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SCC Item 1. 2026 Budget Review Debt Service and Special Revenue Funds
TO: Mayor and Councilmembers FROM: Adam Flaherty, City Administrator/Finance Director DATE: August 11, 2025 SUBJECT: Budget Meeting #2 __________________________________________________________________________________________________ On Monday, Council and staff will continue the 2026 budgeting discussions. I have developed an outline of discussion topics below. Please note that the information presented during this meeting is for discussion only and that nothing is final or set in stone at this point in the process. Staff would only be asking for Council direction on the items below to move the budgeting process forward effectively and efficiently. Special Revenue Funds The City maintains eight (8) special revenue funds; however, adopted budgets are developed only for the three tax increment district funds. The City Council can direct City staff to prepare adopted budgets for the other special revenue funds at their discretion. Staff will review budget details for each fund, a combined budget summary, and source and use cash flow projections with the City Council and further discuss each of the funds. Debt Service Funds The City maintains three (3) debt service funds that have outstanding bond issues and respective adopted budgets. Staff will review budget details for each fund, a combined budget summary, a liability summary, and source and use cash flow projections with the City Council and further discuss each of the funds. Fund Balances The City’s Governmental Funds (General, Special Revenue, Capital Project, and Debt Service) within the Annual Comprehensive Financial Report are classified into multiple categories of Fund Balances in alignment with Governmental Accounting Standards. Staff will review these classifications with the City Council to discuss whether the current fund balances are in alignment with goals of the City Council. As part of the budget review process, there may be opportunities to use certain fund balances in a better way and to better align with goals. Next Steps To date, the City Council will have reviewed draft budgets for the General, Special Revenue, and Debt Service Funds. One additional meeting (at a minimum) should be scheduled to review the Capital Project Funds, notably those that have proposed tax levy funding sources. Once all the individual funds have been reviewed, staff will present a combined summary of the preliminary property tax levy for review and discussion. As a reminder, the City Council will need to adopt a Preliminary Property Tax Levy for Taxes Payable 2026 prior to September 30, 2025. Materials Attached for Discussion 1) Special Revenue – Draft Budget Details and Cash Flow Forecasts 2) Debt Service – Draft Budget Details and Cash Flow Forecasts City of OtsegoInsurance Reserves FundCash Flow SummaryRevised: August 6, 2025Actual Forecast2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035RevenuesRefunds & Reimbursements 15,630$ 13,514$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Investment Interest 13,385 - - - - - - - - - - - Miscellaneous - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 29,015 13,514 - - - - - - - - - - ExpensesSupplies - - - - - - - - - - - - Other Charges & Services 12,119 13,514 - - - - - - - - - - Capital Outlay - - - - - - - - - - - - Capital Outlay (CIP) - - - - - - - - - - - - Transfers Out - - - - - - - - - - - - Total 12,119 13,514 - - - - - - - - - - Cash Balance - Beginning277,297 294,193 294,193 294,193 294,193 294,193 294,193 294,193 294,193 294,193 294,193 294,193 Balance Sheet Effects - - - - - - - - - - - - Revenues 29,015 13,514 - - - - - - - - - - Expenditures (12,119) (13,514) - - - - - - - - - - Cash Balance - Ending 294,193$ 294,193$ 294,193$ 294,193$ 294,193$ 294,193$ 294,193$ 294,193$ 294,193$ 294,193$ 294,193$ 294,193$ ProjectedY:\Budget\2026\Cash Flows\Special Revenue Funds204-Insurance Reserve City of OtsegoVireo Health Donations FundCash Flow SummaryRevised: August 6, 2025Actual Forecast2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035RevenuesDonations -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Investment Interest 3,275 - - - - - - - - - - - Rain Barrel Sales 1,080 1,200 - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 4,355 1,200 - - - - - - - - - - ExpensesSupplies 305 - - - - - - - - - - - Other Charges & Services - - - - - - - - - - - - Capital Outlay - - - - - - - - - - - - Capital Outlay (CIP) - - - - - - - - - - - - Transfers Out - - - - - - - - - - - - Total 305 - - - - - - - - - - - Cash Balance - Beginning65,564 69,614 70,814 70,814 70,814 70,814 70,814 70,814 70,814 70,814 70,814 70,814 Balance Sheet Effects - - - - - - - - - - - - Revenues 4,355 1,200 - - - - - - - - - - Expenditures (305) - - - - - - - - - - - Cash Balance - Ending 69,614$ 70,814$ 70,814$ 70,814$ 70,814$ 70,814$ 70,814$ 70,814$ 70,814$ 70,814$ 70,814$ 70,814$ ProjectedY:\Budget\2026\Cash Flows\Special Revenue Funds215-Vireo Health City of OtsegoLawful Gambling FundCash Flow SummaryRevised: August 6, 2025Actual Actual2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035RevenuesLawful Gambling 50,915$ 26,351$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Investment Interest 7,789 - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 58,704 26,351 - - - - - - - - - - ExpensesSupplies - - - - - - - - - - - - Other Charges & Services - - - - - - - - - - - - Capital Outlay - - - - - - - - - - - - Capital Outlay (CIP) - - 75,000 - - - - - - - - - Transfers Out - - - - - - - - - - - - Total - - 75,000 - - - - - - - - - Cash Balance - Beginning123,052 183,088 223,075 148,075 148,075 148,075 148,075 148,075 148,075 148,075 148,075 148,075 Balance Sheet Effects 1,332 13,636 Revenues 58,704 26,351 - - - - - - - - - - Expenditures - - (75,000) - - - - - - - - - Cash Balance - Ending 183,088$ 223,075$ 148,075$ 148,075$ 148,075$ 148,075$ 148,075$ 148,075$ 148,075$ 148,075$ 148,075$ 148,075$ LAWFUL GAMBLING TRACKINGRogers Youth Hockey 43,273 22,949 Rogers Lions 7,642 3,402 Total 50,915 26,351 Difference - - ProjectedY:\Budget\2026\Cash Flows\Special Revenue Funds216-Lawful Gambling City of OtsegoStreet Light DistrictCash Flow SummaryRevised: August 6, 2025Actual Forecast2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035RevenuesCharges for Services -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Development Fees 5,300 - - - - - - - - - - - Special Assessments 3,532 3,774 3,648 3,522 3,396 3,271 - - - - - - Investment Interest3,376 - - - - - - - - - - - Miscellaneous - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 12,208 3,774 3,648 3,522 3,396 3,271 - - - - - - ExpensesPersonal Servcies - - - - - - - - - - - - Supplies - - - - - - - - - - - - Utility Fees - - - - - - - - - - - - Services & Other Charges - - - - - - - - - - - - Capital Outlay- - - - - - - - - - - - Capital Outlay (CIP) - - - - - - - - - - - - Transfers Out - - - - - - - - - - - - Total - - - - - - - - - - - - Cash Balance - Beginning63,398 75,606 79,380 83,028 86,550 89,946 93,217 93,217 93,217 93,217 93,217 93,217 Balance Sheet Effects - - - - - - - - - - - - Revenues 12,208 3,774 3,648 3,522 3,396 3,271 - - - - - - Expenditures- - - - - - - - - - - - Cash Balance - Ending 75,606$ 79,380$ 83,028$ 86,550$ 89,946$ 93,217$ 93,217$ 93,217$ 93,217$ 93,217$ 93,217$ 93,217$ ProjectedY:\Budget\2026\Cash Flows\Special Revenue Funds225-Street Lights City of OtsegoDevelopment Revolving FundCash Flow SummaryRevised: August 6, 2025Actual Forecast2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035RevenuesProperty Taxes -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Intergovernmental 52,757 23,786 - - - - - - - - - - Investment Interest17,547 - - - - - - - - - - - Conduit Debt Issuance Fees - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 70,304 23,786 - - - - - - - - - - ExpensesAbatement - Boondox - - - - - - - - - - - - Abatement - Gateway 2nd - - - - - - - - - - - - Abatement - Family Speech - - - - - - - - - - - - Abatement - Gateway 3rd - - - - - - - - - - - - Services & Other Charges - - - 52,757 52,757 23,786 - - - - - - Total - - - 52,757 52,757 23,786 - - - - - - Cash Balance - Beginning336,689 406,993 430,779 430,779 378,022 325,265 301,479 301,479 301,479 301,479 301,479 301,479 Balance Sheet Effects - - - - - - - - - - - - Revenues 70,304 23,786 - - - - - - - - - - Expenditures- - - (52,757) (52,757) (23,786) - - - - - - Cash Balance - Ending 406,993$ 430,779$ 430,779$ 378,022$ 325,265$ 301,479$ 301,479$ 301,479$ 301,479$ 301,479$ 301,479$ 301,479$ FUND BALANCE TRACKINGRestricted - Affordable Housing Aid 105,514 129,300 Unassigned 301,479 301,479 Total 406,993 430,779 Difference - - ProjectedY:\Budget\2026\Cash Flows\Special Revenue Funds255-Development Revolving City of OtsegoTax Increment District No. 1Great River CenterCash Flow SummaryRevised: August 6, 2025Actual Actual Actual Forecast2022 2023 2024 2025 2026 2027 CommentsRevenuesTax Increments 93,966$ 85,412$ 88,037$ 102,849$ 103,217$ -$ 2026 Estimated by Staff (Final Year)Investment Interest - - - - - - Miscellaneous - - - - - - Transfers In - - - - - - Total 93,966 85,412 88,037 102,849 103,217 - ExpensesPersonal Services 887 802 1,217 900 1,000 1,000 Administrative ReimbursementServices & Other Charges 1,358 1,217 1,674 1,500 1,700 1,700 TIF Reporting & PublishingPAYGO Note Payment 84,919 42,285 116,488 85,899 92,730 46,448 90% PAYGO Note Through 2/1/2027Transfers Out - - - - - - Total 87,164 44,304 119,379 88,299 95,430 49,148 Cash Balance - Beginning57,233 64,034 105,143 73,801 88,351 96,139 Balance Sheet Effects (1) 1 - Revenues 93,966 85,412 88,037 102,849 103,217 - Expenditures (87,164) (44,304) (119,379) (88,299) (95,430) (49,148) Cash Balance - Ending 64,034$ 105,143$ 73,801$ 88,351$ 96,139$ 46,991$ ProjectedY:\Budget\2026\Cash Flows\Special Revenue Funds261-Tax Increment (P&F) City of OtsegoTax Increment District No. 3Riverview LandingCash Flow SummaryRevised: August 6, 2025Actual Forecast2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 CommentsRevenuesTax Increments 199,247$ 245,353$ 252,185$ 252,185$ 252,185$ 252,185$ 252,185$ 252,185$ 252,185$ 252,185$ 252,185$ 252,185$ 2026 Estimated by Staff; then StableInvestment Interest - - - - - - - - - - - - Miscellaneous - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 199,247 245,353 252,185 252,185 252,185 252,185 252,185 252,185 252,185 252,185 252,185 252,185 ExpensesPersonal Services 1,303 1,100 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Administrative ReimbursementServices & Other Charges 1,674 1,500 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 TIF Reporting & PublishingPAYGO Note Payment 182,342 200,070 223,892 226,966 226,966 226,966 226,966 226,966 226,966 226,966 226,966 226,966 90% PAYGO Note Through 2/1/2046Transfers Out - - - - - - - - - - - - Total 185,319 202,670 226,792 229,866 229,866 229,866 229,866 229,866 229,866 229,866 229,866 229,866 Cash Balance - Beginning155,263 169,191 211,874 237,267 259,585 281,904 304,222 326,541 348,859 371,178 393,496 415,815 Balance Sheet Effects - Revenues 199,247 245,353 252,185 252,185 252,185 252,185 252,185 252,185 252,185 252,185 252,185 252,185 Expenditures (185,319) (202,670) (226,792) (229,866) (229,866) (229,866) (229,866) (229,866) (229,866) (229,866) (229,866) (229,866) Cash Balance - Ending169,191$ 211,874$ 237,267$ 259,585$ 281,904$ 304,222$ 326,541$ 348,859$ 371,178$ 393,496$ 415,815$ 438,134$ ProjectedY:\Budget\2026\Cash Flows\Special Revenue Funds262-Tax Increment (GA) City of OtsegoTax Increment District No. 4Riverbend NorthCash Flow SummaryRevised: August 6, 2025Actual Forecast2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 CommentsRevenuesTax Increments 212,157$ 257,318$ 281,606$ 281,606$ 281,606$ 281,606$ 281,606$ 281,606$ 281,606$ 281,606$ 281,606$ 281,606$ 2026 Estimated by Staff; then StableInvestment Interest - - - - - - - - - - - - Miscellaneous - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 212,157 257,318 281,606 281,606 281,606 281,606 281,606 281,606 281,606 281,606 281,606 281,606 ExpensesPersonal Services 1,260 1,200 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 Administrative ReimbursementServices & Other Charges 1,674 1,500 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 TIF Reporting & PublishingPAYGO Note Payment (A) 96,868 111,500 127,994 133,763 133,763 133,763 133,763 133,763 133,763 133,763 133,763 133,763 50% PAYGO Note A Through 2/1/2046PAYGO Note Payment (B) 96,868 111,500 127,994 133,763 133,763 133,763 133,763 133,763 133,763 133,763 133,763 133,763 50% PAYGO Note B Through 2/1/2046Transfers Out - - - - - - - - - - - - Total 196,670 225,700 258,988 270,525 270,525 270,525 270,525 270,525 270,525 270,525 270,525 270,525 Cash Balance - Beginning113,474 128,951 160,569 183,186 194,267 205,347 216,428 227,509 238,589 249,670 260,751 271,831 Balance Sheet Effects (10) Revenues 212,157 257,318 281,606 281,606 281,606 281,606 281,606 281,606 281,606 281,606 281,606 281,606 Expenditures (196,670) (225,700) (258,988) (270,525) (270,525) (270,525) (270,525) (270,525) (270,525) (270,525) (270,525) (270,525) Cash