3. Truth-in-Taxation HearingCity of Chanhassen
2008
Truth-in-Taxation
Hearing
December 1, 20081
Required Elements for
Truth in Taxation
Present the proposed 2009 budget.
?
Present the proposed 2009 tax levy.
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Discuss major changes to the budget
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and levy.
Hold the public hearing for citizen input
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and comments (December 1).
Adopt levy and budget on December 8.
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2
Budget Process
Preliminary budgets submitted by Department
?
Directors in July.
Budget reviewed by Finance Director and
?
City Manager in August.
Preliminary Tax Levy Adopted for Truth-in-Taxation
?
purposes on September 15.
Detail budget meetings held in October and
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November.
Truth-in-Taxation hearing held on December 1.
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Budget adoption on December 8.
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3
Expenditures
2008 2009 % Change
BudgetBudgetfrom 2008
$1,958,200$2,087,2006.6%
General Government
$2,939,600$3,108,0005.7%
Law Enforcement
$2,069,600$2,244,7498.5%
Public Works
$422,100$450,6006.7%
Community Development
$1,778,800$1,874,0005.4%
Park & Recreation
$150,000$150,0000.0%
Transfers for Roads
$9,318,300$9,914,5496.4%
Total
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Revenues
2008 2009 % Change
BudgetBudgetfrom 2008
$6,563,900$7,014,3986.9%
Property Tax
$1,437,800$1,451,100.9%
Licenses & Permits
$225,000$265,00017.7%
Intergovernmental Rev.
$621,100$574,000(7.6)%
Charges for Services
$157,500$158,500.6%
Fines & Penalties
$313,000$407,00030.0%
Other Revenue
$9,318,300$9,914,5496.4%
Total Revenue
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General Fund Expenditure History
$9,914,549
$9,318,300
$9,062,400
+6.4%
+3.0%
+5.2%
10000000
$8,307,920$8,615,100
5.6%+3.7%
9000000
$7,860,785
$7,860,785
0%
8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
2003200420052006200720082009
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What factors change
the budget for 2008?
Total General Fund expenditures
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increase 6.4%.
Wage and healthcare cost increases account
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for $306,700 (52%) of the increase.
Police contract accounts for $119,400 (20%) of
?
the increase.
Increased fuel and utility costs accounts for
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$126,000 (21%) of the increase.
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Tax Capacity Levy Changes
Tax Capacity Levies20072008% Chg
General Fund$6,833,900$7,228,949+5.8
Capital Replacement$824,000$824,000+0.0
MSA (Sealcoating)$267,875$267,875+0.0
General Obligation Debt$769,873$582,900-24.3
Local Street Improvements$100,000$0-100.0
EDA Debt$122,703$122,603-0.08
TOTAL TAX $8,918,351$9,026,327+1.2
CAPACITY LEVIES
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Market Value Levy Changes
Market Value Levies20072008% Chg
Park Referendum$425,914$612,387+43.8
Library Referendum$490,700$491,300+0.1
TOTAL MARKET $916,614$1,103,687+20.4
VALUE LEVIES
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Debt Service
The debt levy for 2009 remained the same as the
?
prior year. It is our intent to use reserves to keep
the debt levy flat until 2010, at which point excess
levy becomes available to help fund our streets
(revolving assessment fund).
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Net Tax Levy Effects
General Fund levy increase of 5.8%.
?
Total tax levy increase of $295,049 or 3.00%.
?
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Effect on Homeowners
Below are some examples of how the 2009 levy will
impact some property owners:
2008 2009 Percent 2008 City 2009 City Percent
ValueValueChangeProperty TaxProperty TaxChange
Parcel
1$253,000$250,300-1.1%$628.32$618.49-1.6%
2$354,900$350,600-1.2%$925.74$908.97-1.8%
3$547,400$545,800-.3%$1,474.94$1,515.472.75%
4$654,000$680,2004.0%$1,819.76$1,892.304.0%
5$963,600$964,600-.1%$2,821.53$2,804.27-.6%
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Recommendation
Hold continuation hearing, if needed, on
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Monday, December 8, 2008.
Adopt the tax levy and budget as shown
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on Monday, December 8, 2008.
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