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DRAFT 2022 Final Budget Summary2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 City Officials Christine Maefsky, Mayor Steve Kronmiller, City Council Member Jerry Cusick, City Council Member Patti Ray, City Council Member Heather Benson, City Council Member City Staff Ken Cammilleri, Administrator Colleen Firkus, Treasurer Brenda Eklund, Clerk 14727 209th Street North Scandia, Minnesota 55073 651-433-2274 www.cityofscandia.com CITY OF SCANDIA 2022 DRAFT Summary Annual Budget Presented: September 21, 2021 2022 Final Budget DRAFT SUMMARY 1 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 PROJECTED GENERAL REVENUE SOURCES Percent 2021 Proposed 2022 Change Property Tax Levy 1,381,700$ 1,583,000$ 15% Other Taxes 17,000$ 25,400$ 49% Special assessments -$ -$ 0% Intergovernmental revenue 62,900$ 64,200$ 2% Licenses and permits 108,400$ 149,500$ 38% Charges for services 60,200$ 51,200$ -15% Fines & Forfeitures 8,100$ 7,000$ -14% Interest earnings 17,900$ 15,900$ -11% Refunds and reimbursements 500$ 2,500$ 400% Donations 5,000$ 1,500$ -70% Grants 12,000$ 10,000$ -17% Miscellaneous revenue 1,400$ 2,000$ 43% Transfers from Other funds 1,440$ -$ -100% Total Revenue 1,676,540 1,912,200 14% 2022 DRAFT SCANDIA CITY BUDGET Budget Property Tax Levy 83% Other Taxes 1% Special assessments 0% Intergovernmental revenue 3% Licenses and permits 8% Charges for services 3% Fines & Forfeitures 0%Interest earnings 1% Refunds and reimbursements 0% Donations 0% Grants 1% Miscellaneous revenue 0%Transfers from Other funds 0% 2021 Projected General Revenue Sources 2022 Final Budget DRAFT SUMMARY 2 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 PROJECTED GENERAL EXPENDITURES Percent 2021 Proposed 2022 Change General Government 547,934$ 597,820$ 9% Public Safety 412,238$ 455,090$ 10% Public Works 658,253$ 683,490$ 4% Capital Outlay 14,400$ 16,000$ 11% Culture and Recreation 144,897$ 152,900$ 6% Transfers to other funds 280,000$ -$ -100% Total Expenditures 2,057,722 1,905,300 -7% 2022 DRAFT SCANDIA CITY BUDGET Budget General Government 31% Public Safety 24% Public Works 36% Capital Outlay 1% Culture and Recreation 8% Transfers to other funds 0% 2021 Budgeted General Expenditures 2022 Final Budget DRAFT SUMMARY 3 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 YTD Actual Percent FUND 101 2019 2020 7/31/21 2021 2022 (Proposed)Change REVENUE Taxes 1,410,578 1,553,041 842,332 1,398,700 1,608,400 15%(1) Special assessments - - - - - 0% Intergovernmental revenue 65,079 67,728 6,846 62,900 64,200 2% Licenses and permits 152,676 151,164 142,913 108,400 149,500 38%(2) Charges for services 66,883 43,274 51,921 60,200 51,200 -15%(3) Fines & Forfeitures 7,831 7,561 4,398 8,100 7,000 -14%(4) Interest earnings 21,631 11,463 9,095 17,900 15,900 -11%(5) Refunds and reimbursements 6,853 1,848 2,256 500 2,500 400% Donations 3,714 13,764 1,450 5,000 1,500 -70% Grants 7,980 11,000 13,786 12,000 10,000 -17% Miscellaneous revenue 1,656 3,266 - 1,400 2,000 43% Transfers from Other funds - 17,700 - 1,440 - 0% TOTAL REVENUES 1,744,882 1,881,808 1,074,998 1,676,540 1,912,200 14% EXPENDITURES City Council 29,536 19,114 9,386 19,982 23,000 15%(6) City Administration 340,026 372,522 222,201 387,272 373,700 -4% Elections 830 8,606 1,470 1,030 7,600 638%(7) Planning & Building Inspection 126,170 119,727 75,507 118,050 171,920 46%(8) Assessor 21,200 20,475 13,077 21,600 21,600 0% Animal Control - 4,207 1,676 2,000 4,000 100% Police Protection 135,946 120,533 73,868 147,460 170,900 16%(9) Fire Protection 274,281 212,753 122,419 262,778 280,190 7%(10) Street Department 625,911 568,692 296,907 658,253 683,490 4% Capital Outlay - 2,860 1,507 14,400 16,000 0% Parks and Playgrounds 73,053 96,743 