development Partnership. Based on the recommendations of Economic Development Committee, the City Council at its July 18, 2011 meeting approved a contract to develop a marketing plan strategy. The 2011 contract is financed with a CBDG grant. The preliminary 2012 and estimated 2013 budget provides $30,000 and $20,000 respectively for implementation of the marketing strategy. The implementation costs in 2012 and 2013 are proposed to be financed from the Liquor Fund. The preliminary budget also provides $25,000 in each of the next two years for membership in the Minneapolis/St. Paul Regional Economic Development Partnership. The objective of the partnership is to provide funding for economic development marketing initiatives which benefit the Twin Cities area. The estimated 2013 budget also provides $5,000 for professional services related to updating the strategic plan. &DSLWDORXWOD\The capital outlay in 2012 is attributable to Microsoft Office upgrades. 63 INSPECTIONS Program Description: The primary responsibility of the Inspections Department is for enforcement of the adopted building codes. The department is also responsible for code enforcement to preserve the livability and integrity of residential and commercial districts and prevent deterioration and blighted influences within the community. Services: Process applications, perform plan Conduct seminars for homeowners review and issue permits for residential regarding new deck construction and and commercial projects. basement remodeling projects. Assist design professionals, contractors Respond to customer complaints and homeowners with interpretations on concerning construction sites, code code related questions. enforcement, refuse storage, and other zoning and housing maintenance. Perform building related inspections. Respond to complaints of vacant homes Issue Certificates of Occupancy for DQGLQVSHFWKRPH¶VFRQGLWLRQSULRUWR permits which meet or exceed permit occupancy. requirements. Perform code compliance inspections. Coordinate records, consolidate plans and archives. Participate in the development and amendments to State and local code Provide information regarding code requirements both nationally and locally. requirements. Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate Building Official 1.01.01.01.0 1.0 Senior Administrative Assistant 1.01.01.01.0 1.0 Administrative Assistant 1.01.01.01.0 1.0 Sr. Electrical Inspector 1.01.01.01.0 1.0 Sr. Plumbing/Mechanical Inspector 1.01.01.01.0 1.0 Sr. Building Inspector 1.01.01.01.0 1.0 Building Inspectors 2.02.02.02.0 2.0 Total 8.08.08.08.0 8.0 64 INSPECTIONS (continued) Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services782$ 809,343$ 715,162$ 725,880$ 727,002$ ,191 Commodities12 14,116 14,409 16,341 16,017 ,432 Other charges and services59,968 65,731 63,204 63,296 63,823 43,6252,747 42,939 2,753 - Capital outlay $ 932,927857,174$ 836,364$ 807,068$ 807,446$ Total Revenue sources Licenses and permits812$ 977,117$ 969,439$ 792,535$ 805,691$ ,891 Charges for services7,913 13,258 10,528 7,962 8,328 (57,770)37,144 (143,699) 6,415 (6,773) Taxes and other public funds $ 932,927857,174$ 836,364$ 807,068$ 807,446$ Total Budget Factors: 3HUVRQQHOVHUYLFHVThe personnel services budget will increase in 2012 and 2013 due to step increases and associated personnel benefits, compensation liability distribution, and workers compensation insurance. The decrease in the 2011 estimate is a result of the allocation of fire department personnel costs based on actual time spent on fire permit and inspection services. &RPPRGLWLHVThe commodities budget increases in 2012 and 2013 are primarily attributable to equipment parts, operating supplies and form printing. 2WKHUFKDUJHVDQGVHUYLFHVThe elimination of Dakota County ISTS administration and outplacement services are the primary reasons for the reduction in the 2011 estimate. The increases in the 2012 and 2013 budgets are attributable to contract data processing, Region 3 conference, and Association of Minnesota Building Officials dues. &DSLWDORXWOD\The proposed 2012 capital outlay budget is for Microsoft Office upgrades. 65 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 Building 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 66 GENERAL GOVERNMENT FACILITIES (continued) Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate Facility Maintenance Coordinator 1.01.01.01.0 1.0 City Hall Receptionists 1.01.01.61.6 1.6 City Hall Administrative Assistant 1.01.00.40.4 0.4 Total 3.03.03.03.0 3.0 Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services195$ 198,575$ 180,797$ 186,579$ 188,185$ ,655 Commodities 3723,765 32,510 31,232 31,025 ,025 Other charges and services234,638 257,894 248,051 269,162 236,448 4,0732,747 3,387 1,032 - Capital outlay $ 498,274456,725$ 464,249$ 487,404$ 456,128$ Total Revenue sources Miscellaneous44,355$ 44,581$ 45,695$ 45,16$ 45,839$ 2 Other financing sources 6663,745 60,070 60,110 61,571 ,858 387,623348,625 358,444 381,671 348,431 Taxes and other public funds $ 498,274456,725$ 464,249$ 487,404$ 456,128$ Total Budget Factors: 3HUVRQQHOVHUYLFHVThe personnel services budget will increase in both 2012 and 2013. These changes are mainly due to step increases and associated benefits, compensation liability distribution, and workers compensation insurance. The decrease in the 2011 estimate is due to employee transition and related benefit packages. &RPPRGLWLHVThe commodities budget will decrease in 2012 and is projected to remain unchanged for 2013. The majority of the decrease is attributable to the City transitioning to a more paperless environment and reducing the need for office and operating supplies. 2WKHUFKDUJHVDQGVHUYLFHVThe proposed budget is based on thHDVVXPSWLRQWKDWWKH³IRUPHU´ police station facility will be remodeled in 2012 with the Senior Center, Historical Society, and Yellow Ribbon organization utilizing the facility for the full year in 2013. The multi-purpose facility will become the Heritage Center. As such, the proposed 2012 budget for other charges and services will increase for utilities and maintenance expense. The decrease in 2013 budget is the result of accounting for the facility in the Recreation budget. &DSLWDORXWOD\Capital outlay in 2012 is for Microsoft Office upgrades at City Hall. 67 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, sanitary Comprehensive Annual Financial Report sewer, and street light services. Manage (CAFR). Maintain high quality audit utility billings to provide high quality results and minimize audit costs. customer service and timely deposit of Preparation of required State, Federal collections. and other government agency reports. Fiscal agent for ALF Ambulance, Maintain general ledger and fixed capital Dakota Communications Center, and asset systems and perform various Lakeville Arenas. Services include accounting functions such as preparation of Comprehensive Annual reconciliation of various accounts. Financial Report, interim financial Treasury management including reports, accounts payable functions, investment of City funds, accounts treasury management, budgeting, and payable function, debt management and debt management. reporting and manage bank agreements Budget administration including the and transactions to minimize costs and Capital Improvement Plan. maximize efficiency. Supervision of City risk management Billing and collection for City services program. including but not limited to development Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate Finance Director 1.01.01.01.0 1.0 Senior Administrative Assistant 1.01.01.01.0 1.0 Senior Accountants 2.62.62.63.0 3.0 Accountant II 0.80.80.81.0 1.0 Accounts Payable Technician 1.01.01.01.0 1.0 Total 6.46.46.47.0 7.0 68 FINANCE (continued) Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services489$ 497,830$ 489,483$ 543,738$ 546,887$ ,708 Commodities 42,371 4,550 4,550 4,545 ,550 Other charges and services56,372 67,160 65,580 64,310 65,689 1,554423 1,554 2,409 - Capital outlay $ 570,747548,996$ 561,422$ 615,151$ 616,947$ Total s Revenue source Charges for services102,603$ 120,133$ 121,344$ 122,168$ 123,40$ 4 Other financing sources 4443,140 44,435 45,435 47,767 ,141 406,179403,253 395,643 447,216 446,402 Taxes and other public funds 570,747$ 561,422$ 615,151$ 616,947$ $ 548,996 Total Budget Factors: 3HUVRQQHOVHUYLFHVThe personnel services budget will increase in both 2012 and 2013. The 2012 budget proposes to increase the hours of a Senior Accountant position and an Accountant position by 16 and 8 hours per week respectively. Increases are also anticipated in compensation liability distribution and workers compensation insurance. The decrease in the 2011 estimate is due to employee transition and related benefit packages. &RPPRGLWLHVCommodities are projected to basically remain unchanged. 2WKHUFKDUJHVDQGVHUYLFHVThe decrease in other charges and services for 2012 is primarily due 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. The study is required every three years. The 2012 budget also includes annual financial audit service ($15,150), printing of truth-in taxation notices ($5,550) and LOGIS data processing ($37,461). Other charges and services will increase in 2013 attributable to the annual financial audit and contract data processing. &DSLWDORXWOD\Microsoft Office upgrades are included in the 2012 budget. 69 INFORMATION SYSTEMS Program Description: The Information Systems Department is responsible for providing and supporting the electronic information systems of other City departments. The services provided by the Department include network infrastructure support; desktop computer support; and planning, analysis and implementation of information systems technology. Services: 3URYLGHDFFHVVWRWKH&LW\¶VProvide training and software support to website. City personnel. Provide support for users of City Maintain and assist in development of information systems. WKH&LW\¶V:RUOG:LGH Web and Intranet sites. Establish and maintain network systems to allow efficient flow of information. Coordinate and monitor Internet access for City employees. Coordinate future systems development. Coordinate with City staff and LOGIS 0DLQWDLQDQGVXSSRUWWKH&LW\¶VORFDO on the deployment and operation of area networks. applications. Assist with the maintenance and Provide desktop support to City staff. GHYHORSPHQWRIWKH&LW\¶VZLGHDUHD network. Provide maintenance and support for document imaging solution. Perform maintenance and repair work on city-owned computing equipment. Development and implementation of City data security plan and disaster Perform installation, maintenance, and recovery. upgrades of city-owned computer software, and VoIP telephones. Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate Information Systems (IS) Manager 1.0 1.0 1.0 1.0 1.0 IS Network Specialist 1.0 1.0 1.0 1.0 1.0 IS Technician 1.0 1.0 1.0 1.0 1.0 Total 3.0 3.0 3.0 3.0 3.0 70 INFORMATION SYSTEMS (continued) Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services293$ 304,499$ 302,296$ 305,581$ 305,180$ ,200 Commodities5 8,367 6,954 6,323 6,648 ,648 Other charges and services122,780 144,875 136,332 159,784 182,582 3,630 3,312 11,107 - 19,034 Capital outlay $ 461,755440,680$ 448,548$ 482,719$ 494,430$ Total Revenue sources Other financing sources82,560$ 83,977$ 89,151$ 89,598$ 89,780$ 377,778358,120 359,397 393,121 404,650 Taxes and other public funds $ 461,755440,680$ 448,548$ 482,719$ 494,430$ Total Budget Factors: 3HUVRQQHOVHUYLFHVIncreases in the personnel services budget are due to compensation liability distribution and workers compensation insurance. &RPPRGLWLHVCommodities are projected to increase in 2012 and remain unchanged in 2013. The 2012 increase is related to office supplies and computer training materials. The decrease in the 2011 estimate is mainly attributable to reduced costs in LTO backup tapes. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services budgets will increase in both 2012 and 2013. The increase in 2012 is primarily the result of new technical support for VMware. The 2012 budget is primarily for software support agreements and maintenance contracts ($124,752) and contract data processing ($30,640). The 2013 budget accounts for anticipated increases in existing maintenance agreements and the addition of VM Microsoft VECD license maintenance. &DSLWDORXWOD\ The 2012 capital outlay includes antivirus software for VM servers and a HID Access & ID Card Printer. Server, network, and computer hardware replacements are included in the Capital Projects Equipment Fund. 71 HUMAN RESOURCES Program Description: The City Human Resources Department is responsible for development, recommendation and implementation of policies on human resources related issues. The Department provides guidance and assistance to City leadership and employees regarding recruitment, employee satisfaction and development. The Human Resources function strives to retain and support a workforce committed to high quality, efficient services and respectful working relationships. Services: Employee wage and benefit packages Partner in recruitment and performance administration. management with all departments. Payroll administration. Personnel records management. Workers compensation claims Compensation and classifications system processing. administration. Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate Human Resources Manager 1.01.01.01.0 1.0 Benefits Specialist 1.01.01.01.0 1.0 Payroll Technician 0.80.80.80.8 0.8 Total 2.82.82.82.8 2.8 Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services238$ 250,818$ 250,352$ 252,589$ 252,616$ ,633 Commodities1 2,092 2,590 1,090 1,570 ,570 Other charges and services60,968 51,165 57,865 105,783 100,303 - 382 382 1,032 - Capital outlay $ 304,489300,878$ 310,926$ 361,001$ 354,506$ Total Revenue sources Other financing sources76$ 76,008$ 77,438$ 88,959$ 86,115$ ,081 228,051224,870 232,967 272,886 268,425 Taxes and other public funds $ 304,489300,878$ 310,926$ 361,001$ 354,506$ Total 72 HUMAN RESOURCES (continued) Budget Factors: 3HUVRQQHOVHUYLFHV Increases in the personnel services budget are due to compensation liability distribution and workers compensation insurance. &RPPRGLWLHVLabor law posters were last updated in 2011 and thus are the main factor for the decrease in the 2012 budget. The commodities are anticipated to remain unchanged in 2013. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services budget is proposed to increase in 2012 and decrease in 2013. The 2012 increase includes $25,000 for an employee compensation market study, $25,000 for organization wide training, and $3,006 for contract data processing. The decrease of the market study cost in the 2013 budget is offset by the anticipated implementation of new software including the conversion to an electronic time card system. &DSLWDORXWOD\The 2012 capital outlay is for Microsoft Office upgrades. 73 INSURANCE Program Description: The Insurance Department is responsible for property and liability insurance, workers compensation, the Employee/Management Safety Committee, and related health and safety programs (OSHA, DOT, and EPA). The City uses the Internal Service Municipal Reserves Fund for accounting, reporting and allocation of related insurance costs. Under this model, operating departments within the various City funds receive a charge from the Municipal Reserves Fund, and all costs (premiums, claims, and related) are reflected in a single fund. This allows for better accounting and monitoring of WKH&LW\¶VULVNPDQDJHPHQWFRVWV:RUNHUVFRmpensation costs are charged to the various City funds and allocated to their individual departments based on employee salaries. The Insurance 'HSDUWPHQWUHSUHVHQWVWKH*HQHUDO)XQG¶VVKare of the risk management activities. Services: Manage potential risk and loss from unforeseen events. Tactics include aggressive case management, promoting safe behaviors, and ensuring safe environments. Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures $ 289,532278,698$ 289,532$ 223,275$ 223,275$ Other charges and services Revenue sources $ 289,532278,698$ 289,532$ 223,275$ 223,275$ Taxes and other public funds Budget Factors: 2WKHUFKDUJHVDQGVHUYLFHVThe 2012 proposed budget will decrease and remain unchanged in 2013. The decrease is attributable to favorable claim history. 74 POLICE Program Description: The primary function of the Police Department is to safeguard and protect the lives, health and property of the Citizens of Lakeville. The Department includes a wide array of public safety functions including patrol, investigations, proactive drug enforcement, animal control, canine unit, police reservists, Chaplaincy, park ranger and Emergency Management Preparedness. Services: Patrol. Provide 9-1-1 uniformed patrol Courts and prosecution. 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 Communications 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 Control. 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 department Administration. Provide background HPSOR\VVHDVRQDO&62¶VZKRPDLQWDLQ and compliance checks for licensing and order at the Lake Marion boat launch permitting functions including alcohol and enforce park regulations. and tobacco server training. Public Police Reserves. The Police Reserves education programs include Child Safety unit is comprised of non-sworn Programs, Citizens Academy and crime volunteers who assist the police officers prevention, safety camp participation, with special events and community Police cable TV programming and Night emergencies. to Unite program. 75 POLICE (continued) Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget EstimateBudget Estimate Sworn Officers Chief 1.01.01.01.0 1.0 Captains 2.02.02.02.0 2.0 Sergeants 10.010.010.010.0 10.0 Investigators 6.06.06.06.0 6.0 Narcotics Task Force Officer 1.01.01.01.0 1.0 Patrol Officers 31.532.031.933.0 33.0 Total Sworn Officers 51.552.051.953.0 53.0 Crime Prevention Coordinator 1.01.01.01.0 1.0 Community Service Officers 3.83.83.83.8 3.8 Animal Control Officer 1.01.01.01.0 1.0 Records Supervisor 1.01.01.01.0 1.0 Records Administrative Assistants 4.04.04.55.4 5.4 Total 62.362.863.265.2 65.2 Budget Summary: 76 POLICE (continued) 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services6$ 6120119$ 6382998$ 635441$ 6574843$ 618185 ,,,,,,7,,,, Commoditie 385,02275,151 352,804 336,255 328,60 s55 Other charges and services1,643,680 1,763,548 1,759,774 1,699,170 1,739,865 -8,855 - - 7,481 Capital outlay $ 8,531,5718,047,805$ 8,466,995$ 8,610,268$ 8,694,136$ Total Revenue sources Licenses178$ 153,612$ 160,142$ 178,917$ 161,612$ ,212 Intergovernmental460,999 374,741 385,497 366,131 366,131 Chares for services280 23936 27623 276809 276809 56 g,7,2,,,5 Court fines295,496 294,02 275,87 279,301 296,45 675 Miscellaneous12,222 - 796 - - Other financing sources 59,7557,136 59,752 59,752 71,3332 7,410,6786,762,973 7,307,347 7,449,663 7,522,440 Taxes and other public funds $ 8,531,5718,047,805$ 8,466,995$ 8,610,268$ 8,694,136$ Total Budget Factors: 3HUVRQQHOVHUYLFHVThe personnel services budget will increase in 2012 and 2013. The primary factors of these increases are due to the addition of a patrol officer in 2012 and two part-time records management administrative assistants in 2011. Other factors include compensation step increases and associated personnel benefit expenses, compensation liability distribution, and workers compensation insurance. &RPPRGLWLHV The primary factors for the decrease in the 2012 proposed commodities budget are reduced uniform purchases for Reservists, reduced office and general operating supplies, and reduced motor fuel consumption. Motor fuels ($166,521) and uniforms ($71,470) comprise over 70% of the total commodities budget. Outfitting the new patrol officer in 2012 is the primary factor for the decrease in the 2013 commodities budget. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services are proposed to decrease in 2012 as a result of reductions in DCC dispatching expenses and tuition reimbursement. Energy improvements and stable pricing have resulted in a decrease in natural gas heating costs. Discontinued participation in CJIIN resulted in a reduction of contractual expenses. The proposed budget provides for firearms training at the newly completed Gander Mountain firearms facility and the SCALE facility in Jordan. The budget also includes appropriations for cyber crime investigations training. Dispatching services is the primary factor for the increase in the 2013 budget. Dispatching service provided by Dakota Communications Center ($978,110), prosecution attorney ($236,730), Police Station facility maintenance and utilities ($201,906) and LOGIS data processing ($101,740) in total comprise 90% of budgeted other charges and services. &DSLWDORXWOD\Capital outlay is accounted for in the Capital Projects Equipment Fund. The estimated 2013 capital outlay expenses in the General Fund are for replacement of a K-9 dog. 77 FIRE Program Description: The City of Lakeville Fire Department is organized and designed to provide responsive, efficient and effective life and property protection. The Department is responsible for fire emergency response, disaster preparedness, fire code compliance/enforcement, fire investigations, fire prevention and education. The City also maintains mutual aid agreements with neighboring communities which provide Lakeville with additional personnel and equipment capabilities to fight major fires and meet the demands of a large scale emergency. Services: Emergency Response Fire Investigation Fire suppression. Fire cause determination. Emergency Medical Response (EMS). Education 9HKLFOHH[WULFDWLRQ±UHVFXH )LUHILJKWHUV¶LQLWLDODQGFRQWLQXHG Ice and water rescue. education and certification. Domestic security and emergency Safety Camp. management. Night to Unite. Hazardous condition and disaster Fire prevention visits to schools. mitigation. ³2Q&DOO´FDEOH79SURJUDP Prevention Station tours. Plan review. Public and employee fire extinguisher training. Alarm and suppression system acceptance testing. Occupancy inspections. Fire prevention inspections. Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate Fire Chief 1.0 1.0 1.0 1.0 1.0 Fire Marshal 1.0 1.0 1.0 1.0 1.0 Fire Inspector 1.0 1.0 1.0 1.0 1.0 Senior Administrative Assistant 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 0.6 0.6 0.6 0.6 0.6 Total 4.6 4.6 4.6 4.6 4.6 78 FIRE (continued) Budget Summary: 201120122013 posedEstimated 2010Amended2011Pro ActualBudgetEstimateBudgetBudget Expenditures Personnel services868$ 885,046$ 931,637$ 941,927$ 959,407$ ,108 s 138122,616 172,629 135,973 135,772 ,747 Commoditie 275,909 279,142 262,267 282,642 245,827 Other charges and services $ 1,300,1751,236,489$ 1,384,042$ 1,339,446$ 1,377,497$ Total Revenue sources Licenses1$ 500,650$ 1$ 1,650$ 1,650$ ,650 Intergovernmental 190,209202,322 190,209 190,209 190,209 Charges for services48 47,301 48,113 49,163 50,340 ,560 1,062,353984,216 1,144,020 1,098,247 1,135,078 Taxes and other public funds $ 1,300,1751,236,489$ 1,384,042$ 1,339,446$ 1,377,497$ Total Budget Factors: 3HUVRQQHOVHUYLFHVThe 2011 estimated personnel services increased over the 2011 amended budget primarily due to a reallocation that is based on actual time spent for fire permit inspection services. These services were previously accounted for in the Inspection Department. The increase in the 2012 proposed personnel services budget is due to step increases and related benefits, compensation liability distribution and workers compensation insurance. The estimated 2013 budget will increase as a result of recruiting ten new rookie firefighters and an anticipated five percent increase in the number of fire calls. The City contribution to the Fire Relief Association for pension benefits remains at $44,804; the State Aid for Fire Relief is estimated to be $190,209. &RPPRGLWLHVThe decrease in the 2012 proposed commodities is primarily due to protective clothing for rookie firefighters and past payment for the ABLE training building. The 2013 commodities budget is projected to basically remain unchanged. Clothing (35%), equipment parts (20%) and motor fuels (17%) comprise 72% of the commodities budget. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services budget will decrease in 2012. Energy improvements and stable pricing have resulted in a decrease in natural gas heating costs. A decrease in the proposed 2012 budget for professional medical services and training is a result of the 2011 rookie firefighter expenses being accounted for in the prior year. Training is SURYLGHGWRKRQHWKHGHSDUWPHQW¶VOHDGHUVKLSVNills. Funding is provided for Class A uniforms for all volunteer firefighters. The Class A uniform is the style which is worn at special occasions such as funerals. The other charges and services budget will increase in 2013 for professional medical services and training primarily as a result of adding a new rookie firefighter class. Contract data processing is also expected to increase. &DSLWDORXWOD\Capital outlay is accounted for in the Capital Projects Equipment Fund. 79 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 Department also includes the Geographic Information System (GIS) function which is responsible for the management of data relating to parcels, parcel boundaries, utilities, streets, and other infrastructure. Services: Public infrastructure. Provide design drainage problems, grading issues, services; project oversight and erosion control and drain tile. Includes management for streets, sanitary sewers, review of residential, commercial, drainage and water projects to include industrial and institutional surveys and wetland mitigation plans. Provide construction plans (Site, Grading, management of the public assessments Erosion Control, Street and Utility). and other property data. Prepare Includes inspection for general feasibility studies for public projects that compliance to the approved survey and are assessed. Inspect tree preservation of subdivision plans. Respond to resident all new developments. inquires regarding drainage alteration and flood zones. Manages the public New development. Review proposed, rights of way for all City streets. preliminary and final plats related to new residential, commercial and industrial Records Management. The department development construction projects. maintains the official City base maps, Process ensures that plans are in as-builts, plans, records and property conformance with Comprehensive Plans, data relating to special assessments. ordinances and City of Lakeville Geographic Information System Standard Specifications. (GIS).'HYHORSDQGPDLQWDLQWKH&LW\¶V Comprehensive Plans. Prepare and GIS database. Coordinate the provide technical oversight and review maintenance, development, and of the Comprehensive Plans for Surface application of GIS system. Manage the Water Management, Sanitary Sewer, comprehensive inventory of City Water Distribution System, and utilities. Manage the information conduit Transportation. between Dakota County GIS and the City. Customer service. Assist residents and provides technical assistance for 80 ENGINEERING (continued) Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate Engineering City Engineer 1.01.01.01.0 1.0 Assistant City Engineer 1.01.01.01.0 1.0 Development/Design Engineer 1.01.01.01.0 1.0 Sr. Construction Representative 1.01.01.01.0 1.0 Administrative Assistant 1.01.01.01.0 1.0 GIS GIS Coordinator 1.01.01.01.0 1.0 GIS Technician 1.01.01.01.0 1.0 Total 7.07.07.07.0 7.0 Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services631$ 656,904$ 645,145$ 660,873$ 660,919$ ,451 s 148,991 11,381 11,177 11,157 ,157 Commoditie Other charges and services38,275 63,179 60,208 51,311 57,672 22,050- 21,664 5,959 6,706 Capital outlay $ 755,755679,170$ 738,922$ 729,346$ 735,986$ Total Revenue sources Intergovernmental5,612$ -$ -$ -$ -$ Charges for services331,022 191,422 298,408 428,435 341,677 Other financing sources 10797,733 107,400 101,056 103,498 ,212 456,933244,803 333,458 199,413 291,097 Taxes and other public funds $ 755,755679,170$ 738,922$ 729,346$ 735,986$ Total Budget Factors: 3HUVRQQHOVHUYLFHVThe personnel services budget will increase in 2012 due to compensation step increases and related personnel benefits, compensation liability distribution and workers compensation insurance. The slight decrease in 2013 is related to cost allocations based on actual time spent by the Inspection Department personnel. 