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SCC Item 1. 2027 Budget Review
TO: Mayor and Councilmembers FROM: Adam Flaherty, City Administrator/Finance Director DATE: August 10, 2026 SUBJECT: Budget Meeting #1 __________________________________________________________________________________________________ On Monday, Council and staff will begin the 2027 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, and source and use cash flow projections with the City Council and further discuss each of the funds. Fund Balance Policy The City’s fund balance policy outlines that the ending fund balance in the General Fund should be 45% of the subsequent year’s budget. The policy further outlines that any balance more than the defined 45% minimum can be transferred to a capital reserve fund at the Council’s discretion. Staff will review the fund balance calculation for year ended 2025 compared to the 2026 budget and discuss some options for City Council consideration. Next Steps The City Council has scheduled a special meeting on August 11 to review the draft General Fund Budget and another special meeting on August 24 to review the Capital Project Funds. Materials Attached for Discussion 1) Special Revenue – Draft Budget Details and Cash Flow Forecasts 2) Debt Service – Draft Budget Details and Cash Flow Forecasts 3) Fund Balance Policy Calculation City of OtsegoInsurance Reserves FundCash Flow SummaryRevised: August 7, 2026Actual Forecast2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 CommentsRevenuesRefunds & Reimbursements 17,899$ 1,500$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Investment Interest 15,104 - - - - - - - - - - - Miscellaneous - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 33,003 1,500 - - - - - - - - - - ExpensesSupplies - - - - - - - - - - - - Other Charges & Services13,514 - - - - - - - - - - - Capital Outlay- - - - - - - - - - - - Capital Outlay (CIP) - - - - - - - - - - - - Transfers Out - - - - - - - - - - - - Total 13,514 - - - - - - - - - - - Cash Balance - Beginning294,193 313,682 315,182 315,182 315,182 315,182 315,182 315,182 315,182 315,182 315,182 315,182 Balance Sheet Effects- - - - - - - - - - - - Revenues 33,003 1,500 - - - - - - - - - - Expenditures (13,514) - - - - - - - - - - - Cash Balance - Ending313,682$ 315,182$ 315,182$ 315,182$ 315,182$ 315,182$ 315,182$ 315,182$ 315,182$ 315,182$ 315,182$ 315,182$ ProjectedY:\Finance\Budget\2027\Cash Flows\Special Revenue Funds204-Insurance Reserve City of OtsegoVireo Health Donations FundCash Flow SummaryRevised: August 7, 2026Actual Forecast2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 CommentsRevenuesDonations -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Investment Interest 3,648 - - - - - - - - - - - Rain Barrel Sales1,200 - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 4,848 - - - - - - - - - - - ExpensesSupplies - - - - - - - - - - - - Other Charges & Services- - - - - - - - - - - - Capital Outlay- - - - - - - - - - - - Capital Outlay (CIP) - - - - - - - - - - - - Transfers Out - - - - - - - - - - - - Total - - - - - - - - - - - - Cash Balance - Beginning69,614 74,462 74,462 74,462 74,462 74,462 74,462 74,462 74,462 74,462 74,462 74,462 Balance Sheet Effects- - - - - - - - - - - - Revenues 4,848 - - - - - - - - - - - Expenditures - - - - - - - - - - - - Cash Balance - Ending74,462$ 74,462$ 74,462$ 74,462$ 74,462$ 74,462$ 74,462$ 74,462$ 74,462$ 74,462$ 74,462$ 74,462$ ProjectedY:\Finance\Budget\2027\Cash Flows\Special Revenue Funds215-Vireo Health City of OtsegoLawful Gambling FundCash Flow SummaryRevised: August 7, 