Loading...
CC Packet 2007 12 03AGENDA CHANHASSEN CITY COUNCIL MONDAY, DECEMBER 3, 2007 CHANHASSEN MUNICIPAL BUILDING, 7700 MARKET BOULEVARD 5:30 P.M. - CITY COUNCIL WORK SESSION, FOUNTAIN CONFERENCE ROOM Note: If the City Council does not complete the work session items in the time allotted, the remaining items will be considered after the regular agenda. A. Discussion of 2008 Budget and 2008-2012 Capital Improvement Program. B. Update on Utility Rate Study. C. EXECUTIVE SESSION: Tabulation of City Manager’s Performance Evaluation. 7:00 P.M. – TRUTH-IN-TAXATION HEARING, CITY COUNCIL CHAMBERS CALL TO ORDER (Pledge of Allegiance) D. Public Hearing on the 2008 Budget & Levy. ADJOURNMENT A copy of the staff report and supporting documentation being sent to the city council will be available after 2:00 p.m. on Thursday. Please contact city hall at 952-227-1100 to verify that your item has not been deleted from the agenda any time after 2:00 p.m. on Thursday. 1 GUIDELINES FOR VISITOR PRESENTATIONS Welcome to the Chanhassen City Council Meeting. In the interest of open communications, the Chanhassen City Council wishes to provide an opportunity for the public to address the City Council. That opportunity is provided at every regular City Council meeting during Visitor Presentations. 1. Anyone indicating a desire to speak during Visitor Presentations will be acknowledged by the Mayor. When called upon to speak, state your name, address, and topic. All remarks shall be addressed to the City Council as a whole, not to any specific member(s) or to any person who is not a member of the City Council. 2. If there are a number of individuals present to speak on the same topic, please designate a spokesperson that can summarize the issue. 3. Limit your comments to five minutes. Additional time may be granted at the discretion of the Mayor. If you have written comments, provide a copy to the Council. 4. During Visitor Presentations, the Council and staff listen to comments and will not engage in discussion. Council members or the City Manager may ask questions of you in order to gain a thorough understanding of your concern, suggestion or request. 5. Please be aware that disrespectful comments or comments of a personal nature, directed at an individual either by name or inference, will not be allowed. Personnel concerns should be directed to the City Manager. Members of the City Council and some staff members may gather at Houlihan’s Restaurant & Bar, 530 Pond Promenade in Chanhassen immediately after the meeting for a purely social event. All members of the public are welcome. 2 CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen MN 55317 Administration Phone 952227 1100 Fax 952 227 1110 Building Inspections Phone 952227 1180 Fax 952 227 1190 Engineering Phone 952 227 1160 Fax 952 227 1170 Finance Phone 952 227 1140 Fax 952227 1110 Park Recreation Phone 952 227 1120 Fax 952 227 1110 Recreation Center 2310 Coulter Boulevard Phone 952227 1400 Fax 952 227 1404 Planning Natural Resources Phone 952227 1130 Fax 952227 1110 Public Works 1591 Park Road Phone 952 227 1300 Fax 952227 1310 Senior Center Phone 952 227 1125 Fax 952227 1110 Web Site WINI ci chanhassen mn us A MEMORANDUM TO Mayor City Council Members Greg Sticha Finance Director IFROM DA TE oDecember32007 SUBJ 2008 Budget and Tax Levy Discussion BACKGROUND Tonight we will be holding our annual Truth in Taxation hearing to take comment from the public on our preliminary proposed property tax levy At the work session before the hearing we will be discussing some of the changes that have occurred since we set our preliminary levy in September and the current proposal being presented at the truth in taxation hearing later this evening In addition we will be discussing the change in the