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4 Proposed 2006 Budget CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone 952227.1100 Fax 952.227.1110 Building Inspections Phone 952227.1180 Fax 952227.1190 Engineering Phone 952227.1160 Fax 952227.1170 Finance Phone 952227.1140 Fax 952.227.1110 Park & Recreation Phone 952.227.1120 Fax 952227.1110 Recreation Center 2310 Coulter Boulevard Phone 952227.1400 Fax 952227.1404 Planning & Natural Resources Phone: 952227.1130 Fax 952.227.1110 Public Works 1591 Park Road Phone 952227.1300 Fax 952227.1310 Senior Center Phone 952227.1125 Fax 952227.1110 Web Site www.ci.chanhassen.mn.us 4- MEMORANDUM TO: Mayor City Council Members u.7 ' o~V FROM: Greg Sticha, Finance Director DATE: September 8, 2005 SUBJ: Approval of Preliminary Tax Levy In response to the discussion and City Council direction at the council work session on August 22nd, staff has prepared a preliminary tax levy. Council directed staff to include the use of $285,000 of excess fund balance to pay debt levies and maintain what is calculated as a zero effect on the average taxpayer in the city. The levy proposed for taxes payable in 2006 will show a total of $9,354,890, which is $100,021 less than the 2005 levy. Included for your review is the summary of the levy proposed showing a net effect on existing property owners of zero percent. Also included are the bond levy schedule from now thru 2025 and the revolving improvement fund through 2017. RECOMMENDA TION Staff recommends that the City Council adopt the preliminary tax levy as presented. This action requires a simple majority vote of those present. A TT ACHMENTS 1. Bond Tax Levy Schedule 2005-2025 2. Revolving Improvement Fund Schedule 3. Levy Summary Schedule The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks A great place to live, work, and play. TAX LEVY CITY OF CHANHASSEN 2006 Budget 2005 2006 Percent TAX CAPACITY BASED TAX LEVY Levy Levy Increase General Fund $6,251,820 $ 6,399,600 2.36% 147,780 Capital Replacement Fund (for equipment) $800,000 $ 800,000 0.00% MSA Fund (for street & trail pavement maint.) 162,000 216,500 33.64% Special Assessment Debt 96,940 129,300 33.38% General Obligation Debt 658,604 484,614 -26.42% General Obligation Debt (212 Bonds) 80,000 Debt of Other Agencies (EDA) 121,213 122,048 0.69% TOTAL TAX CAPACITY BASED TAX LEVIES $8,090,577 8,232,062 1.75% MARKET VALUE TAX LEVY Park Referendum Library Referendum TOTAL MARKET VALUE TAX LEVY 881,234 483,100 $1,364,334 $9,454,911 TOTAL TAX LEVY Dollar Increase 921 ,128 486,700 $1,407,828 $9,639,890 $184,979 4.53% 0.75% 3.19% 1.96% Levy W/O Debt Service Reduction Taxes applied to: General Fund $ Capital Replacement MSA Fund Total Levy subject to levy limits Bond Funds Reduction in OS Levy Total 6,399,600 800,000 216,500 $7,416,100 2,223,790 o $9,639,890 Tax Generation Capacity Scenario 1 No MV Increase W/O OS Reduct Prior Year New Construction Exsiting MV Inc TIF Oist 1 Eden Trace TIF Gateway TIF $9,454,911 $236,373 $0 -$415,000 -$45,000 $125,000 $9,356,284 Total Capacity Net Effect on existing property owners 3.03% .. - These funds to be used to pay down the debt levy by about $500,000 each of the next four years. -0.01 % Levy With Debt Service Reduction $ 6,399,600 800,000 216,500 $7,416,100 2,223,790 (285,000) .. $9,354,890 Scenario 1.5 No MV Increase With OS Reduct .. $9,454,911 $236,373 $0 -$415,000 -$45,000 $125,000 $9,356,284 ~ ~ c: ~ C $lI> ~,~ c: '" .ll!..Jon u1,j~ _t-N 0"8.0 B.ll~ oE 19 ~,~ o <l > -!ol'" .g Q....J en en co a en c;.s"8 000 Nela! m ~V,l "'-"8 ~O.ll el o 19 o.~ ~el~ ::l ..J en <( lI> ;gO"8 ?;Jel.ll c. ;;t; '5 lI> oLfft:: ?;JO~ el c. 0.5 en - O't:: ~~~ el lI> ~-'~ ~~j :g~~ en ~ <=' ;:!jl!!lI> o,e"8 ?;J~.ll el <(~lI> ~&"8 "'00 -ela! z -'" _ l!! 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CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DA TE: Seotember 12. 2005 RESOLUTION NO: 2005- MOTION BY: SECONDED BY: A RESOLUTION ADOPTING THE PRELIMINARY 2005 BUDGET, AND ESTABLISHING TRUTH IN TAXATION TAX LEVIES FOR 2005, COLLECTIBLE IN 2006 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHANHASSEN AS FOLLOWS: 1. That the 2006 Budget for the City of Chanhassen is adopted in the aggregate revenue and expenditure amounts for the General Fund of $8,615,100, which are detailed in the 2006 Preliminary Budget; and 2. That the following sums of money have been scheduled as "Proposed Levy Certification" to fund operations of the general fund, capital replacement fund, MSA fund and debt service funds to be levied in 2005 for collection in 2006 upon the taxable property in the City of Chanhassen as shown in this resolution; and 3. That the City Council of the City of Chanhassen determines that certain bonded indebtedness levies are hereby adopted to meet current and future bond requirements and that the County Auditor is hereby authorized and directed to increase or reduce the previously adopted bonded debt levies as shown on the attached Tax Levy Certification document; and 4. That the Truth in Taxation hearing date will be set for December 5, 2005 and the budget and tax levy adoption will be set for December 12, 2005 as allowed by law; and 5. That the City of Chanhassen authorizes the County Auditor to certify the amounts as set forth in the attached Proposed Levy Certification document for purposes of preparing the Truth in Taxation notices. Passed and adopted by the Chanhassen City Council this 12th day of September, 2005. ATTEST: Todd Gerhardt, City Manager Thomas A. Furlong, Mayor YES NO ABSENT