City Council Workshop
Regular MeetingOakdale, MN · June 11, 2024
Minutes
WORKSHOP MINUTES
OAKDALE CITY COUNCIL
JUNE 11, 2024
The City Council held a workshop on Tuesday, June 11, 2024 at Oakdale City Hall, 1584
Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5:00 PM.
Present: Mayor Kevin Zabel
Council Members: Noah Her
Andy Morcomb
Susan Willenbring
Absent: Council Member Jake Ingebrigtson
City Staff Members: Christina Volkers, City Administrator
Sara Ludwig, City Clerk
Brian Bachmeier, Consulting City Engineer
Andy Gitzlaff, Community Development Director
Melanie Lee, Human Resources Director
Nick Newton, Police Chief
Lori Pulkrabek, Communications Manager
Kyle Stasica, Finance Director
Julie Williams, Recreation Superintendent
Kevin Wold, Fire Chief
Others Present: Jackie Huegel, Principal, MMKR
Laura Kittel, Tree Board Candidate
TREE BOARD INTERVIEW CANDIDATE: LAURA KITTEL
Mayor Zabel thanked and welcomed Tree Board (TB) Candidate Laura Kittel and explained
the interview process.
Ms. Kittel provided a brief introduction about her residency and interest in the Tree Board.
Discussion ensued about her reasons for applying to the Tree Board, if she had given any
thought to joining the Environmental Management Commission, and if she has any ideas
about incorporating green spaces within transportation corridors.
Ms. Volkers asked Ms. Kittel to provide her full home address to City Clerk Sara Ludwig as it
is a requirement to serve on a City advisory body.
Ms. Kittel asked how closely the Board works with the City Council. Mayor Zabel stated there
are three main events that the Tree Board focuses on throughout the year, but the Board is
working to help expand City offerings.
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JUNE 11, 2024
PAGE TWO
Additionally, Ms. Kittel asked if the Tree Board works with the other advisory bodies. Mayor
Zabel said that there has been a greater push and desire to have the advisory bodies work on
projects together.
DISCUSSION RE: TREE BOARD CANDIDATE INTERVIEW
Council was in agreement to move forward with appointing Ms. Kittel to the Tree Board. After
a brief discussion, it was determined that she would be appointed as part of the Council
agenda immediately following the workshop due to the Tree Board having a meeting on June
18, 2024.
REVIEW OF 2023 FINANCIAL AUDIT
Finance Director Kyle Stasica explained the reasoning for and process behind the 2023
financial audit.
Jackie Huegel, Principal with MMKR, briefly went over the auditor’s role and audit results. The
City received an unmodified or “clean” opinion which is the desired audit result. She noted
that the City did implement a new subscription standard as required by the Governmental
Accounting Standards Board (GASB).
In response to Council Member Morcomb’s question about the subscriptions becoming a
separate line item, Ms. Huegel stated they are still part of a lump sum within the expenditures,
but there is a footnote within the annual comprehensive report that lists out the subscriptions.
Ms. Huegel reviewed the remaining audit results, followed up on prior year’s findings, and
other recommendations. She recommended the City continue to review the processes and
internal controls in place over payroll transactions to ensure a proper segregation of duties.
Ms. Huegel presented the changes in the governmental fund balances by classification. Mayor
Zabel asked about the increase in the unassigned balance from year-end 2022 to year-end
2023. Ms. Huegel stated that it relates to the General Fund balance. Ms. Volkers added that
increased permit revenue, carryovers, and Special Revenue Fund balance all play a factor.
Next, Ms. Huegel went over the General Fund financial position, General Fund revenues, and
General Fund expenditures. As well as the changes in financial position for the Enterprise
Funds which consist of the Water Fund, Sewer Fund, Street Lights Fund, and Surface Water
Fund.
Ms. Volkers asked about the difference in the Water Fund 2023 Actuals found in the 2025
Operating Budgets Memo and the numbers found in the MMKR Water Fund revenue and
expense graph. Mr. Stasica explained that the numbers in the Memo incorporate transfers
which would not be found in the operating-only information in the MMKR graph. Mayor Zabel
added that the revenue transfers refer to assets versus cash.
WORKSHOP MINUTES
JUNE 11, 2024
PAGE THREE
Ms. Huegel explained the revenues and expenses chart for the Sewer Fund and Street Lights
Fund, and the government-wide statements.
In response to Council Member Morcomb’s question about the cost associated with the
separate audit that would be needed if the City received more than $750,000 in federal grant
funding, Ms. Huegel said it depends on the grant that is received.
Ms. Volkers complimented Mr. Stasica on his work to complete this audit in tandem with
MMKR. Mr. Stasica relayed thanks to City staff who helped during the audit process.