48,128 88,397 84,950 -4% Recreation/Education/Social 47,469 37,465 20,454 56,500 67,950 20%(11) Miscellaneous expense - - - - - 0% Transfer out 444,962 30,000 283,965 280,000 - 0% TOTAL EXPENDITURES 2,119,384 1,613,695 1,170,565 2,057,722 1,905,300 -7% NET REVENUE OVER (UNDER) EXPENSE (374,502)$ 268,114$ (95,568)$ (381,182)$ 6,900$ EXPLANATION OF CHANGE (1) (2) (3) (4) (5) (6) (7) (8) (9) $20k increase for extra summer traffic patrol. (10) Based on a proposed General Fund Levy of $1,583,000. It is 12.72% over prior year for an net increase of $201,300. STATEMENT OF REVENUES AND EXPENDITURES - SUMMARY BUDGET - GENERAL FUND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021 AND BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2022 Actual Budget A combination of staff wages due to permiting and increases in wage/benefit for staff. Increases in training and retirement benefit expenses Projected to return to pre-2000 permit activity for a projected net increase of $45,100. Adjusted estimate based on fluxuations in service fee revenue. Revenue generated from fines and forfitures has generally come in around $7k over the years. Interest rates continue to remain low and are projected to bring limited revenue. Slight increase to travel expense. General and Primary Elections to be held in 2022. 2022 Final Budget DRAFT SUMMARY 4 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 Fund #Description 12/31/2019 12/31/2020 2021 2022 101 General Fund $1,342,592 $1,484,700 $1,381,700 $1,583,000 225 Economic Development Auth Fund $5,000 $5,000 $5,000 $8,000 313 2013 Certificates $68,816 $72,831 $68,220 $67,000 315 2015 Certificates $48,996 $45,670 317 2017 Certificates $37,418 $36,695 $35,909 $34,524 318 2018 GO Bonds $346,120 $343,534 $341,456 $344,531 401 General Capital Improvement Fund $100,000 $141,860 404 Park Improvement Fund $30,000 $10,000 $20,000 406 Equipment Replacement Fund $30,000 $30,000 $130,000 $87,800 408 Local Road Improvement Fund $378,930 $381,516 $438,539 $292,336 TOTAL CITY LEVY $2,257,872 $2,429,946 $2,510,824 $2,579,051 Change in Levy From PY -12.67%-0.54%10.58%2.68% Less Fiscal Disparities (132,815.00)$ (133,843.00)$ (122,427.11)$ (125,306.85)$ Total Net Tax Levy $2,125,057 $2,296,103 $2,388,397 $2,452,744 Total Net Tax Capacity $6,723,403 $7,460,384 $7,911,011 $8,140,985 TAX RATE*31.607%30.777%30.191%30.128% Projected change in Rate -7.8331%-2.6247%-0.5865%-0.0624% * Tax Rate for 2022 is is an estimate based on an estimated total net tax capacity. CITY OF SCANDIA STATEMENT OF LEVIES ALL FUNDS ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2022 Actual Budget 2022 Final Budget DRAFT SUMMARY 5 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 9/21/2021 Total Net Tax Levy:$2,579,051 Estimated Tax Rate:30.128%Change in Rate over PY:-0.062%% Change in Levy:2.68% These are estimated costs based on Washington County Estimated net tax capacity for 2022. The following is a breakdown of tax bill impacts: Class Rate State Taxing Classification Payment PY Diff Payment PY Diff Payment PY Diff Payment PY Diff Payment PY Diff Payment PY Diff Payment PY Diff 1.00%Class 1a Homestead Under $500k $3.01 -$0.07 $301.28 -$6.87 $753.21 -$17.17 $1,172.63 -$26.73 $1,205.13 -$27.47 $1,506.42 -$34.33 1.25%Class 1a Homestead Over $500k $0.00 $0.00 $0.00 $0.00 $0.00 $3,389.44 -$77.25 0.50%Class 2a Agricultural Land first $1.5Mil $1.51 -$0.03 $150.64 -$3.43 $376.60 -$8.58 $586.31 -$13.36 $602.57 -$13.73 $753.21 -$17.17 $1,506.42 -$34.33 0.65%Class 2c Managed Forest Land $1.96 -$0.04 $195.83 -$4.46 $489.59 -$11.16 $762.21 -$17.37 $783.34 -$17.86 $979.17 -$22.32 $1,958.34 -$44.63 1.50%Class 3a Commercial-Industrial, Utility first $150k $4.52 -$0.10 $451.93 -$10.30 $0.00 $0.00 $0.00 $0.00 $0.00 2.00%Class 