Loading...
2022 Proposed Annual Budget 2022 PROPOSED ANNUAL BUDGET Truth-In-Taxation Hearing Date December 13, 2021 A COMMUNITY FOR LIFE PROVIDING FOR TODAY AND PLANNING FOR TOMORROW CITY OF CHANHASSEN, MN City of Chanhassen 2022 Proposed Budget 1 Term Expires Mayor Elise Ryan December 31, 2022 Council Member Dan Campion December 31, 2022 Council Member Haley Schubert December 31, 2024 Council Member Jerry McDonald December 31, 2022 Council Member Lucy Rehm December 31, 2024 City of Chanhassen 2022 Proposed Budget 2 GUIDE TO USING THE BUDGET DOCUMENT INTRODUCTORY SECTION This section provides a summary overview of the Budget and a budget message from the City Manager. Includes basic information on the budget process, the City’s organizational structure and the City Council’s vision and goals. BUDGET SUMMARY An overview of the total budgeted revenue and expenditures for all funds. Also included is an overall financial summary of total Budgeted revenues and expenditures for all budgeted funds. FUND LEVEL FINANCIAL PLANS This section includes a five-year financial plan for each of the City’s funds. Each plan includes a narrative including a description and background information, explanation of major sources and uses of funds. Following the narrative summary is a single page of financial data. The financial data includes historical data for comparison purposes, the budget for 2021 and projections for the following four years 2022 through 2025. CAPITAL IMPROVEMENT PROGRAM (CIP) The five year 2021-2025 Capital Improvement Program is included in this section DEBT A debt study report provides a projection of future debt consistent with the CIP projections. FEES AND CHARGES All proposed fees and charges are listed. FINANCIAL POLICIES This section includes the City’s Financial Policies. The City Council discussed updating financial policies during the 2021 budget process and will complete the update in the first quarter of 2021 with adoption of a Financial Sustainability and Resiliency Plan which will guide the City’s annual budget development and financial decision-making throughout the year. GLOSSARY A glossary and acronym listing is also included. SUPPLEMENTAL INFORMATION This section includes additional statistical tables and comparison information. City of Chanhassen 2022 Proposed Budget 3 This page intentionally left blank. City of Chanhassen 2022 Proposed Budget 4 INTRODUCTION A COMMUNITY FOR LIFE PROVIDING FOR TODAY AND PLANNING FOR TOMORROW CITY OF CHANHASSEN, MN City of Chanhassen 2022 Proposed Budget 5 CITY MANAGER’S MESSAGE Mayor Ryan and Chanhassen City Council Members: I am pleased to present the 2022 budget for Council consideration. The 2022 budget was prepared using the City’s Strategic Plan as guide to align with the City’s vision, mission and strategic priorities. IMPLEMENTING THE CITY’S STRATEGIC PLAN Early in 2021 the Council and the city’s leadership team worked together to develop a strategic plan for the City of Chanhassen and in March the Council adopted a new strategic plan. This budget has been prepared to implement the vision, strategic initiatives and action plans adopted by the Council. FINANCIAL SUSTAINABILITY The budget includes long-term financial plans for each of the City’s funds. The City has updated its financial policies in 2021 to a comprehensive set of policies to guide decision-making for both staff and Council. The policies provide the core strength to ensuring financial stability to provide cost-effective services for today and into the future as well as provide for the long-term stewardship of the City’s valuable assets and natural resources. ASSET MANAGEMENT The City annually updates a capital improvement plan (CIP) for all of its capital equipment, facilities and infrastructure. This includes replacements and additions to the City’s street systems as well as utility infrastructure to provide safe drinking water, effective waste water systems and to manage storm water runoff to protect property owners and the City’s beautiful natural resources. The City is currently completing a comprehensive facility analysis. A consultant has been hired to evaluate the current condition of each of the City’s facilities to identify Strategic Plan Our Vision Chanhassen is a safe, welcoming community with engaged residents, abundant natural amenities and vibrant businesses supported by valued services that make this a community for life. Our Mission Our mission is to serve the public. We do this through the delivery of reliable, cost-effective services designed to provide a safe sustainable community. City of Chanhassen 2022 Proposed Budget 1 maintenance and future replacement needs to guide the City’s long-term facility plans. The CIP is incorporated into the long-term financial plans in the capital project funds and the enterprise funds and guides the city’s strategies to ensure adequate funding is available now and in the