2025 OPERATING BUDGETS AND PROPERTY TAX LEVY PLANNING
Ms. Volkers stated that these are baseline budgets for the General, Enterprise, and Special
Revenue Funds. Mr. Stasica touched on what each baseline budget incorporates.
Mr. Stasica then went over the major budget assumptions for the permit’s revenue.
In response to Mayor Zabel’s question about the permit’s revenue assumptions, Community
Development Director Andy Gitzlaff explained that staff uses trendlines and estimates of
development projects to develop the anticipated permits revenue.
In response to Mayor Zabel’s question about the impact the decrease in anticipated permits
revenue has on the tax levy, Ms. Volkers said it is due to the delay between when permits are
pulled and when inspections are completed. Additionally, many contractors and one employee
that the City was using in 2022 and 2023 for inspections are no longer being used, which will
decrease expenses within the Building Inspection Department.
Mr. Stasica went over the major budget assumptions for the intergovernmental revenues.
In response to Mayor Zabel’s question about how the one-time public safety aid is classified,
Mr. Stasica stated the funds show as restricted within the General Fund.
Next, Mr. Stasica went over the major budget assumptions for other revenues and other taxes
revenue.
Mayor Zabel requested that any time a future Memo states an increase or decrease, the
calculation be included in parenthesis for context.
Mr. Stasica went over the major budget assumptions for the other financing sources revenue.
Mayor Zabel clarified that an increase or decrease transfer amount from the Enterprise Funds
to the General Fund is going to be based on the cash flow into the Enterprise Funds which are
determined by the utility rates. Mr. Stasica confirmed.
Mr. Stasica went over the major budget assumptions for the Enterprise Funds revenue and
Special Revenue Funds revenue.
WORKSHOP MINUTES
JUNE 11, 2024
PAGE FOUR
Moving on, Mr. Stasica reviewed the wage expenses and benefits expenses which relate to
cost-of-living adjustments and fixed contributions for benefits, among many other things
related to personnel.
In response to Council Member Morcomb’s question about whether benefits are included in
union contract negotiations, Ms. Volkers clarified that the only benefit within the union
contracts is the health savings account contribution she believes.
Mr. Stasica touched on the non-Employee expenses like supplies, operating, capital outlay,
etc.
Ms. Volkers asked about the percentage of the General Fund expenses for 2025 that is
employee-driven. Mr. Stasica stated that 90.5% is employee-driven and 9.5% is operational.
Mr. Stasica presented on the proposed tax levy, breaking it down by General, Capital
Improvement Plan (CIP), Debt Service, and Other.
In response to Mayor Zabel’s question about when the first year of Debt Service Fund
expenses for the new Public Works facility will be realized, Mr. Stasica said it will likely be
realized for year 2026 depending on the bond call and when the first payment is due.
In response to Mayor Zabel’s question about the 2025 proposed Debt Service Fund expense
of $1.8 million, Mr. Stasica explained that this is in line with existing and projected expenses;
however, additional funds of $800,000 may need to be added for the Willowbrooke Park and
new Public Works facility. Council Member Morcomb pointed out that if the voters approve the
additional local option sales tax (LOST) funding, the Debt Service Fund expense would
decrease.
Council Member Willenbring asked for clarification on the possibility of an additional
$800,000 in Debt Service Fund expenses in 2025. Mayor Zabel stated that this would be the
worst-case scenario, but the additional funds could be lower (i.e., $200,000) or $0 depending
on the LOST vote and when the bond payment comes due.
Ms. Volkers noted that the CIP may be overestimated for the 2025 proposed tax levy.
Mayor Zabel asked for a breakdown of the $1.8 million Debt Service Fund expense into
already-issued debt and upcoming planned-for debt. Mr. Stasica confirmed he will send that
information.
Mr. Stasica reviewed the position requests of Police Sergeant, Fire Marshal, Human
Resources Generalist, and Public Works Maintenance Worker. He noted that the expenses
related to these positions include benefits.
WORKSHOP MINUTES
JUNE 11, 2024
PAGE FIVE
In response to Mayor Zabel’s question about whether the Police Sergeant was covered with
the one-time public safety aid, Mr. Stasica stated that the aid was used to phase-in three other
Police Department positions in 2024.
Ms. Volkers brought up the possibility of budgeting for vacancies given the timeline it takes to
hire personnel once Council approves the final budget. Mayor Zabel and Council Member
Morcomb expressed support for this suggestion.
Mr. Stasica and Ms. Volkers explained how the Human Resources Generalist position is
considered a new position request.
In response to Council Member Morcomb’s question about the current Fire Marshal and
proposed Fire Marshal position, Fire Chief Kevin Wold explained that the current Fire Marshal
is hired on contract and works an average of ten hours per week. The proposed Fire Marshal
position will be full-time and handle additional inspections and other duties that the current
Fire Marshal does not handle.