81 ENGINEERING (continued) &RPPRGLWLHVThe commodities budget will basically remain unchanged in both 2012 and 2013. The decrease in the 2011 estimate can primarily be attributed to reduced operating supplies such as plotter supplies, marking paint and industrial batteries. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services will decrease in 2012 and increase in 2013 respectively. The primary factor for these fluctuations is engineering fees for traffic studies ($7,500 in 2011) and bridge inspections ($5,000 in 2013). A reduction of $1,903 in contract data processing is also expected in 2012. &DSLWDORXWOD\The proposed capital outlay for 2012 includes Microsoft Office upgrades and GIS software improvements. Capital outlay in 2013 includes the addition of a GPS antenna to improve readings when under tree cover or other obstacles and GIS software applications. 82 STREETS Program Description: 7KH6WUHHWV'HSDUWPHQWLVUHVSRQVLEOHIRUWKHVDIHDQGUHOLDEOHPDLQWHQDQFHRIWKH&LW\¶V 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 control. Plow Boulevard trees and mowing. 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 maintenance and repairs of entire city Storm sewer maintenance. Inspect 20 fleet of 245 vehicles and mobile SHUFHQWRIWKH&LW\¶VVWRUPVHZHU 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 informational street signs as well as Gravel road maintenance. Regular traffic control striping 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 contractors in the seal coating and crack Streetlights. Inspect streetlights sealing of 260 centerline miles of streets throughout the City and manage the ZLWKLQ/DNHYLOOH¶VSDYHPHQWrepair or replacement of damaged or management districts. This includes inoperative lights. milling, overlays, patching, and other repairs of streets and sidewalks. Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate Streets Superintendent 1.01.01.01.0 1.0 Streets Supervisor 1.01.01.01.0 1.0 Streets Lead Maintenance 1.01.01.01.0 1.0 Fleet Service Technician Lead 1.01.01.01.0 1.0 Streets Maintenance II 10.010.010.010.3 11.0 Fleet Service Technicians 4.04.04.04.0 4.0 Administrative Assistant 1.01.01.01.0 1.0 Total 19.019.019.019.3 20.0 83 STREETS (continued) Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services1,531,089$ 1,464,889$ 1,497,851$ 1,530,445$ 1,586,103$ Commodities 734,72770,442 774,924 786,6900 809,60 2 245,706221,624 260,657 258,999 259,327 Other charges and services $ 2,445,3192,523,155$ 2,533,428$ 2,576,134$ 2,655,032$ Total Revenue sources Intergovernmental373,801$ 374,962$ -$ -$ -$ Chares for services17 17361 17146 1714 17146 146 g,,,6,, Other financing sources109,615 108,620 85,425 95,088 97,499 1,944,5912,022,378 2,430,857 2,463,900 2,540,387 Taxes and other public funds 2,445,319$ 2,533,428$ 2,576,134$ 2,655,032$ $ 2,523,155 Total Budget Factors: 3HUVRQQHOVHUYLFHVThe personnel services budget will increase in both 2012 and 2013. The 2012 increase is due to several factors including compensation liability distribution, workers compensation insurance rate adjustment, step increases and related benefits, and a new Maintenance II position beginning October 1, 2012. The 2013 increase is primarily related to a full year of service from the new Maintenance II position, compensation liability distribution and workers compensation insurance. 84 STREETS (continued) &RPPRGLWLHVThe commodities budget will increase in 2012 primarily due to cost of ice control chemicals, equipment parts for heavy machinery, gravel and bituminous, and motor fuels. Ice control chemicals are approximately $386,787 and thus represent approximately 50% of total commodities expenses. Motor fuels, equipment parts and maintenance materials (gravel and bituminous) comprise the next largest categories of $133,196 (17% of total commodities), $88,950 (11% of total commodities), and $64,173 (8% of total commodities) respectively. Commodities are anticipated to increase in 2013 for various expenditures including but not limited to ice control chemicals, tires and street maintenance materials. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services are proposed to change slightly over the next two years with a decrease in 2012 and increase in 2013. Heavy snowfall over the past two years has resulted in major repairs to plow trucks and equipment as indicated by the increase in the 2011 estimate.. The significant expenditures include natural gas and electric ($79,360) and contract pavement striping ($82,709). &DSLWDORXWOD\Capital outlay is accounted for in the Capital Projects Equipment Fund. 85 PARKS Program Description: The City of Lakeville provides a comprehensive community-wide array of park facilities and open spaces. The Parks Department is committed to the effective and responsible management of parks, open space, facilities and resources to satisfy the needs of the community. Services: Parks administration is responsible for Manage and maintain six hockey and planning, management and supervision 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, Pan-O-Prog, Lakeville Art Festival, and Provide routine maintenance to all numerous youth athletic tournaments. neighborhood parks and associated support facilities. Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate Administration Parks and Recreation Director 1.01.01.01.0 1.0 Senior Administrative Assistant 1.01.01.01.0 1.0 Parks Maintenance Operations and Maint. Manager 1.01.01.01.0 1.0 Supervisor 1.01.01.01.0 1.0 Parks Lead Maintenance 1.01.01.01.0 1.0 Parks Maintenance II 8.58.58.58.5 8.5 City Forester 0.50.50.50.5 0.5 Administrative Assistant 1.01.01.01.0 1.0 Total 15.015.015.015.0 15.0 86 PARKS (continued) Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services1$ 1,459,091$ 1,514,615$ 1,514,526$ 1,536,094$ ,545,566 Commodities 252226,876 255,212 254,096 254,196 ,196 Other charges and services341,625 392,482 376,663 393,613 369,768 - - - 2,752 - Capital outlay $ 2,159,3092,027,592$ 2,146,285$ 2,186,655$ 2,169,530$ Total Revenue sources Intergovernmental$ 201,813$ 200$ 200$ 200$ 0 Charges for services32,194 34,903 31,072 31,072 31,072 Miscellaneous5,145 - - - - 2,124,2061,988,440 2,115,013 2,155,383 2,138,258 Taxes and other public funds $ 2,159,3092,027,592$ 2,146,285$ 2,186,655$ 2,169,530$ Total Budget Factors: 3HUVRQQHOVHUYLFHV The personnel services budget will increase in both 2012 and 2013 primarily due to compensation step increases and associated personnel benefits, compensation liability distribution and workers compensation insurance. &RPPRGLWLHVThe commodities budget is proposed to decrease in 2012 and remain unchanged in 2013. The 2012 decrease is primarily due to the cost of chemicals and operating supplies at the Central Maintenance Facility. Motor fuels are the largest single commodity ($73,686) representing 30% of the Parks Department commodity budget. Other significant items include landscaping materials of $62.978 (25% of total commodities) and equipment parts of $33,000 (13% of total commodities). 87 PARKS (continued) 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services will increase in 2012 primarily due to major maintenance projects including a retaining wall at Orchard Lake and a field drainage project at Aronson Park. Other significant changes include lower operating costs of the Central Maintenance as a result of energy efficiency improvement and conservation efforts, changes in the communication structure to reduce telephone costs, and the rental of a flail mower to control vegetation adjacent to trails. The most significant expenses related to other charges and services are electricity ($91,505), contract landscaping ($54,036), and waste disposal ($25,509). The Park Department share of Central Maintenance Facility Other Charges and Services is $74,717. Other charges and services will decrease in 2013 as the result of completing the 2012 major maintenance projects. &DSLWDORXWOD\Capital outlay is attributable to Microsoft Office upgrades in 2012. Capital outlay for vehicles and equipment is accounted for in the Capital Projects Equipment Fund. 88 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. City maintains a Tennis lessons 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 Farm Park ELC. The Learn to Skate, Sports Unlimited, and Environmental Learning Center is Youth Enrichment. ORFDWHGLQRQHRIWKHPHWURSROLWDQDUHD¶V Adult activity. Leagues are organized most pristine nature areas. Nature through the Recreation Department that programs provide participants with includes basketball, softball, volleyball, educational opportunities in a natural broomball, dodgeball, as well as the environment. Ground Pounders Running Series and Puppet Wagon. The Lakeville Lions golf lessons. sponsor a mobile puppet show that Youth special events. Programs include travels to various community parks Arbor Day, Egg Hunts, Fishing Contests, during the summer season. Haunted Forest, Once Upon a Star, Pan- Safety Camp. A program that is offered O-Prog programs, Santa Calls, Holiday rdth exclusively to 3 and 4 graders, with /LJKWVDQG6DQWD¶V6HFUHW6WRUH the support of Lakeville Police and Fire, Dakota Electric, and the National Guard. Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget 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 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 Administrative Assistant 0.7 0.7 0.7 0.7 0.7 Total 4.7 4.7 4.7 4.7 4.7 89 RECREATION (continued) Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services324$ 321,243$ 325,273$ 329,901$ 329,124$ ,145 25,707 23,712 23,401 23,444 ,401 Commodities19 Other charges and services230,629 249,981 239,918 245,145 290,046 7631,791 763 2,065 - Capital outlay $ 597,729576,370$ 589,983$ 599,778$ 642,592$ Total Revenue sources Charges for services310$ 301,178$ 293,647$ 293,451$ 315,101$ ,397 296,082 296,532 306,677 327,195 266,192 Taxes and other public funds $ 597,729576,370$ 589,983$ 599,778$ 642,592$ Total Budget Factors: 3HUVRQQHOVHUYLFHVThe personnel services budget will increase in 2012 and 2013 as a result staff changing health insurance plans, compensation liability distribution and workers compensation insurance. Personnel costs represent 53.4% of the total recreation budget. &RPPRGLWLHVThe 2012 and 2013 commodities budget will remain virtually unchanged. The decrease in the 2011 estimate is primarily due to reduced printing costs, telephone restructuring, and resetting of credit card fee allocations. Commodities represent 4% of the total recreation budget. 90 RECREATION (continued) 2WKHUFKDUJHVDQGVHUYLFHV The other charges and services increase in 2012 is primarily attributable to printing costs, training, and contractual cleaning. The significant decrease in the 2011 estimate relates to cell phone restructuring, resetting of credit card fee allocations, printing costs, and reduced contractual services for tennis instructors. The largest expenditure is for contractual recreation program services ($152,955) which is 62% of the other charges and services. The increase in the 2013 budget is primarily related to the new HeritaJH&HQWHU³IRUPHU´ police station) which will house the Senior Center, Historical Society and the Yellow Ribbon RUJDQL]DWLRQ7KH³IRUPHU´SROLFHVWDWLRQIDFLOLW\DQG/DNHYLOOH+LVWRULFDO6RFLHW\IDFLOLW\ were previously accounted for in the General Government Facilities program. &DSLWDORXWOD\The proposed 2012 capital outlay budget includes Microsoft Office upgrades. 91 ARTS CENTER Program Description: The Lakeville Area Arts Center is a community facility that provides entertainment, educational, and recreational programs involving the visual and performing arts. Services: The Arts Center offers a series of 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, ³([SUHVVLRQV&RPPXQLW\7KHDWHU´LVbatik, seasonal ornaments, dolls, purses, comprised of area performers that and jewelry. produce three comedy acts per year. The Arts Center facility is also available Art camps provide educational visual to 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: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Budget Estimate Arts Center Coordinator 1.0 1.0 1.0 1.0 1.0 Administrative Assistant 1.0 1.0 1.0 1.0 1.0 Facility 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 92 ARTS CENTER (continued) Budget Summary: 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures Personnel services222$ 219,091$ 219,508$ 221,474$ 222,848$ ,909 20,807 21,475 22,379 22,500 ,950 Commodities18 Other charges and services193,488 184,380 195,697 200,319 205,060 15,636199 15,382 688 - Capital outlay $ 439,999434,585$ 451,932$ 445,355$ 450,919$ Total Revenue sources Charges for services224$ 212,382$ 231,320$ 237,731$ 239,100$ ,600 227,679 220,201 208,255 211,319 210,203 Taxes and other public funds $ 439,999434,585$ 451,932$ 445,355$ 450,919$ Total Budget Factors: 3HUVRQQHOVHUYLFHVThe personnel services budget will increase in both 2012 and 2013 due to intradepartmental allocation of hours between part-time staff, compensation liability distribution, and workers compensation insurance. Personnel services represent 50% of total Arts Center costs. &RPPRGLWLHVIncreases in the 2012 and 2013 commodities budgets is anticipated for additional operating supplies needed to handle thHJURZWKLQ&KLOGUHQ¶V7KHDWHUSDUWLFLSDWLRQ 2WKHUFKDUJHVDQGVHUYLFHV The other charges and services budgets in 2012 and 2013 are projected to increase with electric rates and performance contracts constituting the majority of the increases. &DSLWDORXWOD\The proposed 2012 capital outlay is attributable to Microsoft Office upgrades. 93 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 CLW\¶V&DEOH79DQG3ublic Communications budgets, including long-term replacement of equipment. Economic Development Fund This fund accounts for a $125,000 Economic Recovery Grant received from the State of Minnesota Department of Trade and Economic Development in 1995. The grant purpose is to provide loans to businesses expanding in or locating to Lakeville. The fund also accounts for administrative fees received from the issuance of conduit debt. CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for All Special Revenue Funds Combined Schedule of Revenues, Expenditures, and Chanes in Fund Balances g For the Years Ending December 31, 2012 and 2013 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Licenses572,649$ 582,215$ 589,828$ 607,523$ 440,749$ Intergovernmental516 516 516 516 516 Charges for services2,500 14,250 2,500 2,250 2,000 Investment income7,308 3,959 4,560 4,758 4,497 Miscellaneous6,176 - - - - 600,940 597,404 615,047 447,762 589,149 Total revenues Expenditures General government407,758 404,490 408,395 485,641 406,039 19,779113,627 17,573 27,227 25,000 Capital outlay 424,269 425,968 512,868 431,039 521,385 Total expenditures deficienc of revenues Excess (y) over expenditures67,764 176,671 171,436 102,179 16,723 Other financing sources (uses) (57,007)(49,875) (57,722) (191,209) (42,891) Transfer to other funds Net change in fund balance17,889 119,664 113,714 (89,030) (26,168) 725,623776,896 794,785 908,499 819,469 Fund balance, January 1 $ 845,287794,785$ 908,499$ 819,469$ 793,301$ Fund balance, December 31 2012/2013 Percentage change in fund balance(10%)(3%) For a complete discussion of changes in fund balances, see fund balance discussion following combining schedules. 94 CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for Special Revenue Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2012 2012 Proposed Budget Economic CommunicationsDevelopmentTotal Revenues Licenses607,523$ -$ 607,523$ Intergovernmental516 - 516 Charges for services- 2,250 2,250 652 4,758 4,106 Investment income 612,145 2,902 615,047 Total revenues Expenditures General government485,641 - 485,641 27,227 - 27,227 Capital outlay 512,868 - 512,868 Total expenditures Excess deficienc of revenues (y) over expenditures99,277 2,902 102,179 Other financing sources (uses) (191,209) - (191,209) Transfer to other funds Net change in fund balance(91,932) 2,902 (89,030) 65,214 908,499 843,285 Fund balance, January 1 68,116$ 819,469$ $ 751,353 Fund balance, December 31 (11%)4%(10%) 2012 Percentage change in fund balance For a complete discussion of changes in fund balances, see fund balance discussion following combining schedules. 95 CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for Special Revenue Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2013 2013 Estimated Budget Economic CommunicationsDevelopmentTotal Revenues Licenses440,749$ -$ 440,749$ Intergovernmental516 - 516 Charges for services- 2,000 2,000 3,815 682 4,497 Investment income 445,080 2,682 447,762 Total revenues Expenditures General government406,039 - 406,039 25,000 - 25,000 Capital outlay -431,039 431,039 Total expenditures Excess deficienc of revenues (y) over expenditures14,041 2,682 16,723 Other financing sources (uses) - (42,891) (42,891) Transfer to other funds Net change in fund balance(28,850) 2,682 (26,168) 751,353 68,116 819,469 Fund balance, January 1 $ 722,503 70,798$ 793,301$ Fund balance, December 31 (4%)4%(3%) 2013 Percentage change in fund balance For a complete discussion of changes in fund balances, see fund balance discussion following combining schedules. 96 CITY OF LAKEVILLE, MINNESOTA Special Revenue Funds Fund Balance Discussion The Communications Fund 2012 fund balance is expected to decrease by 11% and 4% in 2013. The 2012 decrease is mainly due to a transfer to the Equipment Fund ($148,416) to finance technology acquisitions; the community survey ($30,000); City Hall remodeling study ($20,000); and the community visioning process ($30,000). The 2013 decrease is attributable to allocating $185,000 of the cable TV franchise fees directly to the General Fund. The Economic Development Fund 2012 fund balance is expected to increase by 5% and 4% in 2013. Beginning in 2008 and continuing through 2017 the City will collect a conduit debt fee from a private activity revenue bond issue. 97 COMMUNICATIONS FUND Fund Description: The Communications FundLVUHVSRQVLEOHIRUWKH&LW\¶VSUimary 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 7HOHYLVLRQFDEOHFKDQQHO 7KHGHSDUWPHQW¶V mission is to provide information regarding municipal programs and services in a quality and cost-effective manner that engages the FRPPXQLW\DQGHQKDQFHVWKH&LW\¶VLPage locally, regionally, and nationally. Services: Lakeville Government Television department also maintains and promotes (LGTV) Channel 16. The the employee intranet. Communications Department is Publications. The department prepares responsible for creating government MessagesWKH&LW\¶VZHHNO\QHZVOHWWHU television programs for cable channel Special publications are produced such 16. The Department produces and directs as the new resident guidebook, utility broadcasts of live meetings as well as brochure, welcome packet flyers, project 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 Cable TV Board and monitoring for communications pieces are also a MACTA legislative information. primary activity. Lakeville Access Television Channel Social media. The department 12. The public access television cable establishes and maintains City listservs channel 12 is managed by the for automatic e-mail delivery of City Communications Department. publications. Website.7KH&LW\¶VZHEVLWHLV Special event planning. The department maintained by the Communications is responsible for planning and Department. The department also coordination of special events such as coordinates website content with the groundbreakings and grand openings. objectives of other departments. The 98 COMMUNICATIONS FUND (continued) Staffing: 2010 2011 2011 2012 2013 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 2.0 2.0 2.0 2.0 2.0 Total 4.0 4.0 4.0 4.0 4.0 Budget Factors: 5HYHQXHVFranchise fees are increasing 3% in both 2012 and 2013 due to increased subscriptions. Franchise fees of $185,000 will be directly allocated to the General Fund in 2013. 3HUVRQQHOVHUYLFHVThe personnel services budget will decrease in 2012 and 2013 due to recognizing the cost of compensated absences in the personnel section in 2011 instead of a fund transfer in prior years. &RPPRGLWLHVThe commodities budget proposes no changes in 2012 or 2013. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services budget will increase in 2012 and decrease in 2013 primarily as a result of a bi-annual community survey ($30,000); City Hall remodeling study ($20,000) and a Community Visioning Process ($30,000). The largest 2012 expenditure is for printing and distribution of the weekly newsletter Messages ($42,900). &DSLWDORXWOD\Capital outlay in 2012 is attributable to Microsoft Office upgrades, computer replacements, handheld camera replacement, lobby monitors and control room/routing upgrades. The 2013 capital outlay budget provides for replacement of the edit station and the addition of a fiber head for high definition signal. 2WKHUILQDQFLQJXVHV ±7UDQVIHUVThe Communications Fund budget reimburses the General Fund for its share of overhead and administrative costs. In 2012, the Communications Fund will transfer $148,416 to the Equipment Fund to finance switches and Voice Over IP server replacement. 99 COMMUNICATIONS FUND (continued) Budget Summary: CITY OF LAKEVILLE, MINNESOTA Special Revenue - Communications Fund Schedule of Revenues, Expenditures and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Licenses - Franchise fee572,649$ 582,215$ 589,828$ 607,523$ 440,749$ Intergovernmental - State-aid 516 516 516 516 516 Charges for services- 12,000 - - - Investment income6,662 3,338 3,970 4,106 3,815 6,176 - - - - Miscellaneous 586,003 598,069 594,314 612,145 445,080 Total revenues Expenditures - General government Personnel services311,282 316,847 329,927 318,770 317,966 Commodities6,310 9,216 8,876 8,876 8,876 Other charges and services90,166 78,427 69,592 157,995 79,197 19,779113,627 17,573 27,227 25,000 Capital outlay 521,385 424,269 425,968 512,868 431,039 Total expenditures Excess (deficiency) of revenues 64,618 168,346 99,277 14,041 over expenditures Other financing (uses) - Transfers To General Fund(42,069) (42,551) (41,691) (42,793) (42,891) To Sp. Rev. - Comp. Liab. Fund(7,806) (14,456) - - - To Equipment Fund- - - (148,416) - - - (16,031) - - To Building Fund (49,875) (57,007) (57,722) (191,209) (42,891) Total other financing (uses) Net change in fund balance14,743 116,793 110,624 (91,932) (28,850) 717,918 663,555 732,661 843,285 751,353 Fund balance, January 1 $ 732,661 780,348$ 843,285$ 751,353$ 722,503$ Fund balance, December 31 2012/2013 Percentage change in fund balance(11%)(4%) 100 ECONOMIC DEVELOPMENT FUND Fund 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 Factors: 5HYHQXHVThe City receives an annual administrative fee (1/8 of 1%) until 2017 from conduit fee for debt issued in 2008. Budget Summary: CITY OF LAKEVILLE, MINNESOTA Special Revenue - Economic Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Charges for services2,500$ 2,250$ 2,500$ 2,250$ 2,000$ 621 590 652 682 646 Investment income 3,146 2,871 3,090 2,902 2,682 Total revenues Expenditures - General Government - - - - - Other charges and services Net change in fund balance3,146 2,871 3,090 2,902 2,682 58,978 62,068 62,124 65,214 68,116 Fund balance, January 1 $ 62,124 64,939$ 65,214$ 68,116$ 70,798$ Fund balance, December 31 2012/2013 Percentage change in fund balance4%4% 101 Debt Service Funds These funds account for the accumulation of resources for the payment of long-term debt principal and interest, but excluding debt issued for and serviced by an enterprise fund. General Obligation Fund Debt approved by voter referendum, certificates of indebtedness, capital improvement and street reconstruction bonds. Revenues are provided primarily from property taxes. G.O. Improvement Fund Debt issued to finance construction of public improvements. The special assessments levied against benefitted property owners are pledged toward the repayment of the principal and interest on these bonds. Tax Increment Fund Debt issued to finance construction of public improvements in accordance with approved tax increment plans. Property tax increments received from designated tax increment financing districts are pledged to the payment of the bonds. State-aid Street Fund Debt issued to finance construction of State-aid street projects within the City. The primary revenue source is municipal state aid allotments from the State of Minnesota Department of Transportation. Water Revenue Fund Debt issued to finance the construction of wells, pump houses, towers, water main V\VWHPVDQGWKH&LW\¶VZDWHUWUHDWPHQWIacility. Water connection fees are pledged toward the repayment of the principal and interest on these bonds. Arena Revenue Fund Debt issued for the construction of the Lakeville Ames Ice Arena first and second sheet of ice, spectator seating and locker rooms. Revenue sources include donations from net operating ice arena revenues and other sources pledged to the payment of the bonds. The Ice Center Refunding Bonds, Series 2008 A and the 2005 Capital Dehumidification Lease-Purchase agreement are general obligations that are backed by the full-faith and credit of the City. The Gross Revenue Recreation Facility Bonds of 1999 are not general obligations and accordingly are not backed by the full-faith and credit of the City. (Continued) Debt Service Funds HRA Revenue Fund The Lakeville Housing and Redevelopment Authority (HRA) issued the Public Facility Lease Revenue Bonds, Series 2002 A for the construcWLRQRI/DNHYLOOH¶V 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 also issued the HRA Ice Arena Lease Revenue Bonds, Series 2006 for the Hasse single sheet ice arena facility. Debt service will be payable from property taxes and lease payments to be made to the City pursuant to the lease agreement between the Authority and Independent School District 194. These HRA bonds are not general obligations and accordingly are not backed by the full-faith and credit of the City. 