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Bud et Process
El Preliminary budgets submitted by Department
Directors in early July
▪ Budget reviewed by Finance Director and
City Manager in late July
Detailed Budget Meeting held in August
▪ Preliminary Tax Levy Adopted for Truth-in-
Taxation Statement purposes on September 9
▪ Public budget meeting held on December 2
0 Budget adoption on December 9
Expenditures
3
2013 2014 % Change
Budget Budget from 2013
General Government $1 ,993,800 $1 ,992,300 -0.1 %
Law Enforcement/Fire $3,053,900 $3,203,899 +4.9%
Public Works $2,332,700 $2,391 ,800 +2.5%
Community Development $419,900 $435,200 +3.6%
Park & Recreation $1 ,947,100 $1 ,981 ,000 +1 .7%
Total $9,747,400 $10,004,199 +2.6%
Revenues
4
2013 2014 % Change
Budget Budget from 2013
Property Tax $7,426,700 $7,705,200 +3.7%
Licenses & Permits $996,800 $999,500 +0.3%
Intergovernmental Rev. $280,000 $285,000 +1 .8%
Charges for Services $568,100 $569,900 +0.3%
Fines & Penalties $131 ,500 $122,500 -6.8%
Other Revenue $344,300 $322,099 -6.4%
Total Revenue $9,747,400 $10,004,199 +2.6%
General
5 Histo
$11 ,000,000
$9.859.100 $10.004.199
$10,000,000 +5.8% $9.557.400$9.616.600 $9.747.400 +2.6%
$9.062.400 +2.8% ° °
$8.615.100 +5.2%
$9,000,000 $8:30— -; .
$7.860.785 +5.7%
$8,000,000 $7.860.785 0%
$7,000,000
$6,000,000
$5,000,000
■
$4,000,000
$3,000,000
$2,000,000
$1 ,000,000
$o
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(Pre!)
What factors change the
6
budget for 2014?
• Most expenditure line items remain flat for 2014
General Fund expenditures increased $256 , 799
(+2 .6% )
o Wage increases of 3.0% included
O Budgeted permit revenue same as 2013
• Healthcare Cost Budgeted at 15% (actual
13 .07% , adjustment will be made before final
levy)
Operational/Capital & Debt Levy Changes
7
Operational & Capital Levies 2013 2014 % Chg
General Fund $7,476,700 $7,705,200
Capital Replacement $800,000 $800,000
MSA (Sealcoating) $200,000 $200,000
Total Operational & Capital Levies $8,476,700 $8,705,200 +2.70%
Debt Levies 2013 2014 % Chg
General Obligation Debt (212 Bonds) $550,000 $233,800
Audubon $130,680 $444,410
Public Works Facility $593,200 $592,100
Library Referendum $445,310 $448,880
Total Debt Levies $1,719,190 $1,719,190 +0.0%
TOTAL ALL LEVIES $10,195,890 $10,424,390 +2.24%
Total vs . New Growth
• Total Levy • New Growth
4% -
3%
2.71% 2.92% 2.91%
2 2.45%
.36°/
2.23% 2.24% 2.24%
2% - 1.$2% 1.82%
1.38%1.39%
1.06% 1.16%
1 %
0.53° 0.40°
-0.90% -0.30%
0% 1
-1 %
2006 2007 2008 2009 2010 2011 2012 2013 2014
(Prep
Effect on Homeowners
.
Below are some examples of how the 2014 levy will impact property owners. The average
home in Chanhassen increased in value approximately 3.8% in taxable market value for
2014.
