A-3. 2015 Budget Expectations and Efficiencies9
A--3
CITY OF
city that new construction growth for 2014 is 1.76 %. This new construction value
Phone: 952.227.1400
MEMORANDUM
CHA NSFN
$180,000 increase in new tax growth available for 2015. The total market value
Planning &
TO: Mayor and City Council
7700 Market Boulevard
Residential values increased by 10.86% in 2014 for taxes payable in 2015.
PO Box 147
FROM: Greg Sticha, Finance Director 6- -3
Chanhassen, MN 55317
It is extremely important to note that an increase in total market value does not
DATE: June 23, 2014
Administration
the previous year. In the simplest terms, the tax rate is a product of the total
Phone: 952.227.1100
SUBJ: Preliminary 2015 Budget Discussion
Fax: 952.227.1110
Building Inspections
BACKGROUND
Phone: 952.227.1180
It is the time of year again when we begin preliminary discussion of the 2015
Fax: 952.227.1190
budget. At this work session, the council will receive information on some of the
Fax: 952.227.1110
factors influencing the 2015 budget. Staff would like council feedback on any
Engineering
items of concern and direction for department heads as they prepare their budgets.
Phone: 952.227.1100
It should be noted that staff will review operational efficiencies and effectiveness
Fax: 952.227.1170
and identify key drivers affecting cost and service performance levels with the
Finance
goal of achieving the right balance for each department.
Phone: 952.227.1140
Fax: 952.227.1110
Attached is a calendar for the remainder of the year reflecting meeting dates and
significant deadlines for completion of the 2015 budget. If any of the dates
Park Recreation
appear to conflict with other known city deadlines or budget requirements, please
1120 Phone: : 952.22
let me know as soon as possible.
Fax: 952.227.11110
Recreation Center
Market Value & New Construction Value: Carver County has informed the
2310 Coulter Boulevard
city that new construction growth for 2014 is 1.76 %. This new construction value
Phone: 952.227.1400
has a direct impact on the budgeting process and will result in an approximate
Fax: 952.227.1404
$180,000 increase in new tax growth available for 2015. The total market value
Planning &
for the city increased 9.57% for 2014, which is used for 2015 property taxes.
Natural Resources
Residential values increased by 10.86% in 2014 for taxes payable in 2015.
Phone: 952.227.1130
Fax: 952.227.1110
It is extremely important to note that an increase in total market value does not
mean property taxes will decrease, assuming no change in the amount levied from
Public Works
the previous year. In the simplest terms, the tax rate is a product of the total
7901 Park Place
taxable market value and the total tax levy dollars requested.
Phone: 952.227.1300
Fax: 952.227.1310
Police Contract: We are estimating an inflationary increase in the police
Senior Center
contract could be around $45,000- $50,000 for 2015.
Phone: 952.227.1125
Fax: 952.227.1110
Healthcare: Based on experience we are anticipating the increase for healthcare
costs to the General Fund could be around $55,000. We will have a better handle
Web site
on this number in early October.
www.ci.chanhassen.mn.us
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Preliminary 2015 Budget Discussion
June 23, 2014
Page 2 of 2
RECOMMENDATION
Staff requests feedback from the city council regarding the level of the initial tax
levy and how many alternative budget scenarios the city council would like
presented. Staff would also like feedback on the budget calendar. This feedback
will give clear direction to department directors as they prepare their 2015 budget
requests.
ATTACHMENTS
1. 2015 Budget Calendar
2. 2014 Assessment Worksheet Summary from Carver County
3. Revolving Assessment Construction Fund
4. Bond Tax Levies Worksheet
F: \GregS\Budget\2015 Budget \6 -23 prelim bud discussion.doex
Date Task Forum
June 23, 2014 Discuss 2015 Budget expectations with City Council & Work Session
review budget efficiency ideas /suggestions
July 1, 2014 Distribute 2014 General Ledger Detail,
2015 Operating Budget Preparation Worksheets,
2015 -2019 CIP worksheets
July 8, 2014
2015 Payroll and Revenue Projections Distributed
July 18, 2014
Completed Operating Budget Forms Returned to Finance
July 28, 2014
Review 2nd quarter revenue activity to date
Work Session
August 1, 2014
Powerpoint for detailed budget discussion distributed
August 11, 2014
Preliminary Budget and Levy Discussion
Work Session
August 13, 2014
Department heads return their departments powerpoint
information
August 25, 2014
Work Session dedicated to detailed department review of
Work Session
Budgets (powerpoint presentation, cancel regular session)
September 8, 2014
Final review of preliminary 2015 Budget before
Work Session
Preliminary budget set at City Council Meeting
September 8, 2014
Approval/Certification of Maximum Proposed
City Council Meeting
Preliminary Levy to Carver County Auditor
September 8, 2014
All 2015 -2019 CIP Requests Returned to Finance
October 13, 2014
Review 3`d quarter revenue activity, 2015 -2019 CIP, and
Work Session
rate study with Ehlers and Associates.
November 10, 2014
Rate Study, Budget or CIP discussion
Work Session
November 24, 2014
Rate Study, Budget or CIP discussion if needed
Work Session
December 1, 2014
Truth in Taxation Hearing
City Council Meeting
December 8, 2014
Adopt Final Levy & 2015 Budget and 2015 -2019 CIP
City Council Meeting
City of Chanhassen 2014 Assessment Summary
Chanhassen Value Distribution 2014
❑ Anartment ❑ Other
■ Residential
■ Commercial /In
dustrial
o Apartment
I
❑ Other
❑ Residential
87%
Residential
CommerciaWnduatri
Apartment
Other
Total
2014 EMV
$3,198,693,300
$405,842,400
$47,012,700
$48,848,700
$3,700,397,100
2013 EMV
$2,827,675,700
$402,534,800
$46,191,800
$41,344,100
$3,317,746,400
Total Value Change
$371,017,600
$3,307,600
$820,900
$7,504,600
$382,650,700
New Construction
$64,039,700
$815,200
$333,400
$0
$65,188,300
Market Change
$306,977,900
$2,492,400
$487,500
$7,504,600
$317,462,400
% New Construction
2.00%
0.20%
0.71%
0.00%
1.76%
% Market Change
10.86%
0.62%
1.06% T
18.15%
9.57%
2014 Total % Increase
13.12%
0.82%
1.78%
18.15%
11.539/.
Chanhassen Value Distribution 2014
❑ Anartment ❑ Other
■ Residential
■ Commercial /In
dustrial
o Apartment
I
❑ Other
❑ Residential
87%
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