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 also referred to as the ³*RYHUQPHQW$FWLYLWLHV%RQGV´1Rt included is the debt issued for and serviced by the Liquor Fund. As of July 1, 2011, the City of Lakeville has approximately $82.3 million of governmental activities debt outstanding. The total of all debt, including Liquor revenue bonds is $85.8 million. Depending on the purpose and financing source of repayment, the City will, in consultation with its financial advisor, select the repayment period and type of debt refinance which best meets its financial objectives. Interest costs have been reduced in recent years with the refinancing of eligible issues. The five year capital improvement plan is an important planning document utilized for debt management. The debt is repaid from a myriad of revenue sources including but not limited to special assessments, connection charges, liquor fund revenues, ice arena revenues, tax increments, State Aid street payments and property taxes. Approximately 47% of the debt is paid for from property taxes with the remaining 53% paid from non-tax sources. Revenues of $10.7 million are required pay the debt obligations in 2011. 102 DEBT SERVICE FUNDS (continued) The following is a summary of the principal and interest debt service payments for the coming years. The schedule shown below does not include any new debt, refinancing of debt or advanced debt retirement which may or may not occur after July 1, 2011. Government Activity Bonds Principal and Interest Payments State-aidPublic Roads andFacility GeneralG.O.TaxWaterArenaLease YearObligatioImprovemenIncremenRevenuRevenueObligationsTotal ntte 20124,841,040 1,112,446 536,586 1,870,455 198,607 2,418,989 10,978,123 20134,395,733 986,096 518,011 1,878,538 194,903 789,723 8,763,004 20144,412,332 641,674 529,004 1,825,353 195,860 799,656 8,403,879 20154,431,245 617,488 282,561 1,860,200 331,493 808,356 8,331,343 2016-202020,019,410 2,125,766 1,383,953 4,358,558 787,928 4,256,469 32,932,084 2021-202520,550,652 547,058 81,980 6,536 3,938,940 25,125,166 2026-203015,648,693 3,371,003 19,019,696 2031-20322,067,384 - - - - 1,366,166 3,433,550 Total81,868,010$ 7,374,590$ 4,332,229$ 13,995,152$ 1,912,253$ 18,520,626$ 128,002,860$ The City is in compliance with all bond covenants. 103 DEBT SERVICE FUNDS (continued) Debt Issuance 2012 and 2013 The City has approximately $9.87 million of street reconstruction projects which will be financed with the issuance of general obligation improvement bonds in the next two years. The debt will be repaid with property taxes (proposed to be amortized over a 10 year period) and special assessments to the benefitted properties. A summary of the debt issues is as follows: The G.O. State Aid Street Bonds of 2001 are being considered for refinancing to reduce interest cost and State Aid commitments. The proposed budget also includes the retirement of $1.775 million of HRA Public Facility Lease Revenue Bonds of 2002A, effective February 1, 2012. The retirement of the debt is proposed to be financed by the Liquor Fund. The debt was initially issued in 2002 to finance the construction of Fire Station #4. The G.O. State Aid Bonds of 2001C and the G.O. Park Refunding Bonds of 2003B will evaluated for potential refinancing. Legal Debt Limits Minnesota Statutes §475 limit the amount of general obligation debt which is financed solely from property tax levies including Equipment Certificates, Capital Improvement Bonds, Street Reconstruction Bonds and debt approved by referendum. The debt cannot exceed 3% of the taxable market value of the City. Debt excluded from limitations are those for which some other source of revenue is pledged as security including but not limited to improvement bonds, tax increment bonds, utility revenue bonds and revenue bonds. The debt limit calculations are as follows: 104 DEBT SERVICE FUNDS (continued) As of July 1, 2011 Included in debt limits G.O. Equipment Certificates450,000$ G.O. Park Bonds1,565,000 G.O. Street Reconstruction Bonds 22,130,000 G.O. Capital Improvement Bonds 27,625,000 HRA Public Facility Lease Revenue Bonds1,775,000 Total debt subject to debt limits 53,545,000 Excluded from debt limits G.O. Improvement Bonds4,980,000 G.O. State-aid Street Bonds5,840,000 G.O. Tax Increment Bonds 3,180,000 G.O. Water Revenue Bonds4,630,000 Ice Arena debt10,127,027 Total debt excluded from debt limits 28,757,027 Total governmental debt82,302,027$ Legal debt limit (3% of Taxable market value)160,705,677$ Less: G.O. Debt subject to limit(53,545,000) Legal debt margin107,160,677$ Credit Rating 0RRG\¶V,QYHVWRU6HUYLFHKDVDVVLJQed the City of Lakeville a very favorable Aa1 credit rating. In its most recent analysis of the City of /DNHYLOOH0RRG\¶V,QYHstor Service stated ³7KHKLJK 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 coPPXQLW\¶VUDSLGJURZWKGXULQJWKHSDVWGHFDGH´ 7KHFUHGLWUDWLQJUHSRUWDOVRUHIHUHQFHGWKH&LW\¶VGHEWSRVLWLRQE\VWDWLQJ³7KH&LW\ VGHEW 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 signLILFDQWQRQOHY\VXSSRUW´ 105 CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for All Debt Service Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues General property taxes5,968,307$ 4,959,746$ 4,959,746$ 5,029,400$ 5,181,605$ Tax increment743,435 666,079 691,720 691,720 691,720 Intergovernmental914,698 905,303 906,378 910,038 927,122 Charges for services372,988 349,088 376,850 382,813 385,850 Special assessments504,356 456,150 453,730 495,919 642,746 Investment income79,852 89,132 73,381 49,756 52,634 Donations95,000 113,590 95,000 95,000 95,000 -50,000 - - - Miscellaneous 8,728,636 7,539,088 7,556,805 7,654,646 7,976,677 Total revenues Expenditures - debt service Principal maturities7,337,338 7,382,725 7,382,725 7,603,131 5,783,131 Interest on debt3,945,265 3,633,290 3,633,290 3,410,618 3,258,290 34,00661,213 20,583 20,800 19,428 Fiscal charges 11,050,02111,343,816 11,036,598 11,034,549 9,060,849 Total expenditures Excess deficienc of revenues (y) (2,615,180) (3,510,933) (3,479,793) (3,379,903) (1,084,172) over expenditures Other financing sources (uses) Transfer from other funds2,155,969 2,066,603 2,066,603 3,052,183 1,616,883 Transfer to other funds(60,300) (57,600) (57,600) (59,900) (61,900) Disposal of assets Refunding bonds issued2,680,000 Payment on refunded bonds called(7,955,000) -99,322 - - - Premium on bonds issued (3,080,009) 2,009,003 2,009,003 2,992,283 1,554,983 Total other financing sources (uses) Net change in fund balance(5,695,189) (1,501,930) (1,470,790) (387,620) 470,811 9,856,15915,722,926 10,027,737 8,556,947 8,169,327 Fund balance, January 1 $ 8,354,22910,027,737$ 8,556,947$ 8,169,327$ 8,640,138$ Fund balance, December 31 2012/2013 Percentage change in fund balance(15%)(5%)6% For a complete discussion of changes in fund balances, see fund balance discussion following combining schedules. 106 CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for Debt Service Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2012 (continued on following page) 2012 Proposed Budget General G.O.Tax ObligationImprovementIncrementState-aid Revenues General property taxes4,059,371$ 637,395$ 51,601$ -$ Tax increment691,720 Intergovernmental76,308 833,730 Charges for services Special assessments154,966 340,953 Investment income28,780 7,678 9,689 60 -- - - Donations 986,026 753,010 833,790 4,319,425 Total revenues Expenditures - debt service Principal maturities2,585,000 985,000 425,000 635,000 Interest on debt2,256,040 163,072 111,586 197,655 4,3953,757 5,849 1,475 Fiscal charges 1,152,4674,844,797 542,435 834,130 Total expenditures Excess (deficiency) of revenues (525,372) (166,441) 210,575 (340) over expenditures Other financing sources (uses) Transfer from other funds100,000 488,903 -- (59,900) - Transfer to other funds 488,903100,000 (59,900) - Total other financing sources (uses) Net change in fund balance(425,372) 322,462 150,675 (340) 1,092,6974,587,384 1,083,493 18,223 Fund balance, January 1 $ 1,415,1594,162,012$ 1,234,168$ 17,883$ Fund balance, December 31 2012 Percentage change in fund balance(9%)30%14%(2%) For a comlete discussion of chanes in fund balances pg, see fund balance discussion followin combinin schedules. gg 107 CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for Debt Service Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2012 (continued from previous page) 2012 Proposed Budget WaterArenaHRA Lease RevenueRevenueRevenueTotal Revenues General property taxes-$ -$ 281,033$ 5,029,400$ Tax increment691,720 Intergovernmental910,038 Charges for services101,780 281,033 382,813 Special assessments495,919 Investment income2,049 1,500 49,756 - 95,000 - 95,000 Donations 198,829 563,566 7,654,646 - Total revenues Expenditures - debt service Principal maturities870,000 138,131 1,965,000 7,603,131 Interest on debt167,800 60,476 453,989 3,410,618 574480 4,270 20,800 Fiscal charges 199,1811,038,280 2,423,259 11,034,549 Total expenditures Excess (deficiency) of revenues (1,038,280) (352) (1,859,693) (3,379,903) over expenditures Other financing sources (uses) Transfer from other funds1,038,280 1,425,000 3,052,183 -- - (59,900) Transfer to other funds -1,038,280 1,425,000 2,992,283 Total other financing sources (uses) Net change in fund balance- (352) (434,693) (387,620) 264,3024,217 1,506,631 8,556,947 Fund balance, January 1 $ 263,9504,217$ 1,071,938$ 8,169,327$ Fund balance, December 31 2012 Percentage change in fund balance0%(0%)(29%)(5%) For a comlete discussion of chanes in fund balances pg, see fund balance discussion followin combinin schedules. gg 108 CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for Debt Service Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2013 (continued on following page) 2013 Estimated Budget General G.O.Tax ObligationImprovementIncrementState-aid Revenues General property taxes4,127,655$ 763,983$ 5,897$ -$ Tax increment691,720 Intergovernmental75,009 852,113 Charges for services Special assessments118,214 524,532 Investment income29,976 8,099 10,950 60 -- - - Donations 4,350,854 1,296,614 708,567 852,173 Total revenues Expenditures - debt service Principal maturities2,230,000 1,215,000 420,000 675,000 Interest on debt2,165,734 247,561 98,011 176,038 5,5943,372 5,848 1,475 Fiscal charges 1,468,1554,399,106 523,859 852,513 Total expenditures Excess (deficiency) of revenues (48,252) 184,708 (340) over expenditures Other financing sources (uses) Transfer from other funds100,000 488,903 -- (61,900) - Transfer to other funds 488,903100,000 (61,900) - Total other financing sources (uses) Net change in fund balance51,748 317,362 122,808 (340) 1,415,1594,162,012 1,234,168 17,883 Fund balance, January 1 $ 1,732,5214,213,760$ 1,356,976$ 17,543$ Fund balance, December 31 22%10%(2%) 2013 Percentage change in fund balance1% For a comlete discussion of chanes in fund balances pg, see fund balance discussion followin combinin schedules. gg 109 CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for Debt Service Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2013 (continued from previous page) 2013 Estimated Budget WaterArenaHRA Lease RevenueRevenueRevenueTotal Revenues General property taxes-$ -$ 284,070$ 5,181,605$ Tax increment691,720 Intergovernmental927,122 Charges for services101,780 284,070 385,850 Special assessments642,746 Investment income2,049 1,500 52,634 - 95,000 - 95,000 Donations - 198,829 569,640 7,976,677 Total revenues Expenditures - debt service Principal maturities895,000 138,131 210,000 5,783,131 Interest on debt132,500 56,771 381,675 3,258,290 574480 2,085 19,428 Fiscal charges 195,4761,027,980 593,760 9,060,849 Total expenditures Excess (deficiency) of revenues (1,027,980) 3,353 (24,120) (1,084,172) over expenditures Other financing sources (uses) Transfer from other funds1,027,980 1,616,883 -- - (61,900) Transfer to other funds -1,027,980 - 1,554,983 Total other financing sources (uses) Net change in fund balance- 3,353 (24,120) 470,811 263,9504,217 1,071,938 8,169,327 Fund balance, January 1 $ 267,3034,217$ 1,047,818$ 8,640,138$ Fund balance, December 31 2013 Percentage change in fund balance0%1%(2%)6% For a comlete discussion of chanes in fund balances pg, see fund balance discussion followin combinin schedules. gg 110 CITY OF LAKEVILLE, MINNESOTA Debt Service Fund Fund Balance Discussion General obligation debt fund balance will decrease by ($425,372) or (9%) and increase by $51,748 or (1%) respectively in 2012 and 2013 respectively. The beginning fund balances of $4,587,384 and $4,162,012 in 2012 and 2013 respectively are adequate and sufficient to meet debt service obligations. General Obligation (G.O.) Improvement Bonds (Special Assessments) fund balance will have an increase of ($322,462) or (30%) and $317,362 or 22% increase in 2012 and 2013 respectively as a result of the revenues received for the new 2011 and 2012 debt issues. The beginning fund balance of $1,092,697 and $1,415,159 for 2012 and 2013 respectively when combined with the collection of special assessments and connection charges in previous years is adequate and sufficient to meet debt service obligations. Tax Increment Debt fund balance will increase by $150,675 or 14% and $122,808 or 10% in 2012 and 2013 respectively. The final tax increment levies for the Tax Increment Districts 8 (Southfork) and 9 (Argonne Plaza) are in 2013; the final increment levies for Tax Increment District 17 (DiHed Yokes) is in 2014. The beginning fund balance of $1,083,493 and $1,234,168 for 2012 and 2013 respectively are an important revenue source for meeting future debt service obligations. State-aid Street Debt fund balance will decrease by ($340) in each of the next two years as a result of fiscal charges exceeding interest on investments. The fund balance of $17,883 is minor and will be used in the final years of this bond issue. Water Revenue Debt fund balance will have no change in the coming years since transfers from the Capital Projects Water Fund are adequate and sufficient to meet debt service obligations. Ice Arena Revenue Debt fund balance will decrease by ($352) in 2012 and increase by $3,353 in 2013 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 $263,950 and $267,303 for 2012 and 2013 respectively are an important revenue source for meeting future debt service obligations. HRA Lease Revenue Debt fund balance will decrease by ($434,693) in 2012 as a result of calling the 2002 HRA Lease Revenue Debt issued to finance the construction of Fire Station #4. The 2002 debt redemption will be paid by a transfer from the Liquor Fund. The ending fund balance of $1,071,938 and $1,044,781 for 2012 and 2013 respectively include reserves as required by the bond covenants and are an important revenue source for meeting future debt service obligations. 111 CITY OF LAKEVILLE, MINNESOTA Debt Service - General Obligation Debt Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues General property taxes4,782,505$ 4,307,300$ 4,307,300$ 4,059,371$ 4,127,655$ Intergovernmental Federal Build America Bonds credit45,384 77,135 77,135 76,308 75,009 Special assessments175,286 162,422 162,422 154,966 118,214 Investment income28,869 33,260 33,398 28,780 29,976 -50,000 - - - Miscellaneous 5,082,044 4,580,117 4,580,255 4,319,425 4,350,854 Total revenues Expenditures - debt service Principal maturities3,195,000 3,140,000 3,140,000 2,585,000 2,230,000 Interest on debt2,382,984 2,361,521 2,361,521 2,256,040 2,165,734 6,5007,045 4,658 3,757 3,372 Fiscal charges 5,508,0215,585,029 5,506,179 4,844,797 4,399,106 Total expenditures Excess (deficiency) of revenues over expenditures(502,985) (927,904) (925,924) (525,372) (48,252) Other financing sources (uses) Transfer from 100,000100,000 100,000 100,000 100,000 Enterprise - Liquor Fund Net change in fund balance(402,985) (827,904) (825,924) (425,372) 51,748 5,393,8335,816,293 5,413,308 4,587,384 4,162,012 Fund balance, January 1 $ 4,565,9295,413,308$ 4,587,384$ 4,162,012$ 4,213,760$ Fund balance, December 31 2012/2013 Percentage change in fund balance(9%)1% 112 CITY OF LAKEVILLE, MINNESOTA Debt Service - General Obligation Improvement (Special Assessments) Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues General property taxes861,086$ 325,775$ 325,775$ 637,395$ 763,983$ Special assessments329,070 293,728 291,308 340,953 524,532 15,024 6,394 6,394 7,678 8,099 Investment income 625,8971,205,180 623,477 986,026 1,296,614 Total revenues Expenditures - debt service Principal maturities1,795,000 1,725,000 1,725,000 985,000 1,215,000 Interest on debt292,291 166,120 166,120 163,072 247,561 2,6004,060 2,600 4,395 5,594 Fiscal charges 1,893,7202,091,351 1,893,720 1,152,467 1,468,155 Total expenditures Excess (deficiency) of revenues (886,171) (1,267,823) (1,270,243) (166,441) (171,541) over expenditures Other financing sources (uses) Transfer from General Fund107,490 Capital Projects Storm Sewer Fund331,000 331,000 331,000 331,000 331,000 Water Fund136,092 136,093 136,093 136,093 136,093 Tax Increment Fund21,810 21,810 21,810 21,810 21,810 (4,285,000) - - - - Payment on refunded bonds called (3,688,608) 488,903 488,903 488,903 488,903 Total other financing sources (uses) Net change in fund balance(4,574,779) (778,920) (781,340) 322,462 317,362 1,859,7496,448,816 1,874,037 1,092,697 1,415,159 Fund balance, January 1 $ 1,080,8291,874,037$ 1,092,697$ 1,415,159$ 1,732,521$ Fund balance, December 31 2012/2013 Percentage change in fund balance30%22% 113 CITY OF LAKEVILLE, MINNESOTA Debt Service - Tax Increment Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues General property taxes52,249$ 51,601$ 51,601$ 51,601$ 5,897$ Tax increment743,435 666,079 691,720 691,720 691,720 7,8745,243 8,241 9,689 10,950 Investment income 800,927 725,554 751,562 753,010 708,567 Total revenues Expenditures - debt service Principal maturities375,000 410,000 410,000 425,000 420,000 Interest on debt157,413 125,056 125,056 111,586 98,011 6,5266,464 6,526 5,849 5,848 Fiscal charges 541,582538,877 541,582 542,435 523,859 Total expenditures Excess (deficiency) of revenues 183,972262,050 209,980 210,575 184,708 over expenditures Other financing sources (uses) Transfer to Capital Projects Storm Sewer Fund(60,300) (57,600) (57,600) (59,900) (61,900) -(940,000) - - - Payment on refunded bonds called (1,000,300) (57,600) (57,600) (59,900) (61,900) Total other financing sources (uses) Net change in fund balance(738,250) 126,372 152,380 150,675 122,808 854,3611,669,363 931,113 1,083,493 1,234,168 Fund balance, January 1 980,733$ 1,083,493$ 1,234,168$ 1,356,976$ $ 931,113 Fund balance, December 31 2012/2013 Percentage change in fund balance14%10% 114 CITY OF LAKEVILLE, MINNESOTA Debt Service - State Aid Street Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2011 and 2012 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Intergovernmental - State-aid869,314$ 828,168$ 829,243$ 833,730$ 852,113$ 108 60 60 60 5,497 Investment income 828,276 829,303 833,790 852,173 874,811 Total revenues Expenditures - debt service Principal maturities575,000 610,000 610,000 635,000 675,000 Interest on debt293,154 218,168 218,168 197,655 176,038 38,320 1,500 1,475 1,475 1,475 Fiscal charges 829,668906,474 829,643 834,130 852,513 Total expenditures Excess (deficiency) of revenues (1,392) (340) (340) (340) (31,663) over expenditures Other financing sources (uses) Refunding bonds issued2,680,000 Payment on refunded bonds called(2,730,000) 99,322 - - - - Premium on bonds issued -49,322 - - - Total other financing sources (uses) Net change in fund balance17,659 (1,392) (340) (340) (340) 904 5,086 18,563 18,223 17,883 Fund balance, January 1 $ 3,69418,563$ 18,223$ 17,883$ 17,543$ Fund balance, December 31 2012/2013 Percentage change in fund balance(2%)(2%) 115 CITY OF LAKEVILLE, MINNESOTA Debt Service - Water Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Expenditures - debt service Principal maturities1,020,000$ 1,085,000$ 1,085,000$ 870,000$ 895,000$ Interest on debt249,000 206,900 206,900 167,800 132,500 480 480 480 480 480 Fiscal charges 1,292,3801,269,480 1,292,380 1,038,280 1,027,980 Total expenditures Other financing sources (uses) Transfer from 1,292,3801,269,480 1,292,380 1,038,280 1,027,980 Capital Projects - Water Fund Net change in fund balance- - - - - 4,2174,217 4,217 4,217 4,217 Fund balance, January 1 $ 4,2174,217$ 4,217$ 4,217$ 4,217$ Fund balance, December 31 2012/2013 Percentage change in fund balance0%0% 116 CITY OF LAKEVILLE, MINNESOTA Debt Service - Arena Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Charges for services101,699$ 92,608$ 101,780$ 101,780$ 101,780$ Investment income1,334 1,651 1,688 2,049 2,049 95,00095,000 95,000 95,000 95,000 Donations 189,259198,033 198,468 198,829 198,829 Total revenues Expenditures - debt service Principal maturities122,338 132,725 132,725 138,131 138,131 Interest on debt67,415 64,201 64,201 60,476 56,771 500574 574 574 574 Fiscal charges 197,426190,327 197,500 199,181 195,476 Total expenditures Excess (deficiency) of revenues over expenditures7,706 (8,167) 968 (352) 3,353 255,628 212,409 263,334 264,302 263,950 Fund balance, January 1 $ 204,242263,334$ 264,302$ 263,950$ 267,303$ Fund balance, December 31 2012/2013 Percentage change in fund balance(0%)1% 117 CITY OF LAKEVILLE, MINNESOTA Debt Service - HRA Lease Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011EstimatedEstimated ActualBudgetEstimateBudgetBudget Revenues General property taxes272,467$ 275,070$ 275,070$ 281,033$ 284,070$ Charges for services271,289 275,070 275,070 281,033 284,070 23,885 39,845 23,600 1,500 1,500 Investment income 589,985567,641 573,740 563,566 569,640 Total revenues Expenditures - debt service Principal maturities255,000 280,000 280,000 1,965,000 210,000 Interest on debt503,008 491,324 491,324 453,989 381,675 15,9004,270 4,270 4,270 2,085 Fiscal charges 787,224762,278 775,594 2,423,259 593,760 Total expenditures Excess (deficiency) of revenues over expenditures(194,637) (197,239) (201,854) (1,859,693) (24,120) Other financing sources (uses) Transfer from 185,320190,097 185,320 1,425,000 - Enterprise - Liquor Fund Net change in fund balance(4,540) (11,919) (16,534) (434,693) (24,120) 1,526,5041,527,705 1,523,165 1,506,631 1,071,938 Fund balance, January 1 $ 1,514,5851,523,165$ 1,506,631$ 1,071,938$ 1,047,818$ Fund balance, December 31 2012/2013 Percentage change in fund balance(29%)(2%) 118 CITY OF LAKEVILLE, MINNESOTA Combined Schedule of Governmental Debt Service Requirements As of July 1, 2011 Due in 2012 Maturity Debt DateOutstandingPrincipalInterest G.O. Equipment Certificates of 2007 EFeb-01-12450,000$ 450,000$ 9,563$ G.O. Park Refunding Bonds of 2003 BFeb-01-151,565,000 375,000 49,744 G.O. Street Reconstruction Bonds of 2003 AFeb-01-2612,075,000 660,000 487,733 G.O. Capital Improvement Bonds of 2004 AFeb-01-3013,665,000 245,000 608,394 G.O. Street Reconstruction Bonds of 2005 AFeb-01-262,675,000 135,000 103,499 G.O. Capital Improvement Bonds of 2007 DFeb-01-3213,960,000 415,000 673,488 G.O. Street Reconstruction Bonds of 2007 HFeb-01-282,605,000 110,000 105,595 4,775,000 195,000 218,024 G.O. Taxable Street Reconstruction Bonds of 2009 AFeb-01-30 51,770,000 2,585,000 2,256,040 Total debt supported primarily by property taxes G.O. Improvement Refunding Bonds of 2007 BFeb-01-16955,000 380,000 29,644 G.O. Improvement Bonds of 2007 FFeb-01-18355,000 55,000 13,213 G.O. Improvement Bonds of 2008 AFeb-01-19245,000 35,000 7,778 3,425,000 515,000 76,813 G.O. Improvement Refunding Bonds of 2009 BFeb-01-20 985,0004,980,000 127,448 Total debt supported primarily by special assessments G.O. Tax Increment Refunding Bonds of 2007 AFeb-01-222,085,000 70,000 83,161 G.O. Taxable Tax Increment Refund Bonds of 2007 CFeb-01-14385,000 120,000 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 G.O. State Aid Street Bonds of 2001 CApr-01-21640,000 50,000 29,805 G.O. State Aid Street Bonds of 2007 GApr-01-182,745,000 345,000 102,900 240,000 64,950 2,455,000 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 870,0004,630,000 167,800 G.O. Water Revenue Refunding Bonds of 2004 BFeb-01-16 G.O. Ice Arena Revenue Refunding Bonds of 2008 AFeb-01-15535,000 130,000 14,390 Gross Revenue Recreation Facility Bonds of 1999Aug-01-19770,000 - 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-01-231,775,000 1,775,000 63,814 8,725,000 190,000 390,175 HRA Ice Arena Lease Revenue Bonds of 2006Feb-01-32 10,500,000 1,965,000 453,989 Total debt supported primarily by lease revenue $ 82,302,027 7,603,131$ 3,374,994$ Total Governmental Debt (1) General Obligation (G.O.) debt issues are backed by the full-faith and credit of the City. 119 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 7KH3DYHPHQW0DQDJHPHQW)XQG¶VSULPDU\SXUSRVHLVWRDFFRXQWIRUSDYHPHQW 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. 