Loading...
B. 2005 BudgetCITYOF CHANItASSEN 7700 Market Boule,:ard PO Box 147 Charg~assen 'VlN 55317 Administration Phor,e: 952227! 100 Fax: 9522271110 Building Inspections Phone: 952 2271180 Fax: 952.2271190 Engineering Phone: 9522271160 Fax: 9522271170 Finance Phone: 952 2271140 Fax: 9522271110 Park & Recreation PI!one: 9522271120 Fax: 9522271110 Recreation Center 2310 Coulter Boulevard Phone 952 227 !400 Fax: 952227 1404 Planning & Natural Resources Phone: 952 2271130 Fax: 952227 1110 Public Works 1591 Park Road Phone: 9522271300 Fax: 952227 1310 Senior Center Phone 952 227 1125 Fax: 952 227 1110 Web Site WWWCl char~hassen ~ i~ us MEMORANDUM TO: FROM: DATE: Mayor City Council Members Bruce M. DeJong, Finance Director -~~)~ July 19, 2004 SUBJECT: 2005 Budget The City of Chanhassen continues to face budget challenges in the next few years. The State of Minnesota budget problem has been resolved, in part, by cutting state aids to cities. While there is some controversy regarding state aid because of inconsistent language in the 2003 tax law, the most aid we may expect is probably about $20,000. Combined with increasing demand for services which come from our rising population, staffing levels have remained essentially flat during the last several years. This causes tension in preparing budgets, but the department directors have responded really well to the situation. Their initial budget requests this year reflect their hard work at reducing any unnecessary expenses. The Finance Department has prepared a schedule for the 2005 budget and the 2005-2009 Capital Improvement Program. This schedule is base partly on state law requirements and partly on the City Council's desire for work session discussions. Background State law says we must adopt a preliminary tax levy and certify it to Carver County by September 15 each year. This provides the county with the information that it needs to prepare the truth-in-taxation notices that are mailed to every property owner in November. Then we must accept public input regarding our budget and tax levy by holding a truth-in-taxation hearing sometime during late November through early December. Finally, we must adopt a budget and tax levy for 2005 at a meeting at least one week after the public hearing was held. Our tax levy for 2005 will increase by approximately $250,000 due to debt service increases which include the new tax levy on the 2004A bond issue that was just sold. We do not yet have final numbers on the tax levy for that issue, but they should be less than the amounts shown on the enclosed schedule. There will be substantial upward pressure on our budget for 2005. We are anticipating a large increase in the police contract although the exact amount has The City of Chanhassen · A growing community with clean lakes, quality' schools a charr'qhlg downtown thrivir;g businesses winding trails and be, autifu! parks. A great place to live, work. and play 2005 Budget July 26, 2004 Page 2 of 2 CITYOF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen MN 55317' Administration Pho,le: 9522271100 Fax 952227 1110 Building inspections Phone 9522271180 Fax: 952 2271190 Engineering Phooe: 9522271160 Fax: 952 227 1170 Finance Phone: 9522271~40 Fax: 952227 1110 Park & Recreation Phone: 952227 1120 Fax: 952 227 1110 Recreation Center 2310 Coulter Boulevard Phone: 952227.1400 Fax: 9522271404 Planning & Natural Resources Phone: 952227 !130 Fax: 9522271110 Public Works 1591 Park Road Phone; 952 2271300 Fax: 952.2271310 Senior Center Phone: 9522271125 Fax: 952227 11!0 Web Site wwwei ',hanhasser: 'q~r~ us not been determined. There are also several departments that may be requesting additional employees. Some of those employees were requested in previous years and removed from the budget. When we come back in August for more discussion with an initial budget and levy proposal, we will ask for City Council input regarding whether to fund those positions on a preliminary basis. We are also seeing inflation increase at an annual rate of 3.3% based on the last information from the Bureau of Labor Statistics. This will increase wages more than the approximately 