A-1. 2011 Budget LevyBuilding Inspections
BACKGROUND
At-
CITY OF
Fax: 952227.1190
At our meetings in August, staff reviewed the detailed budgets and three scenarios
Engineering
MEMORANDUM
CHMNSEN
will briefly review some of this information one more time, as well as go through
Fax: 952.227.1170
the attached PowerPoint presentation. At the end of the discussion, the council
TO:
Mayor and City Council
7700 Market Boulevard
September 15
Phone: 952227.1140
PC Box 147
FROM:
Greg Sticha, Finance Director
Chanhassen, MN 55317
DATE:
September 13,
increasing 25 %, which is exactly the amount that was budgeted in the preliminary
Phone: 952.227.1120
2010
Administration
session meeting on Monday.
Senior Center
Phone: 952.227.1100
SUBJ:
2011 Preliminary Levy Approval
Fax: 952227.1110
Building Inspections
BACKGROUND
Phone: 952.227.1180
Fax: 952227.1190
At our meetings in August, staff reviewed the detailed budgets and three scenarios
Engineering
for setting a preliminary levy with City Council. At this evening's meeting, staff
Phone: 952.227.1160
will briefly review some of this information one more time, as well as go through
Fax: 952.227.1170
the attached PowerPoint presentation. At the end of the discussion, the council
Natural Resources
must approve a preliminary levy that needs to be submitted to the county on
Finance
September 15
Phone: 952227.1140
Fax: 952227.1110
ATTACHMENTS
1591 Park Road
Since our last meeting, staff has received confirmation that healthcare costs are
Park & Recreation
increasing 25 %, which is exactly the amount that was budgeted in the preliminary
Phone: 952.227.1120
document. Staff will answer any questions about the healthcare bids at the work
Fax: 952.227.1110
session meeting on Monday.
Recreation Center
RECOMMENDATION
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
It is staff's recommendation that a preliminary levy be set at Scenario #1. It is
staff's belief that scenario #1 gives the city the most flexibility in the event of
Planning &
significant or unplanned cost increases or fluctuations between now and
Natural Resources
December. As a reminder, the final levy set in December can be lower than the
Phone: 952.227.1130
preliminary levy, but it cannot be set higher than the preliminary levy.
Fax: 952.227.1110
Public Works
ATTACHMENTS
1591 Park Road
Phone: 952.227,1300
1. Levy Impact Scenarios
Fax: 952.227.1310
2. Preliminary Levy PowerPoint Presentation
3. Preliminary Levy Resolution
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
wwaci.chanhassen.mn.us
fAgregs \budget\2011 bud.et \9 -13 prelim bud discussion.docx
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
CITY OF CHANHASSEN (DECEMBER)
TAX LEVY
2011 Budget
TAX CAPACITY BASED TAX LEVY
General Fund
Capital Replacement Fund (for equipment)
Pavement Mgmt Fund (Sealcoating)
General Obligation Debt (212 Bonds)
Audubon
Public Works Facility
Debt of Other Agencies (EDA)
TOTAL TAX CAPACITY BASED TAX LEVIES
MARKET VALUE TAX LEVY
Library Referendum
TOTAL MARKET VALUE TAX LEVY
Use of cash reserves to buy down debt levies
TOTAL TAX LEVY
Dollar Increase
Taxes applied to:
Tax Generation Capacity
General Fund
Capital Replacement
Pavement Mgmt
Total Levy subject to levy limits
Bond Funds
Audubon
Reduction in DS Levy
Total
2010
2011
Percent
Levy
Levy
Increase
$7,380,000
$7,610,100
3.12%
824,000
824,000
0.00%
200,000
200,000
0.00%
337,500
336,800
-0.21%
253,795
256,570
1.09%
599,300
594,000
-0.88%
122,195
126,420
3.46%
$9,716,790
9,947,890
2.38%
496,400 495,400 -0.20%
$496,400 $495,400 -0.20%
$0 $0
$10,213,190 $10,443,290 2.25%
$230,100
Scenario 1 Scenario 2 Scenario 3
$7,610,100
$7,488,200
$7,388,200
824,000
824,000
824,000
200,000
200,000
200,000
$8,634,100
$8,512,200
$8,412,200
1,552,620
1,552,620
1,552,620
256,570
256,570
256,570
0
0
0
$10,443,290 $10,321,390 $10,221,390
Prior Year
$10,213,190
$10,213,190
$10,213,190
New Construction
$108,200
$108,200
$108,200
Exsiting MV Inc
$0
$0
$0
TIF Dist 1
$0
$0
$0
Eden Trace TIF
$0
$0
$0
Gateway TIF
$0
$0
$0
Total Capacity $10,321,390 $10,321,390 $10,321,390
Estimated Effect on avg Taxpayer
1.18% 0.00% -0.97%
$230,100
Estimated Dollar Effect on avg Taxpayer $ 9.90 $ - $ (8.20)
