12-06-2021 Council Packet - Laserfiche WebLink

Home Browse Search

AGENDA ITEM illustrating a 5% increase in value and a 5% decrease in value are included with this budget document. 5. General Fund Budget. a. General Fund Expenditures. The 2022 expenditure budget is $9,975,596 which is an increase of $ 715,096 (7.72%) over the 2021 budget. The significant increase is the following: The Police budget is increasing by $258,600 mostly as the result of wage and insurance (WC and Liability) increases. The Public Works – Spring Park budget ($92,900) is a new department; the Golf Course budget is increasing $102,660 (44%); and Special Services by $120,200 (93%); however, these increases are offset by additional revenues and not require additional tax revenue to fund them. The four departments identified above account for 80% of the increase in the expenditure budget. Additional information on general fund departments can be found in the information included with this document. b. General Fund Revenues. For revenues, the General Fund budget also totals $9,975,596 and is increasing by $715,096 (7.7%). A majority (89%) of the increased revenues are from non-property tax sources. Police Services contract revenue is increasing by $100,000, the ne Spring Park Service contract adds an additional $191,000, Golf Course Revenue in being increased another $102,000 to more closely reflect the prior year’s revenue, and Special Services are increasing by $120,200 to reflect the Toward Zero Deaths grant from the State of Minnesota. By working cooperatively with neighboring cities, we are able to provide expanded services to our citizens while keeping the tax rate as low as possible. 6. Special Revenue Funds. The special revenue funds that budgets are adopted for are the Park Fund, The Drug Forfeiture Fund, and the TIF Fund. Special revenue funds by definition have a primary source of revenue that is dedicated for a specific purpose. In the Park Fund the primary revenue source is park dedication fees collected from developers and the tax levy. By state law, park dedication fees must be used for parkland acquisition and development. The Drug Forfeiture Fund receives its primary funding from the Police Department’s drug and alcohol enforcement activities. The funds must be used for drug and alcohol related activities. The TIF Fund is used to account for revenues related to the Orono Woods Senior Housing Development. 7. Debt Service Levies. The 2022 levy for debt service is $577,680. This levy is used to pay the debt service on the City’s outstanding bonds. 8. Enterprise Funds. The Water, Sewer, Stormwater, and Recycling Funds are designed to account for the business type activities of the City. These funds do not receive any property tax revenue. The goal for the Enterprise funds is to be fully funded by rates without depending on special assessments for infrastructure improvements. On the revenue side of the budget, the utility rates are approved annually as part of the fee schedule. The utility rate increases being recommended are Water 0.0%; Sewer 0.0%, Stormwater 1%, and Recycling by 4%. Additionally, based on the area (North, South, Wayzata, or Long Lake), the sewer and water will be charged accordingly. The utility rates are included as part of the 2022 Fee Schedule that is being approved tonight. a. Water. As presented, the operating budget for 2022 will have an operating gain of $316,000. The expenditure budget is increasing by $93,160 (8.78%). $67,600 is due to Wages and Benefits. The operating transfer of $55,000 is to the debt service fund supporting the Casco Point Bonds ($55,000). The non-