C. 2011 Budget DiscussionFinance
We have included a calendar for the rest of the year reflecting meeting dates and
CITY OF
significant deadlines for completion of the 2011 budget. If any of the dates
Fax: 952.227.1110
MEMORANDUM
Cl""'1"'"'SE
let me know as soon as possible. Staff has moved the detailed discussion and
Phone: 952.227.1120
TO: Mayor and City Council
7700 Market Boulevard
previous years.
PO Box 147
FROM: Greg Sticha, Finance Director
Chanhassen, MN 55317
DATE: June 28, 2010 p
Administration
Phone: 952.227.1100
SUBJ: Preliminary 2011 Budget Discussion
Fax: 952.227.1110
BACKGROUND
Building Inspections
Phone: 952.227.1180
It is that time of year again when we begin preliminary discussion of the 2011
Fax: 952227,1190
budget. At this work session, the council will receive information on some of the
Engineering
factors that will influence the 2011 budget. Staff would like council feedback on
Phone: 952.227.1160
any items of concern and direction for department heads as they prepare their
Fax: 952,227.1170
budgets.
Finance
We have included a calendar for the rest of the year reflecting meeting dates and
Phone: 952.227.1140
significant deadlines for completion of the 2011 budget. If any of the dates
Fax: 952.227.1110
appear to conflict with other known city deadlines or budget requirements, please
Park & Recreation
let me know as soon as possible. Staff has moved the detailed discussion and
Phone: 952.227.1120
department PowerPoint presentations forward to August rather than October, as in
Fax: 952.227.1110
previous years.
Recreation Center
Market Value & New Construction Value
2310 Coulter Boulevard
mean property taxes will increase, assuming no change in the amount levied from
Phone: 952.227.1400
Fax: 952.227,1404
Carver County has informed us that new construction growth for 2010 was
Fax: 952.227.1310
1.06 %. This new construction value has a direct impact on the budgeting process
Planning&
and will result in an approximate $108,000 increase in new tax growth available
Natural Resources
for 2011. The total market value for the city did decrease (- 4.14 %) for 2010,
Phone: 952227.1130
which is used for 2011 property taxes.
Fax: 952.2271110
Web Site
www.ci.chanhassen.mn.us
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
It is extremely important to note that a decrease in total market value does not
Public Works
1591 Park Road
mean property taxes will increase, assuming no change in the amount levied from
Phone: 952.227.1300
the previous year. In the simplest terms, the tax rate is a product of the total
Fax: 952.227.1310
taxable market value and the total tax levy dollars requested. Attached is an
illustration that staff will review with council to help understand the decreased
Senior Center
value and the impact it will have on the city's tax rate and property tax bills.
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Preliminary 2011 Budget Discussion
June 28, 2010
Page 2 of 2
Cost of Living
The Consumer Price Index (CPI) for 2010 has remained relatively flat with
varying slight decreases on a monthly comparison from the previous year.
RECOMMENDATION
Staff requests feedback from the city council regarding the level of the initial tax
levy and how many alternative budget scenarios the city council would like to see.
Staff would also like feedback on the budget calendar and suggested shifting of
budget discussions to one meeting to become more efficient. This feedback will
give clear direction to department directors as they prepare their 2011 budget
requests.
ATTACHMENTS
1. 2011 Budget Calendar
2. 2010 Assessment Worksheet Summary from Carver County
3. Property Value vs. Tax Illustration
F: \GregS \Budget\2011 Budget \6 -28 prelim bud discussion.docx
2011 Budget Calendar
Date
Task
Forum
March 8, 2010
Review 2009 shortfall and recommend final transfers
Work Session
needed for closing 2009.
April 26, 2010
Review I" quarter revenue activity
Work Session
June 28, 2010
Review building activity and long term development
Work Session
trends of the city and impact on long term infrastructure
Discuss 2011 Budget expectations with City Council
Work Session
July 6, 2010
Distribute 2010 General Ledger Detail,
2011 Operating Budget Preparation Worksheets,
2011 -2015 CIP worksheets
July 12, 2010
Review long term financial planning documents with city
Work Session
Council
July 13, 2010
2011 Payroll and Revenue Projections Distributed
July 20, 2010
Completed Operating Budget Forms Returned to Finance
July 26, 2010
Review 2 nd quarter revenue activity to date and initial
Work Session
2011 assumptions used for 2011 budget preparation
August 2, 2010
Powerpoint for detailed budget discussion distributed
August 9, 2010
Preliminary Budget and Levy Discussion
Work Session
August 11, 2010
Department heads return their departments powerpoint
information
August 23, 2010
Work Session dedicated to detailed department review of
Work Session
Budgets (powerpoint presentation, cancel regular session ?)
September 13, 2010
Final review of preliminary 2010 Budget before setting
Work Session
Preliminary budget at City Council Meeting
September 13, 2010
Approval/Certification of Maximum Proposed
City Council Meeting
Preliminary Levy to Carver County Auditor
September 30, 2010
All 2011 -2015 CIP Requests Returned to Finance
October 25, 2010
Review 3` quarter revenue activity and review CIP
Work Session
November 8, 2010
Update City Council on any factors influencing 2011
Work Session
Budget. Review rate study with Ehler's.
November 22, 2010
Continue Rate Study, Budget or CIP discussion if needed
Work Session
December 6, 2010
Truth in Taxation Hearing
City Council Meeting
December 13, 2010
Adopt Final Levy & 2011 Budget and 2011 -2015 CIP
City Council Meeting
City of Chanhassen 2010 Assessment Summary
Chanhassen Value Distribution 2010
Residential
■ Commercial /In
dustrial
❑ Apartment
❑ Other
M Residential
84%
r-1 , „ 13 Other
dus_ '
Apartment
Other
Total
2010 EMV
$2,766,995,800
$445,042,500
$45,590,900
$45,844,200
$3,303,473,400
2009 EMV
$2,886,622,700
$451,250,700
$45,925,900
$62,354,600
$3,446,153,900
Total Value Change
($119,626,900)
($6,208,200)
($335,000)
($16,510,400)
($142,680,500)
New Construction
$31,339,200
$3,632,600
$0
$0
$34,971,800
Market Change
($150,966,100)
($9,840,800)
($335,000)
($16,510,400)
($177,652,300)
% New Construction
1.13%
0.82%
0.00%
0.00%
1.06%
% Market Change
-5.23%
-2.18%
-0.73%
- 26.48%
-5.16%
2010 Total % Increase
- 4.14 % IF
-1.38%
-0.73%
- 26.48%
-4.14%
Chanhassen Value Distribution 2010
Residential
■ Commercial /In
dustrial
❑ Apartment
❑ Other
M Residential
84%
r-1 , „ 13 Other
Example of Effect on Tax Rate
With Market Value Decrease
YEAR 1
YEAR 2
$10,000,000
Total Levy
$2,000,000 Taxable Market Value
X 25.00 Tax Rate
$10,000,000
Average Value Home: $350,000
City Property Tax Bill $1,500
$1,800,000 Taxable Market Value
X 25.25 Tax Rate
$10,000,000
Average Value Home: $315,000
City Property Tax Bill $1,500
Total Levy