2018 ANNUAL BUDGET. Adopted December 4, by the PRIOR LAKE CITY COUNCIL. Mayor Kirt Briggs December 31, 2020

Transcription

1

2 2018 ANNUAL BUDGET Adopted December 4, 2017 by the PRIOR LAKE CITY COUNCIL Term Expires Mayor Kirt Briggs December 31, 2020 Councilmember Zach Braid December 31, 2020 Councilmember Kevin Burkart December 31, 2020 Councilmember Mike McGuire December 31, 2018 Councilmember Annette Thompson December 31,

3 Table of Contents 1. City Council Table of Contents Community Profile City Government City Manager Budget Message 7 6. Budget Summary All Funds Levy and Budgeted Expenditure Comparisons Revenue Summary Fund / Department Expense Summary 17 2

4 Community Profile The City of Prior Lake, located about 30 miles south of downtown Minneapolis, is an 18.3 square mile developing suburb with a small-town atmosphere. According to the Metropolitan Council, the City s population is about 26,000. Prior Lake is a premier recreational community in the Minneapolis/St. Paul area, featuring more than 55 parks on 1,000 acres, over 100 miles of trails and sidewalks and 14 lakes. Taken together, the parks and lakes offer a wide variety of outdoor opportunities for residents with a wide variety of interests. The largest of the public access lakes, Prior Lake, consists of 1,340 acres and is in the center of the City of Prior Lake. The location, size, shape and depth of Prior Lake make it a popular destination for boating, water skiing and fishing. In fact, it is considered one of the busiest lakes in the 7-county metropolitan area. Golfing opportunities abound in the Prior Lake area with the Wild s, Legends, Heritage Links, Cleary Lake, Meadows at Mystic Lake and Stonebrook Golf Course nearby. The City of Prior Lake is also unique in that it is home to the Shakopee Mdewakanton Sioux Community (SMSC) and Mystic Lake Casino, the second largest Indian Gaming Casino in the nation. The SMSC is the largest employer in Scott County. They offer a wide array of opportunities to the public including numerous restaurants, Playworks, Dakotah! Fitness, Dakotah! Ice Center, two casinos and two hotels. The City s housing stock offers great diversity for individuals and families of all ages. Prior Lake s transportation system includes major roadways including Hwy. 13, County Rd. 42, County Rd. 21 and numerous others that access the entire metropolitan area. Although primarily a residential community, opportunities in commercial and industrial development are increasing due to growth and improved highway accessibility and upgrades. The CH 21 corridor project that is expected in 2019 will improve traffic and streetscaping downtown. Prior Lake has had eight new commercial developments including a brewery, law office, and medical building in downtown. A new restaurant has been proposed for Bond Ratings The City s bonds have been assigned ratings of AA+ from Standard & Poor s Ratings Services and Aa2 from Moody s Investor Service. The highest rating given is AAA. Reasons for the high ratings citied by both companies include a strong economy, above average socio-economic indicators, healthy financial operations and budget flexibility, strong General Fund reserves, and strong management. Higher ratings benefit the taxpayer because the city s bonds carry a lower interest rate than lower rating communities. Public Safety Fire and Rescue/Emergency Department. The City currently has a full-time Fire Chief and a 45- member volunteer fire and rescue/emergency department consisting of a 100-foot aerial platform truck, three 1500 GPM pumpers, one tanker, two grass rigs, four utility fire trucks and one heavy rescue emergency vehicle as well as other firefighting and rescue equipment. The fire department serves the City as well as two adjacent townships, Credit River and Spring Lake, by agreement. Police Department. The City operates its own full-service police department with a Police Chief, one lieutenant, five sergeants, two detectives, nineteen officers, one drug taskforce office, and two part-time community service officers. In addition to traditional services, the department offers community-based policing and various crime prevention programs. 3