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 WKH&LW\¶VZDWHUWUHDWPHnt facility and other trunk infrastructure improvements. Sanitary Sewer Fund This fund accounts for sewer connection and area fees charged to land developers for FRQQHFWLQJWRWKH&LW\¶VVDQLWDU\VHZHUsystem. Appropriations are applied to the construction of sanitary sewer trunk systems. 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. (Continued) Capital Project Funds 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. 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. 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. 120 CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for Capital Projects Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2012 (continued on following page) 2012 Proposed Budget MunicipalPavementImprovementStormSanitary ManagementConstructionSewerWaterSewer State-aid Revenues General property taxes-$ 1,248,588$ -$ -$ -$ -$ Tax increment Intergovernmental374,335 Charges for services75,000 364,990 643,500 146,900 Special assessments4,900 5,000 32,900 Investment income17,500 3,500 6,800 700 1,110 22,593 - - - - 201,955 - Miscellaneous 17,500 1,626,423 81,800 370,590 851,565 202,393 Total revenues Expenditures - Capital outlay General government Public safety Police Fire Public works760,815 1,530,994 6,823,712 15,010 25,000 102,000 -- - - - - Parks and recreation 1,530,994760,815 6,823,712 15,010 25,000 102,000 Total expenditures Excess (deficiency) of revenues (743,315) 95,429 (6,741,912) 355,580 826,565 100,393 over expenditures Other financing sources (uses) Transfer from other funds59,900 170,000 Transfer to other funds(331,000) (1,173,893) -- 5,014,962 - - - Issuance of debt -- 5,014,962 (271,100) (1,003,893) - Total other financing sources (uses) Net change in fund balance(743,315) 95,429 (1,726,950) 84,480 (177,328) 100,393 873,5682,993,787 2,675,809 339,698 515,748 2,784,181 Fund balance, January 1 $ 968,9972,250,472$ 948,859$ 424,178$ 338,420$ 2,884,574$ Fund balance, December 31 2012 Percentage change in fund 11%(65%)25%(34%)4% balance(25%) For a complete discussion of changes in fund balances, see fund balance discussion following combining schedules. 121 CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for Capital Projects Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2012 (continued from previous page) 2012 Proposed Budget ParkTrailTax DedicationImprovementIncrementBuildingEquipmentTotal Revenues General property taxes-$ -$ -$ -$ 692,382$ 1,940,970$ Tax increment208,306 208,306 Intergovernmental18,164 392,499 Charges for services296,045 1,526,435 Special assessments 42,800 Investment income5,259 10,000 125 2,105 3,865 73,557 68,500 - - 743,000 175,500 1,188,955 Miscellaneous 369,804 10,000 226,595 745,105 871,747 5,373,522 Total revenues Expenditures - Capital outlay General government186,699 229,782 416,481 Public safety Police5,800 139,119 144,919 Fire61,840 93,418 155,258 Public works22,979 813,265 10,093,775 570,000 158,381 - 1,134,000 187,719 2,050,100 Parks and recreation 570,000 158,381 186,699 1,224,619 1,463,303 12,860,533 Total expenditures Excess (deficiency) of revenues (148,381)(200,196) 39,896 (479,514) (591,556) (7,487,011) over expenditures Other financing sources (uses) Transfer from other funds857,618 1,087,518 Transfer to other funds(21,810) (1,526,703) -- - - - 5,014,962 Issuance of debt -- (21,810) - 857,618 4,575,777 Total other financing sources (uses) Net change in fund balance(200,196) (148,381) 18,086 (479,514) 266,062 (2,911,234) 751,325 1,221,683 48,274 645,855 987,944 13,837,872 Fund balance, January 1 $ 551,129 1,073,302$ 66,360$ 166,341$ 1,254,006$ 10,926,638$ Fund balance, December 31 2012 Percentage change in fund balance(27%)(12%)37%(74%)27%(21%) For a complete discussion of changes in fund balances, see fund balance discussion following combining schedules. 122 Budgetary Summary for Capital Projects Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2013 (continued on following page) 2013 Estimated Budget MunicipalPavementImprovementStormSanitary State-aidManagementConstructionSewerWaterSewer Revenues General property taxes-$ 1,016,505$ -$ -$ -$ -$ Tax increment Intergovernmental374,335 Charges for services364,990 643,500 146,900 Special assessments4,900 5,000 32,900 Investment income7,000 3,500 6,800 1,550 867 22,593 - - - - 203,974 - Miscellaneous 7,000 1,394,340 6,800 371,440 853,341 202,393 Total revenues Expenditures - Capital outlay General government Public safety Police Fire Public works2,184,750 1,439,891 4,857,393 15,010 25,000 268,000 -- - - - - Parks and recreation 2,184,750 1,439,891 4,857,393 15,010 25,000 268,000 Total expenditures Excess (deficiency) of revenues (45,551)(2,177,750) (4,850,593) 356,430 828,341 (65,607) over expenditures Other financing sources (uses) Transfer from other funds61,900 170,000 Transfer to other funds(331,000) (1,163,593) -- 4,857,393 - - - Issuance of debt -- 4,857,393 (269,100) (993,593) - Total other financing sources (uses) Net change in fund balance(2,177,750) (45,551) 6,800 87,330 (165,252) (65,607) 2,250,472 968,997 948,859 424,178 338,420 2,884,574 Fund balance, January 1 $ 72,722$ 955,659$ 511,508$ 173,168$ 2,818,967$ Fund balance, December 31 2013 Percentage change in fund balance(97%)(5%)1%21%(49%)(2%) For a complete discussion of changes in fund balances, see fund balance discussion following combining schedules. 123 CITY OF LAKEVILLE, MINNESOTA Budgetary Summary for Capital Projects Funds Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ending December 31, 2013 (continued from previous page) 2013 Estimated Budget ParkTrailTax DedicationImprovementIncrementBuildingEquipmentTotal Revenues General property taxes-$ -$ -$ -$ 889,222$ 1,905,727$ Tax increment208,306 208,306 Intergovernmental18,164 392,499 Charges for services296,045 1,451,435 Special assessments 42,800 Investment income3,858 10,000 155 676 3,994 60,993 68,500 - - - 213,000 485,474 Miscellaneous 368,403 10,000 226,625 676 1,106,216 4,547,234 Total revenues Expenditures - Capital outlay General government186,699 215,896 465,979 868,574 Public safety Police4,585 539,802 544,387 Fire505,930 233,881 739,811 Public works7,941 548,339 9,346,324 626,248370,338 - - 322,915 1,319,501 Parks and recreation 626,248370,338 186,699 734,352 2,110,916 12,818,597 Total expenditures Excess (deficiency) of revenues (1,935) (616,248) 39,926 (733,676) (1,004,700) (8,271,363) over expenditures Other financing sources (uses) Transfer from other funds656,031 887,931 Transfer to other funds(21,810) (1,516,403) -- - - 688,278 5,545,671 Issuance of debt -- (21,810) 656,031 688,278 4,917,199 Total other financing sources (uses) Net change in fund balance(1,935) (616,248) 18,116 (77,645) (316,422) (3,354,164) 1,073,302551,129 66,360 166,341 1,254,006 10,926,638 Fund balance, January 1 $ 457,054549,194$ 84,476$ 88,696$ 937,584$ 7,572,474$ Fund balance, December 31 2013 Percentage change in fund balance(0%)(57%)27%(47%)(25%)(31%) For a complete discussion of changes in fund balances, see fund balance discussion following combining schedules. 124 CITY OF LAKEVILLE, MINNESOTA Capital Project Funds Fund Balance Discussion The Municipal State-aid Street Fund accounts for the allotments from the State of Minnesota for street improvements. The 2012 fund balance will decrease by ($760,815) rd as a result of improvements to Dodd Boulevard (County Road 9) from 183 Street to Hayes Boulevard. The City will also provide $225,000 for its share of the right of way for the County Road 50/County Road 60 roundabout in 2013 with financing from MSA funds. The completion of the Dodd Boulevard project ($1.968 million) and final stth payment on the Cedar Avenue project from 161 to 179 ($216,000) will result in a $2,177,750 decrease in the fund balance in 2013. The 2013 ending fund balance ($72,722) is appropriated to future street improvements. The Pavement Management Fund accounts for projects such as cracksealing, seal coating, patching and overlays. The fund balance will increase by $95,429 in 2012 and decrease by $45,551 in 2013 as a result of difference between the annual tax levy and programmed maintenance. The fXQGEDODQFHLVFRQVLVWHQWZLWKWKH&LW\¶V)XQG%DODQFH Policy and the Minnesota State Auditors Statement of Position regarding fund balances. The Improvement Construction Fund accounts primarily for the reconstruction of City streets and related infrastructure. $1.6 million of the 2012 fund balance is proposed to be th appropriated to the Kenrick Avenue round-about at 205 Street and the City share of cost of street reconstruction projects. The ending fund balance of $948,859 and $955,659 in 2012 and 2013 respectively serves as working capital and contingency for future street improvement projects. The Storm Sewer Fund accounts for improvements to the trunk storm sewer infrastructure system. The fund balance will increase by $84,480 and $87,330 in 2012 and 2013 respectively. The 2012 ending fund balance of $501,408 is appropriated to future storm sewer project improvements. The Water Fund accounts for improvements to the water trunk infrastructure system. The fund balance will decrease by $177,328 and $165,252 in 2012 and 2013 respectively. The 2013 ending fund balance ($173,168) is appropriated to future debt service payments and projects identified in the ±&DSLWDO,PSURYHPHQW3ODQ The Sanitary Sewer Fund accounts for improvements to the sanitary sewer infrastructure system. The fund balance will increase by $123,993 in 2012 and decrease by $42,007 due to trunk system improvements in the next two years. The 2013 ending fund balance ($2.847 million) is appropriated to future sanitary sewer trunk improvements. 125 CITY OF LAKEVILLE, MINNESOTA Capital Project Funds Fund Balance Discussion (continued) The Park Dedication Fund accounts for park dedication fees received from land developers. The improvements to the Senior Center and trails on the west side of Lake Marion are projects primarily responsible for the $200,196 decrease in the 2012 fund balance. The 2013 ending fund balance of $549,194 is appropriated to the projects indentified in the 2012 - 2016 Capital Improvement Plan. The Trail Improvement Fund accounts for the long term maintenance, repairs and replacement of City trails. The fund balance is proposed to decrease by $148,381 and $616,248 in 2012 and 2013 respectively as a result of major maintenance and trail replacement projects. The 2013 ending fund balance of $457,054 is appropriated to the projects indentified in the 2012 - 2016 Capital Improvement Plan. The Tax Increment Fund accounts for revenue received from tax increment property that does not require debt financing. The fund balance will increase by $18,086 and $18,116 in 2012 and 2013 respectively. The 2013 ending fund balance ($84,476) is appropriated to future community development initiatives. The Building Fund accounts for the major maintenance and improvements to City facilities. The 2012 and 2013 fund balance will decrease by $479,514 and $93,676 due to improvements to City Hall, Police Station, Senior Center, Arts Center, Central Maintenance Facility and Fire Stations. The 2013 ending fund balance of $88,696 is appropriated to the projects indentified in the 2012 - 2016 Capital Improvement Plan. The Equipment Fund accounts for the purchase of public safety, street, parks and technology equipment. The proposed 2012 budget includes a tax levy for future equipment acquisitions resulting in a $266,062 increase in the 2012 fund balance. The 2013 ending fund balance of $937,584 is appropriated to future equipment acquisitions LQGHQWLILHGLQWKH±&DSLWDO,PSURYHPHQW3ODQ 126 MUNICIPAL STATE AID STREET FUND Fund Description: The Municipal State-aid Street Fund accounts for an annual allotment from the State of Minnesota Municipal State-aid street construction account. The proposed budget provides $760,815 and $1,968,750 in 2012 and 2013 respectively for the rd Dodd Boulevard project from 183 Street to Hayes Avenue. The budget also provides $216,000 stth in 2013 for the final payment to Dakota County for the Cedar Avenue Project from 161 to 179 Street. Both projects are County roads and therefore will have no cost impact on City operations. CITY OF LAKEVILLE, MINNESOTA Capital Projects - Municipal State-aid Street Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Intergovernmental revenues - MSA1,564,187$ -$ -$ -$ 225,000 8,57532,596 21,000 17,500 7,000 Investment income 8,5751,596,783 21,000 17,500 232,000 Total revenues Expenditures - Capital outlay 2,184,750603,725 608,000 760,815 2,409,750 Public works Net change in fund balance993,058 (625,707) (587,000) (743,315) (2,177,750) 2,003,6842,587,729 3,580,787 2,993,787 2,250,472 Fund balance, January 1 $ 1,377,9773,580,787$ 2,993,787$ 2,250,472$ 72,722$ Fund balance, December 31 2012/2013 Percentage change in fund balance(25%)(97%) CITY OF LAKEVILLE, MINNESOTA Capital Projects - Municipal State-aid Street Fund Schedule of Capital Outlay Projects 20122013201420152016 Dodd Blvd.: 183rd St. - Hayes Ave.760,815$ 1,968,750$ -$ -$ -$ Cedar Ave. 3rd lane: 161st-179th St.216,000 CR 50/CR 60 Roundabout225,000 180,000 CR 50/CR 60 Improvements1,215,000 - - - - 2,400,000 Kenrick Ave: CP Rail to 183rd St. 2,409,750$ 1,395,000$ -$ 2,400,000$ $ 760,815 Total 127 PAVEMENT MANAGEMENT FUND Fund Description: The Pavement Management Fund 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-tHUPILQDQFLQJSODQIRURQHRIWKHFRPPXQLW\¶V most significant infrastructure assets. CITY OF LAKEVILLE, MINNESOTA Capital Projects - Pavement Management Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues General property taxes1,239,660$ 1,546,958$ 1,172,623$ 1,248,588$ 1,016,505$ Intergovernmental revenue612 374,335 374,335 374,335 Special assessments3,944 2,695 3,500 3,500 3,500 3,500 Investment income 1,246,911 1,550,458 1,550,458 1,626,423 1,394,340 Total revenues Expenditures - Capital outlay 1,646,1861,037,574 1,646,186 1,530,994 1,439,891 Public works Excess (deficiency) of revenues over expenditures209,337 (95,728) (95,728) 95,429 (45,551) Other financing sources (uses) -140,374 - - - Transfer from General Fund Net change in fund balance349,711 (95,728) (95,728) 95,429 (45,551) 903,875619,585 969,296 873,568 968,997 Fund balance, January 1 $ 808,147969,296$ 873,568$ 968,997$ 923,446$ Fund balance, December 31 2012/2013 Percentage change in fund balance11%(5%) The improvements for 2012 and 2013 are anticipated to have nominal impact on the operating budget. Details relating to the Pavement Management Fund expenditures are provided in the 2012 - 2016 Capital Improvement Plan. 128 PAVEMENT MANAGEMENT FUND FRQWLQXHG CITY OF LAKEVILLE, MINNESOTA Capital Projects - Pavement Management Fund Schedule of Capital Outlay Projects20122013201420152016 Crack sealing104,000$ 108,160$ 112,486$ 116,986$ 121,665$ Patching537,000 547,960 569,638 592,064 615,266 Sealcoating208,000 216,320 224,973 233,972 243,331 Overlays: Collector roads509,990 456,475 679,856 641,974 585,909 110,976 126,512 123,297 97,920 172,004 Other $ 1,439,8911,530,994$ 1,713,465$ 1,708,293$ 1,664,091$ Total 129 IMPROVEMENT CONSTRUCTION FUND Fund Description: The Improvement Construction Fund accounts for the construction of certain public improvements, such as streets and storm sewers. The City Council has approved a street reconstruction program that replaces ageing street infrastructure. Benefitted property owners are specially assessed for 40% of the cost with the remaining 60% paid by the City with property taxes. The financing of the debt is accomplished with the issuance of General Obligation Improvement Bonds. The special assessments and taxes are pledged to the repayment of the debt. The taxes are proposed to be amortized over a 10 year period to mitigate the impact of tax increases on business and residents. The proposed 2012 budget also includes construction of a round-about ($375,000) at Kenrick th Avenue and 205 Street. Walmart will be responsible for $75,000 of the construction costs. CITY OF LAKEVILLE, MINNESOTA Capital Projects - Improvement Construction Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Intergovernmental-$ -$ 181,376$ -$ -$ Charges for services75,000 38,267 2,350 18,900 6,800 6,800 Investment income 2,35038,267 200,276 81,800 6,800 Total revenues Expenditures - Capital outlay 5,430,000964,182 2,666,427 6,823,712 4,857,393 Public works Excess (deficiency) of revenues over expenditures(925,915) (5,427,650) (2,466,151) (6,741,912) (4,850,593) Other financing sources (uses) 5,250,000- 2,375,839 5,014,962 4,857,393 Issuance of debt Net change in fund balance(925,915) (177,650) (90,312) (1,726,950) 6,800 612,1273,692,036 2,766,121 2,675,809 948,859 Fund balance, January 1 434,477$ 2,675,809$ 948,859$ 955,659$ $ 2,766,121 Fund balance, December 31 2012/2013 Percentage change in fund balance(65%)1% The improvements for 2012 and 2013 are anticipated to have nominal impact on the operating budget. Details relating to the Improvement Construction Fund expenditures are provided in the ±&DSLWDO,PSURYHPHQW3ODQ 130 IMPROVEMENT CONSTRUCTION FUND (continued) CITY OF LAKEVILLE, MINNESOTA Capital Projects - Improvement Construction Fund Schedule of Capital Outlay Projects20122013201420152016 Kenrick/205th Street round-about375,000$ -$ -$ -$ -$ Dodd Blvd/CR 50 Signal light33,750 4,857,3936,414,962 5,989,298 5,362,840 4,814,687 Street reconstruction projects $ 4,857,3936,823,712$ 5,989,298$ 5,362,840$ 4,814,687$ Total 131 STORM SEWER FUND Fund Description: The Storm Sewer Fund 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 Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated BudgetEstimateBudgetBudget Actual Revenues Charges for services364,989$ 293,082$ 293,082$ 364,990$ 364,990$ Special assessments4,933 15,000 15,000 4,900 4,900 300 300 700 1,550 5,548 Investment income 308,382375,470 308,382 370,590 371,440 Total revenues Expenditures - Capital outlay 146,54118,835 146,541 15,010 15,010 Public works Excess (deficiency) of revenues 161,841356,635 161,841 355,580 356,430 over expenditures Other financing sources (uses) Transfer from Debt Service - Tax Increment Fund60,300 57,600 57,600 59,900 61,900 Transfer to General Fund(37,153) (331,000) (331,000) (331,000) (331,000) (331,000) Debt Service - Special Assess. Fund (273,400)(307,853) (273,400) (271,100) (269,100) Total other financing sources (uses) Net change in fund balance48,782 (111,559) (111,559) 84,480 87,330 451,257402,475 451,257 339,698 424,178 Fund balance, January 1 $ 339,698451,257$ 339,698$ 424,178$ 511,508$ Fund balance, December 31 2012/2013 Percentage change in fund balance25%21% The improvements for 2012 and 2013 are anticipated to have nominal impact on the operating budget. Details relating to the Storm Sewer FuQGH[SHQGLWXUHVDUHSURYLGHGLQWKH± Capital Improvement Plan. 132 STORM SEWER FUND (continued) CITY OF LAKEVILLE, MINNESOTA Capital Projects - Storm Sewer Fund Schedule of Capital Outlay Projects 20122013201420152016 $ 15,01015,010$ 15,010$ 15,010$ 15,010$ Developer credits 133 WATER FUND Fund Description: The Water Fund 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 toward the construction costs of water supply lines, wells and water storage facilities, and provide the debt service to bonds issued to finance the construction RIWKH&LW\¶VZDWHUWUHDWPHQWIDFLOLW\DQGother trunk infrastructure improvements. CITY OF LAKEVILLE, MINNESOTA Capital Projects - Water Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Charges for services615,628$ 643,500$ 643,500$ 643,500$ 643,500$ Special assessments27,046 5,000 5,000 5,000 5,000 Investment income(2,882) (2,901) 1,110 867 280,329 199,955 199,955 201,955 203,974 Miscellaneous 845,554920,121 848,455 851,565 853,341 Total revenues Expenditures - Capital outlay 216,50064,398 25,000 25,000 25,000 Public works Excess (deficiency) of revenues 629,054855,723 823,455 826,565 828,341 over expenditures Other financing sources (uses) Transfer from Enterprise Utility Fund - Water operations1,200,000 1,200,000 170,000 170,000 Transfer to Debt Service Special Assessments Fund(1,405,582) (136,093) (136,093) (136,093) (136,093) - (1,292,380) (1,291,900) (1,037,800) (1,027,500) Water Revenue Fund (228,473)(1,405,582) (227,993) (1,003,893) (993,593) Total other financing sources (uses) Net change in fund balance(549,859) 400,581 595,462 (177,328) (165,252) (79,714)470,145 (79,714) 515,748 338,420 Fund balance, January 1 $ 320,867(79,714)$ 515,748$ 338,420$ 173,168$ Fund balance, December 31 2012/2013 Percentage change in fund balance(34%)(49%) The improvements for 2012 and 2013 are anticipated to have nominal impact on the operating budget. Details relating to the Water Fund expeQGLWXUHVDUHSURYLGHGLQWKH±&DSLWDO Improvement Plan. 134 WATER FUND (continued) CITY OF LAKEVILLE, MINNESOTA Capital Projects - Water Fund Schedule of Capital Outlay Projects 20122013201420152016 $ 25,00025,000$ 25,000$ 25,000$ 25,000$ Watermain trunk extensions 135 SANITARY SEWER FUND Fund Description: The Sanitary Sewer Fund accounts for sewer connection and area fees charged to land developers for connecting to the &LW\¶VVDQLWDU\VHZHUV\VWHP$ppropriations are applied to the construction of sanitary sewer trunk systems. CITY OF LAKEVILLE, MINNESOTA Capital Projects - Sanitary Sewer Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Charges for services146,894$ 127,875$ 146,900$ 146,900$ 146,900$ Special assessments32,946 7,000 32,900 32,900 32,900 22,67931,537 19,011 22,593 22,593 Investment income 211,377 157,554 198,811 202,393 202,393 Total revenues Expenditures - Capital outlay 72,50022,325 5,000 102,000 268,000 Public works Net change in fund balance189,052 85,054 193,811 100,393 (65,607) 2,236,7422,401,318 2,590,370 2,784,181 2,884,574 Fund balance, January 1 $ 2,321,7962,590,370$ 2,784,181$ 2,884,574$ 2,818,967$ Fund balance, December 31 2012/2013 Percentage change in fund balance4%(2%) The improvements for 2012 and 2013 are anticipated to have nominal impact on the operating budget. Details relating to the Sanitary Sewer Fund expenditures DUHSURYLGHGLQWKH± Capital Improvement Plan. 136 SANITARY SEWER FUND (continued) CITY OF LAKEVILLE, MINNESOTA Capital Projects - Sanitary Sewer Fund Schedule of Capital Outlay Projects 20122013201420152016 Trunk oversizing NC127a to NC127102,000$ -$ -$ -$ -$ Trunk oversizing SC135 to SC13467,500 Trunk oversizing NC05 to NC0666,000 Trunk oversizing NC127a to NC127b85,000 Trunk oversizing SC22 to SC2022,500 Trunk oversizing SC12 to SC12a27,000 Trunk oversizing SC22 to SC22a17,000 Trunk oversizing SC43 to SC4421,000 Trunk oversizing LS24 to NC129190,000 Trunk oversizing Upstream of NC7410,000 Trunk oversizing SC44 to SC4310,000 Trunk oversizing NC129 to NC127b67,500 Trunk oversizing NC132 to NC12940,500 Sanitary Sewer Reconstruction (near McGuire Jr High)91,200 -- - - 152,200 Trunk Oversizing $ 268,000102,000$ 228,000$ 20,000$ 351,400$ Total Projects 137 PARK DEDICATION FUND Fund Description: The Park Dedication Fund accounts for park dedication fees received from land developers. The expenditures consist of acquiring and developing City parks and trails. CITY OF LAKEVILLE, MINNESOTA Capital Projects - Park Dedication Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Intergovernmental - State grant92,855$ -$ -$ -$ -$ Charges for services401,515 474,700 474,700 296,045 296,045 Special assessments76 Investment income9,392 3,000 3,000 5,259 3,858 23,685 18,500 18,500 68,500 68,500 Miscellaneous 527,523 496,200 496,200 369,804 368,403 Total revenues Expenditures - Capital outlay 384,000 735,000 570,000 370,338 301,652 Parks and recreation Net changes in fund balances225,871 112,200 (238,800) (200,196) (1,935) 695,970764,254 990,125 751,325 551,129 Fund balance, January 1 $ 808,170990,125$ 751,325$ 551,129$ 549,194$ Fund balance, December 31 2012/2013 Percentage change in fund balance(27%)(0%) The improvements for 2012 and 2013 are anticipated to have nominal impact on the operating budget. Details relating to the Park Dedication Fund park expenditures are provided in the 2012 ±&DSLWDOLPSURYHPHQW3ODQ 138 PARK DEDICATION FUND (continued) CITY OF LAKEVILLE, MINNESOTA Capital Projects - Park Dedication Fund Schedule of Capital Outlay Projects 20122013201420152016 Developer credits50,000$ 50,000$ 50,000$ 50,000$ 50,000$ Park improvements10,000 65,000 480,000 35,000 Trail improvements460,000 188,338 Other50,000 67,000 75,000 90,000 90,000 Total570,000$ 370,338$ 605,000$ 175,000$ 140,000$ 139 TRAIL IMPROVEMENT FUND Fund Description: The Trail Improvement Fund accounts for the long term maintenance, repairs and replacement of the City trails. The improvements for 2012 and 2013 are anticipated to have nominal impact on the operating budget. Details relating to the Trail ImprovemeQW)XQGH[SHQGLWXUHVDUHSURYLGHGLQWKH± 2016 Capital Improvement Plan. CITY OF LAKEVILLE, MINNESOTA Capital Projects - Trail Improvement Fund Schedule of Capital Outlay Projects 20122013201420152016 Trail sealcoating58,028$ 101,985$ 77,306$ 79,019$ 73,760$ 524,263100,353 362,695 - - Trail reconstruction $ 626,248158,381$ 440,001$ 79,019$ 73,760$ Total 140 TAX INCREMENT FUND Fund Description: The Tax Increment Fund accounts for revenue received from tax increment property that does not require debt financing. The expenditures are for pay-as-you-go contractual agreements as identified in the tax increment plans. Tax Increment Financing District #2 (Senior Citizen Center) will expire in 2011. Tax Increment Financing District #17 (DyHed Yokes) will expire in 2013. Tax Increment Financing Districts #8 (Southfork Apartments) and #9 (Argonne Plaza) and #3 (DKM) expire in 2014. CITY OF LAKEVILLE, MINNESOTA Capital Projects - Tax Increment Fund Schedule of Revenues, Expenditures and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Tax increment213,042$ 202,084$ 208,306$ 208,306$ 208,306$ Intergovernmental Market value homestead credit17,277 16,050 18,164 18,164 18,164 5 85 125 155 341 Investment income 230,660 218,139 226,555 226,595 226,625 Total revenues Expenditures - Capital outlay 195,797190,931 186,699 186,699 186,699 General government Excess (deficiency) of revenues over expenditures39,729 22,342 39,856 39,896 39,926 Other financing sources (uses) Transfer to Debt Service (21,809) (21,810) (21,810) (21,810) (21,810) Special Assessments Fund Net change in fund balance17,920 532 18,046 18,086 18,116 12,308 12,840 30,228 48,274 66,360 Fund balance, January 1 $ 13,37230,228$ 48,274$ 66,360$ 84,476$ Fund balance, December 31 2012/2013 Percentage change in fund balance37%27% The expenditures for 2011 and 2012 have no impact on the operating budget. 