Balance - Ending128,951$ 160,569$ 183,186$ 194,267$ 205,347$ 216,428$ 227,509$ 238,589$ 249,670$ 260,751$ 271,831$ 282,912$ ProjectedY:\Budget\2026\Cash Flows\Special Revenue Funds263-Tax Increment (Riverbend) City of Otsego Special Revenue Fund Budget - 2026 Revenue & Expenditure Summary Actual Actual Year-to-Date Budget Budget 2023 2024 2025 2025 2026 Revenues Tax Increments 490,045$ 499,441$ 302,609$ 609,601$ 637,008$ Subtotal 490,045 499,441 302,609 609,601 637,008 Expenditures Personal Services 3,330 3,780 - 3,200 3,500 Services & Other Charges 3,651 5,022 4,444 4,500 5,100 Development Incentives 330,286 492,564 508,113 510,542 572,610 Subtotal 337,267 501,366 512,557 518,242 581,210 Excess (Deficiency) of Revenues Over (Under) Expenditures 152,778$ (1,925)$ (209,948)$ 91,359$ 55,798$ Description - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2023 2024 2025 2025 2026 Actual Actual Year-to-Date Budget Budget Expenditures Revenues City of Otsego Special Revenue Fund Budget - 2026 Tax Increment District #1 - Great River Centre Actual Actual Year-to-Date Budget Budget Fund Department Object Account Description 2023 2024 2025 2025 2026 Revenues 261 46580 31050 TAX INCREMENTS 85,412$ 88,037$ 51,425$ 103,542$ 103,217$ TOTAL TAXES 85,412 88,037 51,425 103,542 103,217 TOTAL REVENUES 85,412 88,037 51,425 103,542 103,217 Expenditures 261 46580 119 PAYROLL ALLOCATION 802 1,217 - 900 1,000 TOTAL - PERSONAL SERVICES 802 1,217 - 900 1,000 261 46580 339 DEVELOPMENT INCENTIVES 42,285 116,488 85,899 86,211 92,730 261 46580 350 PRINT & PUBLISHING 69 70 - 100 100 261 46580 390 CONTRACTED SERVICES 1,148 1,604 1,481 1,400 1,600 TOTAL - SERVICES & OTHER CHARGES 43,501 118,162 87,380 87,711 94,430 TOTAL EXPENDITURES 44,304 119,379 87,380 88,611 95,430 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 41,108$ (31,341)$ (35,956)$ 14,931$ 7,787$ Fund 261 - Tax Increment District No. 1 (Great River Centre) Account Number City of Otsego Special Revenue Fund Budget - 2026 Tax Increment District #3 - Riverview Landing Actual Actual Year-to-Date Budget Budget Fund Department Object Account Description 2023 2024 2025 2025 2026 Revenues 262 46580 31050 TAX INCREMENTS 205,957$ 199,247$ 122,678$ 247,007$ 252,185$ TOTAL TAXES 205,957 199,247 122,678 247,007 252,185 TOTAL REVENUES 205,957 199,247 122,678 247,007 252,185 Expenditures 262 46580 119 PAYROLL ALLOCATION 1,111 1,303 - 1,100 1,200 TOTAL - PERSONAL SERVICES 1,111 1,303 - 1,100 1,200 262 46580 339 DEVELOPMENT INCENTIVES 170,581 182,342 200,071 200,815 223,892 262 46580 350 PRINT & PUBLISHING 69 70 - 100 100 262 46580 390 CONTRACTED SERVICES 1,148 1,604 1,481 1,400 1,600 TOTAL - SERVICES & OTHER CHARGES 171,797 184,016 201,552 202,315 225,592 TOTAL EXPENDITURES 172,908 185,319 201,552 203,415 226,792 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 33,049$ 13,928$ (78,875)$ 43,592$ 25,393$ Fund 262 - Tax Increment District No. 3 (Guardian Angels Riverview Landing) Account Number City of Otsego Special Revenue Fund Budget - 2026 Tax Increment District #4 - Riverbend North Actual Actual Year-to-Date Budget Budget Fund Department Object Account Description 2023 2024 2025 2025 2026 Revenues 263 46580 31050 TAX INCREMENTS 198,676$ 212,157$ 128,507$ 