5 Parks and Recreational Facilities The City currently operates 55 parks (49 neighborhood and 6 community) including two athletic complexes of 38 and 70 acres. These parks encompass approximately 1,050 acres of public space. In addition to the 211 acres of parks and facilities we regularly maintain, there are over 40 miles of boulevards the Parks Department mows. Facilities and amenities include a library, band shelter, pavilion, enclosed picnic shelters, play equipment systems, baseball/softball fields, soccer/football fields, hockey/pleasure skating rinks, basketball/volleyball/tennis courts, horse shoe pits, an archery range, skate park, swimming beaches, sledding hill, fishing piers, boat slips and more than 100 miles of trails and sidewalks. Most of the sites are equipped with benches, picnic tables, grills and appurtenant equipment. The combination of these parks and recreational facilities comprise a complete park and recreation system throughout the City. Streets The City has approximately 102 miles of City-maintained streets. A typical city street is 28 feet wide bituminous with concrete curb and gutter to catch pollutants before they have a negative impact on the many water bodies located within the community. To help ensure safe travel, the city s street maintenance program includes annual sweeping, crack sealing and seal coating, snow and ice control and approximately 2 miles of street reconstruction annually. Access into and through the community is well served by the city street system and the County and State road networks. Municipal Enterprise Services The Water System has approximately 8,800 municipal connections served by two elevated water storage facilities with a combined total of 1,750,000 gallons, one in-ground storage facility with a capacity of 1,500,000 gallons and seven wells that have a capacity to pump 6,050 gallons per minute or 8,712,000 gallons per day. Average demand is 2,500,000 gallons per day while peak demand reaches 7,000,000 gallons per day. To provide for peak demand and a safeguard, the City has interconnects with the City of Savage and the Shakopee Mdewakanton Sioux Community (SMSC) as well as a water purchaser and facility expansion agreement with the SMSC. Total tap water hardness is 19 grains per gallon. There are approximately 134 miles of watermain. To assure purity, the city s water is drawn from deep wells and a sample tested daily from one of 26 collection points within the city. In addition, 25 samples are tested monthly by an independent laboratory to ensure compliance with state law. Other testing within the water treatment plant is also done daily. The Sewer System has approximately 8,600 municipal connections. Sanitary sewer disposal needs are served by the Metropolitan Waste Control Commission with 41 lift stations. Average discharge is 1,400,000 gallons per day while peak discharge reaches 3,200,000 gallons per day. There are approximately 126 miles of sanitary sewer main. The city regularly jets approximately 30 miles of sewer lines per year as a preventative maintenance measure. The Storm Water System is a series of natural and manmade drainages, impoundments, and pipes that treat and convey surface runoff. There are approximately 81 miles of stormwater pipe, 149 retention ponds, 80 filtration/infiltration basins, and one underground retention tank to control the flow and provide treatment. In addition, there are strong regulatory mechanisms which the City must comply with to address impaired waters, regulate destruction of wetlands, and general water quality improvement. With 14 lakes and innumerable wetlands, it stands to reason that Prior Lake places a high priority upon clean surface water. 4

6 Schools Prior Lake is served by Independent School District No. 719, Prior Lake-Savage and Independent School District No. 720, Shakopee. Independent School District No. 719, Prior Lake-Savage Area Schools is home to six elementary schools, one early childhood center, including Spanish Immersion; a school for gifted learners in grades 3-5; two middle schools for grades 6-8; an Area Learning Center for students in grades 9-12; and a high school serving students in grades Combined enrollment at the schools for the 2017/2018 school year was approximately 8,500 students. Projections indicate more than 2,100 additional K-12 students in the next ten years. Independent School District No. 720, Shakopee, operates five elementary schools, a middle school, grade six; two junior high schools, grades seven through nine; and a senior high school, grades ten through twelve. Combined enrollment at the schools for the 2017/2018 school was approximately 8,000 students. Collaboration Prior Lake seeks to deliver services and share resources with our public entities as a way of getting the biggest bang out of the available funds. Prior Lake is a member of and participates in the Scott County Association for Leadership and Efficiency (SCALE). SCALE s motto is, Government without Border s, Working together to Strengthen Each Other. A recent example of our collaborative efforts, Prior Lake worked with the Shakopee Mdewakanton Sioux Community (SMSC), a SCALE member, on a water purchase and facility expansion agreement. This agreement replaces the current agreement which allows the city to purchase up to 1.2 MGD and has allowed the city to postpone the construction of another well at an estimated cost of $1 million. The cost for the city to construct its own water treatment plant is estimated to be $14,857,500. The joint facility is estimated to cost $19,472,250 and the city s portion of that is $8,668,013. This is a cost savings of about $6,200,000 for the city as well as a significant savings for the SMSC. 5

7 City Government The City of Prior Lake, incorporated in 1891, is a Minnesota Statutory City with an Optional Plan B form of government. It has a mayor elected at large for a four-year term and four council members also elected at large for four-year terms. As Chief Executive Officer, the Manager is the sole employee of the City Council. The professional staff is appointed and consists of the following: City Manager Frank Boyles Assistant City Manager Lori Olson Community & Economic Development/Inspections Director Casey McCabe Finance Director Cathy Erickson Public Works Director and City Engineer Jason Wedel Fire Chief Rick Steinhaus Police Chief Mark Elliott 6

8 Date: December 22, 2017 To: Council Members & Residents of Prior Lake From: Frank Boyles, City Manager Cathy Erickson, Finance Director Subject: 2018 Budget The 2018 city budgets were adopted by the Prior Lake City Council on December 4, The General Fund budget allows for the addition of four new full year staff positions. A police officer, a part-time community service officer and a parks maintenance worker. The Shakopee Mdewakanton Sioux Community will help financially support the fourth position of drug task force officer which was filled on October 11, These additions line-up with the results of the 2017 community survey. Sixty percent support a property tax increase for more officers while 83% say more police patrols would make them feel safer. When it comes to street repair, 96% of Prior Lake residents say it is an essential service. This transmittal memo focuses first upon the revenues including the property tax levy as well as other revenues and property value changes which are occurring. Next, a brief overview of each budget is presented followed by discussion about the use of reserves and a few concluding comments. Revenues Property Tax Revenues Like most cities, property taxes are the primary funding source for the General Fund, Debt Service Funds, Revolving Equipment, Parks, and Facilities Funds and the Economic Development Authority Fund. The 2018 budget includes a $12 million property tax levy which is a 4.4% increase over The levy is comprised of the following elements: $ Change Tax Levy Purpose 2018 Amount from 2016 General Purposes $ 7,779,182 $ 586,389 Referendum Debt 227,552 (790,467) Revolving Equipment 550, ,000 Revolving Park Equipment 238,184 24,778 CIP Special Debt (2) 3,142, ,683 EDA (1) 140,000 0 Total Property Tax Levy $ 12,077, ,383 (1) EDA Economic Development Authority; (2) CIP Capital Improvement Program The levy for general purposes funds services such as police, fire, park and street maintenance, recreation and general administration. The debt service levies fund the payments for bonds issued in conjunction with voter referenda (Fire Station #2), city hall/police station and Capital Improvement Program (CIP) street improvements. Separate from the general purposes levy for 2018 is the levy for the Revolving Equipment and Revolving Park Equipment Funds. The Revolving Equipment Fund levy is dedicated to the replacement of the city s fleet of vehicles including squad cars, fire trucks, plow trucks, mowers, and so on. The Revolving Park Equipment Fund levy will be used to replace such things as park and athletic field amenities, shelters and other items associated with the City s park system. Finally, the Economic Development Authority (EDA) requested and the City Council authorized a new tax levy beginning in 2013 which is intended to retain existing businesses and encourage new businesses and jobs in the community. There is no increase in the EDA levy for