141 TAX INCREMENT FUND (continued) CITY OF LAKEVILLE, MINNESOTA Capital Projects - Tax Increment Fund Schedule of Capital Outlay Capital outlay 20122013201420152016 DKM Tax increment district obligation182,569$ 182,569$ 182,569$ -$ -$ State of Minnesota/Dakota County 4,1304,130 4,130 - - TIF administrative fees $ 186,699186,699$ 186,699$ -$ -$ Total 142 BUILDING FUND Fund Description: The Building Fund 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 heating, electric and maintenance costs. CITY OF LAKEVILLE, MINNESOTA Capital Projects - Building Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Years Ending December 31, 2012 and 2013 201120122013 2010Adopted2011ProposedEstimated ActualBudgetEstimateBudgetBudget Revenues Intergovernmental - Federal grant211,774$ 12,000$ 115,960$ -$ -$ Investment income11,405 3,675 4,926 2,105 676 -559,135 - 743,000 - Miscellaneous 782,314 15,675 120,886 745,105 676 Total revenues Expenditures - Capital outlay General government107,584 226,456 248,243 - 215,896 Public safety39,310 230,431 342,902 67,640 510,515 Public works11,039 72,900 164,075 22,979 7,941 2,200174,200 33,194 1,134,000 - Parks and recreation 531,987332,133 788,414 1,224,619 734,352 Total expenditures Excess deficienc of revenues (y) (516,312)450,181 (667,528) (479,514) (733,676) over expenditures Other financing sources (uses) Transfer from General Fund52,136 Special Revenue - Communications16,031 - - - - 640,000 Enterprise - Liquor Fund -52,136 - - 656,031 Total other financing sources Net change in fund balance502,317 (516,312) (667,528) (479,514) (77,645) 811,066 1,255,514 1,313,383 645,855 166,341 Fund balance, January 1 $ 739,2021,313,383$ 645,855$ 166,341$ 88,696$ Fund balance, December 31 2012/2013 Percentage change in fund balance(74%)(47%) 143 BUILDING FUND (continued) The proposed 2012 budget includes remodeling and cRQYHUWLQJRIWKH³IRUPHU´3ROLFH6WDWLRQ into a Senior Center for approximately $1.12 million. The estimated 2013 budget includes replacement of HVAC rooftop units at City Hall and the City share of costs of the Fire (ABLE) Training Facility. Details relating to the expendLWXUHVDUHSURYLGHGLQWKH±&DSLWDO,PSURYHPHQW3ODQ CITY OF LAKEVILLE, MINNESOTA Capital Projects - Building Fund Schedule of Capital Outlay Capital outlay20122013201420152016 City Hall-$ 215,896$ 65,800$ -$ 65,850$ Police Station5,800 4,585 Fire Facilities61,840 505,930 29,622 10,500 Central Maintenance Facility22,979 7,941 Senior Center1,120,000 -14,000 - - - Arts Center $ 734,3521,224,619$ 95,422$ 10,500$ 65,850$ Total 144 EQUIPMENT FUND Fund Description: The Equipment 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. All departments evaluated the overall condition ofWKH&LW\¶VIOHHWDQGHTXLSPHQW,QPDQ\ cases, the expected useful life of these assets has been extended on the condition that there was no adverse increase in repairs or operating costs. Equipment acquisition for general government purposes, such as police, fire, streets, parks, and technology are financed primarily with property tax levies. The levies are reduced by non-tax revenues such as sale of assets and transfers from the Liquor Fund. The Liquor Fund and Communications Fund contributions ($857,618 and $688,278 in 2012 and 2013 respectively) result in moderating the tax levies in 2012 and 2013. Although the exact amounts and designations are yet to be determined, it is anticipated that Liquor Funds will continue to be major contributors to reducing future tax levies. The fund balances in 2012 and 2013 provide an excellent financial resource for mitigating tax levy increases in future years. 145 EQUIPMENT FUND (continued) 146 EQUIPMENT FUND (continued) CITY OF LAKEVILLE, MINNESOTA Capital Projects - Equipment Fund Schedule of Capital Outlay Capital outlay 20122013201420152016 General government229,782$ 465,979$ 179,627$ 265,823$ 298,946$ Public safety Police139,119 539,802 339,563 395,201 451,357 Fire93,418 233,881 70,000 712,000 88,000 Public works813,265 548,339 757,356 993,474 1,082,376 322,915187,719 526,471 287,400 362,780 Parks and recreation 2,110,916$ 1,873,017$ 2,653,898$ 2,283,459$ $ 1,463,303 Total 147 Enterprise Funds Enterprise Funds account for liquor, water, sanitary sewer, street light, and storm 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 UHODWHGWRWKHRSHUDWLRQRI/DNHYLOOH¶V municipal off-sale liquor stores. Utility Fund This fund accounts for revenues and expenses related to water, sanitary sewer service, street lighting, and storm water maintenance 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. Services: Control the sale of alcoholic beverages. Profits are dedicated to the reduction of The City is committed to restricting property taxes. Liquor Fund net proceeds youth access to alcohol. Employees are are committed to financing capital also trained in how to observe and improvements which would otherwise be decline sales to obviously intoxicated financed with property taxes. individuals. Asset management and inventory Lakeville is committed to quality integrity plays an essential role in customer service. Product selection is profitability. The retail liquor industry is continually evolving and is the lifeblood highly competitive. Inventory controls as that drives the industry. Wine well as policies that include well defined checks and balances ensure assets are specifically is a hallmark for Lakeville. Store ambiance, strategic location of controlled, while the management team stores and customer satisfaction are and point of sale operations enable deemed a high priority. Lakeville to maintain a high rate of return on investment through effective marketing strategies. Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Proposed Estimate Operations Director 1.01.01.01.0 1.0 Store Managers 3.03.03.03.0 3.0 Inventory Control Technician 1.01.01.01.0 1.0 Assistant Store Managers 5.05.05.05.0 5.0 Administrative Assistant 1.01.01.01.0 1.0 Lead Sales Associates 2.72.72.72.7 2.7 Sales Associates 12.012.012.012.0 12.0 Total 25.725.725.525.7 25.7 148 LIQUOR FUND (continued) Budget Summary: CITY OF LAKEVILLE, MINNESOTA Enterprise - Liquor Fund Schedule of Revenues, Expenses and Changes in Working Capital For the Years Ending December 31, 2012 and 2013 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Sales and cost of sales Sales14,763,552$ 14,913,405$ 14,725,905$ 14,926,265$ 15,200,501$ 11,151,231 11,164,822 11,013,782 11,159,615 11,360,837 Cost of sales 3,612,321 3,748,583 3,712,123 3,766,650 3,839,664 Gross profit Operating expenses Personnel services1,260,955 1,313,785 1,257,592 1,292,280 1,319,688 Commodities52,274 57,794 59,076 65,722 61,806 847,286829,155 875,959 867,633 888,498 Other charges and services 2,218,8652,142,384 2,192,627 2,225,635 2,269,992 Total operating expenses 1,529,7181,469,937 1,519,496 1,541,015 1,569,672 Operating income Non-operating revenue (expense) Intergovernmental17,050 3,900 3,900 3,900 3,900 Investment income55,170 63,600 59,886 47,747 20,739 Miscellaneous - Utility rebates23,344 3,600 3,600 3,600 Capital outlay acquisitions(68,169) (14,000) (14,000) (2,816,000) (143,000) Interest and bond expense(186,313) (178,254) (178,254) (170,775) (162,817) Current portion of bonds payable(145,000) (150,000) (150,000) (160,000) (165,000) Transfers from (to) General Fund(143,814) (144,950) (143,450) (180,158) (219,453) Debt Service: Property Taxes Fund(100,000) (100,000) (100,000) (100,000) (100,000) HRA Lease Rev. Fund(190,097) (185,320) (185,320) (1,425,000) Capital Projects: Building Fund (640,000) Equipment Fund(685,329) (685,329) (709,202) (688,278) Utility Fund: - (976) (1,884) (2,541) (2,541) Environmental Resources (1,391,329) (1,390,851) (5,508,429) (2,092,850) (737,829) Total non-operating (net) Change in working capital732,108 138,389 128,645 (3,967,414) (523,178) 5,078,768 6,073,241 5,810,876 5,939,521 1,972,107 Working capital, January 1 $ 5,810,876 6,211,630$ 5,939,521$ 1,972,107$ 1,448,929$ Working capital, December 31 2012/2013 Percentage change in net assets(67%)(27%) 149 LIQUOR FUND (continued) Budget Factors: 5HYHQXHVThe 2012 - 2013 budgets are based 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 $14.93 million and $15.20 million in 2012 and 2013, respectively. Gross profits are anticipated to be $3.77 and $3.84 million in 2012 and 2013, respectively. 3HUVRQQHOVHUYLFHVThe personnel services budget will increase in 2012 and 2013 respectively due to health insurance and other payroll benefit increases. There are no anticipated changes in personnel. &RPPRGLWLHVCommodities will fluctuate modestly with an increase in 2012 and decrease in 2013. Commodities represent approximately 3.0% of total operating expense budget. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services will decrease in 2012 due in part to the 2011 feasibility study ($25,000) and reductions in the scope of store maintenance projects for the coming year. Increases are anticipated for credit card fees and electricity expenses. Costs are projected to increase in 2013 primarily related to credit cards, electricity and porous paver maintenance at the Galaxie store. The Liquor Fund support of Independent School District 194 IRUWKH³6FKRRO&RPPXQLW\3UHYHQWLRQ6SHFLDOLVW´3URJUDP$18,288) is included in the budget consistent with prior years. 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. &DSLWDORXWOD\Replacing the Kenrick store outdoor neon sign with LED resulting in more efficient lighting costs. The 2012 capital outlay also includes land acquisition ($2.8 million) for a fourth liquor store. The 2013 capital outlay includes the replacement of the roof at the Kenrick store and the purchase of three additional gondolas. &RQWULEXWLRQVWUDQVIHUV WRRWKHUIXQGVThe proposed liquor fund budget will make the following contributions to other funds in the coming year thereby resulting in a corresponding decrease in the tax levy: 150 LIQUOR FUND (continued) Liquor Contributions 20122013 Equipment Fund Police12,390$ 412,441$ Fire119,476$ Streets (snowplows and trucks)420,770 156,361 Streets (pavement management)152,828 Showmobile110,068 Parks13,146 ABLE fire training facility500,000 City Hall HVAC140,000 Police station debt100,000 100,000 General Fund Economic Development30,000 20,000 Voting equipment47,025 PILT - Payment in lieu of taxes68,427 68,427 Other84,007 82,997 Debt retirement - Fire Station #41,450,000 - $ 1,646,7272,441,636$ 'HEW The Liquor Fund has $3.545 million of debt outstanding which financed the Galaxie store construction in 2007. The 2012 and 2013 debt obligations, including principal and interest, are $330,775 and $323,817, respectively. 151 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, the Utility Fund began accounting IRUWKH&LW\¶VVWUHHWOLJKWLQJSURJUDPWKLVSURJUam was previously accounted for in the General Fund Street Department. It is also proposed to account for the Environmental Resources Fund in the Utility Fund retroactive to January 1, 2011. The Utility Fund budget is effectively managed by budgeting water, sanitary sewer, street lighting and environmental resources as separate operations. Individual schedules for revenues, expenses, changes in working capital are provided for each of the respective operations. The combining of these operations comprises the Utility Fund which is presented in the Utility Fund Schedule of Revenues, Expenses and Changes in Working Capital. Services: Water. The water system includes Association (DEA). The City of operation and maintenance of 17 wells, 5 Lakeville bills customers on a quarterly towers, 2 reservoirs, water treatment basis for lighting. plant, and 310 miles of water Environmenal Resouces. This fund distribution system. accounts for the surface water Sanitary sewer. The sanitary sewer management operations which manages, system includes maintenance of a SURPRWHVDQGSURWHFWVWKH&LW\¶VQDWXUDO collection and forwarding system of 255 resources. Recycling programs are also miles of sanitary sewer main and 20 lift accounted for under this program and stations which transmits effluent to the promotes education, reduction/reusing M.C.E.S. Empire Treatment Facility. and recycling efforts. Recycling programs are funded by a grant from Street lighting. The street lighting Dakota County. system is operated and maintained by Xcel Energy and Dakota Electric 152 UTILITY FUND Overall (continued) For the water and sewer functions of the Utility fund. there are no staffing changes proposed for 2012. Staffing additions in 2013 anticipates adding a Maintenance II position with a start date of July 1, 2013. Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget EstimateProposed Estimate Operations and Maint. Director 1.01.01.01.0 1.0 Utilities Superintendent 1.01.01.01.0 1.0 Utilities Supervisor 1.01.01.01.0 1.0 O&M Analyst / Safety Specialist 1.01.01.01.0 1.0 Utility Maintenance II 11.011.011.011.0 11.5 Utility Billing Technicians 2.02.02.02.0 2.0 Administrative Assistant 1.01.01.01.0 1.0 Total 18.018.018.018.0 18.5 Capital outlay is allocated to the water and sanitary sewer operations based on benefit to the respective operation. The 2012 and 2013 capital outlay is as follows: 2012 Proposed SanitaryEnvironmental ItemWaterSewerResources 1/2-Ton Pickup Truck12,866$ 12,866$ -$ Closed Circuit Television Security Camera 34,003 Portable Pressure Washer1,309 1,309 Computer and software upgrades3,980 3,980 1,377 -- 6,824 Sonar Mite Bathymetric Survey System 18,155$ 8,201$ $ 52,158 2012 Total 2013 Estimated SanitaryEnvironmental ItemWaterSewerResources $ - Backhoe37,119$ 37,119$ Pickup truck13,912 13,912 Jetter Truck- 176,506 Handheld GPS 4,312 4,312 Vibratory rammer1,646 1,646 Portable Generator988 988 955955 - Snow Blower $ 235,43858,932$ -$ 2013 Total 153 UTILITY FUND Overall (continued) As of September 9, 2011, there are no proposed changes in water, sanitary sewer, street lights or surface water management fees. However, any increase in electric utility cost by Dakota Electric Association (DEA) or Xcel Energy will result in a corresponding increase in street light rates. Quarterly ratesBasisRates Water baseAccount3.60$ Water tier 1 (<30 thousand gallons)Gallonage0.85$ Water tier 2 (30 - 49 thousand gallons)Gallonage1.34$ Water tier 3 (>49 thousand gallons)Gallonage2.30$ State of MN water testing feeConnection1.59$ Sanitary sewer baseAccount6.25$ Sanitary sewer usage (1,000 gallons)Gallonage3.09$ Sanitary sewer non-metered accountsAccount61.87$ Street lights (residential)Account $ 7.65 Street lights (non-residential)Front foot $ 0.214 Surface water management feeAccount7.00$ 154 UTILITY FUND Water Operation Program Description: The Water Operation 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 17 wells, 6 towers, 2 reservoirs, water treatment plant, and 313 miles of water distribution system. 6HUYLFHV±:DWHU2SHUDWLRQCollect, Maintain 313 miles of water main. treat, and distribute potable water to meet Repair water main breaks. Inspect and the needs of residential, commercial, approve new water main construction. institutional, and industrial customers. Exercise fire hydrants annually. Monitor and ensure water quality and Operate a 20 million gallon per day compliance with U.S. Environmental water treatment plant. Protection Agency and Minnesota Locate underground utility structures, Department of Health requirements. water main, and residential curb stops. Operate and maintain 17 ground water Enforce water restrictions pursuant to well stations. Treat ground water with approved operations policy. chemicals to remove iron and manganese and improve the taste. 155 UTILITY FUND Water Operation (continued) Budget Summary - Water Operation: %XGJHW)DFWRUV±:DWHU2SHUDWLRQ 156 UTILITY FUND Water Operation (continued) 5HYHQXHVRevenue estimates are based solely on increase in water usage due to increased customers. There are no rate increases proposed in 2012 or 2013. 3HUVRQQHOVHUYLFHVThe personnel services budget will increase slightly in 2012 and more significantly in 2013. The increase in 2013 is due to the proposed addition of a utility Maintenance II position effective July 1, 2013. &RPPRGLWLHV Increases in commodities are proposed for both 2012 and 2013 due to anticipated cost increases for chemicals. Chemicals account for 63% of the commodities budget. 2WKHUFKDUJHVDQGVHUYLFHVThe largest expenditure is electricity of $456,015 and $472,420 in 2012 and 2013, respectively. Water testing fees are also paid to Minnesota Department of Health and Department of Natural Resources of $110,794 in 2012 and 2013. The proposed EXGJHWDOVRLQFOXGHVIRUD³:DWHU7UHDWPHQW)DFLOLW\6WXG\´ZKLFKZLOOXSGDWHWKH water use characteristics. Develop water use projections, prepare an implementation schedule for new wells and identify future Water Treatment Facility. 0DMRUPDLQWHQDQFHSURMHFWVMajor maintenance in 2012 includes the rehabilitation of wells #9 & #10 ($120,000), repainting the Airlake water tower ($439,500), Galaxie Way watermain th replacement from Franchise Avenue to 167 Street ($268,034), replacement of a high performance pump at the Water Treatment Facility ($25,000) and water meter replacements ($55,200). The 2013 estimated budget includes rehabilitation of wells #4 and #16 ($120,000) and water meter replacements ($55,200). 7UDQVIHUVWR&DSLWDO3URMHFWV:DWHU)XQGConstruction 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 and hence reduction in water connection revenue. As such, the water operation will be required to contribute $170,000 annually for debt service payments. 157 UTILITY FUND Sanitary Sewer Operation Program Description: The Sanitary Sewer Operation is a collection and forwarding system that removes wastewater from residential, commercial, institutional, and industrial properties. The system also accounts for all costs associated with the operation and maintenance of lift stations and sanitary sewer mains. The treatment facility operations are the responsibility of the Metropolitan Council Environmental Services (M.C.E.S.). Services - Sanitary Sewer Operation: Clean, televise, and evaluate Evaluate portions of the sanitary sewer approximately 70-80 miles of sanitary system for surface water inflow and sewer main each year and make repairs groundwater infiltration (I&I) problems as necessary. and perform any necessary repairs to correct the problem. Inspect manholes for groundwater infiltration and seal the structures to Operate and maintain lift stations. eliminate the problem. . 158 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 Working Capital For the Years Ending December 31, 2012 and 2013 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Operating revenue $ 4,157,115 4,316,385$ 4,298,520$ 4,324,219$ 4,350,278$ User charges for services Operating expenses Personnel services606,652 674,847 671,540 674,460 693,499 Commodities63,835 79,725 80,044 79,566 79,655 Other charges and services213,276 222,821 215,723 223,118 224,703 Disposal charges2,825,699 2,950,490 2,950,490 2,884,184 2,884,184 - 92,600 92,600 595,000 136,000 Major maintenance 3,709,462 4,020,483 4,010,397 4,456,328 4,018,041 Total operating expenses 295,902447,653 288,123 (132,109) 332,237 Operating income (loss) Non-operating revenue (expense) Intergovernmental - State-aid1,632 1,632 1,632 1,632 1,632 Investment income28,636 41,258 21,965 24,213 22,101 Disposal of assets25,362 Capital outlay acquisitions(362,366) (59,952) (59,952) (18,155) (235,438) Transfers from (to) General Fund(117,153) (144,014) (135,186) (135,269) (135,781) 18,731 18,696 18,711 18,787 18,857 Utility Fund - Env. Res. (142,380)(405,158) (152,830) (108,792) (328,629) Total non-operating (net) Change in working capital42,495 153,522 135,293 (240,901) 3,608 2,446,669 2,325,428 2,489,164 2,624,457 2,383,556 Working capital, January 1 $ 2,478,9502,489,164$ 2,624,457$ 2,383,556$ 2,387,164$ Working capital, December 31 2012/2013 Percentage change in working capital(9%)0% 159 UTILITY FUND Sanitary Sewer Operation (continued) %XGJHW)DFWRUV±6DQLWDU\6HZHU2SHUDWLRQ 5HYHQXHVRevenue estimates are based solely on increases in sewer usage due to new customers. There are no rate increases proposed in 2012 or 2013. 3HUVRQQHOVHUYLFHVThe personnel services budget will increase in both 2012 and 2013 The increase in 2013 is due to the proposed addition of a utility Maintenance II position effective July 1, 2013. &RPPRGLWLHV The 2012 and 2013 budgets are anticipated to remain virtually unchanged with a 0.6% decrease in 2012 and 0.1% increase in 2013. 2WKHUFKDUJHVDQGVHUYLFHV Modest increases of 3.4% and 0.7% are projected for other charges for services in 2012 and 2013 respectively. The 2012 increase is primarily result of electricity costs and asset management support for Cartegraph. 'LVSRVDOFKDUJHV Rates for sewage treatment provided by the M.C.E.S are proposed to decrease in 2012 and estimated to remain unchanged for 2013. 0DMRUPDLQWHQDQFHSURMHFWVMajor maintenance projects in 2012 include inflow and infiltration mitigation efforts ($50,000); lift station #6 rehabilitation ($25,000) and sanitary sewer relining Jersey Avenue to Ipava Avenue ($520,000). Major maintenance projects in 2013 include inflow and infiltration mitigation efforts ($50,000) lift station #5 rehabilitation ($86,000). 160 UTILITY FUND Street Light Operation Program Description: The Street Light Operation is designed to protect property, health and safety of the FRPPXQLW\¶VUHVLGHQWVDQGEXVLQHVVHV7KHV\VWem is maintained by Xcel Energy and Dakota (OHFWULF$VVRFLDWLRQ7KH&LW\¶VVWUHHWOLJKWLng program became part of the Enterprise Utility Fund in January 1, 2010. 6HUYLFHV±6WUHHW/LJKW2SHUDWLRQ Perform annual inspections of Perform seasonal banner and flag approximately 4,278 street lights and changes on downtown street lights. report any maintenance requirements to responsible electric companies. 161 UTILITY FUND Street Light Operation (continued) %XGJHW6XPPDU\±6WUHHW/LJKW2SHUDWLRQ CITY OF LAKEVILLE, MINNESOTA Enterprise - Utility Fund (Street Light Operation) Schedule of Revenues, Expenses and Changes in Working Capital For the Years Ending December 31, 2012 and 2013 201120122013 2010Amended2011ProposedEstimated ActualBudgetEstimateBudgetBudget Operating revenue $ 579,661 639,218$ 652,460$ 654,296$ 656,096$ User charges for services Operating expenses Personnel services21,337 20,370 19,581 19,611 19,612 Commodities213 1,438 413 413 413 590,727 633,509 632,632 633,220 633,479 Other charges and services 612,277 655,317 652,626 653,244 653,504 Total operating expenses (16,099)(32,616) (166) 1,052 2,592 Operating income (loss) Non-operating revenue (expense) Investment income1,776 3,149 1,255 1,540 1,675 Transfers from (to) (20,827) (21,738) (3,504) (3,555) (3,612) General Fund (18,589)(19,051) (2,249) (2,015) (1,937) Total non-operating (net) Change in working capital(51,667) (34,688) (2,415) (963) 655 150,000 164,729 162,314 161,351 216,396 Working capital, January 1 $ 115,312164,729$ 162,314$ 161,351$ 162,006$ Working capital, December 31 2012/2013 Percentage change in working capital(1%)0% %XGJHW)DFWRUV±6WUeet Light Operation: 5HYHQXHVAny increase in electric rates charged by utilities companies will result in a corresponding increase to street light rates. 3HUVRQQHOVHUYLFHVThe personnel services budget increases are minimal 2WKHUFKDUJHVDQGVHUYLFHVThe proposed budget is premised on no change in street light rates charged by Dakota Electric Association and Xcel Energy. 162 UTILITY FUND Environmental Resources Fund Description: The (QYLURQPHQWDO5HVRXUFHV)XQG¶VSXUSRVHLVWRPDQDJHSURPRWHDQGSURWHFWWKH&LW\¶V 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 Resources Department became responsible for developing SURJUDPVWKDWSURPRWHDQGH[SDQGWKHFRPPXQLW\¶V 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 by a grant from Dakota County. Services: Surface water resource monitoring. Thumb workshops with Dakota County Soil Environmental Resources coordinates and and Water Conservation District to educate manages a variety of water quality research and promote water quality stewardship and improvement projects including aquatic among residents. plant control and fish management on City Watershed management. Staff reviews water bodies. The department also wetland delineation and performs a majority LPSOHPHQWVWKH&LW\RI/DNHYLOOH¶V of the requirements for being the Comprehensive Water Resources Responsible Governmental Unit and the Management Plan, Wetland Management Local Governmental Unit in relationship to Plan, South Creek Management Plan and the environmental permitting. Staff also &LW\RI/DNHYLOOH¶V6WRUP:DWHU3ROOXWLRQ 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 - Residential. The storm water treatment basins, environmental department ensures that all construction resources staff works closely with the plans for new developments meet NPDES Engineering and Street department staff to Permit requirements. Staff assists in perform the work or to obtain quotes for the preparing wetland alteration permits and removal of the sediments and restoration of mitigation plans, obtains leases from the the area disturbed. Environmental resources DNR for utility crossing of public waters for staff also determines which storm water City projects, performs many of the duties basins must be inspected and cleaned of required by local, State and Federal rules sediment. and regulations by being either the Public education and interaction. Public Responsible Governmental Unit (RGU) or education and outreach required by State the Local Governmental Unit (LGU). and Federal regulations are carried out with 1HZ'HYHORSPHQW±&RPPHUFLDODQG the Wetland Health Evaluation Project, the Industrial. The department also provides Vermillion River Watch program, and plan review and inspections of all erosion through presentations to various age groups. control for industrial, commercial, and This includes coordination and management institutional building permits. They ensure that of the Adopt-a-Pond program, Citizen the wetland delineations are correct and meet Assisted Monitoring Program and the Blue 163 UTILITY FUND Environmental Resources (continued) the requirement of the State of Minnesota Environmental recycling. Responsibilities Wetland Conservation Act ensure that tree LQFOXGHPDQDJLQJWKH&LW\RI/DNHYLOOH¶V preservation plans are accurate and that a recycling program and organizing the annual developer takes feasible measures to save Roadside/Watershed Clean-up Day, significant trees and protect valuable natural promotion and education on recycling and resources. waste reduction as well as preparing the applications and securing the grant funding to finance the programs. Staffing: 2010 2011 2011 2012 2013 Position (FTE) Actual Budget Estimate Proposed 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 2.0 164 UTILITY FUND Environmental Resources (continued) Budget Summary: 165 UTILITY FUND Environmental Resources (continued) Budget Factors: 5HYHQXHVSurface water revenues are increasing $5,924 and $5,780 in 2012 and 2013, respectively. The increase is attributed to new customers. There are no proposed rate changes for 2012 or 2013. A 50% cost share ($39,600) is projected to fund the Hydrologic Modeling project in 2012. Solid Waste Abatement Grants from Dakota County are anticipated to be $44,496 and $45,831 in 2012 and 2013 respectively. Prior to 2011, the recycling activity was accounted for in the General Fund Planning Department. 