2.2% we saw last year. Staff believes that we should convert our $821,915 transfer to debt service for 2004 into a levy for equipment purchases starting in 2005. This will eliminate the need for bonding equipment purchases and should cover the anticipated equipment purchases in the C1P, which average about $800,000 per year over the life of the 2004-2008 CIP. The Downtown T1F district will be back on the tax roles for 2005. This currently generates about $4,000,000 of increment annually. That translates into tax generation power of about $625,000 back to the city levy. This will more than offset the increase in tax due to debt levies, but may not completely offset other increases. Recommendation Staff requests feedback from the City Council regarding the level of the initial tax levy so that we can give clear direction to department directors as they prepare their budget requests. Enclosures: 2004-2025 Debt Levies 2005 Budget Calendar The City of Chanhassen · A growino comrnunity with clean lakes quality schools a charming downtown, thriving businesses winding trails, and beautiful parks A great place to live. work and play City of Chanhassen, Minnesota Estimated Tax Levies 2004-2025 * Approximate Schedule for: 1995B Year of Carver Co Collection HRA Bonds 1998A 2000 2001C 2002A 2003A GO Park GO Pub GO Equip GO Library GO Equip Bonds Proj Certs Bonds Certs 2004A 1992A 1999 2001B Total GO GO Impr GO Impr GO Impr General Bonds Bonds Bonds Bonds Bonded Debt 2004 33,600 841,397 120,093 147,000 484,000 137,532 120,826 68,659 29,000 1,982,107 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 881,234 121,213 152,600 483,100 140,947 928,568 122,048 486,700 138,814 977,687 122,548 489,100 141,380 1,027,922 122,703 490,700 138,173 406,469 122,603 491,300 122,195 496,400 126,420 495,400 498,800 501,200 502,400 502,500 507,000 505,1 O0 512,800 513,900 513,700 517,500 365,057 67,840 29,100 366,485 100,000 29,300 365,913 100,000 29,500 363,446 100,000 29,600 312,158 29,600 2,241,091 2,171,915 2,226,128 2,272,543 1,362,130 618,595 621,820 498,800 501,200 502,400 502,500 507,000 505,100 512,800 513,900 513,700 517,500 33,600 5,063,277 979,820 299,600 8,991,600 696,846 1,773,060 120,826 436,499 176,100 18,571,228 CITYOF CHANHA~S~te 7700 Market Bouiev~d PO Box 147 Jury 20, 2004 Chanhassen MN 55317 Administration Phcne 952 22711(l~hly 23, 2004 Fax 952227 !110 August 6, 2004 Building Inspections Phone: 952 227 118D Fax: 9522271190~ugust 13, 2004 Engineering Pl~one: 95222711~ugust 23, 2004 Fax: 952 2271170 Finance September 13, 2004 Phone: 9522271140 Fax 9522271110 Park & Recreati~eptember 17, 2004 Phoe~: 952227 1120 Fax: 952 227 111~3ctober 1 1, 2004 Recreation Center 2310 Coulter Boulev~dct°Der 26, 2004 Phone: 9522271400 Fax 952 2271404'qovember 8, 2004 Planning & December 6, 2004 Natural Res0urees Phenc: 95222711 ~}ecember 13, 2004 Fa~' 9522271110 Public Works 1591 Park Road December 27, 2004 Pinone: 952 227 1300 Fax: 952 227 1310 Senior Center Ph,Jne: 952 2271125 Fax: 952227 1!10 Web Site ¢~ ,~e?~ CI CI al ilasset! [qn us 2005 Budget Calendar Department Finance Finance All Departments All Departments Finance & Adrmn Council Finance Finance & Admin Finance Finance & Admin Council Council Finance Task Distribute 2004 General Ledger Detail, 2005 Operating Budget Preparation Worksheets, 2005-2009 CIP worksheets. 2005 Payroll and Revenue Projections distributed. Completed operating budget forms returned to Finance. All 2005-2008 CIP requests returned to Finance. Preliminary budget and levy discussion at City Council work session. Approval/Certification of Maximum Proposed Levy to Carver County Auditor. CIP proofs returned to departments. CIP reviewed at City Council work session. Confirms all budget numbers balance. Budget work session with City Council. Truth in Taxation Hearing Continuation Hearing, if needed, and Budget and CIP Adoption Final Date for 2005 Budget & Levy Certification to Carver County Auditor The City ol Chanhassen, A growing community with clean lakes quality schools a charming do'wntown thriving businesses, winding trails and beautiful parks A great place to live work and play