healthcare costs and the effect it will have on our 2008 budget and future budgets Staff will also be updating the council on the status of the city s Market Value Homestead Credit MVHC for 2007 and 2008 and other available cash balances in 2008 A TTACHMENTS 1 Tax Levy Impact September and Current 2 Cash Balances Spreadsheet 3 Property Tax Examples The City 01 Chanhassen A growing community with clean lakes quality schools a charming downtown thriving businesses winding trails and beautiful parks A great place to live work and play3 CITY OF CHANHASSEN SEPTEMBER TAX LEVY 2008 Budget TAX CAPACITY BASED TAX LEVY 2007 2008 Percent Levy Levy Increase 6 558 100 6 853 900 4 51 295 800 824 000 824 000 0 00 250 750 267 875 6 83 129 500 100 00 488 280 484 873 0 70 80 000 285 000 256 25 100 000 100 00 122 548 122 703 0 13 8453 178 8 938 351 5 74 General Fund Capital Replacement Fund for equipment Pavement Mgmt Fund Seal coating Special Assessment Debt General Obligation Debt General Obligation Debt 212 Bonds Local Street Improvements Debt of Other Agencies EDA TOTAL TAX CAPACITY BASED TAX LEVIES MARKET VALUE TAX LEVY Park Referendum Library Referendum TOTAL MARKET VALUE TAX LEVY TOTAL TAX LEVY 696 500 559 652 489 100 490 700 1 185 600 1 050 352 63 000 133 738 9 575 778 9 854 965 279 187 19 65 0 33 1141 Use of cash reserves 2 92 Dollar Increase T C T t r t 1l Taxes applied to General Fund Capital Replacement Pavement Mgmt Total Levy subject to levy limits Bond Funds Reduction in OS Levy Total Scenario 1 Scenario 2 Scenario 3 6 853 900 6 782 900 6 747 100 824 000 824 000 824 000 267 875 267 875 267 875 7 945 775 7 874 775 7 838 975 2 042 928 2 042 928 2 042 928 133 738 133 738 133 738 9 854 965 9 783 965 9 748 165 Tax Generation Capacity Prior Year New Construction Exsiting MV Inc TIF Oist 1 Eden Trace TIF Gateway TIF 9 575 616 9 575 616 9 575 616 172 361 172 361 172 361 0 0 0 0 0 0 0 0 0 0 0 0 9 747 977 9 747 977 9 747 977 1 10 0 37 0 00 Total Capacity Net Effect on existing property owners Scenario 1 Includes the Building Inspector Position 71 000 and the Debt Levy not needed 100 000 Scenario 2 Includes the Debt levy Not Needed 100 000 but does not inlclude the Building Inspector position Scenario 3 Does not include the Builiding Inespctor Position or the Debt Levy not needed 100 000 All 3 Scenarios include 532 200 in healthcare savings costs and a reduction in salaries in the finance department due to a retirement Staff recommends using Scenario 1 with potentially re allocating the 171 000 for other needs such as the future Public Works Building Improvements to Iyman Boulevard or to fund the city s share of local street improvements 4 CITY OF CHANHASSEN NOVEMBER TAX LEVY 2008 Budget 2007 2008 Percent TAX CAPACITY BASED TAX LEVY Levy Levy Increase General Fund 6 558 100 6 821 700 4 02 263 600 Capital Replacement Fund for equipment 824 000 824 000 0 00 Pavement Mgmt Fund Sealcoating 250 750 267 875 6 83 Special Assessment Debt 129 500 100 00 General Obligation Debt 488 280 484 873 0 70 General Obligation Debt 212 Bonds 80 000 285 000 256 25 Local Street Improvements 100 000 100 00 Debt of Other Agencies EDA 122 548 122 703 0 13 TOTAL TAX CAPACITY BASED TAX LEVIES 8453 178 8 906 151 5 36 MARKETVALUETAXLEVY Park Referendum 696 500 695 900 0 09 Library Referendum 489 100 490 700 0 33 TOTAL MARKET VALUE TAX LEVY 1 185 600 1 186 600 0 08 Use of cash reserves 63 000 269 986 TOTAL TAX LEVY 9 575 778 9 822 765 2 58 Dollar Increase 246 987 Taxes applied to General Fund Capital Replacement Pavement Mgmt Total Levy subject to levy limits Bond Funds Local Street Improvements Reduction In OS Levy Total Scenario 1 Scenario 2 Scenario 3 Scenario 4 6 821 700 6 750 700 6 750 700 6 751 700 824 000 824 000 824 000 824 000 267 875 267 875 267 875 267 875 7 913 