4. 2010 Preliminary Levy Approval
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952,227,1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227,1160
Fax: 952,227,1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952,227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952,227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952,227,1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952,227,1110
Web Site
www.ci.chanhassen.mn.us
L/-
-
MEMORANDUM
TO: Mayor and City Council
Greg Sticha, Finance Director &.7 .
FROM:
DATE:
b~'
September 14, 2009
SUBJ:
2010 Preliminary Levy Approval
BACKGROUND
At our meetings in August, staff reviewed with the City Council the upcoming
budget calendar, some of the assumptions used in initial preparations of the 2010
budget, and five scenarios for setting a preliminary levy. At this evening's
meeting, staff will briefly review this information again. At the end of the
discussion, the council must approve a preliminary levy that needs to be
submitted to the county on September 15th.
Attached are a number of key documents that will assist you in our long term
planning process and the PowerPoint that I will be presenting at the meeting.
ATTACHMENTS
1. Levy Impact Scenarios
2. Debt Levy Schedule
3. KFS General Fund Projections
4. Revolving Assessment Construction Fund
5. Preliminary Levy PowerPoint Presentation
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
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CITY OF CHANHASSEN (DECEMBER)
TAX LEVY
2010 Budget
2009 2010 Percent
TAX CAPACITY BASED TAX LEVY Levy Levy Increase
General Fund $7,173,500 $7,593,223 5.85% 419,723
Capital Replacement Fund (for equipment) 824,000 824,000 0.00%
Pavement Mgmt Fund (Sealcoating) 267,875 200,000 -25.34%
General Obligation Debt 297,900 0 -100.00%
General Obligation Debt (212 Bonds) 285,000 285,000 0.00%
Audubon 400,000 0.00%
Public Works Facility 599,300 100.00%
Debt of Other Agencies (EDA) 122,603 122,195 -0.33%
TOTAL TAX CAPACITY BASED TAX LEVIES $8,970,878 10,023,718 11.74%
MARKET VALUE TAX LEVY
Park Referendum 972,700 -100.00%
Library Referendum 491,300 496,400 1.04%
TOTAL MARKET VALUE TAX LEVY $1,464,000 $496,400 -66.09%
Use of cash reserves to buy down debt levies ($360,313) ($93,705)
TOTAL TAX LEVY $10,074,565 $10,426,413 3.49%
Dollar Increase $351,848
LEVY MAX
Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5
Full FTE + Full FTE + Full FTE - Minus 1 FTE - Minus 2 FTE -
Deputy + $53K Deputy - $53K Deputy - $53k Deputy - $53k Deputy. $53k
Taxes applied to: General Fund $ 7,593,223 $ 7,540,000 $ 7,452,000 $ 7,380,000 $ 7,320,000
Capital Replacement 824,000 824,000 824,000 824,000 824,000
Pavement Mgmt 200,000 200,000 200,000 200,000 200,000
Total Levy subject to levy limits $8,617,223 $8,564,000 $8,476,000 $8,404,000 $8,344,000
Bond Funds 1,502,895 1,502,895 1,502,895 1,502,895 1,502,895
Audubon 400,000 400,000 400,000 400,000 400,000
Reduction in DS Levy (93,705) (93,705) (93,705) (93,705) (93,705)
Total $10,426,413 $10,373,190 $10,285,190 $10,213,190 $10,153,190
Tax Generation Capacity
Prior Year $10,074,565 $10,074,565 $10,074,565 $10,074,565 $10,074,565
New Construction $139,000 $139,000 $139,000 $139,000 $139,000
Exsiting MV Inc $0 $0 $0 $0 $0
TIF Dist 1 $0 $0 $0 $0 $0
Eden Trace TIF $0 $0 $0 $0 $0
Gateway TIF $0 $0 $0 $0 $0
Total Capacity $10,213,565 $10,213,565 $10,213,565 $10,213,565 $10,213,565
Estimated Effect on avg Taxpayer 2.08% 1.56% 0.70% 0.00% -0.59%
Estimated Dollar Effect on avg Taxpayer $ 18.80 $ 14.10 $ 6.40 $ $ (5.30)
9/8/2009
2010 Preliminary Levy
Budget Calendar
· September 14th - Set preliminary levy, preliminary levy
certification form given to county tomorrow.
· October 26th - Work session dedicated to department-by-
department review of budget (regular session canceled)
· November 9th - Work session to discuss annual utility rate
study and five year CIP. Additional time for budget
discussion if needed.
· November 23rd - Work session to discuss any remaining
budget, Clp, or Utility Rate issues.
· December 7th - Hold public budget meeting.
· December 14th - Set final 2010 tax levy, adopt 2010-2014
Clp, and set utility rates for 2010.
1
9/8/2009
Budget Assumptions
· A zero percent wage increase for all employees in 2010.
· A reduction in the amount of the levy for the street
reconstruction fund of $100,000.
· A $650,000 reduction in estimated permit revenues
for 2010.
· Allowing for an increase in the levy for new
construction of about $139,000.
· Moving software annual upgrade costs to the CIP.
· Eliminating scanning services and temporary salaries
in building department budget ($30,000 total).
Scenario #1
· Levy - Scenario #1 would be an increase in the
prior year levy by $351,848, of which $139,000
would be absorbed by new growth.
· Potential Budget Impact- This scenario would
allow for all services and most of the street
reconstruction levy to remain in the budget.
· Impact - The result of this levy would be about a
2.08% increase or just over an $18 increase to
the average valued home.
2
9/8/2009
Scenario #2
· Levy - Scenario #2 would be an increase in the
prior year levy by $298,625, of which $139,000
would be absorbed by new growth.
· Potential Budget Impact - This scenario would
allow for all services to remain in the budget, but
the street reconstruction levy would be about
$100,000 less.
· Resident Impact - The result of this levy would be
about a 1.56% increase or just over a $14 increase
to the average valued home.
Scenario #3
· Levy - Scenario #3 would be an increase in the
prior year levy by $210,625, of which $139,000
would be absorbed by new growth.
· Potential Budget Impact - This scenario would
most likely result in the elimination of the
scheduled hiring of the patrolman and the
reduction in the street levy, but would keep all other
employees and services in place.
· Resident Impact - The result of this levy would be
about a .70% increase, or just over a $6 increase to
the average valued home.
3
9/8/2009
Scenario #4
· Levy - Scenario #4 would be an increase in the prior
year levy by $139,000, which would be completely
absorbed by new growth.
· Potential Budget Impact - This scenario would most
likely result in the elimination of the scheduled hiring
of the patrolman, reduction in the street levy, and the
reduction of one FTE at city hall.
· Resident Impact - The result of this levy would be no
increase in the city's share of property taxes to the
average valued home.
Scenario #5
· Levy - Scenario #5 would be an increase in the prior
year levy by about $78,000, which would be completely
absorbed by the estimated $139,000 in new growth.
· Potential Budget Impact - This scenario would most
likely result in the elimination of the scheduled hiring
of the patrolman, reduction in the street levy, and the
reduction of two FTE's at city hall.
· Resident Impact - The result of this levy would be a
decrease in the city's share of property taxes to the
average valued home by about .6% or just over $5.
4
9/8/2009
Recommendation
· Staff recommends setting a
preliminary levy using
Scenario #2 to allow for
flexibility and planning before
setting a final levy in December.
1