2026Actual Forecast2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 CommentsRevenuesLawful Gambling57,393$ 19,708$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Investment Interest 10,869 - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 68,262 19,708 - - - - - - - - - - ExpensesW.C. Sheriff Contract- 50,915 57,393 - - - - - - - - - Sheriff ContractFire Department Vehicles75,909 - - - - - - - - - - - Capital Outlay (CIP) - - - - - - - - - - - - Transfers Out - - - - - - - - - - - - Total 75,909 50,915 57,393 - - - - - - - - - Cash Balance - Beginning183,088 190,597 159,390 101,997 101,997 101,997 101,997 101,997 101,997 101,997 101,997 101,997 Balance Sheet Effects15,156 Revenues 68,262 19,708 - - - - - - - - - - Expenditures (75,909) (50,915) (57,393) - - - - - - - - - Cash Balance - Ending190,597$ 159,390$ 101,997$ 101,997$ 101,997$ 101,997$ 101,997$ 101,997$ 101,997$ 101,997$ 101,997$ 101,997$ LAWFUL GAMBLING TRACKINGRogers Youth Hockey 48,822 16,817 Rogers Lions 8,571 2,891 Total 57,393 19,708 Difference - - ProjectedY:\Finance\Budget\2027\Cash Flows\Special Revenue Funds216-Lawful Gambling City of OtsegoStreet Light DistrictCash Flow SummaryRevised: August 7, 2026Actual Forecast2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 CommentsRevenuesCharges for Services -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Development Fees - - - - - - - - - - - - Special Assessments 3,533 3,718 3,589 3,462 3,333 - - - - - - - No DelinquentsInvestment Interest 3,925 - - - - - - - - - - - Miscellaneous - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 7,458 3,718 3,589 3,462 3,333 - - - - - - - ExpensesPersonal Servcies - - - - - - - - - - - - Supplies - - - - - - - - - - - - Utility Fees - - - - - - - - - - - - Services & Other Charges - - - - - - - - - - - - Capital Outlay - - - - - - - - - - - - Capital Outlay (CIP) - - - - - - - - - - - - Transfers Out - - - - - - - - - - - - Total - - - - - - - - - - - - Cash Balance - Beginning75,606 83,064 86,782 90,371 93,833 97,166 97,166 97,166 97,166 97,166 97,166 97,166 Balance Sheet Effects - - - - - - - - - - - - Revenues 7,458 3,718 3,589 3,462 3,333 - - - - - - - Expenditures - - - - - - - - - - - - Cash Balance - Ending 83,064$ 86,782$ 90,371$ 93,833$ 97,166$ 97,166$ 97,166$ 97,166$ 97,166$ 97,166$ 97,166$ 97,166$ ProjectedY:\Finance\Budget\2027\Cash Flows\Special Revenue Funds225-Street Lights City of OtsegoDevelopment Revolving FundCash Flow SummaryRevised: August 7, 2026Actual Forecast2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 CommentsRevenuesProperty Taxes -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Intergovernmental 23,786 26,362 - - - - - - - - - - Statewide Affordable Housing AidInvestment Interest 21,453 - - - - - - - - - - - Conduit Debt Issuance Fees - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 45,239 26,362 - - - - - - - - - - ExpensesAbatement - Boondox - - - - - - - - - - - - Abatement - Gateway 2nd - - - - - - - - - - - - Abatement - Family Speech - - - - - - - - - - - - Abatement - Gateway 3rd - - - - - - - - - - - - Services & Other Charges - - - 52,757 52,757 23,786 26,362 - - - - - Required Expenditure Timeline for SAHATotal - - - 52,757 52,757 23,786 26,362 - - - - - Cash Balance - Beginning406,993 452,232 478,594 478,594 425,837 373,080 349,294 322,932 322,932 322,932 322,932 322,932 Balance Sheet Effects - - - - - - - - - - - - Revenues 45,239 26,362 - - - - - - - - - - Expenditures - - - (52,757) (52,757) (23,786) (26,362) - - - - - Cash Balance - Ending 452,232$ 478,594$ 478,594$ 425,837$ 373,080$ 349,294$ 322,932$ 322,932$ 