575 7 842 575 7 842 575 7 843 575 2 079 176 2 079 176 1 979 176 2 079 176 100 000 100 000 100 000 170 000 269 986 269 986 269 986 269 986 9 822 765 9 751 765 9 651 765 9 822 765 Tax Generation Capacity Prior Year New Construction Exsiting MV Inc TIF Oist 1 Eden Trace TIF Gateway TIF 9 575 616 9 575 616 9 575 616 9 575 616 172 361 172 361 172 361 172 361 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 747 977 9 747 977 9 747 977 9 747 977 0 77 0 04 0 99 0 77 Total Capacity Net Effect on existing property owners Scenario 1 Includes the Building Inspector Position 71 000 and a Levy for 100 000 for local street improvements Scenario 2 Includes a levy for local streets 100 000 but does not inlclude the Building Inspector position Scenario 3 Does not include the Builiding Inespctor Position or a levy for local streets 100 000 Scenario 4 Is the same as scenario 1 with the cost savings from switching Health care providers Retirement 70 000 eliminated from the general fund and used for local street improvements 5 City of Chanhassen Analysis of Cash Balances Estimated 2007 Estimated 2008 Cash Balances Fund Excess cash Excess cash Desianated MVHC 160 000 120 000 1999A Bond Closing 550 000 2001 B Bond Closing 50 000 Permanent Revolving Debt Fund 150 000 Capital Replacement Fund 900 000 Contigency Fund 1 300 000 Gateway West TIF District 200 000 TOTALS 160 000 920 000 2 350 000 Notes The excess cash in the general fund for 2007 2008 is from the MVHC the amount for 2008 should not be counted on The 2008 legislature could eliminate this provision It is staffs recommendation to take any MVHC in 2007 and beyond and transfer it to the Revolving Assessment Construction Fund Pavement Mgmt Potential Land Sale Proceeds Park Place Land Site Sinclair Site Water Treatment Site Total Land Sale Proceeds 1 500 000 450 000 670 000 2 620 000 Unfunded Projects Audubon Rd Lyman Blvd Currently Revolve Assess Fund PW Facility 101 Corridor Hwy 5 41 to NWY Total 2 500 000 400 000 2 900 000 6 ffect on Homeowner Below are some examples of how the 2008 levy will impact some property owners 2007 2008 Percent 2007 City 2008 City Percent Parcel Value Value Change Property Tax Property Tax Change 1 330 600 330 600 00 0 885 12 853 60 3 600 2 380 200 390 200 2 600 1 033 18 1 026 10 60 0 3 472 500 489 800 3 700 1 292 71 1 294 15 100 4 587 900 594 000 1 00 0 1 660 77 1 625 18 2 1010 5 665 300 688 200 3 400 1 918 44 1 930 03 600 6 793 200 912 200 150 0 2 344 48 2 654 65 13 20 0 12 7 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 952227 1190 Engineering Phone 952227 1160 Fax 952227 1170 Finance Phone 952227 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 952227 1110 Public Works 1591 Park Road Phone 952227 1300 Fax 952 227 1310 Senior Center Phone 952 227 1125 Fax 952227 1110 Web Site WINIci chanhassen mn us B MEMORANDUM TO Mayor City Council Members FROM O Greg Sticha Finance Director DA TE December 3 2007 SUBJ Tiered Water Rate Discussion BACKGROUND On December 10th City Council will be deciding on setting all utility fees and rates for 2008 Based on recommendations from the DNR and our financial advisors and to promote water conservation staff had originally recommended adding two tiers to the water consumption rates After further review of the initial proposal and receiving comment from some affected users staff has created some alternative proposals for discussion The five alternatives vary in impact on some users as well as the impact it mayor may not have on water conservation Staff will be presenting those ideas and looking for direction from City Council in order to prepare the fee schedule for 2008 A TTACHMENTS 1 Tied Water Rate Alternatives The City of Chanhassen A growing community with clean lakes quality schools a channing downtown thriving