9 Non-Property Tax Revenues Non-property tax revenues in the General Fund, such as intergovernmental revenues (township fire and rescue aid, miscellaneous grants, etc.) and charges for services (project engineering fees, etc.) have been adjusted to reflect the changes projected for The Shakopee Mdewakanton Sioux Community (SMSC) has increased their contribution known as local government aid to $500,000 for They have also committed to a separate contribution of $70,000 annually for to support a drug taskforce officer. In the Enterprise Funds, utility rates were adjusted to reflect inflationary pressures on operational expenditures and capital improvements identified in the Capital Improvement Program while maintaining compliance with target reserve levels identified in the Comprehensive Financial Management Policy. Additionally, the City adjusted the sanitary sewer rate that customers are charged for the Met Council (MCES) portion of their bill to reflect the actual cost the City is charged. Prior to this adjustment the city had partly subsidized this MCES fee. Property Valuations and Impact of Tax Levies During this past year, Prior Lake properties experienced valuation adjustments ranging from a 10% decrease to an increase of 25%. Approximately 96% of property owners received some level of valuation increase with most properties (65%) between 0 and 10%. The total tax capacity and the total taxable market value for the City of Prior Lake increased approximately 12.5% and 12.1% respectively. New construction added about $62 million to the tax base for payable Historically, we have used the average valued home as a basis for communicating the impact of any tax levy decision. Based on the preliminary information provided by Scott County, the average valued home is $338,100. This is an increase of 6.9% from The City made the final payment on the 2005 Parks & Library referendum in 2017, which reduced our market value levy debt service. About 45% of Prior Lake residents will see a property tax cut for the city portion of their taxes, primarily due to the final payment of the parks and library market value referendum in For a home that saw a 5% increase in market value (41% of the properties), the impact of a 4.40% increase in the city portion of the property tax levy would be an approximate $20 decrease in taxes. This does not include the impact of taxes imposed by the county, school district and other taxing authorities. Actual property taxes on any property will also be influenced by the valuation increase/decrease of the property and how that increase/decrease compares to the rest of the properties in Prior Lake. Tax Levy Per Household The Council has added this metric for information purposes. In 2010, the city tax levy per household was $1,193. The tax levy per household to support the 2018 budgets is $1,222. This represents an annual levy increase of 2.4% over this nine-year period. Budget Summary Budgets were adopted for the General Fund, Debt Service Funds, Cable Fund, Capital Park Fund, Revolving Equipment Fund, Revolving Park Equipment Fund, Permanent Improvement Revolving (PIR) Fund, Facilities Management Fund, Economic Development Authority, Water Fund, Sewer Fund, and the Storm Water Utility Fund as follows: 8

10 Fund(s) 2018 Amount General Fund* $12,767,768 Debt Service Funds* 4,896,000 Cable Fund 80,000 Capital Park Fund 3,700 Revolving Equipment Fund* 1,394,027 Revolving Park Equipment* Permanent Improv Revolving Fund 238, ,374 Facilities Management Fund* 873,704 EDA Fund* 153,597 Water Fund 6,659,524 Sewer Fund 4,742,967 Storm Water Utility Fund 998,669 Total Budget $33,533,514 *Supported in part by property tax revenues The General Fund budget totals $12,767,768 and includes necessary expenditures for general operations some IT capital outlay and a transfer for debt service. It reflects 2018 General Fund personnel staff adds of a police officer, a part-time community Adopted Budget service officer and a parks Debt maintenance worker. The Service Culture and Shakopee Mdewakanton Sioux 2% Recreation Community will help support the 15% fourth position of drug task force officer. The budget also includes a General cost of living adjustment of 3%, an Government increase in maintenance agreement 22% costs primarily for sidewalk Public repairs, and preventive building Works maintenance. These General Fund 16% cost increases totaling Public approximately $586,000 are offset Safety 45% by a $(790,000) reduction in debt service. Taxpayers made the final payment on the 2005 Parks & Library referendum in 2017, which reduced our market value levy debt service. About 45% of Prior Lake residents will see a property tax cut for the city portion of their taxes, primarily due to the final payment of the parks and library market value referendum in Overall, there is less than a 1.0% increase over the 2017 amended budget. The chart shows a breakdown of the major categories of expenditures for the General Fund. Public Safety, which includes police, fire, building inspection, emergency management and animal control services, comprises about forty-five percent (45%) of General Fund expenditures. General Government, which includes council, administration, finance, legal, insurance, technology, human resources, communications, etc. comprises about twenty-two (22%) percent followed by Public Works (16%) for engineering, streets and central garage; culture and recreation (15%) for parks, recreation and library; and debt service transfers (2%) for market referendum bonds. 9