322,932$ 322,932$ 322,932$ 322,932$ FUND BALANCE TRACKINGRestricted - Affordable Housing Aid 129,300 155,662 Unassigned 322,932 322,932 Total 452,232 478,594 Difference - - ProjectedY:\Finance\Budget\2027\Cash Flows\Special Revenue Funds255-Development Revolving City of OtsegoTax Increment District No. 1Great River CenterCash Flow SummaryRevised: August 7, 2026Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Forecast Projected2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 CommentsRevenuesTax Increments -$ -$ 96,938$ 97,419$ 98,016$ 94,744$ 93,966$ 85,412$ 88,037$ 102,850$ 104,655$ -$ 2026 Estimated by Staff (Final Year)Investment Interest - - - - - - - - - - - - Miscellaneous - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total - - 96,938 97,419 98,016 94,744 93,966 85,412 88,037 102,850 104,655 - ExpensesPersonal Services - - 476 482 505 804 887 802 1,217 1,476 1,000 1,000 Administrative ReimbursementServices & Other Charges 16,278 900 2,064 908 851 845 1,358 1,217 1,674 1,799 1,700 1,800 TIF Reporting & PublishingPAYGO Note Payment - - 43,622 87,461 87,946 86,742 84,919 42,285 116,488 85,899 93,377 47,095 90% PAYGO Note Through 2/1/2027Transfers Out - - - - - - - - - - - - Total 16,278 900 46,162 88,851 89,302 88,391 87,164 44,304 119,379 89,174 96,077 49,895 Cash Balance - Beginning- (16,278) (17,178) 33,598 42,166 50,880 57,233 64,034 105,143 73,801 87,477 96,055 Balance Sheet Effects - - - - - - (1) 1 - - Revenues - - 96,938 97,419 98,016 94,744 93,966 85,412 88,037 102,850 104,655 - Expenditures (16,278) (900) (46,162) (88,851) (89,302) (88,391) (87,164) (44,304) (119,379) (89,174) (96,077) (49,895) Cash Balance - Ending(16,278)$ (17,178)$ 33,598$ 42,166$ 50,880$ 57,233$ 64,034$ 105,143$ 73,801$ 87,477$ 96,055$ 46,160$ Y:\Finance\Budget\2027\Cash Flows\Special Revenue Funds261-Tax Increment (P&F) City of OtsegoTax Increment District No. 3Riverview LandingCash Flow SummaryRevised: August 7, 2026Actual Forecast2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 CommentsRevenuesTax Increments 245,355$ 255,696$ 258,568$ 258,568$ 258,568$ 258,568$ 258,568$ 258,568$ 258,568$ 258,568$ 258,568$ 258,568$ 2027 Estimated by Staff; then StableInvestment Interest - - - - - - - - - - - - Miscellaneous - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 245,355 255,696 258,568 258,568 258,568 258,568 258,568 258,568 258,568 258,568 258,568 258,568 ExpensesPersonal Services 1,566 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 1,798 1,700 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 TIF Reporting & PublishingPAYGO Note Payment 200,071 225,473 231,419 232,711 232,711 232,711 232,711 232,711 232,711 232,711 232,711 232,711 90% PAYGO Note Through 2/1/2046Transfers Out - - - - - - - - - - - - Total 203,435 228,373 234,519 235,811 235,811 235,811 235,811 235,811 235,811 235,811 235,811 235,811 Cash Balance - Beginning169,191 211,111 238,434 262,483 285,240 307,997 330,754 353,511 376,268 399,025 421,782 444,539 Balance Sheet Effects - Revenues 245,355 255,696 258,568 258,568 258,568 258,568 258,568 258,568 258,568 258,568 258,568 258,568 Expenditures (203,435) (228,373) (234,519) (235,811) (235,811) (235,811) (235,811) (235,811) (235,811) (235,811) (235,811) (235,811) Cash Balance - Ending211,111$ 238,434$ 262,483$ 285,240$ 307,997$ 330,754$ 353,511$ 376,268$ 399,025$ 421,782$ 444,539$ 467,296$ ProjectedY:\Finance\Budget\2027\Cash Flows\Special Revenue Funds262-Tax Increment (GA) City of OtsegoTax Increment District No. 4Riverbend NorthCash Flow SummaryRevised: August 7, 2026Actual Forecast2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 