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: September 13, 2010 RESOLUTION NO:
MOTION BY:
SECONDED BY:
2010-
A RESOLUTION ADOPTING THE PRELIMINARY 2011 BUDGET, AND ESTABLISHING
TRUTH IN TAXATION TAX LEVIES AND PUBLIC HEARING DATES FOR 2010,
COLLECTIBLE IN 2011
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHANHASSEN AS
FOLLOWS:
That the 2011 Preliminary Budget for the City of Chanhassen is adopted in the
aggregate revenue and expenditure amounts for the General Fund of $
; and
2. That the total preliminary levy to be certified to Carver County by September 15, 2010 is $
: and
3. That the following sums of money have been scheduled as "Proposed Levy
Certification" to fund operations of the general fund, capital replacement fund, MSA
fund and debt service funds to be levied in 2010 for collection in 2011 upon the taxable
property in the City of Chanhassen as shown in this resolution; and
4. That the City Council of the City of Chanhassen determines that certain bonded
indebtedness levies are hereby adopted to meet current and future bond requirements
and that the County Auditor is hereby authorized and directed to increase or reduce the
previously adopted bonded debt levies as shown on the attached Tax Levy Certification
document; and
5. That the Public Meeting date will be set for December 6, 2010 and the budget and tax
levy adoption will be set for December 13, 2010 as allowed by law; and
6. That the City of Chanhassen authorizes the County Auditor to certify the amounts as set
forth in the attached Proposed Levy Certification document for purposes of preparing
the Truth in Taxation notices.
Passed and adopted by the Chanhassen City Council this 13th day of September, 2010.
ATTEST:
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
YES NO ABSENT
2011 Preliminary Lev
y
Budget Calendar
► September 13th —Set preliminary levy, preliminary levy
certification form given to county tomorrow.
October 25th — Review 3 "d quarter 2010 Revenue &Expense
data &Review CIP Document
► November 8th— Work session to discuss annual utility rate
study.
► November 22nd— Work session to discuss any remaining
budget, CIP, or Utility Rate issues.
December 6 1 h— Hold public budget meeting.
► December 13 Setfinal 2011 tax levy and budget, adopt
.2011-2015 CIP, and set utility rates for 20110
Budget Assumptions
► A 2% wage increase for employees in 2011
► A 25% increase in healthcare costs
► $108,200 (1.06 %) in new construction
► Slight increase in buildingpermit revenue
► Transfer for roads remains the same ($50,000)
Scenario #1
.Levy - Scenario #1 would be an increase in the prior year
levy by $230,100 of which $_108,200 would be absorbed by
new growth.
► Potential Budget Impact- This scenario would allow for
all services levels to remain the same and would increase
budgeted permit revenue by
2010 budge
$26,000 as compared to the
► Resident Impact -The result of this levy would be about a
138% increase or just under a $10 annual increase to the
average valued home.
Scenario #2
►Levy — Scenario #2 would be an increase in the prior year
-levy by $108,200, which would be absorbed by new growth.
Potential Budget Impact -This scenario would allow for
all services levels to remain the same. It would cut about
$77,000 in expenses from scenario W. It would also
increase budgeted permit revenue an additional X45,000
from scenario #1, to a level near what we are expecting
to receipt by the end of 2010.
► Resident Impact -The result of this levy would be no
increase in the city's share of property taxes to the
average valued home.
► Levy - Scenario #3 would be an increase in the
prior year levy by $8,200.
► Potential Budget Impact -This scenario would
include the same impacts as scenario #2 and would
reduce the overall levy by an additional $100,000.
Further discussion on which levy would need to be
reduced would be discussed with city council in the
upcoming months.
► Resident Impact -The result of this levy would be
about a 1 % or $8 decrease in the city's share of
property taxes to the average valued home.
Recommendation
Staff recommends setting a preliminary levy
using Scenario #1 to allow for flexibility and
planning before setting a final levy in
December.