5. 2012 Preliminary Budget DiscussionCITY OF CHANHASSEN (DECEMBER)
TAX LEVY
2012 Budget
TAX CAPACITY BASED TAX LEVY
General Fund
Capital Replacement Fund (for equipment)
Pavement Mgmt Fund (Sealcoating)
General Obligation Debt (212 Bonds)
Audubon /Revolving Assess Fund /EDA
Public Works Facility
Potential Fire Station
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
Potential Fire Station
Total
Prior Year
New Construction
MVHC Adj to tax capacity
TIF Dist1
Eden Trace TIF
Gateway TIF
Total Capacity
Estimated Effect on avg Taxpayer
Estimated Dollar Effect on avg Taxpayer
2011
2012
Percent
Levy
Levy
Increase
$7,508,200
$7,514,700
0.09%
750,000
750,000
0.00%
200,000
200,000
0.00%
336,800
335,900
- 0.27%
256,570
437,842
70.65%
594,000
593,800
-0.03%
-
90,000
100.00%
126,420
-
- 100.00%
$9,771,990
9,922,242
1.54%
495,400 351,648 - 29.02%
$495,400 $351,648 - 29.02%
$0 $0
$10,267,390 $10,273,890 0.06%
$6,500
Scenario 1 Scenario 2 Scenario 3
$7,514,700
$7,477,200
$7,477,200
750,000
750,000
750,000
200,000
200,000
200,000
$8,464,700
$8,427,200
$8,427,200
1,281,348
1,281,348
1,281,348
437,842
437,842
437,842
90,000
90,000
0
$10,273,890 $10,236,390 $10,146,390
$10,267,390 $10,267,390 $10,267,390
$119,000 $119,000 $119,000
- $150,000 - $150,000 - $150,000
$0 $0 $0
$0 $0 $0
$0 $0 $0
$10,236,390 $10,236,390 $10,236,390
0.37% 0.00% -0.88%
$ 3.20. $ - $ (7.72)
$6,500
2012 Preliminary Levy
Budget Calendar
► September 12th —Set preliminary levy, preliminary levy
certification form will be given to county tomorrow.
► September 26 - Review Paid Time Off (PTO) vs. Sick /Vacation
Benefits and Compensated Absences
► October 12th — Review Enterprise and Special Revenue Fund
Budgets. Review 2012 -2016 CIP.
► October 24th — Review 3rd quarter 2011 Revenue & Expense
data & Ehlers presents 2012 rate study
► November 14 & 28th — Work session to discuss any remaining
budget, CIP, or Utility Rate issues.
► December 5th — Hold public budget meeting.
December 12 — Set final 2012 tax levy and budget,
IF . /% !1 1 /% 1\ /1 1 / #, t 71 , 1 . 1 . . I J � A n 1 111
Budget Assumptions
► A 1.5% wage increase for employees in 2012
($52,500 increase to the General Fund)
► A IS% increase in healthcare costs ($50,000
increase to the General Fund)
$119,000 (1.16%) increase in levy dollars due to
new construction
► Building permit revenue same as 2011
Scenario #1
►Levy — Scenario #1 would be a total levy of $10,273,890
($6,500 more than the 2011 levy, after adjusting for
MVHC program change).
► Potential Budget Impact— This scenario would allow for
all service levels to remain the same.
► Resident Impact —The result of this levy would be an
increase in the city portion of the average property tax
bill of $3-$4(witho ut projecting an impact of change in
MVHC program).
Scenario #2
►Levy — Scenario #2 would be a total levy of $10,236,390
031,000 less than the 2011 levy, after adjusting for
MVHC program change).
► Resident Impact —The result of this levy would be
approximately the same property tax bill (cityportion)on
the average home (without projecting an impact of
change in MVHC program).
Scenari
o # 3
►Levy — Scenario #3 would be a total levy of $10,146,390
($121,000 less than the 2011 levy, after adjusting for
MVHC program change).
► Resident Impact —The result of this levy would be a
$7 -$8 decrease to the city portion of the property tax bill
on the average home (without projecting an impact of
change in MVHC program).
