B2. Review 2018 Budget and 2018-2022 Capital Improvement Program1
For taxes payable in 2018
CITY OF CHANHASSEN –DECEMBER 4, 2017
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 25
Public budget meeting held on December 4
Budget adoption on December 11
Expenditures
2017 Final
Budget
2018
Preliminary
Budget
2018
Recommended
Final Budget % Change
from 2017
General Government $2,128,500 $2,167,000 $2,167,000 +1.8%
Law Enforcement/Fire $3,570,400 $3,692,500 $3,692,500 +3.4%
Public Works $2,563,100 $2,585,000 $2,585,000 +0.9%
Community Development $501,600 $534,400 $534,400 +6.5%
Park & Recreation $2,227,800 $2,256,700 $2,256,700 +1.3%
Total $10,991,400 $11,235,600 $11,235,600 +2.2%3
3
Revenues
2017 Final
Budget
2018
Preliminary
Budget
2018
Recommended
Final Budget % Change
from 2017
Property Tax $8,503,631 $8,709,333 $8,709,333 +2.4%
Licenses & Permits $1,035,800 $1,032,800 $1,032,800 -0.2%
Intergovernmental Rev.$391,000 $409,000 $409,000 +4.6%
Charges for Services $612,200 $627,700 $627,700 +2.5%
Fines & Penalties $116,000 $116,000 $116,000 +0.0%
Other Revenue $332,769 $340,767 $340,767 +2.4%
Total Revenue $10,991,400 $11,235,600 $11,235,600 +2.2%
4
4
What factors change the
budget for 2018?
5
Most expenditure line items remain flat for 2017
General Fund expenditures increased $244,200
(+2.2%)
Wage adjustments of 3% included
Healthcare Cost Increase at 15%
New growth for taxes payable in 2018 is 1.10%
Operational/Capital & Debt Levy Changes
Operational & Capital Levies 2017 Final
Levies
2018
Preliminary
2018
Recommended
Final Levies % Chg
General Fund $8,468,631 $8,704,333 $8,704,333
Capital Replacement $800,000 $800,000 $800,000
MSA (Sealcoating)
Revolving Street Const Fund
$93,000
$384,838
$93,000
$384,838
$93,000
$384,838
Total Operational & Capital Levies $9,746,469 $9,982,171 $9,982,171 +2.4%
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Debt Levies
Public Works Facility $596,700 $470,400 $470,400
Library Referendum $451,952 $461,297 $461,297
Total Debt Levies $1,048,652 $931,697 $931,697 -%
TOTAL ALL LEVIES $10,795,121 $10,913,868 $10,913,868 +1.1%
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Total Levy vs. New Growth
7
-1%
0%
1%
2%
3%
4%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Pre &
Final
2.36%
2.91%
2.23%
1.38%
0.53%
-0.30%
0.40%
1.36%1.45%1.39%
1.56%
1.10%
2.92%
1.82%
2.45%
1.39%
1.06%1.16%
1.82%1.77%1.76%1.87%
1.56%
1.10%
Total Levy New Growth
Effect on Homeowners
Below are some examples of how the 2018 levy will impact property owners. The average
home in Chanhassen increased in value approximately 4.2% in taxable market value for 2018.
Parcel
2017
Value
2018
Value
Percent
Change
2017 City
Property Tax
2018 City
Property Tax
Percent
Change
1 $211,100 $221,900 +5.1%$530 $529 -0.2%
2 $299,100 $316,700 +5.9%$749 $754 +0.6%
3 $356,100 $381,100 +6.9%$891 $906 +1.7%
4 $969,200 $1,049,900 +8.3%$2,703 $2,807 +3.8%
8
Actual Property Tax Statement
for Proposed 2018 Taxes (School District #112)
9
31%
44%
20%
5%
Property Taxes
County 31%School 44%City 20%Other 5%
Gen Fund Budgeted Expenditures % Increase
City Population 2016 2017 From 2016
Chanhassen 25,194 10,991,400 11,268,900 2.5%
Chaska 25,601 14,074,193 15,049,480 6.9%
Cottage Grove 35,596 16,215,125 16,326,635 0.7%
Elk River 23,739 13,884,800 14,378,400 3.6%
Inver Grove Heights 35,071 19,706,700 20,802,000 5.6%
Lino Lakes 20,519 9,876,494 10,271,558 4.0%
Prior Lake 25,049 13,008,738 13,070,878 0.5%
Rosemount 23,042 11,835,528 12,392,700 4.7%
Savage 30,024 13,768,216 14,210,066 3.2%
Shakopee 40,254 22,827,000 24,253,200 6.2%
Stillwater 19,754 11,293,009 12,211,287 8.1%
Average 27,622 14,316,473 14,930,464 4.3%
KFS General Fund Budgeted Expenditure
Comparison
2018
Per Capita
City Spending 2017
Chanhassen 447
Chaska 587
Cottage Grove 458
Elk River 605
Inver Grove Heights 593
Lino Lakes 501
Prior Lake 521
Rosemount 537
Savage 473
Shakopee 602
Stillwater 618
Average 540
KFS General Fund Per Capita Spending
Comparison
2018
City 2018 Tax Rate**
Chanhassen 22.658
Chaska 27.199
Victoria 31.471
Carver 47.626
Waconia 52.883
Mayer 52.098
Watertown 59.511
Norwood Young America 71.769
Cologne 70.741
New Germany 102.724
Hamburg 110.088
Average 58.980
** Based on Preliminary Levies
Carver County Tax Rates –Prelim 2018
2018
Hennepin County Tax Rates -2017
2018
City Tax Rate**City Tax Rate**
Medina 22.270 Mound 45.829
Wayzata 23.352 St. Louis Park 46.200
Chanhassen 23.855 Crystal 48.949
Plymouth 26.482 Robbinsdale 49.248
Minnetrista 26.590 Brooklyn Park 54.365
Edina 28.189 Rockford 55.170
Excelsior 28.802 Golden Valley 56.109
Shorewood 29.450 Richfield 56.850
Eden Prairie 32.480 New Hope 58.878
Minnetonka 36.378 Minneapolis 61.129
Maple Grove 38.245 Hopkins 62.985
Rogers 38.308 Osseo 69.097
Bloomington 40.926 Brooklyn Center 70.498
Champlin 41.469 AVERAGE 43.411
** Based on Urban Tax Rates
Discussion Points
14
Staff will meet with city council next week to
finalize the 2018 budget and tax levy
DECEMB
ER 5 2016