CommentsRevenuesTax Increments 256,997$ 285,527$ 304,186$ 304,186$ 304,186$ 304,186$ 304,186$ 304,186$ 304,186$ 304,186$ 304,186$ 304,186$ 2027 Estimated by Staff; then StableInvestment Interest - - - - - - - - - - - - Miscellaneous - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Total 256,997 285,527 304,186 304,186 304,186 304,186 304,186 304,186 304,186 304,186 304,186 304,186 ExpensesPersonal Services 1,931 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 Administrative ReimbursementServices & Other Charges 1,799 1,700 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 TIF Reporting & PublishingPAYGO Note Payment (A) 111,072 128,850 140,057 144,489 144,489 144,489 144,489 144,489 144,489 144,489 144,489 144,489 50% PAYGO Note A Through 2/1/2046PAYGO Note Payment (B) 111,072 128,850 140,057 144,489 144,489 144,489 144,489 144,489 144,489 144,489 144,489 144,489 50% PAYGO Note B Through 2/1/2046Transfers Out - - - - - - - - - - - - Total 225,873 260,699 283,214 292,077 292,077 292,077 292,077 292,077 292,077 292,077 292,077 292,077 Cash Balance - Beginning128,951 160,086 184,914 205,887 217,996 230,106 242,215 254,324 266,434 278,543 290,653 302,762 Balance Sheet Effects 11 Revenues 256,997 285,527 304,186 304,186 304,186 304,186 304,186 304,186 304,186 304,186 304,186 304,186 Expenditures (225,873) (260,699) (283,214) (292,077) (292,077) (292,077) (292,077) (292,077) (292,077) (292,077) (292,077) (292,077) Cash Balance - Ending160,086$ 184,914$ 205,887$ 217,996$ 230,106$ 242,215$ 254,324$ 266,434$ 278,543$ 290,653$ 302,762$ 314,872$ ProjectedY:\Finance\Budget\2027\Cash Flows\Special Revenue Funds263-Tax Increment (Riverbend) City of Otsego Special Revenue Fund Budget - 2027 Revenue & Expenditure Summary Actual Actual Year-to-Date Budget Budget 2024 2025 2026 2026 2027 Revenues Tax Increments 499,441$ 605,202$ 320,346$ 645,302$ 562,754$ Subtotal 499,441 605,202 320,346 645,302 562,754 Expenditures Personal Services 3,780 4,973 - 3,500 3,600 Services & Other Charges 5,022 5,396 1,673 5,100 5,400 Development Incentives 492,564 508,113 574,078 576,435 558,628 Subtotal 501,366 518,482 575,751 585,035 567,628 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,925)$ 86,720$ (255,405)$ 60,267$ (4,874)$ Description - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2024 2025 2026 2026 2027 Actual Actual Year-to-Date Budget Budget Expenditures Revenues City of Otsego Special Revenue Fund Budget - 2027 Tax Increment District #1 - Great River Centre Actual Actual Year-to-Date Budget Budget Fund Department Object Account Description 2024 2025 2026 2026 2027 Revenues 261 46580 31050 TAX INCREMENTS 88,037$ 102,850$ 52,328$ 104,561$ -$ TOTAL TAXES 88,037 102,850 52,328 104,561 - TOTAL REVENUES 88,037 102,850 52,328 104,561 - Expenditures 261 46580 119 PAYROLL ALLOCATION 1,217 1,476 - 1,000 1,000 TOTAL - PERSONAL SERVICES 1,217 1,476 - 1,000 1,000 261 46580 301 LEGAL SERVICES - - - - - 261 46580 339 DEVELOPMENT INCENTIVES 116,488 85,899 93,378 93,335 47,095 261 46580 350 PRINT & PUBLISHING 70 87 - 100 100 261 46580 390 CONTRACTED SERVICES 1,604 1,712 - 1,600 1,700 261 46580 441 LICENSES, TAXES & FEES - - - - - TOTAL - SERVICES & OTHER CHARGES 118,162 87,698 93,378 95,035 48,895 TOTAL EXPENDITURES 119,379 89,174 93,378 96,035 49,895 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (31,341)$ 13,676$ (41,050)$ 8,526$ (49,895)$ Fund 261 - Tax Increment District No. 1 (Great River Centre) Account Number City of Otsego Special Revenue Fund Budget - 2027 Tax Increment District #3 - Riverview Landing Actual Actual Year-to-Date