11 The Debt Service Funds budget reflects payments for all types of debt including special assessment bonds, tax increment bonds, general obligation bonds, revenue bonds and referendum bonds. Generally bonding is required to assist in the financing of major improvement projects, buildings or equipment. The Cable Fund budget reflects expenditures identified in the Capital Improvement Program as part of the Technology Plan. Included for 2018 is a major upgrade of the original studio equipment in place since 2006 which allows the city to televise public meetings for public consumption. The Capital Park Fund budget reflects expenditures identified in the Capital Improvement Program. No expenditures are programmed for The Revolving Equipment Fund budget reflects expenditures identified in the Capital Improvement Program (Equipment Replacement Plan) that are expected to be incurred for the acquisition, replacement or refurbishment of equipment used to complete the work of the city in police, fire, public works and parks. The Revolving Park Equipment Fund budget reflects expenditures identified in the Capital Improvement Program. (Equipment Replacement Plan) that are expected to be incurred for the acquisition, replacement or refurbishment of equipment which is worn out or no longer meets safety guidelines such as swing sets and backstops. The Permanent Improvement Revolving Fund was established in The budget reflects expenditures for the 2018 street mill and overlay project. The city strives to complete four miles of street overlay maintenance per year. The Facilities Management Fund was established in 2011 in conjunction with the Facilities Management Plan (FMP) which provides a schedule of major repairs, replacements and upgrades to all the city facilities so they are energy efficient and maintained as needed. The Economic Development Fund (EDA) budget reflects expenditures anticipated for developing economic development opportunities within the community. The Enterprise Funds provide a service for a fee and are not supported by property tax dollars. Enterprise Funds include Water, Sewer, and the Storm Water Utility. The Water and Sewer Fund budgets reflect ongoing operational expenditures as well as capital improvements identified in the Capital Improvement Program for infrastructure improvements and replacement (pipes, hydrants, valves, etc.) The Storm Water Utility Fund budget reflects ongoing storm water system maintenance and repair expenditures as well as resources and expenditures for additional council-directed initiatives. Over the past few years, the Council has improved the city s long-range financial planning efforts by approving annual budgets for Funds that were not previously budgeted including the Debt Service Funds, Cable Fund, Capital Park Fund, Revolving Equipment Fund, Revolving Park Equipment Fund, Permanent Improvement Revolving Fund, Facilities Management Fund and the Economic Development Authority Fund. Including these additional funds in the annual budget process results in greater transparency to the public regarding the types and levels of expenditures that have occurred in the past and are anticipated to occur. Use of Fund Balance Reserves The City Council established a Reserve Policy as part of the first phase of the Comprehensive Financial Management Policy (CFMP) to ensure the long-term economic stability of the organization by providing sufficient funds for cash flow purposes, to accumulate savings for projects (one-time and grant-matching 10

12 opportunities), and to have reserves for unexpected revenue shortfalls or emergencies, while providing a specific plan for increasing or decreasing the level of fund balance as appropriate. After a careful review of the current and future revenue sources and anticipated expenditures for each of the Funds as well as a compliance check with the CFMP, the city utilized reserves for many of its budgeted funds. The General Fund reflects the use of $18,990 of reserves for This amount is directed specifically to the upgrade of the Public Works fleet management software. In general, the Council recognized that using General Fund reserves to offset the property tax levy was short-term in nature and not sustainable in the long term. In previous years, the city budget included a significant use of reserves primarily for one-time purchases, incentives to contain healthcare costs, addressing state-imposed levy limits, and achieving a target reserve level. The Debt Service Funds utilize reserves that have been established from special assessment prepayments, etc. For 2018, there is a total planned use of reserves of $266,169. The Cable Fund will utilize reserves that have been established from franchise fee payments. These are planned uses of reserves. The Capital Park Fund does not reflect any use of reserves for Funding is provided by park dedication fees. The construction of parks in new subdivisions typically takes place several years after the subdivision was developed; therefore, the collection of revenues and the actual park expenditures do not typically happen within the same year. The Revolving Equipment Fund will utilize reserves that have been established from property tax collections, contributions from the Enterprise Funds, and equipment sales. Expenditures will vary from year to year depending on the age and condition of the city s fleet and equipment, thus resulting in the periodic use of reserves. The Revolving Park Equipment Fund will utilize reserves that have been established from property tax collections, contributions from the Enterprise Funds, and equipment sales. Expenditures will vary from year to year depending on the age and condition of the city s fleet and equipment, thus resulting in the periodic use of reserves. Permanent Improvement Revolving Fund will utilize reserves that have been established from collection of special assessment revenue on street overlay projects. Expenditures will vary from year to year depending on the streets identified for overlay, thus resulting in the periodic use of reserves. For 2018 there is a planned use of reserves of $40,522. The Facilities Management Fund will utilize reserves that were established from property collections and Enterprise Fund contributions. Expenditures will vary from year to year, thus resulting in the periodic use of reserves. For 2018 there is a planned use of reserves of $189,954. The EDA Fund will utilize reserves that have been established from prior year operational savings. For 2017, there is a total planned use of reserves of $3,077. For 2018, the Water, Sewer and Storm Water Utility Funds will be utilizing reserves in conjunction with long-term planning documents that consider current and future revenue sources and anticipated expenditures. The amount will vary from year to year depending on the expected capital investment 11