future the maintain the City’s valuable assets and to invest in future assets to meet City needs. DEVELOPMENT AND REDEVELOPMENT The City has continued to experience growth from private investment in the City. The City strategic plan desired outcomes in this area include diversity of development and redevelopment consistent with the City’s vision and new innovative places and spaces. The City seeks to review its downtown vision plans and to be business friendly. The City also will continue to plan for supportive infrastructure for future development. OPERATIONAL EXCELLENCE The City completed a compensation study in 2021 and 2022 budget includes implementation of a new pay plan to provide an equitable compensation structure to improve employee recruitment and retention. The City is also investing in employee development and performance evaluation to ensure the City is investing in a competent workforce able to provide excellence in service delivery. The City has invested in new technology to improve service delivery all service areas. A high value is placed on innovation and operational effectiveness. New citizen request management technology is currently being implemented to target our resources to more quickly and effectively meet needs identified Chanhassen residents. COMMUNICATIONS Engagement and respect our two of our core values. We have strategic priorities for improving communication both externally and internally. The City has invested in staffing in the communication department in 2021 and the 2022 budget includes website enhancements and community engagement opportunities. I am confident that the investments and efforts made as a result of focusing on the strategic plan initiatives will have bring positive impacts to the City of Chanhassen and I am excited to see the results in 2022. Our Values Innovation Respect Stewardship Engagement I want to thank the Chanhassen staff for their work on this budget and for their hard work during these unprecedented times. Thank you to the City Council for your continued leadership and commitment to the City’s strategic initiatives to ensure the Chanhassen continues to be a community for life. Laurie Hokkanen, City Manager City of Chanhassen 2022 Proposed Budget 2 ORGANIZATION OF CITY SERVICES AND DEPARTMENTS Chanhassen is a “Plan B” form of government, in which residents elect a mayor and four city council members with equal voting authority. The mayor and council are responsible for making policy and legislative decisions that govern the City, while relying on a city manager and staff to handle the administrative and day-to-day operations at City Hall. As chief executive officer, the city manager is the sole employee of the city council. City Manager – Laurie Hokkanen Assistant City Manager – Matt Unmacht Community Development Director – Kate Aanenson Finance Director – Kelly Strey Fire Chief – Don Johnson MIS Director – Richard Rice Park & Recreation Director – Jerry Ruegemer Public Works Director/City Engineer – Charles Howley Law Enforcement Lieutenant (Carver County) – Lance Pierce City of Chanhassen 2022 Proposed Budget 3 COMMUNITY PROFILE The City of Chanhassen is a suburb located southwest in the Twin Cities metropolitan area. It is situated primarily in Carver County with a small portion in Hennepin County. The City was incorporated in 1964 and covers 23.8 square miles. Five major highways provide convenient access to other metropolitan areas. POPULATION With a population of approximately 25,947, Chanhassen is the second largest city in Carver County. Since the 2010 census, Chanhassen’s population has grown 14.5%. The Metropolitan Council projects the City to grow to 37,100 by 2040. UNEMPLOYMENT The unemployment rate decreased over the past year, it was estimated at 2.2 percent in September 2021 compared to 4.8 in September of 2020 (Minnesota Department of Employment & Economic Development). The state-wide unemployment rate was 3.7 percent for September while the U.S. unemployment rate was 5.4 percent. The 2020 rates are higher due to the COVID-19 pandemic. In 2020, an estimated 13,644 residents were employed in the labor force compared to 16,358 in 2019. Employment data for the City for 2021 is not available at this time. MEDIAN INCOME The City has strong local economic indicators with a median home value and median household income well above average for the state. Values are from the Metropolitan Council for the year 2020. GOVERNMENT The City is a Plan B Statutory City with a City Council / City Manager form of government. The City Council consists of a Mayor and four Council Members elected at-large. The City has 77.1 full-time equivalents (FTE) in full-time and regular part-time positions. The City also employees seasonal employees and volunteers which are not counted in the FTE totals. - 50,000 100,000 150,000 Median Income Chanhassen Carver County Metro Avg State Avg US 