259,052$ 281,606$ TOTAL TAXES 198,676 212,157 128,507 259,052 281,606 TOTAL REVENUES 198,676 212,157 128,507 259,052 281,606 Expenditures 263 46580 119 PAYROLL ALLOCATION 1,417 1,260 - 1,200 1,300 TOTAL - PERSONAL SERVICES 1,417 1,260 - 1,200 1,300 263 46580 339 DEVELOPMENT INCENTIVES 117,421 193,735 222,143 223,516 255,988 263 46580 350 PRINT & PUBLISHING 69 70 - 100 100 263 46580 390 CONTRACTED SERVICES 1,149 1,604 1,481 1,400 1,600 TOTAL - SERVICES & OTHER CHARGES 118,639 195,409 223,624 225,016 257,688 TOTAL EXPENDITURES 120,055 196,669 223,624 226,216 258,988 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 78,621$ 15,489$ (95,118)$ 32,836$ 22,618$ Fund 263 - Tax Increment District No. 4 (Riverbend North) Account Number City of OtsegoDebt Service Funds - Cash Flows AnalysisFund 376 - G.O. Improvement Bonds, Series 2018AMississippi Shores Renewal & Kadler Avenue ConstructionRevised: August 6, 2025Actual Forecast Budget2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 CommentsRevenues:Property Taxes 102,144$ 104,308$ 106,313$ 113,412$ 114,946$ 9,232$ 12,592$ 10,544$ 13,662$ 11,365$ -$ Levy per Bond Issuance DocumentsSpecial Assessments 126,229 114,369 110,756 107,143 103,530 56,120 54,040 51,960 49,879 47,799 - Not included: Delinquents ($661)Interest on Investments - - - - - - - - - - - Bond Proceeds - - - - - - - - - - - Transfers In - - - - - - - - - - - Total 228,373 218,677 217,069 220,555 218,476 65,352 66,632 62,504 63,541 59,164 - Expenditures:Principal 190,000 200,000 205,000 210,000 220,000 225,000 60,000 65,000 65,000 70,000 70,000 Interest 44,806 38,956 32,881 26,656 20,206 13,531 9,256 7,381 5,391 3,282 1,094 Fiscal Agent Fees 674 700 700 700 700 700 700 700 700 700 700 Transfers Out - - - - - - - - - - - Total 235,480 239,656 238,581 237,356 240,906 239,231 69,956 73,081 71,091 73,982 71,794 Cash Balance - Beginning427,743 419,525 398,546 377,034 360,233 337,803 163,924 160,600 150,023 142,473 127,655 Change in Accruals (1,111) Revenues 228,373 218,677 217,069 220,555 218,476 65,352 66,632 62,504 63,541 59,164 - Expenditures (235,480) (239,656) (238,581) (237,356) (240,906) (239,231) (69,956) (73,081) (71,091) (73,982) (71,794) Cash Balance - Ending419,525$ 398,546$ 377,034$ 360,233$ 337,803$ 163,924$ 160,600$ 150,023$ 142,473$ 127,655$ 55,861$ Debt Service Until 2034Principal Balance1,390,000 1,190,000 985,000 775,000 555,000 330,000 270,000 205,000 140,000 70,000 - Blue cells = projections.ProjectedY:\Budget\2026\Cash Flows\Debt Service Funds376-IMP 2018A City of OtsegoDebt Service Funds - Cash Flows AnalysisFund 380 - G.O. Improvement Refunding Bonds, Series 2020AQueens Avenue & CSAH 42Revised: August 6, 2025Actual Forecast Budget2024 2025 2026 2027 2028 CommentsRevenues:Property Taxes 197,000$ 186,000$ 186,000$ 186,000$ -$ Alternative Levy - Calculated by StaffSpecial Assessments 54,373 52,270 50,168 - - Interest on Investments - - - - - Bond Proceeds - - - - - Transfers In - - - - - Total 251,373 238,270 236,168 186,000 - Expenditures:Principal 270,000 280,000 290,000 315,000 320,000 Interest 53,600 42,600 31,200 19,100 6,400 Fiscal Agent Fees 674 700 700 700 700 Transfers Out - - - - - Total 324,274 323,300 321,900 334,800 327,100 Cash Balance - Beginning720,396 647,330 562,300 476,568 327,768 Change in Accruals (165) Revenues 251,373 238,270 236,168 186,000 - Expenditures (324,274) (323,300) (321,900) (334,800) (327,100) Cash Balance - Ending647,330$ 562,300$ 476,568$ 327,768$ 668$ Debt Service Until 2028Principal Balance1,205,000 925,000 635,000 320,000 - Blue cells = projections.ProjectedY:\Budget\2026\Cash Flows\Debt Service Funds380-IMP 2020A City of OtsegoDebt Service Funds - Cash Flows AnalysisFund 303 - EDA Lease Revenue Bonds, Series 2024AFire & Emergency Services StationRevised: August 6, 2025Actual Forecast Budget2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 CommentsRevenues:Property Taxes -$ -$ 1,339,065$ 1,337,753$ 1,335,128$ 1,336,440$ 1,336,178$ 1,339,590$ 1,335,915$ 1,335,915$ 1,339,328$ 1,335,390$ Levy per Bond Issuance DocumentsInterest on Investments - 15,674 - - - - - - - - - - Bond Proceeds 814,909 - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 814,909 15,674 1,339,065 1,337,753 1,335,128 1,336,440 1,336,178 1,339,590 1,335,915 1,335,915 1,339,328 1,335,390 Expenditures:Principal - - - 525,000 550,000 575,000 605,000 635,000 670,000 700,000 735,000 775,000 Interest - 439,759 750,300 737,175 710,300 682,175 652,675 621,675 589,050 554,800 518,925 481,175 Fiscal Agent Fees - 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Transfers Out - - - - - - - - - - - - Total - 442,259 752,800 1,264,675 1,262,800 1,259,675 1,260,175 1,259,175 1,261,550 1,257,300 1,256,425 1,258,675 Cash Balance - Beginning- 814,909 388,324 974,589 1,047,667 1,119,994 1,196,759 1,272,762 1,353,177 1,427,542 1,506,157 1,589,059 Change in Accruals - Revenues 814,909 15,674 1,339,065 1,337,753 1,335,128 1,336,440 1,336,178 1,339,590 1,335,915 1,335,915 1,339,328 1,335,390 Expenditures - (442,259) (752,800) (1,264,675) (1,262,800) (1,259,675) (1,260,175) (1,259,175) (1,261,550) (1,257,300) (1,256,425) (1,258,675) Cash Balance - Ending814,909$ 388,324$ 974,589$ 1,047,667$ 1,119,994$ 1,196,759$ 1,272,762$ 1,353,177$ 1,427,542$ 1,506,157$ 1,589,059$ 1,665,774$ Debt Service Until 2046Principal Balance16,900,000 16,900,000 16,900,000 16,375,000 15,825,000 15,250,000 14,645,000 14,010,000 13,340,000 12,640,000 11,905,000 11,130,000 Callable - February 1, 2033ProjectedY:\Budget\2026\Cash Flows\Debt Service Funds303-EDA 2024A City of Otsego Debt Service Fund Budget - 2026 Summary of Bonds Outstanding Original Liability 2026 Liability Maturity Issue Balance Principal Balance Date Amount 12/31/2025 Payment 12/31/2026 Outstanding Bonds 2018A General Obligation Improvement 2/1/2034 2,305,000$ 1,390,000$ 205,000$ 1,185,000$ 2020A General Obligation Improvement Refunding 2/1/2028 2,950,000 1,205,000 290,000 915,000 2024A EDA Lease Revenue 2/1/2046 16,900,000 16,900,000 - 16,900,000 Grand Total 22,155,000$ 19,495,000$ 495,000$ 19,000,000$ Description of Bond Issue - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Principal Payments Bonds Outstanding City of Otsego Debt Service Fund Budget - 2026 Revenue & Expenditure Summary Actual Actual Year-to-Date Budget Budget 2023 2024 2025 2025 2026 Revenues Taxes 544,416$ 299,144$ 145,154$ 290,308$ 1,631,378$ Special Assessments 222,744 180,602 84,949 168,333 160,924 Investment Interest (net) - - 15,674 - - Bond Proceeds - 814,909 - - - Subtotal 767,160 1,294,655 245,778 458,641 1,792,302 Expenditures Principal 