13 being made for infrastructure and equipment. Total use of reserves in the enterprise funds is $70,343 for the Storm Water/Water Quality fund. Conclusion With the 2018 budgets, the City Council and staff have worked to balance the need for service in our growing community with the objective of keeping property taxes and user fees low. Over the years, we have managed to remain one of the lowest property tax rate cities in Scott County is no exception. We continue to seek grants when available, implement innovative programs, expand long-range financial planning, add cooperative endeavors with other governmental entities and use existing reserves to mitigate against budget and tax increases. As an example, in 2016, City Council directed staff to negotiate an agreement with the SMSC for the construction of a new water treatment plant that would be able to supply the City of Prior Lake with the water supply to meet the existing max day demand of 2.1 Million Gallons per Day (MGD). On November 20, 2017, the Council approved a water purchase and facility expansion agreement between the City of Prior Lake and the Shakopee Mdewakanton Sioux Community (SMSC). This agreement replaces the current agreement which allows the city to purchase up to 1.2 MGD and has allowed the city to postpone the construction of another well at an estimated cost of $1 million. The cost for the city to construct its own water treatment plant is estimated to be $14,857,500. The joint facility is estimated to cost $19,472,250 and the city s portion of that is $8,668,013. This is a cost savings of about $6,200,000 for the city as well as a significant savings for the SMSC. We are committed to using innovative means to meet the short and long-term needs of our growing community in a cost-effective manner. Frank Boyles, City Manager Cathy Erickson, Finance Director 12

14 City of Prior Lake Adopted 12/04/ Adopted Budget Budgeted Funds Revenues / Sources Debt Capital Revolving Revolving Park Permanent Facilities Total Total General Service Cable Park Equipment Equipment Improvement Management EDA Governmental Water Sewer Water Quality Enterprise Budgeted Fund Funds Fund Fund Fund Fund Revolving Fund Fund Funds Fund Fund Fund Funds Funds Property Taxes Levy - Tax Capacity $ 7,779,182 $ 3,142,620 $ - $ - $ 550,000 $ 238,184 $ - $ 140,000 $ 11,849,986 $ - $ - $ - $ - $ 11,849,986 Levy - Market Value 227, , ,552 Special Assessments - 586, , , ,669 Licenses & Permits 607, , ,798 Fines & Forfeits Intergovernmental 1,675, , ,705, ,705,986 Charges for Services 1,702,315-32, , ,820 2,171,135 4,075,174 3,453, ,326 8,445,440 10,616,575 Other Revenues 312,945 30,491-17,000 18,000 4,700 1,538 5,400 2, ,774 35,900 18,500 12,000 66, ,174 Bond Proceeds , , ,000-1,885,000 1,180,000 1,400,000. 2,580,000 4,465,000 Lease Proceeds Transfers From Other Funds General Fund - 227, , ,552 Water Fund 190, , ,000 47, , ,545 Sewer Fund 190, ,000 10, , ,109 Water Quality Fund 62, , , ,000 Trunk Reserve Fund - 1,500,000 1,500,000 1,500,000 TIF Fund - 30, , ,135 PIR Fund 75,374 75,374 75,374 Facilities Management Fund Capital Park Fund - - Total Revenues / Sources $ 12,748,778 $ 4,629,831 $ 32,000 $ 446,000 $ 1,418,000 $ 242,884 $ 684,852 $ 683,750 $ 150,520 $ 21,036,615 $ 6,791,074 $ 4,872,440 $ 928,326 $ 12,591,840 $ 33,628,455 Expenditures / Uses Employee Services $ 8,911,150 $ - $ - $ - $ - $ - $ - $ 117,453 $ 9,028,603 $ 733,601 $ 708,902 $ 285,965 $ 1,728,468 $ 10,757,071 Current Expenditures 3,584, , ,000-36,144 4,274,460 1,320,898 1,851, ,099 3,418,656 7,693,116 Capital Outlay 44,450-80,000-1,394, ,184-1,756, ,090 81, , ,387 2,054,048 Capital Improvements , ,704 3,653,390 1,830, ,605 5,762,995 6,636,699 Subtotal $ 12,540,216 $ - $ 80,000 $ 3,700 $ 1,394,027 $ 238,184 $ 650,000 $ 873,704 $ 153,597 $ 15,933,428 $ 5,813,979 $ 4,471,858 $ 921,669 $ 11,207,506 $ 27,140,934 Transfers To Other Funds General Fund $ - $ - $ - $ - $ - $ - $ - $ - $ 190,500 $ 190,500 $ 62,000 $ 443,000 $ 443,000 Treatment Plant (Debt) , , ,304 Equipment Fund ,000 70,000 15, , ,000 Park Equipment Fund Debt Service Funds 227, , , ,926 PIR Fund - - Facilities Management Fund ,741 10,609-58,350 58,350 EDA Fund Contingency Debt Service 4,896, ,896, ,896,000 Subtotal $ 227,552 $ 4,896,000 $ - $ - $ - $ - $ 75,374 $ - $ - $ 5,198,926 $ 845,545 $ 271,109 $ 77,000 $ 1,193,654 $ 6,392,580 Total Expenditures / Uses $ 12,767,768 $ 4,896,000 $ 80,000 $ 3,700 $ 1,394,027 $ 238,184 $ 725,374 $ 873,704 $ 153,597 $ 21,132,354 $ 6,659,524 $ 4,742,967 $ 998,669 $ 12,401,160 $ 33,533,514 Change in Fund Balance $ (18,990) $ (266,169) $ (48,000) $ 442,300 $ 23,973 $ 4,700 $ (40,522) $ (189,954) $ (3,077) $ (95,739) $ 131,550 $ 129,473 $ (70,343) $ 190,680 $ 94,941 13