3HUVRQQHOVHUYLFHVThe personnel services budget will increase in 2012 and 2013 The liability for compensated absences previously accounted for in a separate fund will now be included within this fund. &RPPRGLWLHVThe commodities budget will increase in both 2012 and 2013. Commodities account for only 5% of the total operating expenses. 2WKHUFKDUJHVDQGVHUYLFHVOther charges and services budget will increase in 2012 and decrease in 2013. Significant projects are as follows: &DSLWDORXWOD\Capital outlay in 2012 is attributable to the purchase of a Sonar Mite Bathymetric Survey System and Microsoft Office upgrades. 2WKHUILQDQFLQJXVHV ±7UDQVIHUVThe Environmental Resources Fund budget reimburses the General Fund for its share of overhead and administrative costs. 166 Internal Service Funds Municipal Reserves Fund This fund is used to account foUWKH&LW\¶VULVNPDQDJHPHQW program relating to general liability, excess liability, property, and casualty insurance costs which are charged to other City departments on a cost reimbursement basis. 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. MUNICIPAL RESERVES FUND Fund Description: Under the Governmental Accounting Standards Board (GASB) Statement No. 10, risk management activities of a government entity can be accounted for in either the General Fund or an Internal Service Fund, if one fund is used. The City uses the Internal Service Municipal Reserves Fund to budget such costs. Under this model, operating departments within the various City funds receive a charge from the Municipal Reserves Fund, and all costs (premiums, claims, and related expenses) are reflected in a single fund. This allows for better accounting and PRQLWRULQJRIWKH&LW\¶VULsk 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 $100,000 maximum. Risk management charges to various City funds are based on factors such as number of automobiles used, stated value of buildings and contents, and employee salaries. A portion of the &LW\¶VOLDELOLW\LQVXUDQFHSUHPLXPLVDWWULEXWDEOH to vehicles and is allocated along with the physical damage premium. The remainder of the liability insurance premium is combined with an estimate of claims costs (including legal and administration) and allocated accordingly to individual funds. Workers compensation costs are charged to the various City funds and allocated to their individual departments based on employee salaries. 167 MUNICIPAL RESERVES FUND (continued) Budget Summary: CITY OF LAKEVILLE, MINNESOTA Internal Service - Municipal Reserves Fun d Schedule of Revenues, Expenses and Changes in Net Assets For the Years Endin December 31, 2012 and 2013 g 201120122013 2010Adopted2011ProposedEstimated ActuaBudetEstimateBudetBudet lggg Operating revenues Chares for services359$ 376608$ 376038$ 293038$ 293779$ 779 g,,,,, 68,851 54,460 69,288 69,288 69,288 Other 428,459 430,498 445,326 363,067 363,067 Total operating revenues eratin exenses Opgp 253,188 383,062 343,957 347,979 352,061 Other charges and services 47,436175,271 101,369 15,088 11,006 Operating income Non-oeratin revenue exense pg(p) Investment income3 5288 3947 3150 3150 150 ,,,,, (44,435)(43,140) (44,435) (45,768) (47,141) Transfer to General Fund (38,488)(39,852) (41,285) (42,618) (43,991) Total non-operating (net) Chane in net assets135 8419 60948 084 27530 32985 g,,,(,)(,) 586,788 594,673 722,207 782,291 754,761 Net assets, January 1 $ 603,621722,207$ 782,291$ 754,761$ 721,776$ Net assets, December 31 2012/2013 Percentage change in net assets(4%)(4%) The Municipal Reserves Fund net assets are projected to decrease in 2012 and 2013. The decrease is attributed to charges for services (reimbursement from other funds) which have been reduced as a result of favorable claims history and stability in insurance premiums. 168 COMPENSATION LIABILITY FUND Fund 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. Budget Summary: CITY OF LAKEVILLE, MINNESOTA Internal Service - Compensation Liability Fund Schedule of Revenues, Expenses and Changes in Net Assets For the Years Endin December 31, 2012 and 2013 g 201120122013 201Adoted2011ProosedEstimated 0pp ActuaBudetEstimatBudetBudet lgegg Operating revenues $ 8,572$ 14,456$ 102,155$ 101,319$ Charges for services Oeratin exenses pgp 27,968 21,805 13,639 14,047 83,818 Personnel services (12,702)(75,246) (7,349) 88,516 87,272 Operating income Non-oeratin revenue exense pg(p) 9,540 4,270 4,120 4,580 5,040 Investment income Change in net assets(65,706) (8,432) (3,229) 93,096 92,312 889,514 852,010 823,808 820,579 913,675 Net assets, January 1 $ 843,578823,808$ 820,579$ 913,675$ 1,005,987$ Net assets, December 31 2012/2013 Percentage change in net assets11%10% Budget Factors: 3HUVRQQHOVHUYLFHVThe personnel services budget will decrease 37% in 2012 due to a reduction in the number of anticipated resignations and retirements. 169 Appendices 170 CITY OF LAKEVILLE, MINNESOTA Community Profile Description The City of Lakeville is a suburban community located approximately 20 minutes south of the 0LQQHDSROLV±6DLQW3DXOPHWURSROLWDQDUHDZLWKLQ'Dkota County. The City has a land area of 38 square miles and serves a community with a population of 55,945 residents based on the recent 2010 Federal census. The population of 55,945 is 12,817 or 29.7% 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 January 1, 1974. Organization 7KH&LW\¶VJRYHUQLQJERG\FRQVLVWVof 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 Mark Bellows Mayor December 31, 2012 Kerrin Swecker Council Member December 31, 2012 Laurie Rieb Council Member December 31, 2012 Matt Little Council Member December 31, 2014 Colleen Ratzlaff LaBeau Council Member December 31, 2014 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 24 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, street light and environmental resources utility. The three liquor stores strategically located adjacent to major highways collectively represent the largest municipal liquor operation in Minnesota. 171 CITY OF LAKEVILLE, MINNESOTA Community Profile (continued) 7KH&LW\¶V3ROLFH'HSDUWPHQWFRQVLVWVRIfull-time officers and 15 volunteer 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 in fire insurance premiums for commercial and industrial buildings and apartments. Additional City facilities include 62 park properties (which include 40 playgrounds), 18 conservation areas and six greenways, three municipal swimming beaches, six outdoor ice rinks (fully boarded), 3 indoor ice rinks, and approximately 100 miles of trails. The City provides water and sanitary sewer facilities to a majority of its residential areas. The &LW\¶VSUHVHQWZDWHUV\VWHPLQFOXGHVZHOOVDQG8 water storage facilities with a total capacity RIPLOOLRQJDOORQV7KH&LW\¶VZDWHUWUeatment 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 enhanciQJWKH&LW\¶VTXDOLW\of life and services. The City Council reconvened the Strategic Growth Task Force in 1998 for the purpose of making both short and long-term recommendations or suggestions on strategies relating to how the rate, location and type of residential and commercial/industrial growth can generate fiscal stability and preserve or enhance the quality of services, while minimizing any adverse impacts on City systems and taxpayers. In December 2010, the City Council approved the 2011-2013 Strategic Plan for Economic Development. The Plan serves as a guide for the work of the Economic Development Commission (EDC) and Economic Development DeSDUWPHQWDOVWDIIWRDFKLHYH/DNHYLOOH¶V 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 2011-2013 Strategic Plan for Economic Development (EDC) is the seventh plan prepared by the EDC since 1995, when the first strategic plan was completed. The previous strategic plan was from 2008-2010. 172 CITY OF LAKEVILLE, MINNESOTA Community Profile (continued) City of Lakeville 2010 actual land use composition and 2030 projection is as follows : (1) 2010 2030 Actual Projection 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: Source: (1) City of Lakeville 2010 Comprehensive Plan. (2) Metropolitan Council as of April 1st of each year, (except for year 2010 Federal Census). (3) Minnesota Dept. of Employment and Economic Development as of December 31, 2010. N/A - Not available at the time of this printing. 173 CITY OF LAKEVILLE, MINNESOTA Number of City Employees (Full Time Equivalent) 2010201120122013 Position TitleActualEstimateProposedEstimated General government City Administrator1.01.01.01.0 Assistant to City Administrator0.50.50.50.5 Executive Administrative Assistant/Deputy Clerk1.01.01.01.0 Communications Manager1.01.01.01.0 Communications Specialist1.01.01.01.0 Video Production Specialists2.02.02.02.0 City Clerk1.01.01.01.0 Planning Director1.01.01.01.0 Associate Planners1.51.51.51.5 Planning Administrative Assistant 0.50.50.50.5 r1.01.01.01.0 Community and Economic Development Directo Economic Development Specialist1.01.01.01.0 Community and Economic Dev. Admin. Assistant0.50.50.50.5 Building Official1.01.01.01.0 Senior Inspectors3.03.03.03.0 Building Inspectors2.02.02.02.0 Building Senior Administrative Assistant1.01.01.01.0 Building Administrative Assistant1.01.01.01.0 Facility Maintenance Coordinator1.01.01.01.0 City Hall Receptionists1.01.61.61.6 City Hall Administrative Assistant1.00.40.40.4 Finance Director1.01.01.01.0 Senior Accountants2.62.63.03.0 Accountant II0.80.81.01.0 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 Technician1.01.01.01.0 Human Resources Manager1.01.01.01.0 Benefits Specialist1.01.01.01.0 Payroll Technician0.80.80.80.8 Total general government36.236.236.836.8 174 CITY OF LAKEVILLE, MINNESOTA Number of City Employees (Full Time Equivalent) (continued) 2010201120122013 Position TitleActualEstimateProposedEstimated 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 Officers31.531.933.033.0 Total sworn officers51.551.953.053.0 Crime Prevention Coordinator1.01.01.01.0 Community Service Officers3.83.83.83.8 Animal Control Officer1.01.01.01.0 Records Supervisor1.01.01.01.0 Records Administrative Assistants4.04.55.45.4 Total police62.363.265.265.2 Fire Fire Chief1.01.01.01.0 Fire Marshal1.01.01.01.0 Fire Inspector1.01.01.01.0 Fire Senior Administrative Assistant1.01.01.01.0 Fire Administrative Assistant0.60.60.60.6 Total fire4.64.64.64.6 Total public safety66.967.869.869.8 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 Engineering Administrative Assistant1.01.01.01.0 GIS Coordinator1.01.01.01.0 GIS Technician1.01.01.01.0 Total engineering7.07.07.07.0 175 CITY OF LAKEVILLE, MINNESOTA Number of City Employees (Full Time Equivalent) (continued) 2010201120122013 Position TitleActualEstimateProposedEstimated Public works (continued) Streets Streets Superintendent1.01.01.01.0 Streets Supervisor1.01.01.01.0 Streets Lead Maintenance1.01.01.01.0 Fleet Service Technician Lead1.01.01.01.0 Streets Maintenance II10.010.010.311.0 Fleet Service Technicians4.04.04.04.0 Streets Administrative Assistant1.01.01.01.0 Total streets19.019.019.320.0 Total public works26.026.026.327.0 Parks and recreation Parks Parks and Recreation Director1.01.01.01.0 Parks Operations and Maintenance Manager1.01.01.01.0 Parks Supervisor1.01.01.01.0 Parks Lead Maintenance1.01.01.01.0 Parks Maintenance II8.58.58.58.5 City Forester0.50.50.50.5 Parks Senior Administrative Assistant1.01.01.01.0 Parks Maintenance Administrative Assistant1.01.01.01.0 Total parks15.015.015.015.0 Recreation Recreation Supervisor1.01.01.01.0 Recreation Program Supervisor1.01.01.01.0 Recreation Administrative Assistant1.01.01.01.0 Senior Center Coordinator1.01.01.01.0 Senior Center Administrative Assistant0.70.70.70.7 Total recreation4.74.74.74.7 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 recreation23.423.423.423.4 Total general/special revenue fund employees152.5153.4156.3157.0 176 CITY OF LAKEVILLE, MINNESOTA Number of City Employees (Full Time Equivalent) (continued) 2010201120122013 Position TitleActualEstimateProposedEstimated Liquor fund Operations Director1.01.01.01.0 Store Managers3.03.03.03.0 Inventory Control Technician1.01.01.01.0 Assistant Store Managers5.05.05.05.0 Administrative Assistant1.01.01.01.0 Lead Sales Associates2.72.72.72.7 12.012.012.012.0 Sales Associates 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 Maint. Analyst/Safety Specialist1.01.01.01.0 Utility Maintenance II11.011.011.011.5 Utility Billing Technician2.02.02.02.0 Utility Administrative Assistant1.01.01.01.0 Environmental Resources Manager1.01.01.01.0 Environmental Resources Specialist1.01.01.01.0 20.020.020.020.5 Total utility fund employees 152.5153.4156.3157.0 Total general/special revenue fund employees Total liquor fund employees25.725.725.725.7 20.020.020.020.5 Total utility fund employees 199.1202.0203.2 198.2 Total City employees 177 CITY OF LAKEVILLE, MINNESOTA Commercial and Industrial Building Permits Issued Years 2010 and 2009 (in excess of $250,000) NEW BUILDING PERMITS BUSINESSPRODUCT/SERVICEVALUATION (1) Green Planet Car WashCar wash/detail center1,400,000$ Ace HardwareRetail hardware store1,100,000 Lakeville OrthodonticsMedical545,000 Kent 46 Office BldgOffice building260,000 (in excess of $250,000) EXPANSION OR REMODEL BUILDING PERMITS BUSINESSPRODUCT/SERVICEVALUATION (1) Malt-O-MealAdmin. offices/technology center2,150,000$ Con Agra FoodsStore brand/private label food products1,269,000 Minnesota School of BusinessPrivate business school688,000 Ryt-Way IndustriesFood packaging 500,000 Argonne VillageMulti-tenant retail477,000 (1) Valuation excludes land and personal property. Source: City of Lakeville Inspections Department. 178 CAPITAL IMPROVEMENT PLAN 2012-2016 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 Capital Improvement Plan (CIP) Overview The Capital Improvement Plan (CIP) is a flexibOHILYH\HDUSODQWKDWLGHQWLILHVWKH&LW\¶V infrastructure, development objectives and allocation of financial resources. It provides policy makers and the community with a strategic (documented) approach to implementation and administration of improvement projects. The Capital Improvement Plan maximized the use of non-tax revenues to finance the improvements. Municipal State Aid Street Funds (MSA) connection charges, special assessments and other revenue sources are vital elements to financing City improvements. The use of these revenue sources reduces the reliance on property taxes to finance these improvements. The City should pursue the financing strategy as presented, but bear in mind future events may require changes in both costs and revenues. The Capital Improvement Plan represents a significant financial, engineering and development undertaking for the City in the years ahead. The Capital Improvement Plan is consisWHQWZLWKWKH&LW\¶V&RPSUHKHQVLYH3ODQDQG takes into consideration projects identified in the Dakota County Capital Improvement Plan. Categories Transportation infrastructure includes all roads, streets, street lights, bridges and traffic signals within the City with the exception of Interstate I-35 and routine maintenance of County roads. Major funding sources include Municipal State Aid Street funds, special assessments and property taxes. Utility infrastructure includes the construction and major maintenance of all water systems such as wells, towers and the water treatment facility. Utilities also include sanitary sewer and storm sewer systems. The primary source of financing for developing new systems are connection charges when property develops or with the issuance of a building permit. Maintenance projects are financed with user fees. Parks system includes regional, community and neighborhood parks as well as trails and recreation facilities such as the Arts Center and Heritage Center. Major resources include park dedication fees collected when property develops and grants. Maintenance projects are financed with property taxes and other revenue sources. Facilities include the police station, fire stations, central maintenance facility and other municipal buildings. Primary revenue sources include, but not limited to, Liquor Fund contributions, sale of assets and property taxes. Equipment includes all major equipment acquisitions and replacement. Primary revenue sources include, but not limited to, Liquor Fund contributions, Cable TV franchise fees, sale of assets and property taxes. 179 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 Program Summary The total budgeted capital expenditures by category are shown below. Details are shown on subsequent pages. Expenditures Category20122013201420152016 Transportation10,086,656$ 11,388,284$ 12,402,763$ 7,071,133$ 8,878,778$ Utility1,715,934 586,000 544,500 215,500 1,511,900 Parks2,287,481 1,273,678 1,087,001 247,769 216,200 Facilities4,040,619 893,383 825,228 51,500 133,350 Equipment1,621,419 2,484,017 2,077,457 2,894,691 2,858,767 Total19,752,109$ 16,625,362$ 16,936,949$ 10,480,593$ 13,598,995$ 2012-2016 PROJECTS $77,394,008 Transportation $49,827,614 64% Equipment $11,936,351 15% Facilities Utility Parks and $5,944,080 Infrastructure Recreation 8% $4,573,834 $5,112,129 6% 7% 180 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 Process State Statutes, local ordinances and the CiW\¶VEXGJHWGHYHORSPHQWSROLF\SUHVFULEHWKH process of Capital Improvement development and adoption for the City of Lakeville. The following is a calendar for the 2012 budget process. April 2011 The five-year Capital Improvement Plan (CIP) is developed under the direction and guidance of the City Administrator. May 2011 A draft of the CIP was presented to the City Council at its May work session. September 2011 A preliminary Capital Improvement Plan is incorporated in the Proposed Budget and approved by the City Council. October 2011 The Planning Commission conducts a public hearing in accordance with Minnesota Statutes and determines whether the CIP is FRQVLVWHQWZLWKWKH&LW\¶V&RPSUHKHQVLYH Land Use Plan. December 2011 City Council approval of the 2012 ±&DSLWDO,PSURYHPHQW3ODQ 181 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 182 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 183 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 184 CAPITAL IMPROVEMENT PLAN 2012-2016 Transportation City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 TRANSPORTATION th Project name: Kenrick Avenue / 205 Street Round-about Project Manager: Keith Nelson, City Engineer Anticipated start date: 2012 Project Description and location th Traffic volumes are anticipated to increase on 205 Street and Kenrick Avenue as a result of the proposed Walmart project. To address future transportation needs, a round-about is th proposed at the intersection of Kenrick Avenue and 205 Street. Walmart will pay $75,000 of the construction cost. 20122013201420152016Total Revenues 300,000300,000 Improvement Const Fund - Taxes Walmart -75,000 - 75,000 Total $ -375,000$ -$ -$ -$ 375,000$ Expenditures Construction 300,000 300,000 Other 75,000 - - 75,000 $ -375,000$ -$ -$ -$ 375,000$ Total Operations and operating costs impacts No anticipated significant operating cost increases. 185 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 TRANSPORTATION Project name: County Road 50/Dodd Boulevard intersection signal Project Manager: Keith Nelson, City Engineer Anticipated start date: Spring 2012 Project Description and location The County Road 50/Dodd Boulevard intersection currently has left turn arrows on the east and west bound lanes of CR 50. Traffic on north and south bound lanes of Dodd Blvd. attempting to make left-hand turns onto CR 50 are required to yield the right of way of oncoming traffic. Numerous complaints have been received regarding limited visibility for the south bound turn lane. Complaints state that when there are both south bound and north bound traffic attempting to make a left-hand turns, the south bound YHKLFOH¶VYLHZRI oncoming traffic is blocked by the north bound vehicle attempting a left-hand turn. Adding turn signals would improve traffic safety. 20122013201420152016Total Revenues Dakota County41,250 41,250 Improvement Construction Fund - Taxes33,750 33,750 Total Revenues $ -75,000$ -$ -$ -$ 75,000$ Expenditures Project cost $ -75,000$ -$ -$ -$ 75,000$ Operations and operating costs impacts Electrical costs are anticipated to increase minimally. 186 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 TRANSPORTATION rd Project name: Dodd Boulevard: 183 Street - Hayes Avenue Project Manager: Keith Nelson, City Engineer Anticipated start date: Spring 2014 (construction) Project Description and location Dakota County is proposing to reconstruct Dodd Boulevard (County Road 9) as a four lane divided rd highway from 183 Street to Hayes Avenue. Total estimated construction cost is $4.6 million. The project includes construction of a roundabout at Dodd Boulevard and Highview Avenue to improve traffic flows and safety. Design would commence in 2011 with right of way being acquired in 2012 and construction commencing in 2013. Dakota County will design the roadway improvements at no cost to the City, and the City will assist with the design of the drainage. Federal funding was applied for in 2009, but scored very low against competing projects. The County will apply again in 2011 for funding of the roundabout and intersection improvements only. Federal funding would not be available until 2015. 20122013201420152016Total Revenues Municipal State Aid Fund Municipal state aid760,815 1,968,750 2,729,565 Dakota County929,885 2,406,250 3,336,135 Total $ 4,375,0001,690,700$ -$ -$ -$ 6,065,700$ Expenditures Right of way acquisition1,690,700 1,690,700 Construction4,375,000 4,375,000 $ 4,375,0001,690,700$ -$ -$ -$ 6,065,700$ Total Operations and operating costs impacts Storm sewer to be maintained (one mile) by City at a cost of $1600/yr. Dakota County will maintain the roadway at no cost to the City. 187 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 TRANSPORTATION stth Project name: Cedar Avenue: 161± Street Project Manager: Keith Nelson, City Engineer Anticipated start date: Spring 2011 Project Description and location th Dakota County will be constructing a third lane on Cedar Avenue from 147 Street in Apple ndnd Valley to 162 Street in Lakeville in 2011. The shoulders on Cedar Avenue from 162 to th 179 will be widened to accommodate buses. The overall project is $49,200,000. The City share of financing for road and landscaping improvements is $558,000 of which $342,000 is payable in 2011 with the remaining $216,000 payable in 2013. 20122013201420152016Total Revenues Municipal State Aid Fund Municipal state aid-$ 216,000$ -$ -$ -$ 216,000$ Expenditures Construction costs 216,000 216,000 $ 216,000-$ -$ -$ -$ 216,000$ Total Operations and operating costs impacts Additional new lights add $11,500/year operating/electrical cost. Dakota County will maintain the roadway at no cost to the City. 188 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 TRANSPORTATION th Project name: County Road 60 (185 Street) / County Road 50 Intersection Improvements Project Manager: Keith Nelson, City Engineer Anticipated start date: Spring 2014 (construction) Project Description and location Dakota County has identified the County Road 50 and County Road 60 intersection as approaching capacity. During rush hour, traffic backs up for more than a half mile. Dakota County is therefore proposing to reconstruct the intersection with additional lanes or a roundabout to improve traffic flow and safety. The $2.0 million project has been approved for $1.6 million in Federal funding. 20122013201420152016Total Revenues Dakota County 275,000 220,000 495,000 Municipal State Aid Fund Municipal state aid 180,000225,000 405,000 Federal and state grants 1,600,000 - - 1,600,000 Total $ 500,000-$ 2,000,000$-$ -$ 2,500,000$ Expenditures Right of way acquistion 500,000 500,000 Construction 2,000,000 - - 2,000,000 $ 500,000-$ 2,000,000$-$ -$ 2,500,000$ Total Operations and operating costs impacts Dakota County will maintain the roadway at no cost to the City. 189 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 TRANSPORTATION th Project name: County Road 60 (185 Street): County RoDG±2UFKDUG7UDLO Project Manager: Keith Nelson, City Engineer Anticipated start date: Spring 2014 (construction) Project Description and location th The County is proposing to upgrade County Road 60 (185 Street) from County Road 50 to Orchard Trail and County Road 50 from County Road 60 to Jurel Way as a 4 lane divided roadway in order to address traffic volumes. The total cost of the project is $2.7 million. If approved, the project would be constructed in conjunction with the County Road 50/County Road 60 intersection improvements. 