Mayor Zabel suggested moving the specific Department and Fund budgets conversation to
the subsequent workshop meeting. The Council agreed.
Mayor Zabel stated that the 9.1% levy increase is not feasible given the minimal change in
property value.
Ms. Volkers restated that of the increase within the General Fund, 90.5% is personnel-related.
In relation to budgeting, Council Member Morcomb said that the City should assume the full
cost of every project moving forward including new City buildings and City infrastructure.
Ms. Volkers offered to provide a few options that may lower the 9.1% levy increase.
Mayor Zabel brought up the role of the City Council as it relates to personnel, stating that past
process has allowed for staff to make personnel decisions based on Council’s direction.
Council Member Morcomb agreed with keeping this process during the current budget cycle.
Council Member Her was pleased with the 9.1% levy increase as compared to the number
presented last year. He was supportive of letting staff work through the personnel decisions.
Council Member Willenbring agreed with the latter. She expressed concern about the Debt
Service Fund expense.
Mr. Stasica stated that the bond call will not occur until October 2024 so the final Debt Service
Fund expense will not be known until then.
In response to Council Member Her’s question about whether the CIP proposed budget
includes the Street Reconstruction and Overlay Projects, Ms. Volkers noted that a
conservative budgeted amount has been included, but the final budget may be less.
WORKSHOP MINUTES
JUNE 11, 2024
PAGE SIX
Mayor Zabel was supportive of a 5-6% levy increase. Council Member Morcomb agreed.
Council Member Willenbring noted that this is a tough, but necessary ask for staff.
Mayor Zabel pointed out that the City has several unique and valued services, such as an
ambulance service, that are associated with high costs.
Council Member Willenbring was not comfortable suggesting a proposed levy increase
percentage without all the information.
Given the discussion, Mayor Zabel clarified that only the Fund budgets conversation will take
place at the subsequent workshop meeting.
ADMINISTRATOR UPDATE
Ms. Volkers asked Police Chief Nick Newton to summarize the violations against Releaf Plus,
a business that has requested to renew their THC Sales License.
Chief Newton stated that State confiscated product and informed the City of the seizure.
Because of this, the City issued an administrative fine which has been paid by the business.
Ms. Volkers brought up the Strategic Planning location as she would like to go off-site to get
away from the day-to-day business environment. Suggestions included the Washington County
Historic Courthouse in Stillwater, a park, Cottage Grove, or Lake Elmo.
Mayor Zabel pointed out that State statute requires that public meetings be held within the
governing body’s jurisdiction. Additionally, because the Strategic Planning conversations
relate to the future of the City, he would like to ensure residents have the ability to observe if
they choose.
Council Member Her suggested using a facility at Tanners Lake, but was ultimately supportive
of Mayor Zabel’s sentiment.
Council Member Willenbring suggested a non-governmental building within the City, if
possible, if a location in Lake Elmo was not a possibility.
Mayor Zabel asked staff to check with City Attorney Jim Thomson about the laws surrounding
where the retreat could be held. Ms. Volkers will look into meeting space options within the
City.
Regarding the Oakdale Summerfest Community Organization, Ms. Volkers mentioned that
they need up to $15,000 to pay their expenses prior to Summerfest. She asked for
authorization of a $10,000 quick payment out of the Charitable Gambling Fund and up to
$15,000 as needed. The Council was supportive.
WORKSHOP MINUTES
JUNE 11, 2024
PAGE SEVEN
COUNCIL TOPICS
Mayor Zabel asked about the plan for the summer for the bathrooms at Tanners Lake Park.
Ms. Volkers confirmed they will only be open on the weekends.
Mayor Zabel brought up leaving them open overnight so long as problems do not arise. Staff
will discuss the suggestion at their weekly management team meeting, but the bathrooms will
only remain open on the weekends until further discussion takes place.
In reference to the roadmap for Strategic Planning, Mayor Zabel asked if there is a step
missing, specifically if there should be a meeting with the elected body, Ms. Volkers, and the
consultant to set the high-level vision for the City, or roadmap for the next two-to-three years,
prior to the larger group discussion with staff.
Council Member Willenbring pointed out that this vision could come out during the already-
planned Strategic Planning meetings. Mayor Zabel said this additional meeting would
establish the Council’s high-level priorities and values, and discuss big topics.
Council Members Morcomb and Her agreed with Mayor Zabel’s suggestion of an additional
meeting.
Council Member Willenbring stated that it should be a combination of City staff and the City
Council determining the values of the City and how those values are achieved.
It was determined that an additional meeting with the elected body, Ms. Volkers, and the
consultant would be set prior to the larger group meetings, understanding that the outcome
of this meeting could change given staff’s perspective.