businesses winding trails and beautiful parks A great place to live work and play8 Tiered Water Rate Alternatives Proposed Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alternative 5 Current Rate Tiers Rate I Inc Rate Inc Rate Inc Rate 1 Inc Rate Inc Minimum 8 60 Minimum 9 001 4 65 9 00 4 65 9 00 4 65 9 001 4 65 Residential Residential includes irriaation includes irri ation 0 25 000 Gallons 1 72 0 25 000 Gallons 1 75 2 00 1 81 5 00 1 87 9 00 1 75 2 00 1 81 5 00 25 001 2 15 25 001 50 000 2 26 5 00 2 28 6 00 2 34 9 00 2 26 5 00 2 26 5 00 Commercial 50 001 75 000 2 58 20 00 2 58 20 00 2 58 20 00 2 62 22 00 0 25 000 Gallons 1 72 75 001 3 01 40 00 3 23 50 00 3 01 40 00 n a n a 25 001 2 15 Commercial includes irriaation 0 25 000 Gallons 1 75 2 00 1 81 5 00 1 87 9 00 1 75 2 00 1 81 5 00 25 001 50 000 2 26 5 00 2 28 6 00 2 34 9 00 2 26 5 00 2 26 5 00 50 001 75 000 2 58 20 00 2 58 20 00 2 58 20 00 2 62 22 00 Irrigation Credit 8 20 unltlquarter ORIGINAL Alternative 1 Is similar to the original proposed tier s based on the recommendation from Ehlers Rates have been adjusted downward to reflect a correction to the model Negatives Substantial increase for Townhouse Association irrigation meters with multiple units Some Commercial accounts with multiple tennants will see substantial increases in some cases Positives Should promote water conservation Future annual rate increases projected to be 5 Alternative 2 Is a revised tier structure in an attempt to lessen the impact on Townhouse irrigation accounts and multiple tennant commercial accounts In this proposal all irrigation accounts would only be billed on three tiers similarto the commercial accounts Negatives Will increase the burden on the first two tiers and on the fourth tier for single family residential accounts Water capital improvements in 2010 and beyond now have to be bonded for rather than cash for improvements of less than 1 5M Annual rate increases at 5 in 2009 2011 and increase to 6 in 2012 after Phase II Treatment is financed Positives Should promote water conservation Townhomes will pay more similar amount for watering as single family depending on usage Alternative 3 Does not add two additional tiers but rather keeps the current tiers in place Negatives Does not promote additional water conservation Does not distribute cost of new wells to users most driving the need for the new wells Future annual rate increases are 5 in 2009 2011 and increase to 6 in 2012 after Phase II Treatment is financed Alternative 4 Is the same as alternative 1 but would give a per unit credit for every dwelling unit billed on any irrigation account based on a min usage Negatives Some Commercial accounts with multiple tennants will see substantial increases in some cases Administrativelytime consuming to manually apply credit Future annual rate increases are 5 in 2009 2013 and increase to 6 in 2014 to maintain minimum cash balances Positives Should promote water conservation Single family and town home users will pay similar amount for watering depending on usage Alternative 5 Three tier system eliminates top tier of over 75 000 gallons quarter for residential users Negatives Some Commercial accounts with multiple tennants will see substantial increases in some cases Substantial increase for Townhouse Association irrigation meters with multiple units although less than Alternative 1 Uncertain as to whether it will promote water conservation Positives System may be simpler to administer and understand same tiers for residential irrigation and commercial users Future annual rate increases projected to be 5 9 CITY OF CHANIlASSEN 7700 Market Boulevard PO Box 147 Chanhassen MN 55317 Administration Phone 952227 1100 Fax 952 227 1110 Building Inspections Phone 952 227 1180 Fax 952227 