3a Commercial-Industrial, Utility over $150k $1,280.45 -$29.18 $2,119.29 -$48.32 $2,184.31 -$49.78 $2,786.87 -$63.52 $5,799.71 -$132.24 * Average property value for the City of Scandia How do I make since of this table? What does this table not include? The table above shows what a property tax rate would look like based on the value points noted at the top of the table in the bold boxes. Rates very based on state taxing classifications. The most common classification is Class 1a for residential properties. This means if you had a residential property that was valued at $100,000, for example, that value is multiplied by the classification rate of 1% before it is multiplied by the local tax rate. Tax statements can be a little complicated. The above table lays out any base taxes prior to the application of tax credits, taxes authorized by referendums, the state's general property tax rate, and rates of other local government jurisdictions. So its important to remember that the County, schools, and other agencies tax in addition to what the city taxes. Estimated Impacts on Tax Bills 2022 Estimated Tax Rate Impacts $1000 of Value $100,000 of Value $250,000 of Value $389,211 of Value*$400,000 of Value $500,000 of Value $1,000,000 of Value 2022 Final Budget DRAFT SUMMARY 6 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 YTD Actual FUND 2019 2020 7/31/2021 2021 2022 % Change in Budget 203 REVENUES Grants - 311,080 220,946 - 441,892 N/A (1) Interest earnings - - - - - N/A Transfers In - - 3,965 - - N/A (2) TOTAL REVENUES - 311,080 224,911 - 441,892 N/A EXPENSES ARPA/Cares Expense - 313,770 - - - N/A Miscellaneous - - - - - N/A Transfer out - - - - 441,892 N/A (3) TOTAL EXPENSES - 313,770 - - 441,892 N/A - (2,690) 224,911 - - N/A EXPLANATION OF CHANGE (1) (2) (3) YTD Actual FUND 2019 2020 7/31/2021 2021 2022 % Change in Budget 225 REVENUES Taxes 5,000 4,419 2,500 5,000 8,000 60%(1) Grants - - - - - N/A Interest earnings - 265 - - 200 N/A Transfers In - - - - - N/A TOTAL REVENUES 5,000 4,683 2,500 5,000 8,200 64% EXPENSES Economic Development 800 745 244 750 7,525 903%(2) Miscellaneous - - - - 2,650 N/A (3) Transfer out - - - - - N/A TOTAL EXPENSES 800 745 244 750 10,175 1257% 4,200 3,938 2,256 4,250 (1,975) -146% EXPLANATION OF CHANGE (1) (2) (3) CHANGE IN NET POSITION STATEMENT OF REVENUES AND EXPENDITURES - SUMMARY BUDGET - AMERICAN RESCUE PLAN ACT FUND (FORMER CARES ACT) ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021 AND BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2022 Actual Budget Dues for EDAM, Forest Lake Area Chamber, MN Broadband Coalition and fund for ice sculpture. The prior year 2020 in this report was Federal Cares Act financial activity. This fund now serves as the depository of the American Rescue Plan Act recovery aid. Residual negative balance trasferred from Fund 101 to clear negative balance. Recommended for transfer to Big Marine Sewer Fund 602 but not yet allocated. STATEMENT OF REVENUES AND EXPENDITURES - SUMMARY BUDGET - ECOMOMIC DEVELOPMENT AUTHORITY FUND ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021 AND BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2022 Actual Budget CHANGE IN NET POSITION Requested $3k increase in levy New funds for tourism promotion, funds for quarterly Scandia Business Breakfasts, & holiday market 2022 Final Budget DRAFT SUMMARY 7 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 YTD Actual FUND 2019 2020 7/31/2021 2021 2022 % Change in Budget 226 REVENUES Interest earnings - 126 - - - N/A Charges for Service 19,000 20,331 11,651 16,500 18,900 15%(1) Transfer in - - - - - N/A TOTAL REVENUES 19,000 20,456 11,651 16,500 18,900 15% EXPENSES Miscellaneous 22,200 3,236 2,105 10,500 11,750 12%(2) Transfer out - - - - - N/A