15 2018 Property Tax Levy Comparison Adopted 12/04/2017 Change Property Taxes Amount Percent Levy - Tax Capacity General Fund - Operating $ 7,192,793 $ 7,779,182 $ 586, % Debt Service Funds 2,628,937 3,142, , % Revolving Equipment Fund 375, , , % Revolving Park Equipment Fund 213, ,184 24, % Facilities Management Fund n/a $ 10,410,136 $ 11,709,986 $ 1,299, % Levy - Market Value - General Fund 1,018, ,552 (790,467) % Levy - Economic Dev Authority 140, , % Total Levy $ 11,568,155 $ 12,077,538 $ 509, % 2018 Budget Expenditure Comparisons (2017 Original Budgets) Capital Revolving Revolving Park Permanent Facilities Total Total General Debt Service Cable Park Equipment Equipment Improvement Management EDA Governmental Water Sewer Water Quality Enterprise Budgeted Fund Funds Fund Fund Fund Fund Revolving Fund Fund Funds Fund Fund Fund Funds Funds 2018 Total Expenditures / Uses $ 12,767,768 $ 4,896,000 $ 80,000 $ 3,700 $ 1,394,027 $ 238,184 $ 725,374 $ 873,704 $ 153,597 $ 21,132,354 $ 6,659,524 $ 4,742,967 $ 998,669 $ 12,401,160 $ 33,533, Total Expenditures / Uses $ 13,070,878 $ 5,019,318 $ 11,250 $ - $ 872,704 $ 223,406 $ - $ 232,140 $ 160,825 $ 19,590,521 $ 6,025,897 $ 4,461,398 $ 1,388,206 $ 11,875,501 $ 31,466,022 Change 2017 to 2018 ($) $ (303,110) $ (123,318) $ 68,750 $ 3,700 $ 521,323 $ 14,778 $ 725,374 $ 641,564 $ (7,228) $ 1,541,833 $ 633,627 $ 281,569 $ (389,537) $ 525,659 $ 2,067,492 Change 2017 to 2018 (%) -2.32% -2.46% % n/a 59.74% 6.61% n/a % -4.49% 7.87% 10.52% 6.31% % 4.43% 6.57% 2018 Budget Expenditure Comparisons (2017 Amended Budgets) Capital Revolving Revolving Park Permanent Facilities Total Total General Debt Service Cable Park Equipment Equipment Improvement Management EDA Governmental Water Sewer Water Quality Enterprise Budgeted Fund Funds Fund Fund Fund Fund Revolving Fund Fund Funds Fund Fund Fund Funds Funds 2018 Total Expenditures / Uses $ 12,767,768 $ 4,896,000 $ 80,000 $ 3,700 $ 1,394,027 $ 238,184 $ 725,374 $ 873,704 $ 153,597 $ 21,132,354 $ 6,659,524 $ 4,742,967 $ 998,669 $ 12,401,160 $ 33,533, Total Expenditures / Uses $ 12,869,668 $ 5,019,494 $ 11,250 $ - $ 872,704 $ 308,736 $ - $ 852,140 $ 160,825 $ 20,094,817 $ 6,043,932 $ 4,479,433 $ 1,388,206 $ 11,911,571 $ 32,006,388 Change 2017 to 2018 ($) $ (101,900) $ (123,494) $ 68,750 $ 3,700 $ 521,323 $ (70,552) $ 725,374 $ 21,564 $ (7,228) $ 1,037,537 $ 615,592 $ 263,534 $ (389,537) $ 489,589 $ 1,527,126 Change 2017 to 2018 (%) -0.79% -2.46% % n/a 59.74% n/a n/a 2.53% -4.49% 5.16% 10.19% 5.88% % 4.11% 4.77% 14