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 952227 1400 Fax 952 227 1404 Planning Natural Resources Phone 952 227 1130 Fax 952 2271110 Public Works 1591 Park Road Phone 952 2271300 Fax 952 227 1310 Senior Center Phone 952227 1125 Fax 952 227 1110 Web Site www ci chanhassen mn us b IiIIlt1 11liiIIIft MEMORANDUM TO Mayor City Council Members Greg Sticha Finance Director 7FROM DATE DDecember32007 SUBJ Truth in Taxation Hearing Attached please find the 2008 Budget PowerPoint presentation that will be presented at the Truth in Taxation hearing on Monday night Staff does not anticipate many public comments at the hearing ATTACHMENTS 1 2008 Budget PowerPoint Presentation The City of Chanhassen A growing community with clean lakes quality schools a charming downtown thriving businesses winding trails and beautiful parks A great place to live work and play10 Cityof Chanhassen 2007 Truth in Taxation Hearing December3 20071 11 Required Elements forTruthinTaxation Present theproposed2008budget Present theproposed2008tax levy Discuss major changesto thebudget andlevy Holdthe publichearingfor citizen input andcomments December 3 Adoptlevy and budgeton December 10 2 12 Budget Process Preliminary budgets submitted by Department Directors inJuly Budget reviewed byFinance Directorand CityManager in August Preliminary TaxLevy AdoptedforTruth in Taxation purposes on September 15 Detail budget meetingsheld inOctober and November Truth in Taxation hearing heldonDecember3 Budgetadoption on December10 3 13 Expenditures 20072008 Change BudgetBudgetfrom 2007 1 979 200 1 985500 3GeneralGovernment 2 837 600 3 02810067LawEnforcement 2 089 400 2 098900 5PublicWorks 411 900 42990044CommunityDevelopment 1 744 300 1 79380028ParkRecreation 9 062 400 9 336 20030Total 4 14 Revenues 20072008 Change BudgetBudgetfrom 2007 6 288100 6 58390047PropertyTax 1 525300 1437800 5 7LicensesPermits 205 000 22500098IntergovernmentalRev 660 500 619 000 6 3ChargesforServices 136 500 157 500154FinesPenalties 247 000 313 000267OtherRevenue 9 062400 9 33620030TotalRevenue 5 15 General Fund Expenditure History 6 16 What factors changethebudgetfor2008 Operating expenditures remainrelatively flat TotalGeneral Fund expenditures increase 302 Police contractaccounts for74 ofthe general fundincreased expenditures Thepolice contractincludes one additionalofficer and a 5 wageincrease 7 17 Tax CapacityLevy Changes Tax CapacityLevies20072008 Chg General Fund 6 558 100 6821 700 40 Capital Replacement 824 000 824000 00 MSA Sealcoating 250 750 267875 68 Special Assessment Debt 129 500 0 1000 GeneralObligation Debt 568 280 769873 35 5 Local StreetImprovements 0 100000 1000 EDADebt 122 548 122703 01 TOTALTAX 8453 178 8906 151 54CAPACITYLEVIES 8 18 MarketValue Levy Changes Market ValueLevies20072008 Chg Park Referendum 633 500 425914 32 8 Library Referendum 489 100 490700 03 TOTALMARKET 1122 600 916614 18 3 VALUE LEVIES 9 19 DebtService The debt levyfor 2008remained thesame asthe prior year Itisour intent to usereserves to keep the debt levyflat until2009 at which pointexcess levy becomesavailable to help fundour streets revolvingassessment fund 10 20 Net Tax Levy Effects General Fundlevy increaseof 47 Totaltax levy increase of 279 187 or 292 11 21 Effect on Homeowners Below aresomeexamples of how the2008 levywill impactsomepropertyowners 20072008Percent 2007 City 2008 City Percent ValueValueChangeProperty TaxPropertyTaxChangeParcel 1 330 600 330 6000 885 12 85360 36 2 380 200 390 20026 1 033 18 1 02610 6 3 472 500 489 80037 1 292 71 1 29415 1 4 587 900 594 00010 1 660 77 1 62518 21 5665300 688 20034 1 918 44 1 93003 6 6 793 200 912 20015 2 344 48 2 65465 13 2 12 22 Recommendation Holdcontinuation hearing ifneeded on Monday December 10 2007 Adoptthe tax levyand budgetasshown on Monday December10 2007 13 23