Budget Budget Fund Department Object Account Description 2024 2025 2026 2026 2027 Revenues 262 46580 31050 TAX INCREMENTS 199,247$ 245,355$ 127,850$ 255,468$ 258,568$ TOTAL TAXES 199,247 245,355 127,850 255,468 258,568 TOTAL REVENUES 199,247 245,355 127,850 255,468 258,568 Expenditures 262 46580 119 PAYROLL ALLOCATION 1,303 1,566 - 1,200 1,300 TOTAL - PERSONAL SERVICES 1,303 1,566 - 1,200 1,300 262 46580 301 LEGAL SERVICES - - - - - 262 46580 339 DEVELOPMENT INCENTIVES 182,342 200,071 225,474 225,370 231,419 262 46580 350 PRINT & PUBLISHING 70 87 - 100 100 262 46580 390 CONTRACTED SERVICES 1,604 1,712 - 1,600 1,700 262 46580 441 LICENSES, TAXES & FEES - - - - - TOTAL - SERVICES & OTHER CHARGES 184,016 201,869 225,474 227,070 233,219 TOTAL EXPENDITURES 185,319 203,435 225,474 228,270 234,519 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 13,928$ 41,920$ (97,625)$ 27,198$ 24,049$ Fund 262 - Tax Increment District No. 3 (Guardian Angels Riverview Landing) Account Number City of Otsego Special Revenue Fund Budget - 2027 Tax Increment District #4 - Riverbend North Actual Actual Year-to-Date Budget Budget Fund Department Object Account Description 2024 2025 2026 2026 2027 Revenues 263 46580 31050 TAX INCREMENTS 212,157$ 256,997$ 140,169$ 285,273$ 304,186$ TOTAL TAXES 212,157 256,997 140,169 285,273 304,186 TOTAL REVENUES 212,157 256,997 140,169 285,273 304,186 Expenditures 263 46580 119 PAYROLL ALLOCATION 1,260 1,931 - 1,300 1,300 TOTAL - PERSONAL SERVICES 1,260 1,931 - 1,300 1,300 263 46580 301 LEGAL SERVICES - - - - - 263 46580 339 DEVELOPMENT INCENTIVES 193,735 222,143 255,226 257,730 280,114 263 46580 350 PRINT & PUBLISHING 70 87 - 100 100 263 46580 390 CONTRACTED SERVICES 1,604 1,712 1,673 1,600 1,700 263 46580 441 LICENSES, TAXES & FEES - - - - - TOTAL - SERVICES & OTHER CHARGES 195,409 223,942 256,899 259,430 281,914 263 46580 720 OPERATING TRANSFERS - - - - - TOTAL - INTERFUND TRANSFERS - - - - - TOTAL EXPENDITURES 196,669 225,873 256,899 260,730 283,214 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 15,489$ 31,124$ (116,730)$ 24,543$ 20,972$ 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 7, 2026Actual Forecast Budget2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 CommentsRevenues:Property Taxes 104,308$ 106,313$ 113,412$ 114,946$ 9,232$ 12,592$ 10,544$ 13,662$ 11,365$ -$ Levy per Bond Issuance DocumentsSpecial Assessments 119,114 109,193 105,630 102,066 56,120 54,040 51,960 49,879 47,799 - Not included: Delinquents ($343)Interest on Investments - - - - - - - - - - Bond Proceeds - - - - - - - - - - Transfers In - - - - - - - - - - Total 223,422 215,506 219,042 217,012 65,352 66,632 62,504 63,541 59,164 - Expenditures:Principal 200,000 205,000 210,000 220,000 225,000 60,000 65,000 65,000 70,000 70,000 Interest 38,956 32,881 26,656 20,206 13,531 9,256 7,381 5,391 3,282 1,094 Fiscal Agent Fees 745 700 700 700 700 700 700 700 700 700 Transfers Out - - - - - - - - - - Total 239,701 238,581 237,356 240,906 239,231 69,956 73,081 71,091 73,982 71,794 Cash Balance - Beginning419,525 404,097 381,022 362,708 338,814 164,935 161,611 151,034 143,484 128,666 Change in Accruals 851 Revenues 223,422 215,506 219,042 217,012 65,352 66,632 62,504 63,541 59,164 - Expenditures (239,701) (238,581) (237,356) (240,906) (239,231) (69,956) (73,081) (71,091) (73,982) (71,794) Cash Balance - Ending404,097$ 381,022$ 362,708$ 338,814$ 164,935$ 161,611$ 151,034$ 143,484$ 128,666$ 56,872$ Debt Service Until 2034Principal Balance1,190,000 985,000 775,000 555,000 330,000 270,000 205,000 140,000 70,000 - Blue cells = projections.ProjectedY:\Finance\Budget\2027\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 7, 2026Actual Forecast Budget Projected2025 2026 2027 2028 CommentsRevenues:Property Taxes 186,000$ 186,000$ 186,000$ -$ Alternative Levy - Calculated by StaffSpecial Assessments 53,316 50,168 - - No DelinquentsInterest on Investments - - - - Bond Proceeds - - - - Transfers In - - - - Total 239,316 236,168 186,000 - Expenditures:Principal 280,000 290,000 315,000 320,000 Interest 42,600 31,200 19,100 6,400 Fiscal Agent Fees 745 700 700 700 Transfers Out - - - - Total 323,345 321,900 334,800 327,100 Cash Balance - Beginning647,330 563,372 477,640 328,840 Change in Accruals 71 Revenues 239,316 236,168 186,000 - Expenditures (323,345) (321,900) (334,800) (327,100) Cash Balance - Ending563,372$ 477,640$ 328,840$ 1,740$ Debt Service Until 2028Principal Balance925,000 635,000 320,000 - Blue cells = projections.Y:\Finance\Budget\2027\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 7, 2026Actual Forecast Budget2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 CommentsRevenues:Property Taxes -$ 1,275,300$ 1,274,050$ 1,271,550$ 1,272,800$ 1,272,550$ 1,275,800$ 1,272,300$ 1,272,300$ 1,275,550$ 1,271,800$ 1,271,300$ Levy per Bond Issuance DocumentsInterest on Investments 23,115 2,537 - - - - - - - - - - Bond Proceeds - - - - - - - - - - - - Transfers In - - - - - - - - - - - - Remaining Construction Fund $$Total 23,115 1,277,837 1,274,050 1,271,550 1,272,800 1,272,550 1,275,800 1,272,300 1,272,300 1,275,550 1,271,800 1,271,300 Expenditures:Principal - - 525,000 550,000 575,000 605,000 635,000 670,000 700,000 735,000 775,000 810,000 Interest 439,759 750,300 737,175 710,300 682,175 652,675 621,675 589,050 554,800 518,925 481,175 441,550 Fiscal Agent Fees 250 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 440,009 752,800 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 1,254,050 Cash Balance - Beginning814,909 398,265 923,302 932,677 941,427 954,552 966,927 983,552 994,302 1,009,302 1,028,427 1,041,552 Change in Accruals 250 Revenues 23,115 1,277,837 1,274,050 1,271,550 1,272,800 1,272,550 1,275,800 1,272,300 1,272,300 1,275,550 1,271,800 1,271,300 Expenditures (440,009) (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) (1,254,050) Cash Balance - Ending398,265$ 923,302$ 932,677$ 941,427$ 954,552$ 966,927$ 983,552$ 994,302$ 1,009,302$ 1,028,427$ 1,041,552$ 1,058,802$ Debt Service Until 2046Principal Balance16,900,000 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 10,320,000 Callable - February 1, 2033Target Cash (100% of P / 50% of I)375,150 893,588 905,150 916,088 931,338 945,838 964,525 977,400 994,463 1,015,588 1,030,775 1,050,025 Ending - % of Next Year Target106% 103% 103% 103% 102% 102% 102% 102% 101% 101% 101% 101%ProjectedY:\Finance\Budget\2027\Cash Flows\Debt Service Funds303-EDA 2024A City of Otsego Debt Service Fund Budget - 2027 Revenue & Expenditure Summary Actual Actual Year-to-Date Budget Budget 2024 2025 2026 2026 2027 Revenues Taxes 299,144$ 290,308$ 783,807$ 1,567,613$ 1,573,462$ Special Assessments 180,602 172,430 81,870 160,924 105,630 Investment Interest (net) - 23,115 2,537 - - Bond Proceeds 814,909 - - - - Subtotal 1,294,655 485,854 868,214 1,728,537 1,679,092 Expenditures Principal 460,000 480,000 495,000 495,000 1,050,000 Interest 98,406 521,315 814,381 814,381 782,931 Fiscal Agent Fee's 1,347 1,740 3,490 3,900 3,900 Subtotal 559,753 1,003,055 1,312,871 1,313,281 1,836,831 Excess (Deficiency) of Revenues Over (Under) Expenditures 734,902$ (517,202)$ (444,657)$ 415,256$ (157,739)$ 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 2024 2025 2026 2026 