20122013201420152016Total Revenues Dakota County 1,485,000 1,485,000 Municipal State Aid Fund -1,215,000 - 1,215,000 Municipal state aid Total $ --$ 2,700,000$ -$ -$ 2,700,000$ Expenditures Construction 2,700,000 - - 2,700,000 Total $ --$ 2,700,000$ -$ -$ 2,700,000$ Operations and operating costs impacts Dakota County will maintain the roadway at no cost to the City. 190 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 TRANSPORTATION rd Project name: Kenrick Avenue Extension: C P Rail to 183 Street Project Manager: Keith Nelson, City Engineer Anticipated start date: Spring 2016 (construction) Project Description and location 7KH&LW\RI/DNHYLOOH¶V7UDQVportation Plan identifies Kenrick Avenue from County Road 50 th (Kenwood Trail) to County Road 60 (185 Street) as an A-Minor Reliever. In order to provide a connection between the Highway 50 business district and the Timbercrest commercial area, Kenrick Avenue is proposed to be extended from the CP Rail intersection th with 175 Street to 183rd Street. The benefitted property could be specially assessed a minimum of 20% of the project costs; however, wetlands and topography are significant challenge to the development of property immediately adjacent to the project. The special assessments would therefore be deferred until the property develops. The property owner has commenced the process of applying for a potential $1.3 million Federal transportation funding which might be available in 2015. 20122013201420152016Total Revenues Municipal State Aid Fund Municipal state aid $ --$ -$ -$ 2,400,000$ 2,400,000$ Expenditures Project cost $ --$ -$ -$ 2,400,000$ 2,400,000$ Operations and operating costs impacts ¶#PL\HDU \U 191 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 TRANSPORTATION Project name: Street reconstruction Project Manager: Chris Petree, Operations and Maintenance Director Anticipated start date: Annual Project Description and location The City embraced a pavement management study prepared in 2009 which sets forth a long- term plan for maintaining City streets based on pre-established standards. The road systems degradation has accelerated in recent years. Staff is therefore recommending advancement of the schedule as shown below. The City Council approved a Street Reconstruction Policy in November 2006 whereby the property owners will be assessed for 40% of the street reconstruction project. The City will finance its 60% share of the project cost with property taxes. Accelerated Program Schedule 20122013201420152016Total Revenues Improvement Const. Fund Debt Issuance - G.O. Improvement Bonds Property Taxes (future years) 2,914,4362,448,977 3,593,578 3,217,704 2,888,812 15,063,507 Special Assessments 1,942,9572,565,985 2,395,720 2,145,136 1,925,875 10,975,673 4,857,3935,014,962 5,989,298 5,362,840 4,814,687 26,039,180 Other75,000 75,000 2009 G.O. Street Reconstruction Bonds 1,325,0001,325,000 Taxes $ 4,857,3936,414,962$5,989,298$5,362,840$4,814,687$ 27,439,180 Total Expenditures Construction 4,751,824 3,598,069 4,436,517 3,972,474 3,566,435 20,325,319 Other 1,663,138 1,259,324 1,552,781 1,390,366 1,248,252 7,113,861 Total $ 4,857,3936,414,962$5,989,298$5,362,840$4,814,687$ 27,439,180$ Operations and operating costs impacts No anticipated significant operating cost increases. 192 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 TRANSPORTATION Project name: Pavement Management Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: Annual Project Description and location /DNHYLOOH¶VSDYHPHQWPDQDJHPHQW program is designed to provide basic maintenance to City streets, to maintain the overall condition of the road surface, and gain the maximum service life at the best overall cost. The program is a comprehensive overview of residential and collector streets and includes overlays, crack sealing, seal coating, patching, curb and sidewalk repair, and asset management support. 20122013201420152016Total Revenues Pavement Management Fund Property taxes/fund balance1,153,159 1,062,056 1,335,630 1,330,458 1,286,256 6,167,559 Municipal state aid374,335 374,335 374,335 374,335 374,335 1,871,675 Investment income3,500 3,500 3,500 3,500 3,500 17,500 Total revenues$ 1,439,8911,530,994$ 1,713,465$ 1,708,293$ 1,664,091$ 8,056,734$ Expenditures Maintenance Crack sealing 104,000 108,160 112,486 116,986 121,665 563,297 Seal coating 208,000 216,320 224,973 233,972 243,331 1,126,596 Patching & Minor Overlays 537,000 547,960 569,638 592,064 615,266 2,861,928 Park parking lots 41,146 10,976 30,512 27,297 1,920 134,148 Parking Lot Work Plan 23,858 23,858 Velocity Patching 50,000 50,000 50,000 50,000 50,000 250,000 Conc Curb, Sidewalk, Draintile 25,000 25,000 25,000 25,000 25,000 125,000 Pavement Asset Mgt Support 20,000 25,000 21,000 21,000 21,000 108,000 Total maintenance 983,4161,009,004 1,033,609 1,066,319 1,078,182 5,170,530 s Overlay Ipava: CR50 - 202nd St84,338 84,338 170th St: E. of Pilot Knob 87,702 87,702 175th: Highview - Dodd 206,725 206,725 Flagstaff: 174th - 180th 131,225 131,225 Guardrail: 168th/Judicial 12,000 12,000 Kenrick: Maple Island Rd - 456,475 456,475 Kenrick: 185th - 205th 355,685 355,685 205th: Dodd - Credit River 641,974 641,974 Kensington Blvd: CR70 - 205th 324,171 324,171 Holyoke / 210th Street (Intersection Improvements) 50,000 50,000 Holyoke: CR70 - Heritage 535,909 535,909 Total overlays 456,475521,990 679,856 641,974 585,909 2,886,204 Total expenditures$ 1,439,8911,530,994$ 1,713,465$ 1,708,293$ 1,664,091$ 8,056,734$ Operations and operating costs impacts No anticipated significant operating cost increases. 193 CAPITAL IMPROVEMENT PLAN 2012-2016 Utility Infrastructure City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 SANITARY SEWER SYSTEM 194 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Sanitary Sewer Relining Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: 2012 Project Description and location A segment of concrete sanitary sewer pipe approximately 5,200 feet long is showing signs of deterioration as a result of exposure to hydrogen sulfide gas. Hydrogen sulfide gas weakens the concrete pipe over time, eating away at the concrete and rebar, eliminating the structural integrity of the pipe. Lining the pipe using cured in place pipe to reline the existing pipe adds strength to the pipe and creates a seamless corrosion resistant interior surface eliminating the effects of the hydrogen sulfide gas and extending the life of the pipe. The pipe proposed for relining is a 27-inch pipe that runs along the railroad tracks on the north side of Lake Marion. It carries the sewage flow from a large area of the City west of Interstate 35. This activity is planned for WZR\HDUVZLWKDSSUR[LPDWHO\¶EHLQJUHOLQHG each year. The alternative is a major construction project to replace the pipe. 20122013201420152016Total Revenues Sanitary Sewer Operating Fund 520,000 Fees $ -520,000$ -$ -$ -$ 520,000$ Total Expenditures Contract 520,000 $ -520,000$ -$ -$ -$ 520,000$ Total Operations and operating costs impacts No anticipated significant impact on operations or operating costs. 195 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Sanitary sewer trunk extensions Project Manager: Keith Nelson, City Engineer Anticipated start date: As development occurs Project Description and location The Comprehensive Sanitary Sewer Plan contemplated the extension of sanitary sewer trunk lines to accommodate development. The extension of the trunk lines is depending on community development. 20122013201420152016Total Revenues Sanitary Sewer Trunk Fund Fees102,000$ 151,000$ 257,500$ 50,500$ 260,200$ 821,200$ Expenditures Trunk oversizing NC127a to NC127102,000 102,000 Trunk oversizing NC05 to NC0666,000 66,000 Trunk oversizing NC127a to NC127b85,000 85,000 Trunk oversizing NC129 to NC127b67,500 67,500 Trunk oversizing LS24 to NC129190,000 190,000 Trunk oversizing Upstream NC7410,000 10,000 Trunk oversizing NC132 to NC12940,500 40,500 Trunk oversizing 152,200152,200 Total $ 151,000102,000$ 190,000$10,000$ 260,200$ 713,200$ Operations and operating costs impacts No anticipated significant operating cost increases. 196 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Sanitary sewer trunk extensions Project Manager: Keith Nelson, City Engineer Anticipated start date: As development occurs Project Description and location The Comprehensive Sanitary Sewer Plan contemplated the extension of sanitary sewer trunk lines to accommodate development. The extension of the trunk lines is depending on community development. 20122013201420152016Total Revenues Sanitary Sewer Trunk Fund Fees-$ 117,000$ 38,000$ 10,000$ 91,200$ 256,200$ Expenditures Trunk oversizing SC135 to SC13467,500 67,500 Trunk oversizing SC22 to SC2022,500 22,500 Trunk oversizing SC12 to SC12a27,000 27,000 Trunk oversizing SC22 to SC22a17,000 17,000 Trunk oversizing SC43 to SC4421,000 21,000 Trunk oversizing SC44 to SC4310,000 10,000 Trunk oversizing SC44 to SC4391,200 91,200 Total $ 117,000-$ 38,000$ 10,000$ 91,200$ 256,200$ Operations and operating costs impacts No anticipated significant operating cost increases. 197 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Lift Station Rehabilitation Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: Annual Project Description and location The City has 22 sanitary sewer lift stations which pump sewage from low lying areas to gravity lines. The pumps, motors, and other equipment within each lift station are periodically inspected and rehabilitated to ensure uninterrupted service. Each lift station is scheduled for inspection and rehabilitation every 20 years. 20122013201420152016Total Revenues Sanitary Sewer Operating Fund Fees25,000$ 86,000$ 86,000$ 25,000$ 270,000$ 492,000 Expenditures Lift Station #6 Rehabilitation 25,00025,000 (motor replacement) Lift Station #6 Rehabilitation 270,000270,000 (major rehabilitation) Lift Station #5 Rehabilitation 86,000 86,000 Lift Station #3 Rehabilitation86,000 86,000 Lift Station #21 Rehabilitation25,000 25,000 $ 86,00025,000$ 86,000$ 25,000$ 270,000$ 492,000$ Total Operations and operating costs impacts No anticipated significant impact on operations or operating costs 198 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Sanitary sewer system inflow/infiltration repairs Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: Annual Project Description and location A section of the sanitary sewer system is inspected each year for damage to the pipes that would result in inflow (direct entry of storm water) and infiltration (ground water seeping into the sanitary sewer) within the sanitary sewer system. This additional water penetrating the system increases stress to the capacity of the wastewater treatment facilities thereby resulting in higher sanitary sewer rates for Lakeville customers. $GGLWLRQDOO\H[FHHGLQJWKH&LW\¶VFDOFXODWHGpeak flow can result in the imposition of surcharge by MCES. Should Lakeville exceed that peak flow, the minimum surcharge would be $216,000 per year for five years. The Utilities Division endeavors to reduce the inflow and infiltration by initiating repairs such as manhole structure sealing, cured in place pipe lining, and the replacement of manhole covers. 20122013201420152016Total Revenues Sanitary Sewer Oper. Fund Fees $ 50,00050,000$ 50,000$ 50,000$ 50,000$ 250,000$ Expenditures Contractual services 50,000 50,000 50,000 50,000 50,000 250,000 Total $ 50,00050,000$ 50,000$ 50,000$ 50,000$ 250,000$ Operations and operating costs impacts No anticipated significant impact on operations or operating costs. 199 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 WATER SYSTEM 200 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Watermain replacement: th Galaxie Way from Franchise Avenue to 167 Street Project Manager: Keith Nelson, City Engineer Chris Petree, Director of Operations and Maintenance Anticipated start date: 2012 Project Description and location The cast iron watermain on Galaxie Way has been subject to numerous breaks in recent years. The watermain will be replaced in conjunction with the street reconstruction project in 2012. 20122013201420152016Total Revenues Water Operating Fund Fees $ -268,034$ -$ -$ 268,034 Expenditures Water main replacement 268,034268,034 $ -268,034$ -$ -$ 268,034$ Total Operations and operating costs impacts No anticipated significant impact on operations or operating costs. Will result in a reduction of expenses for watermain repair in ensuing years. 201 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Tower and Reservoir painting Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: 2012 Project Description and location Airlake water tower is proposed to be repainted in 2012. Interior and exterior coatings on water towers and reservoirs protect the metal structure from corrosion and rust and maintain the quality of the treated water passing through to residential and other uses. The service life of the towers and reservoirs can be extended through periodic inspection and painting. Future tower and reservoir painting includes the Dakota Heights reservoir in 2018, the Fairfield tower in 2020, the Central Maintenance Facility tower in 2025, and the North Park tower in 2026. 20122013201420152016Total Revenues $ -439,500$ -$ -$ -$ 439,500$ Water Operating Fund - Fees Expenditures 439,500439,500 Airlake Tower Total $ -439,500$ -$ -$ -$ 439,500$ Operations and operating costs impacts No anticipated significant impact on operations or operating costs. 202 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Well #20 Construction Project Manager: Keith Nelson, City Engineer Chris Petree, Director of Operations and Maintenance Anticipated start date: 2016 Project Description and location Well #20 is to be constructed in 2016 in order to provide adequate water supply for our growing community. The well will draw water from the Prairie Du Chien aquifer. The well is to be constructed adjacent to Cherryview Park located at Dodd Boulevard and th 175 Street. Construction of well #20 will be subject to growth. The Minnesota Department of Health will require the City to amend its Well Head and Source Water Protection Plan in order to receive future permits to construct new wells. This amendment is to be completed in 2011. 20122013201420152016Total Revenues Water Operating Fund - Fees $ --$ -$ -$ 600,000$ 600,000$ Expenditures Well Head Protection Plan - Well construction 600,000 600,000 Total $ --$ -$ -$ 600,000$ 600,000$ Operations and operating costs impacts Maintenance costs are an additional $1,000 per year. 203 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: High Speed 600 horse power pump rehabilitation Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: 2016 Project Description and location The high service pump station (HSPS) at the Water Treatment Facility is the single point for distribution of treated water throughout the City. It operates on demand 24 hours a day 7 days a week to meet normal residential demand as well as high intensity short duration emergency needs. Pumps in the HSPS are 13 years old and have not undergone any scheduled preventive maintenance since their installation. 20122013201420152016Total Revenues $ --$ -$ -$ 60,000$60,000$ Water Operating Fund - Fees Expenditures HSPS 600HP Pump 60,00060,000 $ --$ -$ -$ 60,000$60,000$ Total Operations and operating costs impacts No anticipated significant impact on operations or operating costs. 204 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Well rehabilitation Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: Various Project Description and location The wells provide water for the distribution system which operate on demand 24 hours a day, 7 days a week. This puts the motors and pump components under tremendous stress. Additionally, being constantly exposed to water can corrode pipes and other well components. Periodic inspection and maintenance, with replacement as needed, ensures the efficient operation of the wells and water system at maximum pumping capacity The City has 17 wells which are a combination of vertical turbine above ground pumps and motors and submersible pumps and motors. Vertical turbine pumps and motors are scheduled for rehabilitation every 8 years and submersible pumps and motors are scheduled for rehabilitation every 10 years. Fifteen of the wells pump water to the Water Treatment Facility and two are used exclusively for summer peak demand only. 20122013201420152016Total Revenues $ 120,000120,000$120,000$60,000$120,000$ 540,000$ Water Operating Fund - Fees Expenditures Well 9 rehabilittation60,000 60,000 Well 10 rehabilitation60,000 60,000 Well 4 rehabilitation60,000 60,000 Well 16 rehabilitation60,000 60,000 Well 2 rehabilitation60,000 60,000 Well 17 rehabilitation60,000 60,000 Well 6 rehabilitation60,000 60,000 60,000 Well 8 rehabilitation 60,000 Well 18 rehabilitation 60,000 60,000 Total $ 120,000120,000$120,000$60,000$120,000$ 540,000$ Operations and operating costs impacts No anticipated significant impact on operations or operating costs. 205 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Water meter replacement Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: Various Project Description and location The Utilities Division replaces residential and commercial water meters that reach the end of their service life. The expected service life for a water meter is approximately 20 years. Being able to change out water meters at the end of their service life is important to managing the water system and monitoring water use for reporting to the Department of Natural Resources. 20122013201420152016Total Revenues $55,50055,200$55,500$55,500$55,500$ 277,200$ Water Operating Fund - Fees Expenditures Water meters55,200 55,500 55,500 55,500 277,20055,500 $55,50055,200$55,500$55,500$55,500$ 277,200$ Total Operations and operating costs impacts No anticipated significant impact on operations or operating costs. 206 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Asset Management Support/Implementation Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: Annual Project Description and location The City owns asset management software to track the installation and maintenance history of water mains and the sanitary sewer system. The purpose of the software is to record and maintain maintenance activity for each segment of pipe throughout the City, to provide a detailed history of the asset, and allow for accurate planning for repairs and replacement. This recurring activity will provide support and training to transfer current data, maps and action notices, into the system and ensure its ongoing accuracy. Without such support for in-ground assets, the City lacks any comprehensive knowledge of potential problems and is unable to effectively plan for the maintenance of the system. 20122013201420152016Total Revenues Water Operating Fund - Fees 7,250 3,250 2,500 2,500 2,500 18,000 Sanitary Sewer Operating Fund - Fees 7,250 3,250 2,500 2,500 2,500 18,000 $6,50014,500$5,000$5,000$5,000$ 36,000$ Total Expenditures Professional services 14,500 6,500 5,000 5,000 5,000 36,000 Total $6,50014,500$5,000$5,000$5,000$ 36,000$ Operations and operating costs impacts No anticipated significant impact on operations or operating costs. 207 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 ENVIRONMENTAL RESOURCES WATER MANAGEMENT ORGANIZATIONS 208 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 UTILITY Project name: Hydrologic modeling Project Manager: Keith Nelson, City Engineer Anticipated start date: 2011 Project Description and location The City Storm Water Management Plan was revised as part of the required comprehensive plan update submitted to the Metropolitan Council. The plan was updated to conform to the new Vermillion River Watershed District standards and the latest MPCA storm runoff regulations. The Vermillion River Joint Powers Organization (VRJPO) has done extensive hydrologic modeling and recently set storm water discharge limits at corporate limits of all cities. The City of Lakeville will need to update the computer modeling in the current plan to demonstrate it meets the new discharge limits. The VRJPO will reimburse the City for 50% of the cost. Hydrologic modeling provides the framework for developing a storm water drainage plan that ensures discharges occurring with future development are in conformance with the Water Management Organization (WMO) requirements. The model is also used for developing flooded area information of the City that would be caused by a severe rainfall event. Approximately 40% of the Vermillion River hydrological study was completed in 2011 with the remaining 60% ($79,200) to be completed in 2012. 20122013201420152016Total Revenues Environmental Resources Fund 82,10082,100 Surface Water Fees Vermillion Water Management 39,60039,600 ganization Or $ -121,700$ -$ -$ -$ 121,700$ Total Expenditures Hydrologic modeling - 79,20079,200 Vermillion River Watershed Hydrologic modeling - Other 42,50042,500 Watersheds - Black Dog $ -121,700$ -$ -$ -$ 121,700$ Total Operations and operating costs impacts No anticipated significant impact on operations or operating costs. Subject to the finding in the final report, the City may be required to construct storm water infrastructure system. 209 CAPITAL IMPROVEMENT PLAN 2012-2016 Parks, Recreation and Open Space City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 PARKS AND RECREATION Project name: Lake Marion Loop Trail Project Manager: Steve Michaud, Parks and Recreation Director Anticipated start date: 2012 Project Description and location The Lake Marion loop trail project consists of land and/or conservation easement acquisition and trail construction from the Park and Ride lot at Kenrick / County Road 60 th to Kenrick / 205 Street. The project also includes a Dakota County regional trail segment along the Bury Bluff. The project is financed with combination of federal, state, county and City of Lakeville funds. The original federal grant was scheduled for implementation in 2014. Administrative mechanisms allow this type of project to be accelerated at least two years. Working with Dakota County and MN Department of Transportation, assisted by WSB, staff is recommending the project proceed in 2012. 20122013201420152016Total Revenues Federal grant 677,000 677,000 100,000 100,000 Dakota County Park Dedication Fees Fund 160,000 160,000 Fees Total $ -937,000$ -$ -$ -$ 937,000$ Expenditures Trail construction 937,000 937,000 Total $ -937,000$ -$ -$ -$ 937,000$ Operations and operating costs impacts When complete, 2.5 miles of trails will be added to the current preventative maintenance program adding costs five years after installation. First sealcoating occurs in 2017. 210 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 PARKS AND RECREATION Project name: Bury Property - Land Acquisition Project Manager: Steve Michaud, Parks and Recreation Director Anticipated start date: 2012 Project Description and location The proposed project consists of acquisition of land or acquisition of a conservation easement to preserve natural scenic bluffs overlooking Lake Marion. The proposed Dakota County Regional Trail would be constructed within the proposed easement area. Operations and operating costs impacts No anticipated significant impact on operations or operating cost. 211 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 PARKS AND RECREATION Project name: Park improvement projects Project Manager: Steve Michaud, Parks and Recreation Director Anticipated start date: Various Project Description and location A Frisbee disc golf course is proposed to be constructed, commencing in the fall of 2011, at Kenwood Trail Middle School. Funding is being scheduled to assist with the renovation of Berres Cabin at Ritter Farm Park to finalize that structure, making it functional as a classroom and a meeting facility to accommodate outdoor education programming at Ritter Farm Park. 20122013201420152016Total Revenues Park Dedication Fund - Fees10,000$ -$ 35,000$ -$ 45,000$ Expenditures Disc Golf Course10,000 10,000 Berres Cabin at Ritter - Upgrades35,000 35,000 $ -10,000$ -$ 35,000$ -$ 45,000$ Total Operations and operating costs impacts Planned improvements will add some work load to the maintenance division, but will be handled without increased cost. 212 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 PARKS AND RECREATION Project name: King Park Project Manager: Steve Michaud, Parks and Recreation Director Anticipated start date: Various Project Description and location Improvements to King Park include parking lot paving, installation of irrigation systems on fields #1 and #2, and installation of a new playground. 20122013201420152016Total Revenues Park Dedication Fund - Fees $ 65,000-$ 480,000$ -$ -$ 545,000$ Expenditures King Park: Pave parking lot400,000 400,000 Irrigate fields #'s 1 & 265,000 65,000 New playground80,000 80,000 Total $ 65,000-$ 480,000$ -$ -$ 545,000$ Operations and operating costs impacts Planned improvements to King Park will add some work load to the maintenance division, but will be handled without increased cost. Some additional staff time will be added to service the irrigation system and complete inspections on the playground. 213 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 PARKS AND RECREATION Project name: Trail development Project Manager: Steve Michaud, Parks and Recreation Director Anticipated start date: Various Project Description and location There are three segments adjacent to county roads which do not have adequate trails. The projects are identified in the County Capital Improvement Plan and are scheduled for completion in the coming years. The Dodd Boulevard project from Highway 50 to Itea Way will be completed in 2011. The County is requiring the City to pay its 45% share cost ($35,000) due in 2013. The remaining project costs are representative of a 45% (City) 55% (County) share cost. 20122013201420152016Total Revenues Park Dedication Fund - Fees 188,338 188,338 Escrows 9,948 9,948 Dakota County 242,394 242,394 Total $ 440,680-$ -$ -$ -$ 440,680$ Expenditures 93,03093,030 Dodd: Hwy 50 to Itea Way 146,700146,700 Dodd: 208th to CSAH 50 185th: Jamaica to Ipava (north 200,950200,950 side) Total $ 440,680-$ -$ -$ -$ 440,680$ Operations and operating costs impacts The segments would be added to the sealcoating maintenance schedule, increasing the budget five years out from the time each facility is constructed. The first addition to these trails to be seal coated would be in the year 2016, 2017, 2018 and 2019. These trails would also be added to existing plow routes as the new trails will provide access to shopping and employment centers. 214 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 PARKS AND RECREATION Project name: Trail Maintenance Project Manager: Steve Michaud, Parks and Recreation Director Anticipated start date: Various Project Description and location The City has retained the services of WSB Engineering to evaluate the condition of all trail segments, develop a replacement schedule and provide recommendations for maintenance. The Trails Capital Improvement Plan may change based on the findings and recommendations of the WSB analysis. 