2020 Public Budget Presentation1Final Levy & Budget AdoptionFor taxes payable in 2020City of Chanhassen –December 9, 2019
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 23Public budget meeting held on December 2Budget adoption on December 9
Budget Comparison 2009 Vs. 20193Total General fund spending in 11 years has increased $1,894,200 in total ($172k/year) for an average annual increase in spending of 1.7%$1,680,000 of the $1,894,200 above, was for wage increases, health care increases, taxes, pension costs and increased added seasonal and part time hours. We have the exact same FTE count in 2019 as 2009$431,900 of the $1,894,200 was for increases in the policing services contract $51,000 of the $1,894,200 was for required assessing services contract Meaning that ALL other spending in the General Fund over 11 years has actually decreasedby $268,900The $1,680,000 in increased wages, health care, taxes and pension costs equates to an average increase of 2.8%/year
Expenditures2019 Final Budget2020 Preliminary Budget2020 Recommended Final Budget% Change from 2019General Government$2,233,300 $2,244,700 $2,244,700 +0.5%Law Enforcement/Fire$3,709,100 $3,966,900 $3,966,900 +7.0%Public Works$2,601,200 $2,745,000 $2,745,000 +5.5%Community Development$582,800 $577,800 $577,800 -0.9%Park & Recreation$2,268,560 $2,365,300 $2,365,300 +4.3%Total$11,394,960 $11,899,700 $11,899,700 +4.4%44
Revenues2019 Final Budget2020 Preliminary Budget2020 Recommended Final Budget% Change from 2019Property Tax$8,755,333 $9,161,833 $9,161,833 +4.6%Licenses & Permits$1,035,000 $1,035,000 $1,035,000 0.0%Intergovernmental Rev.$400,000 $442,000 $442,000 +10.5%Charges for Services$620,900 $636,900 $636,900 +2.6%Fines & Penalties$116,500 $116,500 $116,500 0.0%Other Revenue$370,127 $413,867 $413,867 +11.8%Total Revenue$11,395,360 $11,899,700 $11,899,700 +4.4%55
What factors change the budget for 2020?6$177,100 (1.61%) increase in levy dollars due to new constructionA 16% reduction in healthcare costs Building permit revenue budgeted same as 2019A 3% increase for cost of living and merit payA 5% increase in the police services contractThe average home in Chanhassen increased in taxable market value by 5%Includes increased service levels for expanded duty crew’s $150,000Includes new Street Maintenance Department Employee $80,000Includes new Park Maintenance Department Employee $80,000Includes $350,000 for Pavement Management Program Funding
Operational/Capital & Debt Levy ChangesOperational & Capital Levies 2019 Final Levies2020 Preliminary2020 Recommended Final Levies% ChgGeneral Fund $8,810,333 $9,181,833 $9,181,833Capital Replacement $800,000 $800,000 $800,000MSA (Sealcoating)Revolving Street Const Fund$93,000$381,223$93,000$728,523$93,000$728,523Total Operational & Capital Levies $10,084,556 $10,803,356 $10,803,356 +7.1%7Debt LeviesPublic Works Facility $475,800 $480,600 $480,600Library Referendum $459,512 $457,412 $457,412Total Debt Levies $935,312 $938,012 $938,012 +0.3%TOTAL ALL LEVIES $11,019,868 $11,741,368 $11,741,368 +6.5%7
Total Levy vs. New Growth8-1%0%1%2%3%4%5%6%7%2009 2010 20112012 2013 20142015 2016 2017 20182019 2020Pre &Final2.23%1.38%0.53%-0.30%0.40%1.36%1.45%1.39%1.56%1.10%0.97%6.50%2.45%1.39%1.06%1.16%1.82%1.77%1.76%1.87%1.56%1.10%0.97%6.50%Total LevyNew Growth
Effect on HomeownersBelow are some examples of how the 2020 levy will impact property owners. The average home in Chanhassen increased in value approximately 5% in taxable market value for 2020.Parcel2019Value2020ValuePercent Change2019 City Property Tax2020 City Property TaxDollar ChangePercent Change1 $264,800 $279,200 +5.4% $587 $618 $31 +5.3%2 $296,100 $311,300 +5.1% $656 $688 $32 +4.9%3 $399,200 $422,500 +5.8% $884 $933 $49 +5.5%4 $576,500 $607,100 +5.3% $1,316 $1,397 $81 +6.1%5 $742,000 $778,100 +4.9% $1,770 $1,866 $96 +5.4%6 $1,051,900 $1,107,000 +5.2% $2,619 $2,766 $147 +5.6%9
Actual Property Tax Statement for Proposed 2020 Taxes (School District #112)1031%43%21%5%Property TaxesCounty 31%School 43%City 21%Other 5%
Gen Fund Budgeted Expenditures % IncreaseCity Population 2018 2019 From 2018Chanhassen25,955 11,414,000 11,618,060 1.8%Chaska26,94116,511,38516,896,838 2.3%Cottage Grove36,399 20,160,61520,958,986 4.0%Elk River24,567 16,072,250 17,096,650 6.4%Inver Grove Heights35,10624,925,50027,189,400 9.1%Lino Lakes21,117 9,675,0869,984,864 3.2%Prior Lake25,735 12,651,813 13,336,972 5.4%Rosemount23,965 13,566,00014,261,600 5.1%Savage30,713 14,948,819 15,951,876 6.7%Shakopee41,519 26,928,100 27,558,500 2.3%Stillwater19,748 14,996,044 15,995,345 6.7%Average28,342 16,537,783 17,349,917 4.8%KFS General Fund Budgeted Expenditure Comparison2020
Per CapitaCity Spending 2019Chanhassen447Chaska627Cottage Grove576Elk River696Inver Grove Heights774Lino Lakes473Prior Lake518Rosemount595Savage519Shakopee664Stillwater810Average609KFS General Fund Per Capita Spending Comparison2020
City 2019 Tax Rate** 2020 Proposed RateChanhassen21.104 21.133Chaska27.678 28.405Victoria 31.271 30.976Mayer 49.252 51.992Carver 50.592 49.591Waconia52.500 47.207Watertown56.473 55.097Cologne 62.415 64.305Norwood Young America70.399 73.656New Germany 97.651 96.404Hamburg 122.130 117.002Average 58.315 57.797** Based on Urban Tax RatesCarver County Tax Rates2020
Hennepin County Tax Rates - 20192020City Tax Rate** City Tax Rate**Chanhassen 21.104Mound 43.107Medina 21.529 St. Louis Park 46.373Wayzata 21.672 Crystal 48.771Minnetrista 24.915 Robbinsdale 50.807Plymouth 26.355 Rockford 50.931Excelsior 27.124 Brooklyn Park 52.695Edina 27.499 Golden Valley 53.780Shorewood 28.539 Richfield 54.737Eden Prairie 31.690 Minneapolis 57.312Maple Grove 34.899 Osseo 60.009Minnetonka 34.960 New Hope 67.990Rogers 35.917 Hopkins 71.697Champlin 39.611 Brooklyn Center 71.860Bloomington 41.581AVERAGE 42.499** Based on Urban Tax Rates
Recommendation 15Staff recommends adopting a 2020 final levy of $11,741,368 and approves total general fund expenditures of $11,899,700. It also approves the CIP for 2020-2024 in the total amount of $106,696,900.
DECEMBER 9, 2019