685,000 460,000 480,000 480,000 495,000 Interest 119,406 98,406 81,556 521,315 814,381 Fiscal Agent Fee's 1,678 1,347 990 3,500 3,900 Subtotal 806,084 559,753 562,546 1,004,815 1,313,281 Excess (Deficiency) of Revenues Over (Under) Expenditures (38,924)$ 734,902$ (316,768)$ (546,174)$ 479,021$ Description - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2023 2024 2025 2025 2026 Actual Actual Year-to-Date Budget Budget Principal Interest Revenues City of Otsego Debt Service Fund Budget - 2026 Fund 376 - G.O. Improvement Bonds, Series 2018A Mississippi Shores Renewal & Kadler Avenue Construction Actual Actual Year-to-Date Budget Budget Fund Department Object Account Description 2023 2024 2025 2025 2026 Revenues 376 47000 31010 CURRENT AD VALOREM TAXES 94,416$ 102,144$ 52,154$ 104,308$ 106,313$ 376 47000 36100 SPECIAL ASSESSMENTS 133,968 126,229 58,814 116,063 110,756 376 47000 36210 INTEREST EARNINGS - - - - - 376 47000 39230 BOND PREMIUM - - - - - 376 47000 39300 BOND PROCEEDS - - - - - TOTAL 228,384 228,373 110,968 220,371 217,069 Expenditures 376 47000 601 PRINCIPAL 190,000 190,000 200,000 200,000 205,000 376 47000 602 INTEREST 50,506 44,806 38,956 38,956 32,881 376 47000 620 FISCAL AGENT FEE'S 839 674 495 500 700 376 47000 720 TRANSFERS OUT - - - - - TOTAL 241,345 235,480 239,451 239,456 238,581 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (12,961)$ (7,107)$ (128,483)$ (19,085)$ (21,512)$ Fund 376 - G.O. Improvement Bonds, Series 2018A Account Number City of Otsego Debt Service Fund Budget - 2026 Fund 380 - G.O. Improvement Refunding Bonds, Series 2020A Queens Avenue & CSAH 42 Actual Actual Year-to-Date Budget Budget Fund Department Object Account Description 2023 2024 2025 2025 2026 Revenues 380 47000 31010 CURRENT AD VALOREM TAXES 450,000$ 197,000$ 93,000$ 186,000$ 186,000$ 380 47000 36100 SPECIAL ASSESSMENTS 88,776 54,373 26,135 52,270 50,168 380 47000 39200 TRANSFERS IN - - - - - 380 47000 39300 BOND PROCEEDS - - - - - 380 47000 39320 BOND PREMIUM - - - - - TOTAL 538,776 251,373 119,135 238,270 236,168 Expenditures 380 47000 601 PRINCIPAL 495,000 270,000 280,000 280,000 290,000 380 47000 602 INTEREST 68,900 53,600 42,600 42,600 31,200 380 47000 620 FISCAL AGENT FEE'S 839 674 495 500 700 TOTAL 564,739 324,274 323,095 323,100 321,900 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (25,963)$ (72,900)$ (203,960)$ (84,830)$ (85,732)$ Fund 380 - G.O. Improvement Refunding Bonds, Series 2020A Account Number City of Otsego Debt Service Fund Budget - 2026 Fund 303 - Economic Development Authority - Lease Revenue Bonds, Series 2024A Fire & Emergency Services Station Actual Actual Year-to-Date Budget Budget Fund Department Object Account Description 2023 2024 2025 2025 2026 Revenues 303 47000 31010 CURRENT AD VALOREM TAXES -$ -$ -$ -$ 1,339,065$ 303 47000 36210 INTEREST EARNINGS - - 15,674 - - 380 47000 39300 BOND PROCEEDS - 814,909 - - - TOTAL - 814,909 15,674 - 1,339,065 Expenditures 303 47000 601 PRINCIPAL - - - - - 303 47000 602 INTEREST - - - 439,759 750,300 303 47000 620 FISCAL AGENT FEE'S - - - 2,500 2,500 TOTAL - - - 442,259 752,800 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES -$ 814,909$ 15,674$ (442,259)$ 586,265$ Fund 303 - Economic Development Authority - Lease Revenue Bonds, Series 2024A Account Number