20122013201420152016Total Revenues Trail improvement Fund - Taxes $626,248158,381$440,001$79,019$ 73,700$ 1,377,349$ Expenditures Trail sealcoating58,028 101,985 77,306 79,019 73,700 390,038 100,353 N side 165th: Kenrick to Illinois 100,353 175th: Ipava to Highview168,725 168,725 193,970 165th: Ipava to Highview193,970 524,263 Miscellaneous524,263 $626,248158,381$440,001$79,019$ 73,700$ 1,377,349$ Total Operations and operating costs impacts No anticipated significant impact on operations or operating cost. 215 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 PARKS AND RECREATION Project name:3DUN'HYHORSPHQW±Administrative projects Project Manager: Steve Michaud, Parks and Recreation Director Anticipated start date: On-going Project Description and location The Park Dedication Fund Capital Improvement Plan budget provides appropriations for a number of activities including developer credits, planning and construction of park amenities, Sentence-To-Serve (STS) crew supervision and tree plantings. Developer credits: Represents credits associated with new development when the park dedication requirement is fulfilled through a land dedication. No effect on operations or operating costs at this time. Planning and design: Represents funding for miscellaneous studies, feasibility reports, etc. Signage program: Annually the Parks Department purchases new signs associated with trails, parks and special use areas. STS labor: Annual cost-share to provide STS labor for park and trail development projects. The dedicated STS crew is cost-shared with Burnsville, Apple Valley and Rosemount. Tree Trust labor: Cost to provide youth employment training crew to work on new development projects throughout the park system. STS/Tree Trust project materials:$FTXLVLWLRQRIPDWHULDOVDVVRFLDWHGZLWK6HQWHQFH±7R Serve crews and Tree Trust development projects throughout the system. Tree plantings: Annually, the City purchases new trees to be installed at a variety of parks throughout the park system. Picnic tables: Funds to provide new picnic tables to accommodate increased use at a variety of neighborhood and community park areas. 20122013201420152016Total Revenues Park Dedication Fund - Fees100,000$ 117,000$ 125,000$ 140,000$ 140,000$ 622,000$ Expenditures Developer credits50,000 50,000 50,000 50,000 50,000 250,000 Planning and design 5,000 5,000 5,000 20,000 20,000 75,000 Signage program (system wide)5,000 10,000 10,000 10,000 10,000 55,000 STS labor18,000 20,000 20,000 20,000 20,000 118,000 Tree Trust labor3,000 5,000 5,000 5,000 5,000 28,000 STS/Tree Trust project materials7,000 10,000 10,000 10,000 10,000 57,000 Tree plantings10,000 15,000 20,000 20,000 20,000 105,000 Picnic tables 2,000 2,000 5,000 5,000 5,000 24,000 $ 117,000100,000$ 125,000$ 140,000$ 140,000$ 622,000$ Total Operations and operating costs impacts No anticipated significant impact on operations or operating cost. 216 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 PARKS AND RECREATION Project name: Park major maintenance projects Project Manager: Steve Michaud, Parks and Recreation Director Anticipated start date: Various Project Description and location The park major maintenance projects are accounted for in the General Fund Parks Department budget and financed with property tax levies. The majority of the projects are replacement and repairs to existing facilities. Operations and operating costs impacts No anticipated significant impact on operations or operating cost. 217 CAPITAL IMPROVEMENT PLAN 2012-2016 Facilities City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 FACILITIES Project name: Arts Center Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: 2012 Project Description and location General upgrades to the facility and work environment at the Arts Center. Making repairs and replacing concrete sidewalk panels where appropriate reduces the potential for injuries. 20122013201420152016Total Revenues Building Fund (Miscellaneous) $ -14,000$ -$ -$ -$ 14,000$ Expenditures Carpeting for office area1,950 1,950 Waterproofing under front entrance5,087 5,087 Sidewalk repairs and concrete 6,9636,963 panel replacement Total $ -14,000$ -$ -$ -$ 14,000$ Operations and operating costs impacts No anticipated significant operating cost increases. 218 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 FACILITIES Project name: Central Maintenance Facility Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: Various Project Description and location General upgrades to the facility and work environment are due at the Central Maintenance Facility. Installation of racking efficiently uses space for storage. New flooring for the offices, common areas and conference room are proposed which will hold up with high use. Painting will protect the service and bi-fold doors from the weather and reduce the potential for corrosion. Plastic bollard covers will protect equipment and extend the service life of the bollards by reducing the potential for corrosion and the need for painting. 20122013201420152016Total Revenues Building Fund (Miscellaneous) $ 7,94122,979$ -$ -$ -$ 30,920$ Expenditures Racking in NW of vehicle 10,688 10,688 parking area Flooring for offices, common 12,291 12,291 areas, and conference room Paint service doors and bi-fold 4,200 4,200 doors 3,741 Plastic bollard covers 3,741 Total $ 7,94122,979$ -$ -$ -$ 30,920$ Operations and operating costs impacts No anticipated significant operating cost increases. 219 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 FACILITIES Project name: City Hall Project Manager: Chris Petree, Operations and Maintenance Director Anticipated start date: Various Project Description and location General upgrades to the facility and work environment are due at City Hall. Costs reflect general maintenance and improvements to the facility. The rooftop units are reaching the end of their service life and scheduling their replacement is prudent. Upgrading the main entrance with handicap accessible doors improves access for all individuals visiting City Hall. 20122013201420152016Total Revenues Building Fund (Miscellaneous) $ 231,927-$ 60,606$ -$ 65,850$ 358,383$ Expenditures Split system cooling unit for 16,03116,031 Cable TV area Replacement of rooftop units S1, 215,896215,896 S2 and S3 Add controls to monitor 2,5002,500 generator Handicap door openers on main 6,3066,306 entrance Carpet replacement - North 51,80051,800 Wing Replacement of rooftop unit S4 65,85065,850 $ 231,927-$60,606$ -$ 65,850$ 358,383$ Total Operations and operating costs impacts No anticipated significant operating cost increases. 220 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 FACILITIES Project name: Fire Stations Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: Various Project Description and location General facilities maintenance activities at each of the Fire Stations. The washers at each of the Fire Stations are reaching the end of their service life and need to be replaced. Applying epoxy to the mechanical room floor at Fire Stations will limit damage from water leaking. Additional controls allows monitoring of generator alarms. The bi-fold doors at Fire Station #4 need painting to maintain their appearance and protect them from the weather. Revenues Building Fund (Miscellaneous) $ 5,93061,840$ 9,622$ 10,500$ -$ 87,892$ Expenditures Fire Station #1 13,57313,573 Replace Duct Unit Heaters 5,9305,930 Washer replacement 4,0004,000 poxy mech room floor E Controls for monitoring generator 2,4052,405 10,50010,500 Standing seam roof replace Fire Station #2 5,9305,930 Washer replacement Controls for monitoring generator 2,4052,405 Fire Station #3 25,00025,000 Retaining wall replacement 3,2393,239 Water heater replacement 5,9305,930 Washer replacement Controls for monitoring generator 2,4062,406 Fire Station #4 4,1684,168 Painting bi-fold doors Controls for monitoring generator 2,4062,406 Total $ 5,93061,840$ 9,622$ 10,500$ -$ 87,892$ Operations and operating costs impacts No anticipated significant operating cost increases. 221 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 FACILITIES Project name: ABLE Fire Training Facility Project Manager: Mike Meyer, Fire Chief Anticipated start date: 2012 Project Description and location The Cities of Apple Valley, Burnsville, Lakeville and Eagan (ABLE) have approved a joint powers agreement in 1987 to own, operate and manage a fire training facility. In 2009 the facility was evaluated for costs of repairs and it was determined that costs would exceed $200,000. In turn, ABLE Fire Chiefs approached the city councils to hire a consultant in late 2010 to review the 2009 finding and assist in determining the future of WKHIDFLOLW\7KHFRQVXOWDQW¶VUHSRUWUHFRPPHQGHGWKHFLWLHVLQYHVWLQDQHZIDFLOLW\ rather than making expensive short term repairs. 20122013201420152016Total Revenues Building Fund (Miscellaneous) $ 500,000-$-$ -$ -$ 500,000$ Expenditures ABLE building renovation - 500,000 500,000 Total $ 500,000-$-$ -$ -$ 500,000$ Operations and operating costs impacts Each of the 4 cities currently support an operating expense of $2,500 each into a fund to finance minor maintenance issue and operating supplies. 222 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 FACILITIES Project name: Fire Station #5 Space Needs Study Project Manager: Mike Meyer, Fire Chief Anticipated start date: 2014 Project Description and location Commence a space needs study regarding the construction and furnishing of a new fire station #5 to be located on City owned land located adjacent to Fairfield water tower. A study would need to be conducted to delineate fire department needs to serve a growing population. Subject to the outcomes of the Study, a new fire station #5 is anticipated to be FRQVWUXFWHGLQ±DWDQHVWLPDWHGFRVWRI±PLOOLRQ 20122013201420152016Total Revenues Building Fund (Miscellaneous) $ --$ 20,000$-$ -$ 20,000$ Expenditures Fire Station 5 Study 20,000 20,000 Total $ --$ 20,000$-$ -$ 20,000$ Operations and operating costs impacts Operating costs to be determined. 223 FACILITIES Project name: Police Station Project Manager: Chris Petree, Operations & Maintenance Director Anticipated start date: Various Project Description and location Controls for the vestibule heaters allow them to be more energy efficient. Moving the condenser (which serves the technology room) from the lower roof to the upper roof will keep the condenser from being covered by snow. The washer and dryer would be utilized for cleaning jail and K9 related articles Operations and operating costs impacts No anticipated significant operating cost increases. 224 FACILITIES Project name:³1HZ´6HQLRU&HQWHU / Historical Society Project Manager: Steve Michaud, Director of Parks and Recreation Anticipated start date: 2012 Project Description and location Within the community, there has been discussion regarding the possible use of the ³)RUPHU´3ROLFH6WDWLRQDVDVHQLRUFHQWHUor historical center or some combination thereof. The current senior center has reached its capacity and is insufficient for many activities. The Historical Society has been located in the former parsonage on the Lakeville Area Arts Center campus; the facility lacks appropriate ADA functionality and therefore is limited in certain applications. As such, the City is contemplating the relocation of the Senior Center and Historical Society Building to the facility previously occupied by the police department. The project is subject to receipt of approximately RI³RWKHUILQDQFLQJVRXUFHV´VXFKDVGRQDWLRQV 20122013201420152016Total Revenues Building Fund (Miscellaneous)377,000 377,000 Sale of existing Senior Ctr.345,000 345,000 Other financing sources298,000 298,000 Senior Center Organization 100,000100,000 $ -1,120,000$ -$ -$ -$ 1,120,000$ Total Expenditures Senior Center and Historical 1,120,0001,120,000 Society facility $ -1,120,000$ -$ -$ -$ 1,120,000$ Total Operations and operating costs impacts Operating costs are estimated to increase by approximately $22,000 per year. 225 FACILITIES Project name: Liquor Project Manager: Brenda Visnovec, Liquor Operations Director Anticipated start date: Various Project Description and location The purchase of land at or near the County Road 70 / I-35 interchange for a future liquor store site is contemplated. Construction of the new store is subject to significant retail development, such as Walmart, in the immediate area. 20122013201420152016Total Revenues Liquor Fund $ -2,800,000$ -$ -$ -$ 2,800,000$ Expenditures Land acquisition 2,800,000 2,800,000 Total $ -2,800,000$ -$ -$ -$ 2,800,000$ Operations and operating costs impacts No anticipated significant operating cost increases. 226 FACILITIES Project name: Liquor Project Manager: Brenda Visnovec, Liquor Operations Director Anticipated start date: Various Project Description and location Acquisition of land in anticipation of the relocation of the Heritage Liquor Store is contemplated when the lease expires in 2014. The building and furnishings would be financed with issuance of debt. 20122013201420152016Total Revenues Liquor Fund $ --$ 735,000$ -$ -$ 735,000$ Expenditures 735,000 Heritage Store - relocation 735,000 Total $ --$ 735,000$ -$ -$ 735,000$ Operations and operating costs impacts. No anticipated significant operating cost increases. 227 FACILITIES Project name:/LTXRU±0DMRUPDLQWHQDQFH Project Manager: Liquor Operations Director, Brenda Visnovec Anticipated start date: Various Project Description and location The Kenrick store is scheduled for a roof replacement (2013), HVAC roof top (2015), carpet (2016) and cooler replacement (2016). 20122013201420152016Total Revenues Liquor Fund $ 143,00016,000$ -$ 41,000$ 67,500$ 267,500$ Expenditures Kenrick Liquor Store LED sign lighting 16,000 16,000 132,000 Re-roof 132,000 11,000 Three gondolas 11,000 Roof top units 41,000 41,000 26,000 Carpet replacement 26,000 40,000 Cooler replacement 40,000 1,500 Water heater replacement 1,500 Total $ 143,00016,000$ -$ 41,000$ 67,500$ 267,500$ Operations and operating costs impacts No anticipated significant impact on operations or operating cost. 228 CAPITAL IMPROVEMENT PLAN 2012-2016 Equipment City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 EQUIPMENT Fund: General Fund 20122013201420152016Total Revenues Liquor Fund contribution47,025 47,025 Property Taxes43,415 6,706 20,460 56,460 45,460 172,501 $ 53,73143,415$ 20,460$ 56,460$ 45,460$ 219,526$ Expenditures GENERAL MS Office Upgrades18,237 18,237 ELECTIONS Voting Equipment 10,865 47,025 57,890 INSPECTIONS Vehicle Replacements20,460 20,460 20,460 61,380 INFORMATION SYSTEMS Anti-virus for VM Servers6,413 6,413 HID Access & ID card printer4,694 4,694 ENGINEERING ESRI Upgrades3,206 3,206 6,412 GPS Antenna3,500 3,500 Suburban Replacement36,000 36,000 1/2 Ton Pickup Replacement25,000 25,000 $ 53,73143,415$ 20,460$ 56,460$ 45,460$ 219,526$ Total 229 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 EQUIPMENT Fund: Communications 20122013201420152016Total Revenues Cable TV - Franchise Fees $ 25,00024,282$ 26,990$ 34,500$ 30,000$ 140,772$ Expenditures Control room/routing upgrade16,500 16,500 Hand-held video camera6,000 6,000 Microsoft Office upgrade1,032 1,032 lobby monitors750 750 Fiber Head for HD Signal15,000 15,000 Edit station replacement10,000 10,000 20,000 360 Image Server15,790 15,790 Dais monitors1,200 1,200 Chamber audio system replacement10,000 10,000 Chamber curtain2,500 2,500 Minivan22,000 22,000 ENG Camera (2)30,000 30,000 $ 25,00024,282$ 26,990$ 34,500$ 30,000$ 140,772$ Total 230 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 EQUIPMENT Fund: Equipment Fund - Technology 20122013201420152016Total Revenues Communications Fund - Cable TV franchise fees148,416 Property Taxes81,366 465,979 179,627 265,823 298,946 1,440,157 $ 465,979229,782$179,627$265,823$298,946$ 1,440,157$ Expenditures 8,948 8,948 26 - MS Office Upgrades 7,90358,830 50,456 37,542 154,731 Computer Desktops 1,334 1,334 Computer - Laptop OC 72,95396,593 169,546 Network Switches 38,706 38,706 Replacement VoIP Servers Exchange Server & CAL 13,117 13,117 Software Upgrade 2,945 2,945 Data rack UPS units Virtual Desktop Implementation: 28,195 28,195 3 - Virtual Desktop Servers (new) 92,679 2 - Virtual Desktop Storage (new) 92,679 71,473 71,473 155 - Virtual Desktop Interface VM Software 150,690 150,690 177 - Virtual Desktop Interface Thin Clients 19,717 19,717 188 - Desktop Anti-Virus 12,553 12,553 177 - Virtual Desktop Operating System VECD 72,380 72,380 VDI Implementation Consultant Servers30,876 30,876 Switches Software54,439 54,712 179,994 289,145 Hardware86,409 87,702 81,410 255,521 Other9,309 18,292 27,601 Total $ 465,979229,782$179,627$265,823$298,946$ 1,440,157$ 231 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 EQUIPMENT Fund:(TXLSPHQW)XQG±3ROLFH 20122013201420152016Total Revenues Liquor Fund contribution12,390 412,441 424,831 Property Taxes126,729 127,361 412,663 395,201 451,357 1,513,311 Total $ 539,802139,119$412,663$395,201$451,357$ 1,938,142$ Expenditures 2012 Squad Cars (1)26,000 26,000 2013 Squad Cars (11)286,000 286,000 2014 Squad Cars (10)249,200 249,200 2015 Squad Cars (7)174,600 174,600 2016 Squad Cars (10)264,421 264,421 ACO Pickup20,235 20,235 CSO Pickups19,670 39,340 59,010 Ford Escape19,915 19,915 New Squad Equipment6,333 28,000 26,780 29,583 63,250 153,946 Conversions6,495 30,310 54,400 42,000 23,600 156,805 Graphics1,110 5,180 7,500 5,665 2,360 21,815 Pickup toppers and Liners1,848 3,696 5,544 John Deere Sweeper/Snow Blower35,000 35,000 Floor Sweeper Scrubber47,040 47,040 Glock handguns5,723 2,873 4,067 12,663 Tasers6,380 10,633 4,801 3,817 - 25,631 Digital Recorders31,154 1,765 1,818 34,737 PBTs895 895 1,671 1,429 - 4,890 AEDs6,500 16,775 23,275 Squad Cameras660 1,144 1,804 Investigation Cameras4,379 3,630 8,009 CSU Video Camera2,213 2,213 Patrol Bikes3,450 3,450 Light Bar and siren controls16,275 5,039 32,000 32,960 86,274 Radar Units22,400 17,250 8,850 48,500 Security Cage3,500 4,000 7,500 AR15 Rifles and Equip6,642 8,006 2,252 16,900 MAAG Rifles2,994 2,994 40MM Less Lethal Gun2,231 2,231 Digital Forensic Computer12,390 12,390 Microsoft & laptops20,563 20,563 Toughbooks6,099 42,693 13,269 13,668 75,729 Body Bunkers/Ballistic Shields3,250 3,250 Other5,620 19,988 - - - 25,608 Total $ 539,802139,119$412,663$395,201$451,357$ 1,938,142$ 232 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 EQUIPMENT Fund:(TXLSPHQW)XQG±)LUH 20122013201420152016Total Revenues Liquor Fund contribution119,476 119,476 Property Taxes93,418 114,405 70,000 712,000 88,000 1,077,823 $ 233,88193,418$ 70,000$ 712,000$88,000$ 1,197,299$ Total Expenditures ADMINISTRATION Chief's Vehicle36,061 36,061 District Chief's Vehicles36,061 88,000 124,061 Station #1 Chev Grass Rig Replacement70,000 70,000 Station #3 1989 Inter Mini-Pumper54,855 54,855 Station #4 1987 Spartan 75' Tele-Squirt700,000 700,000 Miscellaneous Snowmobile Replacement12,000 12,000 SCBA Compressor/Fill Station FS #333,623 33,623 SCBA Compressor/Fill Station FS #233,623 33,623 Nozzle Replacement (4 Nozzles)3,954 3,954 Blitz Fire Nozzle6,829 6,829 Supervac Ventilation Fan2,025 2,025 Rescue 42 Stabilization Kits8,913 8,913 Automatic Cribbing3,826 3,826 Task Force Chimney Nozzle2,779 2,779 Rehab Kit (NFPA 1584)7,193 7,193 Hazmat Decon System12,715 12,715 MS Office Upgrade5,162 5,162 Laptop Replacement1,334 1,334 Investigation Camera1,282 1,282 Toughbooks50,000 50,000 I am Responding Software14,621 14,621 Other3,783 8,660 12,443 $ 233,88193,418$ 70,000$ 712,000$88,000$ 1,197,299$ Total 233 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 EQUIPMENT Fund:(TXLSPHQW)XQG±6WUHHWV 20122013201420152016Total Revenues Liquor Fund contribution573,598 156,361 729,959 Property Taxes239,667 391,978 757,356 993,474 1,082,377 3,464,852 $ 548,339813,265$757,356$993,474$1,082,377$ 4,194,811$ Total Expenditures 24,237 1/2 Ton Pickups 24,237 31,40789,510 62,814 3/4 Ton Pickups 183,731 85,83182,970 168,801 1 Ton Pickups 6,443 6,443 Snow Plow Attachment 144,744 144,744 Ford 550 w/Aerial (Sign Truck) 177,736349,908 401,485 415,330 415,330 1,759,789 Dump Truck Replacements Dump Truck w/Plow (New Plow Route)200,743 200,743 Tenant Floor Scrubber61,379 61,379 320,192 320,192 CAT 140H Grader 231,182 231,182 CAT 950 Loader 189,419 189,419 Sidewalk Maintainer 140,360 140,360 New Holland TV145 Tractor 40,045 40,045 Ditch Mower for New Holland 391,127 391,127 Elgin Sweeper Replacements Asphalt Patch Truck152,828 152,828 25,447 25,447 Hot Patch Trailer Changeable Message Board19,288 19,288 8,194 8,194 Sweepster 2,155 2,155 Vibratory Plate Tamper 4,031 4,031 Jackhammer 240 240 Billy Goat Blower 1,992 1,992 Air Compressor 618 618 Car Starting Unit 21,215 21,215 G Rupp Water Pump´ Line Striper16,161 16,161 2,2041,561 1,508 5,273 Stihl Chain Saws 695695 782 803 2,975 Stihl Pole Saws 1,308555 1,863 Stihl Weed Whips 240555 795 Blowers 1,594 1,594 Paddle Brooms 3,099 3,099 Band Saw 2,340 2,340 Ice Maker MS Office Upgrades3,441 3,441 Other32,945 20,304 53,249 Air Conditioner Recycling System5,820 5,820 Total $ 548,339813,265$757,356$993,474$1,082,377$ 4,194,811$ 234 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 EQUIPMENT Fund:(TXLSPHQW)XQG±3DUNV 20122013201420152016Total Revenues Liquor Fund contribution123,214 123,214 Property Taxes64,505 322,915 526,471 287,400 362,780 1,564,071 $ 322,915187,719$526,471$287,400$362,780$ 1,687,285$ Total Expenditures 52,628 31,50050,292 33,000 110,000 277,420 1/2 Ton Pickups 3/4 Ton Pickups 41,00041,000 1 Ton Pickups 71,30069,000 140,300 73,400120,000 193,400 Water Truck 60,00060,000 Case Skid Loader John Deer Tractor 92,00092,000 47,39347,393 New Holland Tractor 28,00028,000 Kromer Striper 20,00020,000 Used Tree Spade 44" John Deere Riding Mower w/Snowblower 27,20031,908 59,108 John Deere Riding Mower w/Broom & Sweeper 28,00028,000 Toro 580 Riding Mowers 83,000180,104 84,000 347,104 8,0008,000 Paint Mixing Station 45,00045,000 Bandit Portable Chipper Sweepster (broom) 10,60010,600 13,14613,146 Snowblower for JD Tractor 40,00045,550 85,550 Trailer Replacements Puppet Wagon 5,1505,150 Showmobile 110,068110,068 2,6752,250 4,925 Push Mowers Bronco Tiller 1,7501,750 Sod Cutter 3,5003,500 3,3303,330 Portable Generators Honda Generator 6,0006,000 Land Pride Seeder 10,00010,000 10,00010,000 Aerator/Corifier Kubota Spray Unit 2,5002,500 Weed-whips 2,4001,860 4,260 650650 Echo Blowers 726726 2007 Honda Water Pump Stihl Pole Saws 641641 705534 735 8052,779 Stihl Chain-saws Jari Mower1,200 1,200 Stihl Hedge Trimmer556 570 1,126 MS Office Upgrade3,097 3,097 Other7,605 11,957 19,562 $ 322,915187,719$526,471$287,400$362,780$ 1,687,285$ Total 235 City of Lakeville, Minnesota Capital Improvement Plan 2012-2016 EQUIPMENT Fund:8WLOLW\)XQG±:DWHUDQG6HZHU 20122013201420152016Total Revenues Water and Sewer Operating Funds Fees $ 294,37070,312$83,890$ 149,833$499,847$ 1,098,251$ Expenditures 25,732 25,732 1/2 Ton Pickups 31,40727,824 31,407 3/4 Ton Pickups 90,638 73,948 73,948 1 Ton Pickup 104,856 104,856 F-550 Truck 466,203 Vactor 466,203 74,238 74,238 Case Backhoe Jetter176,506 176,506 2,3331,976 Portable Generators 4,309 Wacker Compactor 3,292 3,292 1,365 Stihl Chop Saw 1,365 2,237 Hurco Manhole Fan 2,237 Homelite 3" Trash Pump 2,433 2,433 2,617 Port Pressure Washer 2,617 1,910 Toro Snowblower 824XL 1,910 GPS Unit 8,5778,624 8,804 26,005 34,003 Security Cameras 34,003 7,960 Computer replacements 7,960 Total $ 294,37070,312$83,890$ 149,833$499,847$ 1,098,251$ 236 EQUIPMENT Fund:8WLOLW\)XQG±(QYLURQPHQWDO5HVRXUFHV 20122013201420152016Total Revenues Environmental Resources Fund Surface water fees $ -8,201$ -$ -$ -$ 8,201$ Expenditures Sonar Mite Bathymetric Survey 6,824 6,824 System MS Office Upgrades 1,377 1,377 Total $ -8,201$ -$ -$ -$ 8,201$ 237 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 DevelopmHQW%ORFN*UDQW±7KLVIXQGUHFHLYHVDQG H[SHQGVWKH&LW\¶VDOORFDWLRQof 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 WKH&LW\¶VIXQGV 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. 238 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 ODZWKDWHVWDEOLVKHVWKHSURSHUW\¶VWD[ 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. 239 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. DCC Dakota Communications Center. The DCC provides all public safety (police and fire) dispatch communications services to all cities within Dakota County Minnesota. 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 northern Minnesota 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 )RUEXGJHWLQJSXUSRVHVWKH&LW\¶VILVFDO 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 governmenWDOIXQG¶VDVVHWVRYHULWVOLDELOLWLHV7KHWHUP³IXQG EDODQFH´LVXVHGLQJRYHUQPHQWDOIXQGW\SHV7KHWHUP³QHWDVVHWV´LVXVed in proprietary fund types. GAAP Abbreviation for Generally Accepted Accounting Principles. 240 Glossary of Budget Terms (continued) General Fund The general operating fund of the City, the General Fund accounts for most of WKH&LW\¶VILQDQFLDOUHsources. 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. LOGIS A consortium of several Minnesota/metropolitan area cities formed under a joint powers agreement to share computer and information systems related services. Market Value $QDVVHVVRU¶VHVWLPDWHRIwhat 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 RIHDFKKRPHVWHDG¶VSURSHUW\ tax burden equal to 0.4 percent of the homestHDG¶VPDUNHWYDOXHXSWRDPD[LPXPFUHGLWRI $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. 241 Glossary of Budget Terms (continued) 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. Net Assets7KHH[FHVVRIDSURSULHWDU\IXQG¶VDVVHWVRYHr its liabilities. The WHUP³QHWDVVHWV´LV XVHGLQSURSULHWDU\IXQGW\SHV7KHWHUP³IXQGEDODQFH´LVXVHGLQJRYHUQPHQWDOIXQGV 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. 7KH&LW\¶VRZQHGOLTXRUVWRUHORFDWLRQVGR 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)XQG¶VWKDWDFFRXQWIRUJRYHUQPHQWoperations 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. 242 Glossary of Budget Terms (continued) Special Revenue Funds Funds that account for revenues derived from specific taxes or other earmarked revenue sources. Supplies Items that are not permanent in nature. 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 Rate7KHWHUP³0LOO5DWH´ZDVUHSODFHG by the Legislature in 1988. The tax capacity 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 7KH³WD[DWLRQDQGQRWLILFDWLRQODZ´ZKLFh 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. 243