TOTAL EXPENSES 22,200 3,236 2,105 10,500 11,750 12% (3,200) 17,220 9,546 6,000 7,150 19% EXPLANATION OF CHANGE (1) (2) Estimated increase in PEG Fees and Franchise Rebates based on new subscribers. Increased costs for meeting recordings and camera operation by LATV STATEMENT OF REVENUES AND EXPENDITURES - SUMMARY BUDGET - CABLE TV FUND ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021 AND BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2022 Actual Budget CHANGE IN NET POSITION 2022 Final Budget DRAFT SUMMARY 8 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 313 - GO EQUIPMENT CERTIFICATE OF INDEBTEDNESS 2013 FUND Fund 313 Actual YTD Actual Budget 2019 2020 7/31/2021 2021 2022 REVENUE Taxes 68,816$ 68,309$ 34,110$ 68,220$ 66,000$ Special Assessments -$ -$ -$ -$ -$ Interest earnings -$ -$ -$ -$ -$ Refunds and Reimbursements -$ -$ -$ -$ -$ Bond Proceeds -$ -$ -$ -$ -$ Transfer In -$ -$ -$ -$ -$ TOTAL REVENUES 68,816 68,309 34,110 68,220 67,000 EXPENDITURES Miscellaneous 500$ 495$ 495$ 495$ 495$ Principal 55,000$ 60,000$ 60,000$ 60,000$ 60,000$ Interest Expense 7,418$ 6,840$ 2,640$ 4,500$ 2,790$ Transfer Out -$ -$ -$ -$ -$ TOTAL EXPENDITURES 62,918 67,335 63,135 64,995 63,285 NET REVENUE OVER (UNDER) EXPENSE 5,898$ 974$ (29,025)$ 3,225$ 3,715$ * 317 EQUIPMENT CERTIFICATE OF INDEBTEDNESS 2017 FUND Fund 317 Actual YTD Actual Budget 2019 2020 7/31/2021 2021 2022 REVENUE Taxes 37,418$ 34,416$ 17,955$ 35,909$ 34,524$ Special Assessments -$ -$ -$ -$ -$ Interest Earnings -$ -$ -$ -$ -$ Refunds and Reimbursements -$ -$ -$ -$ -$ Bond Proceeds -$ -$ -$ -$ -$ Transfer In -$ -$ -$ -$ -$ TOTAL REVENUES 37,418 34,416 17,955 35,909 34,524 EXPENDITURES Miscellaneous 500$ -$ -$ 495$ 495$ Principal 32,000$ 32,000$ -$ 32,000$ 32,000$ Interest Expense 3,136$ 2,544$ 864$ 1,728$ 880$ Transfer Out -$ -$ -$ -$ -$ TOTAL EXPENDITURES 35,636 34,544 864 34,223 33,375 NET REVENUE OVER (UNDER) EXPENSE 1,782$ (128)$ 17,091$ 1,686$ 1,149$ * CITY OF SCANDIA STATEMENT OF REVENUES AND EXPENDITURES - SUMMARY BUDGET - DEBT SERVICE FUNDS 313 and 317 ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021 AND BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2022 Schedule 2022 debt levy $66,000. Debt payoff in 2023 from 2013 dump truck purchase. Financing for the purchase of a Dump Truck in 2017. 2022 Scheduled levy $34,524. 2022 Final Budget DRAFT SUMMARY 9 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 GO 2018 STREET RECONSTRUCTION FUND Fund 318 Actual YTD Actual Budget 2019 2020 7/31/2021 2021 2022 REVENUE Taxes 346,120 322,206 170,728 341,456 344,531 Special Assessments - - - - - Interest earnings - - - - - Refunds and Reimbursements - - - - - Bond Proceeds - - - - - Transfer In - - - - - TOTAL REVENUES 346,120 322,206 170,728 341,456 344,531 EXPENDITURES Miscellaneous 1,000 495 495 495 495 Principal 155,000 215,000 - 220,000 230,000 Interest Expense 173,638 111,175 52,363 104,725 98,125 Transfer Out - - - - - TOTAL EXPENDITURES 329,638 326,670 52,858 325,220 328,620 NET REVENUE OVER (UNDER) EXPENSE 16,482$ (4,464)$ 117,870$ 16,236$ 15,911$ * SUMMARY BUDGET - DEBT SERVICE FUNDS CONTINUED ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021 AND BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2022 Scheduled levy is $344,531. 