KFS Budgeted Expenditure Comparison lak
City
Oakdale
Population
27,378
Bud
2010
11,549,334
2011
11,447,965
% Increase
From 2011
-0.88%
Chaska
23,770
9,915,329
9,996,010
0.81%
Chanhassen
22,952
$ 9,618,600
$ 9,727,800
1.14%
Champlin
23,089
9,554,351
9,965,931
4.31%
Lino Lakes
20,216
8,889,255
8
-1.68%
Andover
30,598
12,219,037
13,267,414
8.58%
Farmington
21,086
10,019,844
9,349,781
-6.69%
Savage
26,911
11,774,071
11,982,361
1.77%
Prior Lake
22,796
10,031,046
10,198,453
1.67%
Shoreview
25,043
12,093,196
12,409,115
2.61%
Inver Grove Heights
33,880
19,111,100
19,223,500
0.59%
Average
25,247
11,343,1971
11,482,6081
1.11%
Met Council Population Estimate
Budget Report for 2010 and 2011
Carver County Cities
Budgeted Expenditure Comparison
* Met Council Population Estimate
Bud Expenditures
city
Po pulation
Chaska
23,770
9,915
9,996
0.81%
Waconia
10
4
4
-6.73%
Chanhassen
22 9 952
9
9 9 727 9 800
1.14%
Carver
3
1
1,821,312
2.73%
Victoria
7
3
309
5.16%
Average
12 9 116
5
5
0.26%
* Met Council Population Estimate
KI"S Per Capita Spending Comparison 40
city
Oakdale
Capita Per
S pend ing
418
Chaska
421
Chanhassen
424
Champlin
432
Lino Lakes
432
Andover
434
Farmington
443
Savage
445
Prior Lake
447
Shoreview
496
Inver Grove Heights
567
Average
451
Carver County Cities
Per Capita Spending Comparison
City
Chaska
Capita Per
S pend ing
421
Waconia
422
Chanhassen
424
Carver
489
Victoria
491
Average
441
Carver County Tax bates
r City
Chaska
2011 Tax R.
23.483
Chanhassen
26.602
Victoria
37.421
Waconia
41.891
Watertown
46.296
Carver
47.957
Norwood Young America
48.552
Mayer
59.472
Cologne
61.934
New Germany
62.059
Hamburg
98.404
Average
50.370
Debt Per Capita
P Total
City
Champlin
Total Debt
$ 16
Debt
Per Capita
$ 699
Bond
Rating
AA+
Oakdale
24,115,064
881
Aa3
Lino Lakes
25,171,696
1
Aa2
Shoreview
34
1
AAA
Chanhassen
35
1
AAA
Prior Lake
37,185,122
1,631
Aa2
Inver Grove Heights
60,990,833
100
AA
Andover
60,375
1
AA+
Farmington
42
1
Aa3
Chaska
85,135
3
AA
Savage
104,902
3
AA+
Average
47
1,876
Data collected from published financial reports of each city, from the required
indebtedness
fond Rating Important
Factor to Consider
► Standard & Poor's reaffirmed the City's AAA bond rating
in 2010. At tonight's meeting, staff will present an updated
rating based on the issuance of the General Obligation
bonds, Series 2011A. The following reasons were cited for
the reaffirmation in 2010:
o The city's conservative management practices have
resulted in the maintenance of strong financial reserves.
o The city's financial management assessment is
considered "strong, " with well - embedded financial
practices that are likely sustainable.
Recommendation
Staff recommends setting a preliminary
using Scenario #1 to allow for flexibility
planning before setting a final levy in
December:
levy
and
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: September 12, 2011 RESOLUTION NO: 2011-
MOTION BY:
SECONDED BY:
A RESOLUTION ADOPTING THE PRELIMINARY 2012 GENERAL FUND BUDGET OF
$ , AND ESTABLISHING A TOTAL PRELIMINARY LEVY OF
$ FOR 2012, AND ESTABLISHING TRUTH IN TAXATION PUBLIC HEARING
DATES FOR 2011, COLLECTIBLE IN 2012
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, 2011 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 2011 for collection in 2012 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
That the Public Meeting date will be set for December 5, 2011 and the budget and tax
levy adoption will be set for December 12, 2011 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 12th day of September, 2011.
ATTEST:
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
YES NO ABSENT