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2017 Public Budget PresentationFinal Levy & Budget For taxes payable in 2017 Adoption City of Chanhassen –December 12, 2016 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, September 14 Public budget meeting held on December 5  Budget adoption on December 12  Expenditures 3 2017 2017 Preliminary Recommended 2016 Final % Change BudgetFinal Budget Budgetfrom 2016 $2,067,600$2,130,300$2,128,500+3.0% General Government $3,405,300$3,562,100$3,570,400+4.9% Law Enforcement/Fire $2,461,200$2,535,100$2,563,100+4.1% Public Works $473,900$503,300$501,600+5.9% Community Development $2,078,000$2,216,600$2,227,800+7.2% Park & Recreation $10,486,000$10,947,400$10,991,400+4.8% Total 3 Revenues 4 2017 2017 Preliminary Recommended 2016 Final % Change BudgetFinal Budget Budgetfrom 2016 $8,052,831$8,459,631$8,503,631+5.6% Property Tax $1,022,800$1,035,800$1,035,800+1.6% Licenses & Permits $365,000$391,000$391,000+7.1% Intergovernmental Rev. $605,700$612,200$612,200+1.1% Charges for Services $111,000$116,000$116,000+4.5% Fines & Penalties $329,069$332,769$332,769+1.1% Other Revenue $10,486,000$10,947,400$10,991,400+4.8% Total Revenue 4 What factors change the budget for 2017? 5 Most expenditure line items remain flat for 2017  General Fund expenditures increased $505,400  (+4.8%) Wage increases of 4% included  Healthcare Cost Increase at 13%  New growth for taxes payable in 2017 is 1.56%  (includes decertification of TIF#5 & TIF#9) Operational/Capital & Debt Levy Changes 6 2017 Recommended Operational & Capital Levies2016 Final 2017 % Chg Final Levies LeviesPreliminary General Fund$8,017,431$8,424,631$8,468,131 Capital Replacement$800,000$800,000$800,000 MSA (Sealcoating)$93,000$93,000$93,000 Revolving Street ConstFund$431,698$428,838$384,838 Total Operational & Capital Levies$9,342,129$9,746,469$9,746,469+4.3% Debt Levies General Obligation Debt $240,700$0$0 (212 Bonds) Public Works Facility$594,000$596,700$596,700 Library Referendum$452,792$451,952$451,952 Total Debt Levies$1,287,492$1,048,652$1,048,652-18.6% TOTAL ALL LEVIES$10,629,621$10,795,121$10,795,121+1.56% 6 Total Levy vs. New Growth 7 Total LevyNew Growth 4% 2.92% 3% 2.91% 2.45% 2.23% 2% 1.87% 1.82%1.82% 1.77% 1.76% 1.56% 1.56% 1.45% 1.39% 1.39% 1.38% 1.36% 1.16% 1.06% 2.36% 1% 0.53% 0% 0.40% -0.30% -1% 2007 2008200920102011201220132014201520162017 Prel & Final Effect on Homeowners 8 Below are some examples of how the 2017 levy will impact property owners. The average home in Chanhassen increased in value approximately 0.5% in taxable market value for 2017. 20162017Percent 2016 City 2017 City Percent ValueValueChangeProperty TaxProperty TaxChange Parcel 1$206,300$210,800+2.2%$527$528+0.1% 2$299,100$299,100+0.0%$762$748-1.8% 3$498,800$502,400+.7%$1,268$1,256-0.9% 4$747,000$750,100+0.4%$2,049$2,023-1.3% Actual Property Tax Statement for Proposed 2016 Taxes (School District #112) 9 Property Taxes 5% 20% 31% 44% County 31%School 44%City 20%Other 5% KFS Budgeted Expenditure Comparison Budgeted Expenditures % Increase CityPopulation 20152016From 2015 25,19410,352,500 10,683,0003.2% Chanhassen 25,60114,799,8509.8% 13,478,477 Chaska 35,596 18,876,7405.2% 17,939,445 Cottage Grove 23,739 14,105,800 14,674,9004.0% Elk River 35,07122,443,5006.6% 21,057,800 InverGrove Heights 20,519 99,262,1940.4% ,228,922 LinoLakes 25,049 11,469,621 11,744,7772.4% Prior Lake 23,042 12,265,1283.6% 11,834,800 Rosemount 30,024 13,665,568 14,131,9923.5% Savage 40,25421,867,167 22,827,0234.4% Shakopee 19,754 12,630,267 13,356,6995.8% Stillwater 27,622 14,330,033 15,005,9824.4% Average Carver County Cities Budgeted Expenditure Comparison Budgeted Expenditures % Increase CityPopulation 20152016From 2015 Chanhassen24,503 10,352,50010,683,0003.2% Chaska25,270 13,478,477 14,799,850 9.8% Waconia11,520 5,566,199 5,888,4235.8% Victoria8,462 3,895,457 4,208,1038.0% Carver4,293 2,106,237 2,072,322-1.6% Average14,8097,079,7747,530,3405.0% KFS Per Capita Spending Comparison Per Capita CitySpending 2016 424 Chanhassen 451 LinoLakes 469 Prior Lake 471 Savage 530 CottageGrove 532 Rosemount 567 Shakopee 578 Chaska 618 Elk River 640 Inver Grove Heights 760 Stillwater 549 Average Carver County Cities Per Capita Spending Comparison Per Capita CitySpending 2016 Chanhassen424 Victoria497 Chaska578 Carver483 Waconia511 Average499 Carver County Tax Rates City2016 Final Tax Rate**2017 Prelim Tax Rate** Chanhassen24.25223.835 Chaska26.11827.555 Victoria31.52031.442 Waconia49.26755.212 Carver48.99849.459 58.91153.135 Mayer 58.97162.227 Watertown 66.36072.724 NorwoodYoung America Cologne70.96272.944 NewGermany111.294104.514 Hamburg128.993145.533 Average61.42263.507 ** Based on Urban Tax Rates Hennepin County Tax Rates -2016 CityTax Rate**CityTax Rate** Medina23.301St. Louis Park46.195 Chanhassen24.252Mound51.085 Wayzata24.673Crystal51.831 Edina27.137Robbinsdale52.162 Plymouth27.330Golden Valley54.452 Minnetrista28.792BrooklynPark55.251 Shorewood30.227Rockford56.620 Excelsior30.253NewHope56.668 Eden Prairie32.137Richfield60.992 Minnetonka35.674Minneapolis62.437 Rogers37.879Hopkins63.988 Maple Grove39.196Osseo70.645 Champlin42.749BrooklynCenter71.775 Bloomington44.290AVERAGE44.457 ** Based on Urban Tax Rates Discussion Points 16 Staff recommends adopting a 2017 final levy at  $10,795,121 and approves total general fund expenditures of $10,991,400. It also approves the CIP for 2017-2021 in the total amount of $153,293,650 DECEMBE R 12, 2016