2013 2014 Percent 2013 City 2014 City Percent
Parcel Value Value Change Property Tax Property Tax Change
1 $257,900 $273,000 +5.9% $770.96 $788.87 +2.3%
2 $299,700 $310,000 +3.4% $895.14 $895.47 0.0%
3 $304,100 $312,100 +2.6% $908.21 $901.21 -0.8%
4 $562,800 $583,700 +3.7% $1,723.13 $1,740.85 +1.0%
5 $796,600 $824,600 +3.5% $2,586.73 $2,601.45 +0.6%
Actual Property Tax Statement
for Proposed 2014 Taxes (School District #112)
io
Property Taxes
5.3%
22.3% 35.0%
37.4%
O County 35.0% O School 37.4% City 22.3% Other 5.3%
KFS Budgeted Expenditure 1 1
Com arison
Budgeted Expenditures ** % Increase
City Population * 2012 2013 From 2012
Andover 31,125 12,772,307 13,205,076 3.39%
Chanhassen 23,779 9,738,200 9,889,000 1.55%
Chaska 24,211 10,240,765 10,928,934 6.72%
Lino Lakes 20,625 8,374,854 8,287,885 -1.04%
Cottage Grove 35,187 14,644,395 15,406,685 5.21%
Rosemount 22,384 10,902,400 11,117,100 1.97%
0
Savage
27,552 12,060,928 12,347,173 2.37%
Farmington 21,792 9,820,841 10,429,653 6.20%
Prior Lake 23,385 10,630,202 10,917,600 2.70%
Elk River 24,361 13,472,900 13,641,750 1.25%
Stillwater 18,638 11,271,014 11,420,416 1.33%
Average 24,822 11,266,255 11,599,207 2.88%
* Met Council Population Estimate
** Minnesota State Auditors Office City Summary Budget Report for 2012 and 2013
Carver County Cities
Budgeted Expenditure Comparison
12
Budgeted Expenditures ** % Increase
City Population * 2012 2013 From 2012
Chanhassen 23,779 9,738,200 9,889,000 1.55%
Chaska 24,211 10,240,765 10,928,934 6.72%
Waconia 11,065 4,735,078 5,028,758 6.20%
Victoria 7,793 3,554,138 3,651,206 2.73%
Carver 4,012 1,859,726 1,848,987 -0.58%
Avera• e 14,172 6,025,581 6,269,377 3.32%
* Met Council Population Estimate
** Minnesota State Auditors Office City Summary Budget Report for 2012 and 2013
KFS Per Capita
Spending Comparison
13
Per Capita
City Spending 2012
Andover 424
Chanhassen 416
Chaska 451
Lino Lakes 402
Cottage Grove 438
Rosemount 497
Savage 448
Farmington 479
Prior Lake 467
Elk River 560
Stillwater 613
Average 472
Carver Count y Cities
Per Capita Spending Comparison
14
Per Capita
City Spending 2013
Chanhassen 416
Chaska 451
Waconia 454
_ Carver __ _ 461
Victoria 469
Average 450
Carver County Tax Rates
15
City 2013 Tax Rate**
Chaska 28.075
Chanhassen 28.428
Victoria 39.574
Waconia 49.433
Carver 57.320
Watertown 60.690
Norwood Young America 62.292
Mayer 68.839
New Germany 76.454
Cologne 80.312
Hamburg 122.833
Average 61.295
** Based on Urban Tax Rates
Sales Tax Law Change
16
❑ In 2013, the state legislature and governor signed into law legislation exempting local
governments from paying sales tax on some purchases and services provided. In
conjunction with that legislation the amount city's paid in sales tax in 2012 was to be
included on the Truth In Taxation Statements for all cities in the State. The 2012 sales
tax paid for the City of Chanhassen was included on the TNT statements in the
amount of $165,554. Listed below is a break down of the total sales tax paid by the
fund types that it is paid by.
❖ Enterprise Funds $90,102
❖ General, Capital Project & Special Revenue Funds $75,452
• Total Sales Tax Paid $165,554
❑ Of the calculated $75,452 in sales tax paid for by the General Fund, Capital Project
Funds & Special Revenue Funds only an estimated $50,000 will no longer be exempt
from paying sales tax in 2014. The 2014 General Fund Budget will be adjusted to
reflect that estimate.
❑ The 2013 rate study for setting Utility Rates in 2014 included estimates for reductions
in estimated sales taxes to be paid to the related utility funds.
Additional Budget Reduction Items Being
Recommended b y staff for 2014
17
❑ Elimination of Temporary Building Department Wages $14,000
❑ Elimination of Police Reserve Vehicle $15,000
❑ Reduction in Copier Expenses $6,250
❑ Reduction in MIS Programs & Purchases $10,000
❑ Delay Hiring of FT Fire Chief $30,000
❑ Reduction in Sealcoating Levy (Supplemented by RAC Fund) $15,000
• Total Proposed Reduced Expenses $90,250
Discussion Points
18
Staff will meet with city council next week to
finalize the 2014 budget and tax levy
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