2027 Actual Actual Year-to-Date Budget Budget Principal Interest Revenues City of Otsego Debt Service Fund Budget - 2027 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 2024 2025 2026 2026 2027 Revenues 376 47000 31010 CURRENT AD VALOREM TAXES 102,144$ 104,308$ 53,157$ 106,313$ 113,412$ 376 47000 36100 SPECIAL ASSESSMENTS 126,229 119,114 56,786 110,756 105,630 TOTAL 228,373 223,422 109,943 217,069 219,042 Expenditures 376 47000 601 PRINCIPAL 190,000 200,000 205,000 205,000 210,000 376 47000 602 INTEREST 44,806 38,956 32,881 32,881 26,656 376 47000 620 FISCAL AGENT FEE'S 674 745 495 700 700 TOTAL 235,480 239,701 238,376 238,581 237,356 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (7,107)$ (16,279)$ (128,433)$ (21,512)$ (18,314)$ Fund 376 - G.O. Improvement Bonds, Series 2018A Account Number City of Otsego Debt Service Fund Budget - 2027 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 2024 2025 2026 2026 2027 Revenues 380 47000 31010 CURRENT AD VALOREM TAXES 197,000$ 186,000$ 93,000$ 186,000$ 186,000$ 380 47000 36100 SPECIAL ASSESSMENTS 54,373 53,316 25,084 50,168 - TOTAL 251,373 239,316 118,084 236,168 186,000 Expenditures 380 47000 601 PRINCIPAL 270,000 280,000 290,000 290,000 315,000 380 47000 602 INTEREST 53,600 42,600 31,200 31,200 19,100 380 47000 620 FISCAL AGENT FEE'S 674 745 495 700 700 TOTAL 324,274 323,345 321,695 321,900 334,800 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (72,900)$ (84,029)$ (203,611)$ (85,732)$ (148,800)$ Fund 380 - G.O. Improvement Refunding Bonds, Series 2020A Account Number City of Otsego Debt Service Fund Budget - 2027 Fund 303 - Economic Development Authority - Lease Revenue Bonds, Series 2024A Fire Station Actual Actual Year-to-Date Budget Budget Fund Department Object Account Description 2024 2025 2026 2026 2027 Revenues 303 47000 31010 CURRENT AD VALOREM TAXES -$ -$ 637,650$ 1,275,300$ 1,274,050$ 303 47000 36210 INTEREST EARNINGS - 23,115 2,537 - - 380 47000 39300 BOND PROCEEDS 814,909 - - - - TOTAL 814,909 23,115 640,187 1,275,300 1,274,050 Expenditures 303 47000 601 PRINCIPAL - - - - 525,000 303 47000 602 INTEREST - 439,759 750,300 750,300 737,175 303 47000 620 FISCAL AGENT FEE'S - 250 2,500 2,500 2,500 TOTAL - 440,009 752,800 752,800 1,264,675 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 814,909$ (416,894)$ (112,613)$ 522,500$ 9,375$ Fund 303 - Economic Development Authority - Lease Revenue Bonds, Series 2024A Account Number City of OtsegoFund Balance Policy General Fund Transfer2026Calculation Comments2026 General Fund Budget 11,019,558 Resolution 2025-65Minimum Fund Balance 4,958,801 The City's Fund Balance states that the minimum General Fund Balance should be 45% of the subsequent year budget.2025 Ending Fund Balance 6,532,427 Per Audited Financial Statements(313,682) Less: Fund Balance from Insurance Reserve Fund (#204) - Grouped with General for Financial Reporting(74,462) Less: Fund Balance from Educational Programming Fund (#215) - Grouped with General for Financial Reporting(90,079) Less: Restricted Fund Balance - Public Safety Aid Distribution in 2023 (Restricted for Law Enforcement Contracts)(102,202) Less: Nonspendable Fund Balance - Financial Reporting Requirement - Funds actually have alredy been expended.(202,200) Less: Nonspendable Fund Balance - Financial Reporting Requirement - Future funds from land for resale proceeds.Fund Balance Available (Unassigned) 5,749,802 % of Current Year's Budget 52.18%Transfer 791,001 Presented to City Council for Discussion on August 10, 2026Y:\Finance\Budget\2027\General Fund\Calculation of Fund Balance Policy Transfers2026