Council Member Morcomb suggested asking for the consultant’s opinion about an additional
meeting.
Council Member Willenbring asked that the additional meeting be defined to better
understand the outcome goals for this meeting.
ADJOURNMENT
The workshop was adjourned at 6:58 PM.
Respectfully submitted,
Sara Ludwig, City Clerk
Agenda
AGENDA
City Council
Workshop Meeting
June 11, 2024
Hadley Conference Room
5:00 PM
5:00 PM Tree Board Interview Candidate: Laura Kittel
5:10 PM Discussion RE: Tree Board Interview Candidate
5:15 PM Review of 2023 Financial Audit
5:35 PM 2025 Operating Budgets and Property Tax Levy Planning
6:35 PM Administrator Update
6:40 PM Council Topics
6:55 PM Adjourn for Regular Meeting
COUNCIL MEMORANDUM
To: Honorable Mayor and City Council
From: Sara Ludwig, City Clerk
Date: June 11, 2024 Time: 5:00 PM
Subject: Tree Board Interview Candidate: Laura Kittel
BACKGROUND
At the June 11, 2024 work session, the City Council will interview Laura Kittel for consideration to serve
on the Tree Board. At this time, the Tree Board has one vacancy. City staff has interviewed the applicant
ahead of the Council work session.
Application and staff interview materials will be provided to the City Council under separate cover.
COUNCIL MEMORANDUM
To: Honorable Mayor and City Council
From: Kyle Stasica, Finance Director
Date: June 11, 2024 Time: 5:15 PM
Subject: Review of 2023 Financial Audit
BACKGROUND
Minnesota Statutes require that cities issue an annual financial report prepared in accordance with
generally accepted accounting principles (GAAP), and audited in accordance with those principles
by a firm of licensed certified public accountants or the Office of the State Auditor.
This report consists of management’s representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of all of
the financial information presented in this report.
The City of Oakdale’s financial statements have been audited by Malloy, Montague, Karnowski,
Radosevich & Co. P.A. (MMKR), a firm of licensed certified public accountants. The goal of the
independent audit was to provide reasonable assurance that the financial statements of the City
for the fiscal year ended December 31, 2023 are free of material misstatement. The independent
audit examined, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessed the accounting principles used and significant estimates made by
management; and evaluated the overall financial statement presentation. The independent audit
has issued an unmodified (“clean”) opinion on the City of Oakdale’s financial statements for the
year ended December 31, 2023.
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the
year ended December 31, 2022. This was the 33rd consecutive year that the City has achieved this
prestigious award. To be awarded a Certificate of Achievement, the City published an easily readable
and efficiently organized report. Staff believes this year’s report will satisfy the requirements as well,
and will submit the finished Annual Comprehensive Financial Report to the GFOA for consideration.
Jackie Huegel, Principal, from MMKR will present an overview of the audit process and results.
There is no action required of the City Council as this review is informational only.
The Annual Comprehensive Financial Report for fiscal year ending December 31, 2023 can be
found under the “City Budget & Financial Reports” on the City’s Finance Department webpage.
The Management Report and the Special Purpose Audit Report will be provided under separate
cover to the Mayor and Council.
Attachment
Presentation Slides
CITY OF OAKDALE
AUDIT REPORT
YEAR ENDED DECEMBER 31, 2023
Jaclyn M. Huegel, CPA
AUDITOR’S ROLE
● Opinions on Financial Statements
● Internal Controls and Compliance
Financial Statement Audit
MN Legal Compliance Audit
1
AUDIT RESULTS
● Basic Financial Statements
– Unmodified “Clean” Opinions
– Implemented New Subscription Standard
● Internal Control over Financial Reporting
– No findings for 2023
● Compliance – Financial Statement Audit
– No findings for 2023
● Minnesota Legal Compliance
– No findings for 2023
FOLLOW UP ON PRIOR
YEAR FINDINGS
● Prior Year Findings/Comments Corrected in
the Current Year
– Payroll Declaration
– City Policies
2
OTHER
RECOMMENDATIONS
● Payroll transactions
Review internal controls, processes, and
procedures over this transaction cycle
GOVERNMENTAL FUNDS
3
GENERAL FUND
FINANCIAL POSITION
GENERAL FUND
REVENUES
4
GENERAL FUND
EXPENDITURES
ENTERPRISE FUNDS
5
WATER FUND
SEWER FUND
6
STREET LIGHTS FUND
GOVERNMENT-WIDE
STATEMENTS
7
COUNCIL MEMORANDUM
To: Honorable Mayor and City Council
From: Kyle Stasica, Finance Director
Christina Volkers, City Administrator
Date: June 11, 2024 Time: 5:35 PM
Subject: 2025 Operating Budgets and Property Tax Levy Planning
BACKGROUND
Tonight’s discussion regarding the 2025 operating budgets and property tax levy is intended for City staff
to present City Council with baseline budgets for General, Enterprise, and Special Revenue Funds which
incorporate:
- Proposed grade / steps and cost of living adjustments (NOTE: 2024 is the union negotiation year
for all union contracts 2025 – 2027)
- Removal of one-time charges from prior year’s budget utilizing other funding resources
- General increases for contractual services and supplies
- City Administrator proposals on necessary increases to maintain current City services
- Staffing/position adjustments initiated by departments and proposed by City Administrator
- City Administrator proposals on support of requested increases to expand operations
City Council input on changes/enhancements/prioritization of activities will be gathered and relayed to
Department Heads to align City Council priorities with financial resources to provide Oakdale property
owners, residents, and visitors with quality City services at a responsible taxing level.
