A-4. Preliminary 2016 Budge Discussion �r�
CITY 0�" MEMORANDUM
CHANHAS���
TO: Mayor and City Council
7700 Market Qoulevard
PO Box 147 p ���_
Cnanhassen,MN 5531� FROM: Greg Sticha, Finance Director ��
DATE: June 22, 2015 ������-�
/ldiiiinistratio�i
Phone:952.227.1100
Fax 952.227.1110 SUBJ: Preliminary 2016 Budget Discussion
6uilding Inspectioi�s BACKGROUND
Phone:952.227.1180
Fax:952.227.1190 It is the tiine of year again when we begin preliminaiy discussion of the 2016
budget. At this work session, the council will receive infor�nation on soine of the
Enyineering factors influencing the 2016 budget. Staff would like council feedback on any
Phone:952.227.1160
Fax:952.227.117o items of concern and direction for deparhnent heads as they prepare their budgets.
It should be noted that staff will review operational efficiencies and effectiveness
�inai�c� and identify key drivers affecting cost and service performance levels with the
Phone�95222z114o goal of achieving the right balance for each department.
Fax:952.227.1110
Attached is a calendar for the remainder of the year reflecting meeting dates and
k��r¢t���ecr�fa�ion� significant deadlines for completion of the 2016 budget. If any of the dates
Phone 952227.1120
Fax:952.227.1110 appear to conflict with other known city deadlines or budget requirements, please
let me kliow as soon as possible.
[��ct�eafion 69c;n�RE;6�
2310 Coulter Boulevard Market Value & New Construction Value: Carver County has infonned the
Phone:952.227.140o city that new consn�uction growth for 2015 is 1.58%. This new construction value
Fax:952.227.1404 has a direct impact on the budgeting process and will result in an approxiinate
Planning& $165,600 increase in new tax growth available for 2016. The total market value
Natural Resource� for the city increased 1.47% for 2015, which is used foi•2016 property taxes.
Phone:952.227.113o Residential values increased by 1.17% in 2015 for taxes payable in 2016.
Fax 952.227.1110
It is extremely important to note that an increase in total market value does not
���g�'�i�;���0°�"� inean property taxes will decrease, assuming no change in the amount levied from
7901 Park Place
Phone 952227.1300 the previous year. In the simplest tenns, the tax rate is a product of the total
Fax:952.227.1310 taxable market value and the total tax levy dollars requested.
Senior Center Police Contract: We ar•e estimating an inflationary increase in the police
Phone:952.22z1125 contract could be approximately $50,000-$60,000 for 2016.
Fax:952227.1110
Wage Adjustments: We are estimating cost of living increases in the metro area
��'f��i��� to be around 1.7% and adding in additional merit amount of 1%, we plan on
www.ci.chanhassen.mn.us
budgeting for a total of 2.7% in wages adjustments for the 2016 budget ($130,000
est).
Chanhassen is a Commtmity for Life-Providing for Today and Planning for Tomorrow
Prelimi�zczry 2016 Buclget Discussion
Jusie 23, 2014 �
Pczge 2 of 2
Aealthcare: Based on the bids received last year and the connact entered into, �
the city is capped with Blue Cross at an increase of no larger than 13 percent
($60,000 est). �
RECOMMENDATION �
Staff requests feedback from the city council regardii�g 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 calendai-. This feedback �'�
will give clear direction to depai�tment directors as they prepare their 2016 budget �i
requests. li
ATTACHMENTS !
l. 2016 Budget Calendar I�
2. 2015 Assessment Worksheet Summaiy from Carver County �
3. Revolving Assessment Construction Fund
4. Bond Tax Levies Worksheet
F:\GregS\Budget�2016 Budget\6-22 prelim bud discussion.docx
City of Chanhassen 2015 Assessment Summary
Residential Commercial/Industrial Apartment Other Totai
2015 EMV $3,284,687,300 $420,985,000 $53,465,600 $54,658,500 $3,813,796,400
2014 EMV $3,197,982,000 $405,842,400 $47,012,700 $48,589,200 $3,699,426,300
Total Value Change $86,705,300 $15,142,600 $6,452,900 $6,069,300 $114,370,100
New Construction $49,254,300 $8,819,100 $2,093,600 $0 $60,167,000
MarketChange $37,451,000 $6,323,500 $4,359,300 $6,069,300 $54,203,100
%New Construction 1.50% 2.09% 3.92% 0.00% 1.58%
%Market Change 1.17% 1.56% 9.27% 12.49% 1.47%
2015 Total%Increase 2.71% 3.73% 13.73°/o 12.49°/o 3.09%
Chanhassen Value Distribution 2015
❑ Apartment � Ot�her I
�°�� �° o Residential �'
, ❑Commercial/In I
o CommerciaU , ,
�ndustria� �I dustrial �
12��° ❑Apartment '�
I, �
, �
' ❑Other ' I
❑ Residential !
86%
_- --___ _ _
I)ate Task Forum
June 22,2015 lliscuss 2016 Budget expectations with City Council Work Session
July 1,2015 Distribute 2015 General Ledger Detail,
2016 Operating Budget Preparation Worksheets,
2016-2020 CIP worlcsheets
July 8,20]5 2016 Payroll and Revenue Projections Distributed
July 17, 20]5 Completed Operating Budget Forms Returned to Finance
July 27,2015 Review 2°d quarter revenue activity to date& Investment
Update Worl<Session
August l,2015 Powerpoint for detailed bud�et discussion disn•ibuted
August ]0, 2015 Prelimina�y Budget and Levy Discussion Work Session
August l 3, 2015 Department heads z•eturn their departinents powerpoint
information
August 24,2015 Worl: Session dedicated to detailed depart�nent i•eview of Work Session
Budgets(powerpoint presentation, cancel regular session)
Septembei� 14, 2015 Final review of preliminary 2016 Budget before Work Session
Pi•elimina�y budget set at City Council Meeting
September 14,2015 ApprovaUCertification of Maximum Proposed City Council Meeting
Preliminary Levy to Carvei�County Auditor
September 14, 2015 All 2016-2020 CIP Requests Returned to Finance
October 12, 20l 5 2016-2020 CIP review&discussion Work Session
October 26,2015 Review annual Utiiity Rate Study with Council Wor]<Session
November 9,2015 Rate Study, Budget or CIP discussion Worl<Session
November 23, 2015 Rate Study, Budget oi•CIP discussion if needed Woi•I<Session
December 7,2015 Truth in Taxation Hearing City Council Meeting
December 14,2015 Adopt Final Levy&2016 Budget a��d 2016-2020 CIP City Council Meeting
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