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 2017 2018 2019 2020 2021 September Unemployment Rate Chanhassen MN U.S. 0 10,000 20,000 30,000 40,000 1990 2000 2010 2020 2030 Forecast 2040 Forecast Population Forecast Population Households City of Chanhassen 2022 Proposed Budget 4 PUBLIC SAFETY The city has contracted with Carver County to provide law enforcement in Chanhassen. Carver County provides 15 deputies assigned to patrol and manage public safety, as well as a crime prevention specialist and two part-time community service officers. The Chanhassen Fire Department has 47 on-call members. The Main Fire Station is located on Laredo Drive and a satellite station is located on Minnewashta Parkway. PARKS & TRAILS Chanhassen’s 885-acre park system features five community parks, 28 neighborhood parks and 14 park preserves spread throughout the community. There are 90 miles of trails and sidewalks for walkers, bikers, runners, and in-line skaters to enjoy. The trails connect downtown, parks, and neighborhoods. SENIOR CENTER The Chanhassen Senior Center, located in the lower level of City Hall, is a social gathering place for people 55 and over. The center offers programs, trips, meals on wheels, and congregate dining. RECREATION CENTER The Chanhassen Recreation Center (located on the east side of Bluff Creek Elementary School) provides residents with the opportunity to stay fit. There is a fitness room, gym, aerobic / dance studio, and five public meeting rooms that are available for rent. SPECIAL EVENTS With the generous support of area businesses, the city hosts several community events each year: February Festival, Easter Egg Candy Hunt, Arbor Day Celebration, July 4th Celebration, Fire Department Open House, Halloween Party, and Tree Lighting Ceremony. WATER & SEWER The City’s Water & Sewer public utility provides water to over 8,200 residential and business accounts. The City operates 12 wells and two water treatment plants to provide more than 950 million gallons of potable water annually. Wastewater treatment and disposal is provided by the Metropolitan Council Environmental Services. SCHOOLS Two public school districts serve Chanhassen: Minnetonka District 276 and Eastern Carver County District 112. Many quality private schools are also available. City of Chanhassen 2022 Proposed Budget 5 LAKES There are twelve beautiful, clean lakes, wholly or partially located within the city limits: Christmas Lake, Harrison Lake, Lake Ann, Lake Lucy, Lake Minnewashta, Lake Riley, Lake St. Joe, Lake Susan, Lotus Lake, Rice Lake, Rice Marsh Lake, and Silver Lake. HOUSING The city offers a wide variety of housing types, from apartments and starter homes to estates and lake properties. Approximately 73% of the homes in Chanhassen are owner-occupied. Chanhassen's population includes many young families - 35% of the population is under 24, and the median age is 39.4 years. COMMERCIAL AND INDUSTRIAL BUSINESS COMMUNITY Our thriving businesses include a variety of commercial and industrial companies. Downtown Chanhassen offers great shopping, eating, and entertainment. Office and warehouse buildings are located in various industrial parks throughout the city. The city has over 4.2 million square feet of commercial / industrial space, which includes approximately 711 businesses that employ nearly 13,000 people. Chanhassen industries include: printing, financial services, medical products, engineering, food production, high-tech manufacturing, and many more. BOND RATING S&P Global Ratings has assigned the City’s bonds a rating of AAA. This credit rating is the highest credit rating available from S&P. The City of Chanhassen is one of only 27 Minnesota municipalities and 426 nationally with this AAA rating. S&P Global Ratings reaffirmed the city’s AAA bond rating in March 2020 and evaluated the outlook as stable. The report cites the following factors in its assessment of the city’s ratings. Very strong economy Very strong management with strong financial policies and practices Strong budgetary performance with operating surpluses Very strong budgetary flexibility (fund balance of 49% operating expenditures) Very strong liquidity Adequate debt Strong institutional framework score City of Chanhassen 2022 Proposed Budget 6 TAX BASE Chanhassen’s tax base is includes residential and commercial property. Total market value has fluctuated over the past 10 years consistent with the state-wide and nation-wide trend in the housing market. The total taxable market value has increased 46.4 percent over the past ten years from $3.3 billion in 2011 to $4.8 billion in 2020. In the years 2014-2021, the market value growth was 56.7 percent from the low point in 2013. Chanhassen continues to monitor valuation trends. TAXABLE MARKET VALUE Residential properties represent 84% of the City’s estimated market value. The property tax formula results in a lower tax capacity for residential properties