Staff was asked to adhere to the following budgetary principals as a guide:
• Budget decisions to consider and acknowledge both the short and long-term impacts.
• Stabilize revenues and expenditures, and eliminate unanticipated variances.
• Fund operations at a level to provide quality services at a reasonable cost.
• Maintain structural balance and appropriate fund balance levels.
• Consider additional investments when they help achieve City goals and provide a significant return
to the community.
• Seek to make a connection between resources and results.
Major Budget Assumptions
Revenues
Permits: The decrease in anticipated permit revenues is based on the guidance provided by the
Community Development and Building Inspection departments. The revenue assumptions are based on
development projects that staff believe are likely to move forward and lead to the commencement of
construction in 2024. This revenue figure will be revised during the budgeting cycle, as the certainty of
projects becomes clearer.
Intergovernmental: Decrease of $350,000 due to accounting treatment of the one-time public safety aid.
This aid was required to be fully recognized in 2023, and instead of revenue will be shown as a Use of
Fund Balance for 2025 of $300,000 in accordance with spending plan.
1
Other aids were reviewed and in the case of Local Government Aid, left unchanged until further
information is provided by the State of Minnesota. Police, Fire, & Highway Aid were increased $20,000,
$20,000, and $30,000, respectively, per review by department staff and their knowledge of the aid
formulas.
Other: Interest income increased $65,000 due to current market activity.
Other Taxes: Electric Franchise Fees increased $420,000 and Gas Franchise Fees increased $185,000
due to the change in the City’s franchise charges from fixed to percentage-based. Note that Xcel Energy
2022 percentage-based projections were used as benchmarks due to limited information available. The
first franchise fee statements with the new rates will be received in August for Second quarter and
November for Third quarter – these will allow for better projections for the 2025 budget.
Other Financing Sources: Each year the City transfers funding from the Enterprise Funds to the General
Fund to help cover administrative and shared costs expensed to the General Fund. Since 2021, the Water
and Sewer Funds have contributed $575,000 each, with the Street Light Fund contributing $50,000.
These amounts are unchanged for the 2025 planning. New for 2025, the General Fund includes use of
Fund Balance of $300,000 from the one-time public safety aid that was recognized in revenue during
2023. Per the July 11, 2023 Council Workshop, $300,000 is to be used in 2025 to phase in the
expenditures associated with the three police positions added with the 2024 budget.
Enterprise Funds: These revenues are very preliminary as they are heavily reliant on the Capital
Improvement Plan (CIP) which is planned to be first reviewed on July 23, 2024 per the budget calendar.
2023 actuals, not including potential capital contributions (accounting-only revenues), were reviewed
along with expected increases from the 2024 rate increases and new development were used to estimate
2025 revenues. Rate increases were not proposed without the CIP available.
Special Revenue Funds: 2023 actuals were used to estimate 2025 revenues with updates for change in
activity.
Expenses
Wages: The budget reflects a cost of living adjustment (COLA) and base pay schedule adjustments
(grade/step) as outlined in the classification and compensation plan, which was approved at the
November 9, 2021 City Council meeting.
Benefits: The budget reflects fixed contributions to the Public Employee Retirement Association (PERA),
Medicare and Social Security taxes, as well as a number of other benefits the City makes available to its
employees including health, dental, and disability insurances. Additionally, contributions to medical
savings plans and workers compensation insurance premiums are accounted for under the benefits
category as well. A 10% increase was assumed for health and 8% for dental insurance increases, although
these increases could be significantly higher and we won’t get that information for a couple more months.
Non-Employee: Categories such as Professional Services, Supplies, Operating, Other, and Capital Outlay
were reviewed in detail and updated by department staff. Significant changes or service level adjustments
were described by department staff and noted on each department OpenGov Highlights page.