2018 Road Construction bonds to be paid off in 2033. CITY OF SCANDIA STATEMENT OF REVENUES AND EXPENDITURES - 2022 Final Budget DRAFT SUMMARY 10 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 YTD Actual 2019 2020 7/31/2021 2021 2022 General Capital Fund 401 REVENUE Property taxes -$ -$ -$ 100,000$ 217,336$ Intergovermental 74,874$ -$ -$ -$ 240,625$ Special assessments 146$ -$ 50,035$ -$ 510$ Investment Income 12,751$ 11,020$ -$ 500$ 4,500$ Sale of Capital AssetsRefunds and Reimbursements -$ -$ -$ -$ -$ Rental and lease income -$ -$ -$ -$ -$ Miscellaneous Revenue 21,500$ -$ 6,089$ -$ -$ Bond Proceeds -$ -$ -$ -$ -$ Transfers In 550,602$ 30,000$ 200,000$ 200,000$ -$ TOTAL REVENUES 659,873$ 41,020$ 256,124$ 300,500$ 462,971$ EXPENDITURES Capital Outlay 64,359$ 276,565$ 327,496$ 397,000$ 371,280$ Miscellaneous 109,822$ (150)$ 14,286$ -$ 286,000$ Debt Service Expense -$ -$ -$ -$ -$ Transfer Out -$ 17,700$ -$ 10,000$ -$ TOTAL EXPENDITURES 174,180$ 294,115$ 341,782$ 407,000$ 657,280$ Prior Period Adj 2,131$ (25,166)$ NET REVENUE OVER (UNDER) EXPENSE 487,824$ (278,261)$ (85,658)$ (106,500)$ (194,309)$ YE Fund Balance 1,046,994$ 971,990$ 1,037,612$ 1,485,490$ 1,291,181$ CITY OF SCANDIA STATEMENT OF REVENUES AND EXPENDITURES - BudgetActual ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021, BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2022 SUMMARY BUDGET 2022 Final Budget DRAFT SUMMARY 11 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 YTD Actual 2019 2020 7/31/2021 2021 2022 CITY OF SCANDIA STATEMENT OF REVENUES AND EXPENDITURES - BudgetActual ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021, BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2022 SUMMARY BUDGET Park Improvement Fund 404 REVENUE Property taxes -$ 28,137$ 5,000$ 10,000$ 20,000$ Intergovernmental 9,300$ 9,380$ 857$ 10,585$ 104,000$ Charges for services 1,650$ -$ -$ 1,600$ -$ Investment Income 2,600$ 1,614$ -$ -$ 1,200$ Sale of capital assets -$ -$ -$ -$ -$ Park Dedication Fees 3,000$ -$ 3,000$ -$ 3,000$ Rental and lease income -$ -$ -$ 6,000$ -$ Miscellaneous Revenue 1,595$ 802$ -$ -$ Bond Proceeds 140,000$ -$ -$ -$ -$ Transfers In -$ -$ -$ -$ -$ -$ TOTAL REVENUES 158,145$ 39,933$ 8,857$ 28,185$ 128,200$ EXPENDITURES Capital Outlay 22,650$ 26,080$ 1,757$ 40,585$ 219,008$ Miscellaneous 2,472$ 8,663$ -$ -$ 15,600$ Debt Service Expense -$ -$ -$ -$ -$ Transfer Out 103,000$ -$ -$ 1,440$ 1,440$ TOTAL EXPENDITURES 128,122$ 34,743$ 1,757$ 42,025$ 236,048$ Prior Period Adj 3,000$ (6,327)$ NET REVENUE OVER (UNDER) EXPENSE 33,023$ (1,137)$ 7,100$ (13,840)$ (107,848)$ YE Fund Balance 151,637$ 150,499$ 157,599$ 192,524$ 84,676$ 2022 Final Budget DRAFT SUMMARY 12 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 YTD Actual 2019 2020 7/31/2021 2021 2022 CITY OF SCANDIA STATEMENT OF REVENUES AND EXPENDITURES - BudgetActual ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021, BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2022 SUMMARY BUDGET Capital Equipment Fund 406 REVENUE Property taxes 27,894$ 28,137$ 65,000$ 130,000$ 87,800$ Intergovernmental -$ -$ -$ -$ -$ Sale of capital assets 500$ 13,500$ -$ 7,000$ -$ Investment Income 4,376$ 1,887$ -$ 1,000$ 1,015$ Refunds and Reimbursements -$ -$ -$ -$ -$ Rental and lease income -$ -$ -$ -$ -$ Miscellaneous Revenue -$ -$ -$ -$ -$ Debt Proceeds -$ -$ -$ -$ -$ Transfers In -$ -$ -$ -$ -$ TOTAL REVENUES 32,770$ 43,524$ 65,000$ 138,000$ 88,815$ EXPENDITURES Capital Outlay 75,961$ 93,498$ 11,224$ 52,500$ 198,500$ Miscellaneous -$ -$ -$ -$ -$ Debt Service Expense -$ -$ -$ -$ -$ Transfer Out -$ -$ -$ -$ -$ TOTAL EXPENDITURES 75,961$ 93,498$ 11,224$ 52,500$ 198,500$ Prior Period Adj 1,195$ NET REVENUE OVER (UNDER) EXPENSE (43,192)$ (48,779)$ 53,776$ 85,500$ (109,685)$ YE Fund Balance 223,127$ 183,483$ 237,259$ 268,983$ 159,298$ 2022 Final Budget DRAFT SUMMARY 13 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 YTD Actual 2019 2020 7/31/2021 2021 2022 CITY OF SCANDIA STATEMENT OF REVENUES AND EXPENDITURES - BudgetActual ACTUAL FOR YEAR ENDED DECEMBER 31, 2019 AND 2020, PERIOD TO DATE JULY 31, 2021, BUDGET FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2022 SUMMARY BUDGET 408 REVENUE Property taxes $352,326 $357,831 $219,270 $438,539 $216,860 