2019 Public Budget Presentation1Final Levy & Budget AdoptionFor taxes payable in 2019City of Chanhassen –December 10, 2018
Budget Process2Preliminary budgets submitted by Department Directors in early JulyBudget reviewed by Finance Director and City Manager in late JulyDetailed Budget Meeting held in AugustPreliminary Tax Levy Adopted for Truth-in-Taxation Statement purposes, September 24Public budget meeting held on December 3Budget adoption on December 10
Expenditures2018 Final Budget2019 Preliminary Budget2019 Recommended Final Budget% Change from 2018General Government$2,163,600 $2,233,300 $2,233,300 +3.2%Law Enforcement/Fire$3,665,500 $3,709,500 $3,709,500 +1.2%Public Works$2,586,800 $2,601,200 $2,601,200 +0.6%Community Development$534,400 $582,800 $582,800 +9.1%Park & Recreation$2,253,300 $2,268,560 $2,268,560 +0.7%Total$11,203,600 $11,395,360 $11,395,360 +1.7%33
Revenues2018 Final Budget2019 Preliminary Budget2019 Recommended Final Budget% Change from 2018Property Tax$8,709,333 $8,755,333 $8,755,333 +0.5%Licenses & Permits$1,032,800 $1,132,500 $1,132,500 +9.7%Intergovernmental Rev.$409,000 $400,000 $400,000 -2.2%Charges for Services$627,700 $620,900 $620,900 -1.1%Fines & Penalties$116,000 $116,500 $116,500 +0.4%Other Revenue$308,767 $370,127 $370,127 19.9%Total Revenue$11,203,600 $11,395,360 $11,395,360 +1.7%44
What factors change the budget for 2019?5$106,000 (0.97%) increase in levy dollars due to new constructionA 8% increase in healthcare costs Building permit revenue budgeted $100,000 higher than 2018A 3% increase for cost of living and merit payMarket adjustments for department headsNo increase in the police services contractElimination of the Crime Prevention Specialist position
Operational/Capital & Debt Levy ChangesOperational & Capital Levies 2018 Final Levies2019 Preliminary2019 Recommended Final Levies% ChgGeneral Fund $8,704,333 $8,810,333 $8,810,333Capital Replacement $800,000 $800,000 $800,000MSA (Sealcoating)Revolving Street Const Fund$93,000$384,838$93,000$381,223$93,000$381,223Total Operational & Capital Levies $9,982,171 $10,084,556 $10,084,556 +1.0%6Debt LeviesPublic Works Facility $470,400 $475,800 $475,800Library Referendum $461,297 $459,512 $459,512Total Debt Levies $931,697 $935,312 $935,312 +0.4%TOTAL ALL LEVIES $10,913,868 $11,019,868 $11,019,868 +0.97%6
Total Levy vs. New Growth7-1%0%1%2%3%4%2008 2009 20102011 2012 20132014 2015 2016 20172018 2019Pre &Final2.91%2.23%1.38%0.53%-0.30%0.40%1.36%1.45%1.39%1.56%1.10%0.97%1.82%2.45%1.39%1.06%1.16%1.82%1.77%1.76%1.87%1.56%1.10%0.97%Total LevyNew Growth
Effect on HomeownersBelow are some examples of how the 2019 levy will impact property owners. The average home in Chanhassen increased in value approximately 7.5% in taxable market value for 2019.Parcel2018Value2019ValuePercent Change2018 City Property Tax2019 City Property TaxPercent Change1 $199,900 $217,200 +8.6% $477 $481 0.8%2 $316,700 $346,400 +9.4% $754 $766 +1.6%3 $354,700 $381,100 +7.4% $844 $842 -0.2%4 $912,700 $981,600 +7.5% $2,404 $2,422 0.7%8
Actual Property Tax Statement for Proposed 2019 Taxes931%44%20%5%Property TaxesCounty 31%School 44%City 20%Other 5%
Gen Fund Budgeted Expenditures % IncreaseCity Population 2017 2018 From 2017Chanhassen25,955 11,192,800 11,414,000 2.0%Chaska26,94115,043,93216,841,385 9.3%Cottage Grove36,399 19,839,10020,160,615 1.6%Elk River24,567 15,182,950 16,072,250 5.9%Inver Grove Heights35,10623,628,90024,925,500 5.5%Lino Lakes21,117 9,583,7449,675,086 1.0%Prior Lake25,735 12,141,543 12,651,813 4.2%Rosemount23,965 12,836,60013,566,000 5.7%Savage30,713 14,521,627 14,948,819 2.9%Shakopee41,519 24,253,200 26,928,100 11.0%Stillwater19,748 14,270,848 14,966,044 5.1%Average28,342 15,681,386 16,559,056 5.4%KFS General Fund Budgeted Expenditure Comparison2019
Per CapitaCity Spending 2018Chanhassen440Chaska625Cottage Grove554Elk River654Inver Grove Heights710Lino Lakes458Prior Lake492Rosemount566Savage487Shakopee649Stillwater758Average581KFS General Fund Per Capita Spending Comparison2019
City 2019 Tax Rate**Chanhassen21.066Chaska27.614Victoria 31.439Mayer49.901Carver 50.512Waconia52.710Watertown56.635Cologne 62.260Norwood Young America 70.287New Germany 97.451Hamburg 140.176Average 60.005** Based on Urban Tax RatesCarver County Tax Rates – Preliminary Levies2019
Hennepin County Tax Rates - 20182019City Tax Rate** City Tax Rate**Medina 21.521 Mound 44.923Wayzata 21.749 St. Louis Park 46.383Chanhassen 22.666Crystal 49.168Plymouth 26.344 Robbinsdale 48.881Minnetrista 25.742 Brooklyn Park 51.159Edina 27.751 Rockford 52.999Excelsior 27.133 Golden Valley 55.152Shorewood 28.635 Richfield 57.730Eden Prairie 32.348 New Hope 57.709Minnetonka 35.710 Minneapolis 59.556Maple Grove 36.709 Hopkins 66.293Rogers 36.810 Osseo 63.157Bloomington 40.573 Brooklyn Center 67.067Champlin 39.704AVERAGE 42.355** Based on Urban Tax Rates
Discussion Points 14Staff recommends adopting a 2019 final levy at $11,019,868 and approves total general fund expenditures of $11,395,360. It also approves the CIP for 2019-2023 in the total amount of $104,527,245.
DECEMBER 10, 2018