2
Proposed Levy
The table below summarizes the total levy impact at this point of the 2025 budget planning phase. The
total impact is $1,646,611 or a 9.1% levy increase, compared to 2024. It’s important to note that the CIP
levy is based on the 2024-2028 CIP and the Debt Service levy is based on the City’s current debt
issuances.
Levy Adopted 2022 2023 2024 2025 Proposed % Change
General 10,798,983 12,631,812 14,352,993 15,741,508 9.7%
Capital Improvement Plan 640,000 1,143,346 1,690,000 2,168,449 28.3%
Debt Service 2,520,139 2,289,699 2,022,665 1,802,312 -10.9%
Other 384,500 0 0 0 0.0%
Total Levy Adopted 14,343,622 16,064,857 18,065,658 19,712,269 9.1%
Position Requests
The final request of departments during this initial phase of the planning cycle was to provide justification
for any reclassifications or new positions. These requests were then reviewed and screened by City
Administrator Volkers based on overall City operational needs and priorities. Each position requested,
with the exception of those classified as temporary are presumed to be benefit eligible, subject to the
City’s classification and compensation schedule, and budgeted according to union agreements, if
applicable. The detailed list of positions will be provided under separate cover. The total impact is
estimated to be $511,418 for new positions and $87,499 for reclassifications.
General Fund
The General Fund is established to account for the revenues and expenditures to carry out basic
governmental activities of the City in the broad categories of general government, public safety, public
works, parks and recreation, and government building maintenance. The proposed 2025 budget includes
increases from 2024 of $1,934,381 or 8.7%. See below for tables of revenue by category, expenditures
by category, and expenditures by department. Full details will be provided under separate cover.
(100) General Fund
2024 Original 2025 Original
Revenue Category 2022 Actual 2023 Actual Budget Budget % Change
Ad Valorem Taxes 10,837,430 12,463,222 14,372,493 15,761,008 9.7%
Other taxes 696,161 680,669 620,195 1,228,000 98.0%
Special Assessments 1,050 2,262 0 0 0.0%
Licenses 404,182 518,143 408,791 427,786 4.6%
Permits 2,338,647 2,532,955 1,572,939 1,306,780 -16.9%
Intergovernmental 1,209,061 2,715,415 1,965,676 1,686,176 -14.2%
Charges for Services 185,016 1,748,321 1,423,288 1,513,513 6.3%
Fines & Penalties 107,286 121,587 101,500 111,500 9.9%
Other 493,039 1,018,385 547,100 611,600 11.8%
Other Financing Sources 1,666,774 1,463,602 1,200,000 1,500,000 25.0%
Total Revenues 17,938,645 23,264,561 22,211,982 24,146,363 8.7%
3
(100) General Fund
2024 Original 2025 Original
Expenditure Category 2022 Actual 2023 Actual Budget Budget % Change
Personnel 8,890,551 11,655,753 12,978,449 14,086,404 8.5%
Benefits 2,923,465 3,953,987 4,548,926 5,192,206 14.1%
Professional Services 2,596,624 2,425,080 2,440,596 2,567,838 5.2%
Supplies 764,337 904,329 1,208,450 1,237,415 2.4%
Operating 453,853 559,430 679,705 690,359 1.6%
Other 164,892 163,807 228,631 238,526 4.3%
Capital Outlay 67,241 97,564 127,225 133,615 5.0%
Other Financing Uses 310,968 348,320 0 0 0.0%
Total Expenditures 16,171,931 20,108,269 22,211,982 24,146,363 8.7%
(100) General Fund
2024 Original 2025 Original
Department Expenditure 2022 Actual 2023 Actual Budget Budget % Change
(0000) Non-Departmental 305,968 348,320 0 0 0.0%
(1000) City Council 73,553 50,496 88,572 70,776 -20.1%
(1100) Administration 537,012 589,233 802,555 897,737 11.9%
(1110) Elections 85,261 11,130 97,088 55,000 -43.4%
(1200) Legal Services 456,047 491,987 502,827 580,806 15.5%
(1300) Communications 182,416 251,682 303,602 324,571 6.9%
(1400) Human Resources 344,941 381,782 406,438 439,347 8.1%
(1500) Risk Management 367,805 487,752 617,157 669,549 8.5%
(1600) Information Tech 504,990 722,797 748,952 747,971 -0.1%
(1700s) Finance 787,173 937,895 1,086,236 1,202,941 10.7%
(1800) Community Develop. 510,478 518,065 578,891 655,277 13.2%
(1900s) Facilities Maint. 422,117 493,730 650,002 671,918 3.4%
(2000) Police 5,926,153 6,435,121 7,104,052 7,943,523 11.8%
(2100) Fire/EMS 1,510,303 3,994,950 4,081,721 4,504,166 10.3%
(2300) Building Inspections 720,451 748,006 680,345 619,166 -9.0%
(3000) Engineering 551,464 398,723 527,203 575,829 9.2%
(3100s) Parks 1,224,688 1,359,186 1,587,661 1,717,528 8.2%
(3300s) Streets 805,812 950,058 1,215,122 1,283,080 5.6%
(3400s) Fleet 426,645 465,135 602,905 634,182 5.2%
(4000s) Recreation 428,654 472,222 530,653 552,996 4.2%
Total Expenditures 16,171,931 20,108,269 22,211,982 24,146,363 8.7%
Enterprise and Special Revenue Fund Budgets
Enterprise funds are generally supported by user fees, while expenses are largely driven by the acquisition
of each utility and funding for future capital projects. Special Revenue Funds are used to account for
specific revenue sources that are restricted or committed to expenditures for specified purposes. See
below for tables for each fund including revenue and expenditures by category. Full details will be
provided under separate cover.