Intergovernmental $0 $0 $44,681 $0 $0 Special assessments $693 $0 $0 $0 $0 Investment Income $23,740 $16,749 $0 $0 $19,613 Refunds and Reimbursements $0 $0 $0 $0 $0 Rental and lease income $0 $0 $0 $0 $0 Miscellaneous Revenue $0 $0 $0 $0 $0 Bond Proceeds $0 $0 $0 $0 $0 Transfers In $0 $0 $80,000 $80,000 $0 TOTAL REVENUES $376,759 $374,580 $343,951 $518,539 $236,473 EXPENDITURES Capital Outlay $15,174 $355,305 $650,651 $845,000 $707,200 Miscellaneous $72,644 $70,925 $82,107 $0 $0 Debt Service Expense $0 $0 $0 $0 $0 Transfer Out $0 $0 $0 $0 $0 TOTAL EXPENDITURES $87,818 $426,230 $732,757 $845,000 $707,200 Prior Period Adj ($241,745)($60,140) NET REVENUE OVER (UNDER) EXPENSE $47,197 ($111,790)($388,807)($326,461)($470,727) YE Fund Balance $1,667,903 $1,633,974 $1,207,472 $1,307,513 $861,217 Local Road Improvement Fund 2022 Final Budget DRAFT SUMMARY 14 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 2022 Draft Final Capital Budget Narrative Page 1 of 2 The Draft 2022 City of Scandia Capital Budget Included in this year's capital budget are the 2022 projects and equipment outlined in the attached four project and purchasing outlays: The General Capital Fund 401 1. Broadband Expansion Funding -Additional funding in the amount of $319,000 for internet expansion projects with Midco Communications for broadband internet, which will be intended for direct aid projects and/or grant matches to help leverage Minnesota Border-to-Border Broadband Grants. 2. Bliss Neighborhood Stormwater Improvement Project The project, conducted in collaboration with the Carnelian Marine St. Croix Watershed District is intended to improve water quality and introduce new stormwater improvements.Enhancements include additional structures for infiltration and the control and diversion of stormwater.The project is scheduled to be completed between the building seasons of 2022 and 2023, pending a grant award obtained through an application submitted by the watershed.The City's anticipated cost share of 12.5% of the project cost share over the two years is approximately betwee $55,000 and $69,000.An additional project scheduled for 2024 continues this project to completion by acquiring a drainage easement and the install of a directionally bored drainage pipe to the west is to improve water diversion.This element of the project is not eligible for grant assistance and is estimated to cost around $115,000.All elements of this project will be reassessed for implementation pending notice of the status of the grant awards. 3. Replacement of the Community Center Main Entrance Exterior Doors -The current doors are believed to be original to the building's 1985 construction.The lock mechanism is obsolete for the application to an electronic locking mechanism, and replacement of these doors with new ones are anticipated to improve building efficiency and reduce energy loss due to the current large door gaps.Replacement is anticipated to cost approximately $21,000. 4. Replacement of Community Center HVAC -The facilities maintenance plan notes that one of the 4 HVAC systems in the Community Center has reached the age for replacement.The estimated cost is $31,000. The Park Capital Fund 404 1.Replacement of the Community Center Playground -This project, currently being lead by the Playground Sub-Committee, is a project proposed to be complete in 2022.This proposed budget includes $100,000 in financial support from this fund.It is hoped that these funds can be leveraged with other financial and in-kind community support from organizations such as local businesses and the Scandia-Marine Lions Club.Major grant funding will be needed to be applied for early next year.It is hoped that the project will exceed city-funding to provide for an entertaining, appealing, and accessible play structure for years to come.Yearly phasing for additional enhancements are being considered including accommodating additional age groups and physical fitness equipment for adults and teenagers. 