Transcript Dundas Financial Overview

City Council Worksession
April 20, 2009
1.
2.
3.
4.
5.
Introduction (Mayor Switzer)
Where does the money come from.
Where is the money in Dundas (Fund
Bal.)
How does Dundas use the money.
Bond repayment.
1. Revenue
2. TIF
Real Estate Tax Levy
Local Government Aid ($86,589)
Other General Revenue
Water Sales
Other Water Revenue
Sewer Revenue
Other Sewer Revenue
Refuse Revenue
$651,000
$19,620
$148,095
$199,340
$67,950
$306,903
$43,000
$81,686
Total Estimated Revenue
$,1,517,594
2008
Levy
LGA
Tax Budget (State uses for Unallotment)
LGA as % of Tax Budget
$600,000
$86,589
$686,589
12.6%
2009
Levy
LGA (Governer’s cut)
Tax Budget
LGA as % of Tax Budget
$651,000
$49,336
$700,336
7.0%
Undeveloped Commercial Property along Highway 3
Property in Northfield pays $2,258 more per acre than
property in Dundas.
Similar Free Standing Retail along Highway 3
Property in Northfield pays $24,714 more per acre and
$1.10 more per square foot than property in Dundas.
Big Box Retail along Highway 3
Property in Northfield pays $5,656 more per acre and
$0.20 more per square foot than property in Dundas.

Cash Balances (unaudited)
Unreserved General Fund
$367,000

Enterprise Funds
$409,000

Tax Increment Funds
$666,000

Capital Improvement Funds
$23,000

Dundas Baseball Association
($7,600)
Dundas General Fund Cash Balances 2008
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Dec 07
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec 08
General Fund Cash Balance as a Percentage of General Fund
Budget - Dundas 2008
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Dec 07
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec 08

Water Utility Fund
$70,000

Sewer Utility Fund
$218,000


Water infrastructure
$31,000
Non-Major Enterprise Funds
$121,000

District 2 (K-Mart, DRW, Menards) $417,000

District 3 (College City Beverage)
$249,000

Park Dedication Fees
Park Development Fees
Library Capital Fund
Downtown Development
Street Lighting
Sewer Trunk Charge
Water Trunk Charge
Annexation Tax Rebate Fund

CI Fund Total

Due from Enterprise Funds

Cash Balance CI Fund

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




$73,000
$31,000
$39,000
$54,000
$39,000
$243,000
$243,000
$377,000
$1,099,000
$1,076,000
$23,000
2008

Revenue
Levy
Other Revenue
Total Revenue

2009
$600,000
$254,374
$651,000
$167,715
$854,374
$818,715
$280,801
$324,801
$119,281
$45,730
$86,496
$256,234
$354,374
$105,666
$44,389
$58,053
Expenditures
General Government
Public Safety
Streets
Culture and Recreation
Other Expenditures
Total Expenditures
$854,374
$818,715

Water Fund
Beginning Balance
Operating Income/(Exp.)
Net of other Cash Requirement
Ending Balance

Sewer Fund

Refuse Fund
Beginning Balance
Operating Income/(Exp.)
Net of other Cash Requirement
Ending Balance
Beginning Balance
Operating Income/(Exp.)
Ending Cash
$70,000
$135,900
($142,400)
($6,500)
$218,000
$158,900
($63,800)
$95,100
$3,100
$12,100
$15,200
G.O. Wastewater 1997A
G.O. Wastewater 1997B
G.O. Revenue 1998
G.O. Tax Increment 2003
G.O. W&S Revenue 2005
G.O. Tax Increment 2006A
G.O. W&S Revenue 2006B
G.O. Refunding 2006C
Issue
$927,469
$1,447,531
$1,390,000
$455,000
$3,310,000
$1,430,000
$1,320,000
$1,030,000
Total Remaining Bond Debt
Remaining
$506,502
$723,766
$50,000
$95,000
$3,065,000
$1,430,000
$1,320,000
$1,030,000
$8,220,268
$927,469 Bonds were issued in 1997.
 Revenue from sale of bonds used to pay for
necessary upgrades in the sanitary sewer
collection system.
 Bonds will be paid off in 2018.
 Principal and Interest are paid from revenues
generated in the Sewer Enterprise Fund.

$1,447,531 Bonds issued in 1997
Revenue from bonds used to pay for sanitary
sewer system upgrades.
 Bonds will be paid off in 2018
Bonds are 0.0% interest with principal paid by
a grant. City is required to set aside $0.10 /
1000 gallons of water sold to qualify for grant.
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

$3,310,000 Bonds were issued in 2005
 Bonds issued to pay for infrastructure
improvements including water towers, looping
and other improvements.
 Bonds will be paid off in 2025
Principal and interest paid by water and sewer
enterprise funds.


$1,320,000 Bonds were issued in 2006
 Revenue used to refund bonds issued in 1999
and 2002
 Bonds will be paid off in 2025
 Refunded bonds would have ended in 2042
 Interest savings = $640,387.69
 Principal and Interest is paid from Water and
Sewer Enterprise Fund Revenue

$1,030,000 Bonds were issued in 2006
 Refunded bonds issued in 1998
 Funds escrowed to pay 1998 Bonds on May 1,
2009 ($990,000)
 Bonds will be paid off in 2017
 Interest Savings = $187,347
 Refunded bonds would have been paid in 2023
 Principal is paid primarily from Water
Enterprise Fund

It is projected that borrowing from Development
Fees would be used to pay principal and
interest on the Revenue bonds until growth
and fees were adequate to pay for O&M and
service the debt.
Current projections suggest a negative cash flow
in the Water Enterprise Fund until 2013.
Current projections suggest a negative cash flow
in the Sewer Enterprise Fund until 2014.
Cumulative shortfall estimated to be $390,000
20 homes / year in 2009/2010
 30 homes / year in 2011 – 2013
 40 homes / year 2014 and up (growth
previously projected at 40 homes / year
beginning in 2006)
 154 building permits have been issued
(2005 – 2008)
Approximately 120 fully developed lots are
available with about 150 platted but
undeveloped lots.
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
Water rates will increase by the same amount as
the last 4 years until 2013.
$1.00 / month base and $0.40 / 1000 gallons.
No provision for water conservation.
Sewer rates will increase by the same amount as
the last 4 years until 2014.
$1.00 / month base and $1.00 / 1000 gallons
Project Area
The boundary of the City. (Modified in 1997)
TIF Districts
District #1(Heirloom): Decertified in 2001
District #2 (K-Mart, DRW, Menards):
Redevelopment District
Established 1989 – Required Decertification 2017
District #3 (College City Beverage):
Economic Development District
Established 2006 – Required Decertification 2016
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
District is scheduled to be decertified in 2017
 K-Mart bond paid off in 2009
 DRW PAYG note paid off in 2009
Menard’s PAYG note will be paid off in 2014
The City may be able to decertify early. It looks as if there
will be no obligations beyond 2014. K-Mart negotiated
a reduction in their assessed value which reduced the
TIF collected.
$1,430,000 Bonds were issued in 2006
 Paid for infrastructure improvements
associated with the CCB Development.
 Bonds will be paid off in 2017
Principal and Interest is paid by Tax Increment
paid by College City Beverage and a shortfall
agreement which guarantees payment if the
TIF tax does not meet the P&I payment.
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