4
Water Fund
The Water Fund accounts for the water service charges which are used to finance the water system
operating and capital expenses. The proposed 2025 budget includes increases from 2024 of $285,897
or 6.6%. Note the below table is based on full accrual accounting which includes capital contribution
revenue and depreciation expense.
(700) Water
2024 Original 2025 Original
Expense Category 2022 Actual 2023 Actual Budget Budget % Change
Revenue 3,124,518 6,958,929 3,500,015 3,877,388 10.8%
Personnel 390,514 452,272 489,772 560,193 14.4%
Benefits 202,503 254,438 239,332 294,811 23.2%
Professional Services 304,366 363,507 471,855 484,005 2.6%
Supplies 352,607 704,038 689,000 726,438 5.4%
Operating 459,900 476,481 460,800 476,715 3.5%
Other 74,844 112,982 109,900 114,394 4.1%
Capital Outlay 620,990 622,122 681,727 681,727 0.0%
Other Financing Uses 1,025,000 1,075,000 1,165,000 1,255,000 7.7%
Total Expenses 3,430,724 4,060,839 4,307,386 4,593,283 6.6%
Net -306,206 2,898,090 -807,371 -715,895
Sewer Fund
The Sewer Fund accounts for the sewer service charges which are used to finance the sewer system
operating and capital expenses. The proposed 2025 budget includes increases from 2024 of $272,055
or 5.1%. Note the below table is based on full accrual accounting which includes capital contribution
revenue and depreciation expense.
(725) Sewer
2024 Original 2025 Original
Expense Category 2022 Actual 2023 Actual Budget Budget % Change
Revenue 5,342,933 6,138,765 4,820,000 4,820,000 0.0%
Personnel 225,856 294,616 334,729 371,743 11.1%
Benefits 139,524 198,842 185,803 223,428 20.2%
Professional Services 121,561 130,680 190,785 160,785 -15.7%
Supplies 29,637 23,025 59,000 74,000 25.4%
Operating 2,538,814 2,575,624 2,714,178 2,787,100 2.7%
Other 76,031 112,978 109,900 114,394 4.1%
Capital Outlay 438,990 498,782 504,715 489,715 -3.0%
Other Financing Uses 1,353,593 1,115,000 1,265,000 1,415,000 11.9%
Total Expenses 4,924,005 4,949,547 5,364,110 5,636,165 5.1%
Net 418,928 1,189,218 -544,110 -816,165
5
Street Light Fund
The Street Light Fund accounts for the charges which are used to finance the street light operating and
capital expenses. The proposed 2025 budget includes increases from 2024 of $8,085 or 0.9%. Note the
below table is based on full accrual accounting which includes capital contribution revenue and
depreciation expense.
(750) Street Light
2024 Original 2025 Original
Expense Category 2022 Actual 2023 Actual Budget Budget % Change
Revenue 1,104,301 1,756,248 625,000 640,000 2.4%
Personnel 67,864 81,794 78,985 93,084 17.9%
Benefits 22,673 25,386 26,675 34,161 28.1%
Professional Services 32,462 37,297 62,050 43,050 -30.6%
Supplies 21,928 20,704 31,250 31,750 1.6%
Operating 190,952 189,162 202,500 202,500 0.0%
Other 0 0 0 0 0.0%
Capital Outlay 380,899 433,605 276,761 276,761 0.0%
Other Financing Uses 388,000 140,211 200,000 205,000 2.5%
Total Expenses 1,104,778 928,159 878,221 886,306 0.9%
Net -477 828,089 -253,221 -246,306
Surface Water Fund
The Surface Water Fund accounts for the surface water charges which are used to finance the storm and
surface water management operating and capital expenses. The proposed 2025 budget includes
decreases from 2024 of $42,311 or -6.8%. Note the below table is based on full accrual accounting
which includes capital contribution revenue and depreciation expense.