2.Final Season of Prairie and Wetland Restoration at Lilleskogen Park -This $11,000 expense fulfills the final year of DNR grant funding for restoration of native plantings and removal of invasive species in the park.Given this has and will remain an ongoing issue in this park, it will be prudent in the years to come to potentially reapply for this program. 2022 Final Budget DRAFT SUMMARY 15 of 16 2022 Final Budget DRAFT SUMMARY DRAFT Presented 12/1/2021 2022 Draft City-Wide Budget Transmittal Letter December 1, 2021 2022 Capital Project Narative Page 2 of 2 3.NEW Completion of a Comprehensive Park Plan -This $15,000 project now scheduled to start 2022 was introduced by the Park and Recreation Committee recently and approved by the City Council. The project will build upon the community's first study from the 2000s, but will ultimately provide the City will a long term plan for future park enhancement. Equipment Replacement Fund 406 Replacement of the City’s Grass Cutting Farm Tractor -The City currently owns a 1999 John Deere 6410 Tractor with a rear and side mounted boom for mowing.This piece of equipment was once the Public Works Department’s most used machines as it was used for loading, lifting, ditch mowing, and a variety of other tasks.Since the purchase of the front-end loader last year, this equipment is now used exclusively for ditch mowing.However, the tractor has experienced numerous costly mechanical, hydraulic, and electrical failures resulting in repair costs for this year alone exceeding $8,000.It is highly recommended that a replacement is purchased along with compatible mower boom attachments.The cost of this equipment acquisition is approximately $260,000. The Cost has now been estimated to be $198,500 which has been adjusted in the budget. Local Road Improvement Fund 408 Melanie Trail N Resurfacing and Stormwater Project -This project, which received preliminary engineering approval earlier this year, is anticipated to be bided out next spring for construction in mid- to-late summer.The project, estimated to cost between $680,000 to $707,000 consists of asphalt reclamation and replacement, stormwater improvements, and potential soil corrections depending on existing soil conditions.The Comfort Lake Forest Lake Watershed District is also working concurrently on the project to address water quality issues impacting Bone Lake. Capital Revenue and Forecasted Fund Balance This draft 2022 Capital Budget does not include bond or other debt financing at this time. Estimated year-end fund balance for each of the respective capital funds can be found in the Statement of Revenue and Expenditures in this packet.Both the Road Improvement Fund and the General Capital Fund are anticipated to decline in fund balance.The cummulative estimated reduction in capital fund balance is approximately $990,000, if estimated expenses come within budgeted range. This estimates year-end cash posistion to be at which is anticipated to be around $2,330,000.This is not dangerous territory, but it should be noted that the City has maintained a capital fund balance of between $2.5 million to $3 million. It is advisable that the City attempt to return to this range in order to help improve cash position for future bond ratings. Draft capital outlays have been included for each capital fund.This year's budget process introduced estimated inflationary adjustments based on a conservative 4% inflation rate. Please let me know if you have any questions. 2022 Final Budget DRAFT SUMMARY 16 of 16