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2015 Public Budget Presentation 1 Budget Process 2 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 8 Public budget meeting held on December 1  Budget adoption on December 8  Expenditures 3 2015 2015 Preliminary Recommended 2014 Final % Change BudgetFinal Budget Budgetfrom 2014 $2,016,449$2,070,700$2,064,300+2.4% General Government $3,148,700$3,276,400$3,253,100+3.3% Law Enforcement/Fire $2,360,300$2,436,700$2,406,800+2.0% Public Works $434,400$446,500$464,400+6.9% Community Development $1,969,100$2,006,200$1,975,900+0.4% Park & Recreation $9,928,949$10,236,500$10,164,500+2.4% Total 3 Revenues 4 2015 2015 Preliminary Recommended 2014 Final % Change BudgetFinal Budget Budgetfrom 2014 $7,629,950$7,876,831$7,804,831+2.3% Property Tax $999,500$1,002,500$1,002,500+0.3% Licenses & Permits $285,000$330,000$330,000+15.8% Intergovernmental Rev. $569,900$588,500$588,500+3.3% Charges for Services $122,500$112,500$112,500-8.2% Fines & Penalties $322,099$326,169$326,169+1.3% Other Revenue $9,928,949$10,236,500$10,164,500+2.4% Total Revenue 4 General Fund Expenditure History 5 $11,000,000 $10,236,500 $10,164,500 $9,928,949 $9,859,100 +3.1% $9,747,400 +2.4% $9,616,600 +1.9% $9,557,400 +5.8% $10,000,000 +1.36% +.6% $9,318,300 -3.1% +2.8% $9,062,400 +5.2% $8,615,100 $9,000,000 +3.7% $8,307,920 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 20062007200820092010201120122013201420152015 (Prel)(Final) What factors change the budget for 2015? 6 Most expenditure line items remain flat for 2015  General Fund expenditures increased $235,551  (+2.4%) Wage increases of 3.0% included  Budgeted permit revenue same as 2014  Healthcare Cost decreased by 6%  New growth for taxes payable in 2015 is 1.76%  Operational/Capital & Debt Levy Changes 7 2015 Recommended Operational & Capital Levies2014 Final 2015 % Chg Final Levies LeviesPreliminary General Fund$7,629,950$7,811,831$7,779,831 Capital Replacement$800,000$800,000$800,000 MSA (Sealcoating)$185,000$185,000$185,000 Revolving Street ConstFund$395,192$395,192 Total Operational & Capital Levies$8,614,950$9,192,023$9,160,023+6.33% Debt Levies General Obligation Debt $233,800$232,300$232,300 (212 Bonds) Audubon$444,410$55,000$55,000 Public Works Facility$592,100$590,600$590,600 Library Referendum$448,880$446,098$444,098 Total Debt Levies$1,719,190$1,323,998$1,323,998-22.3% TOTAL ALL LEVIES$10,334,140$10,516,021$10,484,021+1.45% 7 Total Levy vs. New Growth 8 Total LevyNew Growth 4% 2.91% 3% 2.92% 2.71% 2.45% 2.36% 2.23% 2% 1.82% 1.82% 1.76% 1.76% 1.77%1.76% 1.39% 1.45% 1.38% 1.36% 1.16% 1.06% 1% 0.53% 0.40% -0.90% -0.30% 0% -1% 200620072008200920102011 20122013201420152015 (Prel)(Final) Effect on Homeowners 9 Below are some examples of how the 2015 levy will impact property owners. The average home in Chanhassen increased in value approximately 10.9% in taxable market value for 2015. 20142015Percent 2014 City 2015 City Percent ValueValueChangeProperty TaxProperty TaxChange Parcel 1$273,000$301,600+10.5%$781.62$782.36+0.0% 2$312,100$361,800+15.6%$892.92$937.70+5.0% 3$345,800$384,700+11.3%$988.83$996.79+0.8% 4$707,700$764,300+8.0%$2,163.55$2,143.13-1.0% 5$1,016,400$1,108,100+9.0%$3,255.91$3,245.96-0.3% Actual Property Tax Statement for Proposed 2015 Taxes (School District #112) 10 Property Taxes 5.0% 20.8% 32.6% 41.6% County 32.6%School 41.6%City 20.8%Other 5% KFS Budgeted Expenditure Comparison 11 Budgeted Expenditures **% Increase CityPopulation *20132014From 2013 31,125 13,205,076 12,762,112 -3.35% Andover 23,7799,889,000 10,103,2492.17% Chanhassen 24,21110,928,93412,063,47310.38% Chaska 20,625 8,287,8858,366,0480.94% LinoLakes 35,187 15,406,48517,347,09412.59% Cottage Grove 22,384 11,117,10011,495,3003.40% Rosemount 27,552 12,347,17312,707,5612.92% Savage 21,792 10,429,653 11,340,0198.73% Farmington 23,385 10,917,600 11,580,5736.07% Prior Lake 24,361 13,641,750 13,889,5501.30% Elk River 18,638 11,420,416 12,192,5126.76% Stillwater 24,822 11,599,207 12,161,5904.72% Average * Met Council Population Estimate ** Minnesota State Auditors Office City Summary Budget Report for 2013 and 2014 Carver County Cities Budgeted Expenditure Comparison 12 Budgeted Expenditures ** % Increase CityPopulation *20132014From 2013 Chanhassen23,779 9,889,00010,103,2492.17% Chaska24,211 10,928,934 12,063,473 10.38% Waconia11,065 5,028,758 5,726,32013.87% Victoria7,793 3,651,206 3,633,932-0.47% Carver4,012 1,848,987 2,012,3678.84% Average14,1726,269,3776,707,8686.96% * Met Council Population Estimate ** Minnesota State Auditors Office City Summary Budget Report for 2013 and 2014 KFS Per Capita Spending Comparison 13 Per Capita CitySpending 2014 402 LinoLakes 403 Andover 418 Chanhassen 444 Savage 478 Prior Lake 486 Chaska 490 CottageGrove 509 Rosemount 514 Farmington 591 Elk River 643 Stillwater 489 Average Carver County Cities Per Capita Spending Comparison 14 Per Capita CitySpending 2014 Chanhassen418 Victoria447 Chaska486 Carver493 Waconia505 Average470 Carver County Tax Rates 15 City2014 Tax Rate** Chaska26.586 Chanhassen27.238 Victoria37.887 Waconia49.423 Carver54.555 NorwoodYoung America64.086 Watertown65.305 Mayer67.784 Cologne78.650 NewGermany118.059 Hamburg123.734 Average64.846 ** Based on Urban Tax Rates City of Chanhassen Tax Rate History 16 45 39.091 40 35 32.98101 28.428 28.5429 30 28.17183 27.238 26.67825 26.6168 25.1973 23.82371 24.667 23.74016 25 23.02472 20 15 10 5 0 2003200420052006200720082009201020112012201320142015 (Est) Rate is based on urban rates and includes both tax capacity and market value based levies. Recommendation 17 Staff recommends setting a final Levy of  $10,484,021 and a General Fund Budget of $10,164,500. 18