(775) Surface Water
2024 Original 2025 Original
Expense Category 2022 Actual 2023 Actual Budget Budget % Change
Revenue 987,294 7,892,013 756,480 770,000 1.8%
Personnel 228,294 203,345 203,493 166,073 -18.4%
Benefits 66,181 59,844 67,873 62,682 -7.6%
Professional Services 15,543 45,897 98,250 98,250 0.0%
Supplies 17,589 13,912 25,750 25,750 0.0%
Operating 0 8,091 1,150 1,150 0.0%
Other 3,879 4,651 5,000 5,300 6.0%
Capital Outlay 0 0 0 0 0.0%
Other Financing Uses 120,000 1,388,674 220,000 220,000 0.0%
Total Expenses 451,485 1,724,413 621,516 579,205 -6.8%
Net 535,809 6,167,600 134,964 190,795
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Forfeiture Fund
The Forfeiture Fund administers the resources acquired through law enforcement investigation and
confiscations as permitted by State statute. The proposed 2025 budget includes increases from 2024 of
$16,000 or 28.6%.
(202) Forfeiture
2024 Original 2025 Original
Expenditure Category 2022 Actual 2023 Actual Budget Budget % Change
Revenue 5,606 98,423 0 0 0.0%
Professional Services 0 0 56,000 56,000 0.0%
Supplies 1,848 0 0 0 0.0%
Operating 1,260 4,040 0 0 0.0%
Capital Outlay 990 61,784 0 16,000 0.0%
Total Expenditures 4,097 65,823 56,000 72,000 28.6%
Net 1,509 32,600 -56,000 -72,000
Community and Economic Development Fund
The Community and Economic Development Fund administers the resources for low interest loans to
businesses. The purpose of the fund is to promote development, create job opportunities, and expand
the local tax base. The proposed 2025 budget includes decreases from 2024 of $67,500 or -60.0%.
(220) Community and Economic Development
2024 Original 2025 Original
Expenditure Category 2022 Actual 2023 Actual Budget Budget % Change
Revenue 88,839 58,364 0 0 0.0%
Professional Services 59,567 72,935 112,500 45,000 -60.0%
Operating 0 0 0 0 0.0%
Other 124,859 0 0 0 0.0%
Total Expenditures 184,426 72,935 112,500 45,000 -60.0%
Net -95,587 -14,571 -112,500 -45,000
Charitable Gambling Fund
The Charitable Gambling Fund administers the resources contributed by nonprofit organizations that
participate in charitable gambling within the City. The proposed 2025 budget includes increases from
2024 of $5,750 or 3.1%.
(282) Charitable Gambling
2024 Original 2025 Original
Expenditure Category 2022 Actual 2023 Actual Budget Budget % Change
Revenue 76,977 88,324 73,200 73,200 0.0%
Professional Services 0 0 12,500 6,250 -50.0%
Other 0 16,000 16,000 28,000 75.0%
Capital Outlay 0 0 156,052 156,052 0.0%
Other Financing Uses 0 0 0 0 0.0%
Total Expenditures 0 16,000 184,552 190,302 3.1%
Net 76,977 72,324 -111,352 -117,102
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COUNCIL DIRECTION REQUESTED
Staff would feedback and intent from the Council on:
• The overall budget and tax levy for 2025
• Position requests
• Presumed changes for non-employee related expenses
• Specific Department and Fund budgets
Remaining Budget Calendar
June 12, 2024 or shortly thereafter
Operating budgets are distributed to Department Heads with Council intent.
June 26, 2024
Council requested changes to the operating budget to be completed and returned to Finance.
June 26 – July 23, 2024
City Administrator & Finance Director review revised budgets. Finance Director communicates
feedback/changes to Department Heads.
July 9, 2024
Capital Improvement requests for 2025-2029 are due back to Finance.
July 23, 2024
City staff presents Council with department proposed 2025-2029 CIP including the 2025-
2034 Vehicle and Equipment Replacement Plan.
August 14, 2024
Proposed 2025 General Fund budget is presented to City Council.
August 27, 2024
Proposed Enterprise and Special Revenue Funds budgets are presented to City Council.
September 10, 2024
City Council certifies 2025 Proposed Property Tax Levy and sets meeting date for the Truth in
Taxation meeting.
November 12, 2024
Council Budget Workshop to review final changes if any.
Mid-November 2024
Proposed Property Tax (Truth in Taxation) notices sent by County to all property owners in the City.
December 10, 2024
Truth in Taxation meeting for 2025 Budget and Tax Levies. City Council adopts 2025 Budget, 2025
Tax Levy, and 2025-2029 CIP including the 2025-2034 Vehicle and Equipment Replacement
Plan.
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