16 CITY OF PRIOR LAKE 2018 ADOPTED BUDGET REVENUE SUMMARY Adopted 12/04/2017 From Amended Budget BUDGET CLASSIFICATION ACTUAL ADOPTED AMENDED ADOPTED $ CHANGE % CHANGE Fund GENERAL FUND Taxes 8,271,183 8,210,812 8,210,812 8,006,734 (204,078) (2.49) Charges for Services 1,714,605 1,776,311 1,776,311 1,702,315 (73,996) (4.17) Licenses and Permits 751, , , ,798 24, Intergovernmental 1,581,752 1,542,735 1,542,735 1,675, , Fines and Forfeitures 4,743 Miscellaneous Revenues 281, , , , , Sale of assets 10,129 Transfers in 362, , , ,000 13, Debt Issued 300,000 TOTAL REVENUES - FUND ,977,956 13,020,878 12,720,878 12,748,778 27, DEBT SERVICE FUNDS Taxes 2,350,538 2,628,937 2,628,937 3,142, , Special Assessments 832, , , , , Interest (losses) on investments 105,541 40,117 40,117 30,491 (9,626) (23.99) Miscellaneous Revenues 4,053 Transfers in 1,946,309 1,613,635 1,613, ,365 (743,270) (46.06) Debt Issued 1,656,085 TOTAL REVENUES - DEBT SERVICE FUNDS 6,895,288 4,740,206 4,740,206 4,629,831 (110,375) (2.33) Fund CABLE FRANCHISE FUND Charges for Services 51,050 37,133 37,133 32,000 (5,133) (13.82) TOTAL REVENUES - FUND ,050 37,133 37,133 32,000 (5,133) (13.82) Fund CAPITAL PARK FUND Charges for Services 814, , , ,000 Miscellaneous Revenues 14,654 9,000 9,000 17,000 8, TOTAL REVENUES - FUND , , , ,000 8, Fund EDA SPECIAL REVENUE FUND Taxes 155, , , ,000 Charges for Services 6,340 8,500 8,500 7,820 (680) (8.00) Intergovernmental 7,278 Miscellaneous Revenues 1,898 2,500 2,500 2, TOTAL REVENUES - FUND , , , ,520 (480) (0.32) Fund REVOLVING EQUIPMENT FUND Taxes 326, , , , , Intergovernmental 30,000 30, Miscellaneous Revenues 12,037 10,594 10,594 6,000 (4,594) (43.36) Other 12,000 12, Transfers in 141, , , ,000 (186,000) (54.55) Debt Issued 410, , , TOTAL REVENUES - FUND , , ,594 1,418, , Fund REVOLVING PARK EQUIP FUND Taxes 213, , ,184 24, Miscellaneous Revenues 5,981 6,000 6,000 4,700 (1,300) (21.67) TOTAL REVENUES - FUND 430 5, , , ,884 23, Fund FACILITIES MANAGEMENT FUND Miscellaneous Revenues 10,024 5,000 5,000 5, Transfers in 55,000 56,650 56,650 58,350 1, Debt Issued 620, , ,000 TOTAL REVENUES - FUND , , , ,750 2, Fund Permanent Improvement Revolving Fund Miscellaneous Revenues 84,852 84, Debt Issued 600, , TOTAL REVENUES - FUND , ,

17 CITY OF PRIOR LAKE 2018 ADOPTED BUDGET REVENUE SUMMARY Adopted 12/04/2017 From Amended Budget BUDGET CLASSIFICATION ACTUAL ADOPTED AMENDED ADOPTED $ CHANGE % CHANGE Fund WATER FUND Charges for Services 6,227,472 4,116,196 4,116,196 4,075,174 (41,022) (1.00) Intergovernmental 16,948 Miscellaneous Revenues 41,704 40,000 40,000 35,900 (4,100) (10.25) Transfers in 24, , ,000 1,500,000 1,250, Debt Issued 850, ,000 1,180, , TOTAL REVENUES - FUND 601 6,310,995 5,256,196 5,256,196 6,791,074 1,534, Fund STORM WATER UTILITY Charges for Services 982, , , ,326 39, Intergovernmental 34,790 34,790 (34,790) (100.00) Miscellaneous Revenues 11,464 8,080 8,080 12,000 3, TOTAL REVENUES - FUND , , , ,326 8, Fund SEWER FUND Charges for Services 4,486,789 3,109,530 3,109,530 3,453, , Intergovernmental 59,465 Miscellaneous Revenues 23,654 22,810 22,810 18,500 (4,310) (18.90) Transfers in 92,312 Debt Issued 850, ,000 1,400, , TOTAL REVENUES - FUND 604 4,662,220 3,982,340 3,982,340 4,872, , REVENUES - GRAND TOTAL 33,850,782 30,173,194 29,873,194 33,628,455 3,755,

18 CITY OF PRIOR LAKE 2018 ADOPTED BUDGET FUND/DEPARTMENT EXPENDTIURE SUMMARY Adopted 12/04/2017 From Amended Budget DEPT DESCRIPTION ACTUAL ADOPTED AMENDED ADOPTED $ CHANGE % CHANGE Fund GENERAL FUND MAYOR & COUNCIL 57,181 58,193 58,193 58, ORDINANCE 7,329 7,500 7,500 7, ADMINISTRATION 416, , , ,305 19, BOARDS & COMMISSIONS 10,370 10,689 10,689 10, ELECTIONS 16,982 23,984 23, FINANCE 428, , , ,052 4, ACCOUNTING INTERNAL AUDITING 31,733 28,150 28,150 30,700 2, ASSESSING 169, , , ,700 7, LEGAL 147, , , ,000 12, HUMAN RESOURCES 152, , , ,443 (7,182) (3.75) COMMUNICATIONS 106, , , ,717 5, COMMUNITY DEVELOPMENT 323, , , ,475 (20,798) (5.99) INFORMATION TECHNOLOGY 306, , , ,145 (56,440) (15.11) FACILITIES - CITY HALL 436, , , ,287 (27,567) (5.64) POLICE 3,520,535 3,730,730 3,744,730 4,172, , FIRE 895, , , ,460 24, BUILDING INSPECTION 583, , , ,926 (44,399) (6.96) EMERGENCY MANAGEMENT 9,639 11,802 11,802 10,830 (972) (8.24) ANIMAL CONTROL 26,000 26,448 26,448 26, ENGINEERING 340, , , ,739 81, STREET 1,173,603 1,393,754 1,119,524 1,175,385 55, CENTRAL GARAGE 361, , , ,679 17, RECREATION 384, , , ,696 39, PARKS 1,310,572 1,292,709 1,292,709 1,407, , LIBRARIES 41,291 52,763 52,763 63,098 10, NATURAL RESOURCES Transfers to other Funds 1,159,226 1,018,019 1,018, ,552 (790,467) (77.65) TOTAL EXPENDITURES - FUND ,417,787 13,070,878 12,869,668 12,767,768 (101,900) (0.79) DEBT SERVICE FUNDS DEBT SERVICE 5,047,352 5,019,318 5,019,494 4,896,000 (123,494) (2.46) TOTAL EXPENDITURES - DEBT SERVICE FUNDS 5,047,352 5,019,318 5,019,494 4,896,000 (123,494) (2.46) Fund CABLE FRANCHISE FUND PUBLIC CABLE ACCESS 5,248 11,250 11,250 80,000 68, TOTAL EXPENDITURES - FUND 210 5,248 11,250 11,250 80,000 68, Fund CAPITAL PARK FUND PIKE LAKE PARK 3,712 3,700 3, Eagle Creek/Brooksville Hills 95, MARKLEY LAKE TRAIL 366, PARKS 30,507 TOTAL EXPENDITURES - FUND ,258 3,700 3, Fund EDA SPECIAL REVENUE FUND ECONOMIC DEVELOPMENT 142, , , ,777 (5,548) (3.67) TECH VILLAGE INCUBATOR 8,831 9,500 9,500 7,820 (1,680) (17.68) TOTAL EXPENDITURES - FUND , , , ,597 (7,228) (4.49) Fund REVOLVING EQUIPMENT FUND POLICE 92, , , , , FIRE , , STREET 459, , ,334 (224,334) (100.00) CENTRAL GARAGE 20,044 20,000 20,000 20, PARKS 438,643 92,185 92, , , WATER 4,635 4,635 10,094 5, WATER QUALITY 210, , SEWER 406, ,850 (406,850) (100.00) Transfers to other Funds 148,021 TOTAL EXPENDITURES - FUND 410 1,159, , ,704 1,394, , Fund REVOLVING PARK EQUIP FUND PARKS 223, , ,184 (70,552) (22.85) TOTAL EXPENDITURES - FUND , , ,184 (70,552) (22.85) 17

19 CITY OF PRIOR LAKE 2018 ADOPTED BUDGET FUND/DEPARTMENT EXPENDTIURE SUMMARY Adopted 12/04/2017 From Amended Budget DEPT DESCRIPTION ACTUAL ADOPTED AMENDED ADOPTED $ CHANGE % CHANGE Fund FACILITIES MANAGEMENT FUND GESP 257, POLICE 8,000 8, FIRE 17,484 17, , ,720 4, LIBRARIES 79,961 79,961 (79,961) (100.00) WATER 1, , ,081 22,500 (711,581) (96.93) Transfers to other Funds 45,614 20,614 20,614 (20,614) (100.00) TOTAL EXPENDITURES - FUND , , , ,704 21, Fund Permanent Improvement Revolving Fund STREET 650, , Transfers to other Funds 75,374 75, TOTAL EXPENDITURES - FUND , , Fund WATER FUND FINANCE 85,361 86,977 86,977 82,682 (4,295) (4.94) WATER 2,408,180 4,997,773 5,015,808 5,731, , Transfers to other Funds 1,742, , , ,545 (95,602) (10.16) TOTAL EXPENDITURES - FUND 601 4,236,437 6,025,897 6,043,932 6,659, , Fund STORM WATER UTILITY WATER QUALITY 598,972 1,307,206 1,307, ,669 (385,537) (29.49) Transfers to other Funds 167,768 81,000 81,000 77,000 (4,000) (4.94) TOTAL EXPENDITURES - FUND ,740 1,388,206 1,388, ,669 (389,537) (28.06) Fund SEWER FUND FINANCE 85,373 86,977 86,977 82,682 (4,295) (4.94) SEWER 2,549,934 4,019,121 4,037,156 4,389, , Transfers to other Funds 631, , , ,109 (84,191) (23.70) TOTAL EXPENDITURES - FUND 604 3,266,311 4,461,398 4,479,433 4,742, , EXPENDITURES - GRAND TOTAL 27,850,583 31,466,022 32,006,388 33,533,514 1,527,