as compared to commercial and industrial properties. As a result, residential properties carry 75% of the tax capacity. $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021MillionsTaxable Market Value History Residential & Apartments Commercial/Industrial & Other Resident ial 75% C&I 21% Apartme nt 2% Other 2% Tax Capacity Residenti al 84% C&I 12% Apartmen ts 2% Other 2% Estimated Market Value City of Chanhassen 2022 Proposed Budget 7 City of Chanhassen 2022 Proposed Budget 8 FINANCIAL MANAGEMENT The City of Chanhassen Finance Department is responsible for maintaining the accounting system and monitoring compliance with the budgetary controls and financial policies established by the City Manager and City Council. Following is an overview of relevant financial management practices and year-end reporting. FINANCIAL MANAGEMENT POLICIES The City Council began discussion of updating its financial policies into a Financial Policies Document to provide a foundation for financial sustainability and resiliency. It will establish a comprehensive set of guiding principles for staff and City Council to make consistent and informed financial decisions with a long-term focus that sets clear rules and builds trust and transparency. The plan will be reviewed and finalized in 2021. The plan will become part of the annual budget process to be reviewed annually and adopted by the City Council. It will combine current individual policies into a comprehensive document address policies in the following areas. BASIS OF ACCOUNTING The accounting system provides for a complete, self-balancing account group for each fund of the City. Accounting records are maintained on the modified accrual basis for the governmental type funds and trust and agency funds. The modified accrual basis of accounting recognizes revenues to the degree that they are available to finance expenditures of the fiscal period. Similarly, debt service payments and a number of specific accrued liabilities are only recognized as expenditures when payment is due because it is only at that time that they normally are liquidated with expendable available financial resources. The budgetary basis of accounting is the same basis of accounting used to prepare the City’s financial statements as included in the City’s Annual Financial Report at the fund statement level. The full accrual basis of accounting is utilized for the proprietary type funds as defined in the notes to the City’s financial statements. The full accrual basis of accounting recognizes revenues as they are earned and expenses as soon as a liability is incurred, regardless of related cash inflows and outflows. For budget purposes the funds use the accrual basis except for capital assets and debt payments which are budgeted on a modified accrual basis within each finance plan. Depreciation is noted at the bottom of the finance plans. Financial Resiliency & Long-term Planning Accounting, Auditing & Reporting Reserve Balances Budgetary Control Debt Issuance & Management Compensation Philosophy Purchasing Policy Grant Management Risk Management Special Assessment Policy Capital Asset Management Revenue Management & Fees Cash & Investment Management Information Security City of Chanhassen 2022 Proposed Budget 9 ANNUAL REPORT The City operates on a calendar fiscal year and reports its year-end financial position in the annual report, prepared by the City’s Finance staff. Copies of the 2020 annual report will be available to the public upon completion in June 2021. The 2020 annual report will be audited upon completion by an independent auditing firm to ensure accuracy and compliance with federal and state laws and regulations. State law provides that the City may arrange for examination of its books, records, accounts and affairs, or any part thereof, by the State Auditor, or by Certified Public Accountants. It has been a long-standing policy of the City to provide for a complete annual audit of the City records by independent Certified Public Accountants. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the City of Chanhassen for its annual report for the fiscal year ended December 31, 2018. The City has submitted the 2019 annual report to the GFOA to determine its eligibility for another certificate. The Certificate of Achievement is a national award recognizing conformance with the highest standards for preparation of state and local government financial reports. BUDGETARY CONTROLS A budgetary system of accounts is maintained for the all budgeted funds. Control is maintained by the monthly review of actual expenditures compared to budgeted amounts. Budgetary activity is monitored to ensure that total expenditures are within budgetary allocations. For the past several years, budgeted expenditures have been within budget. The budgetary level of control is at the fund and department levels. There is a budget amendment process for unplanned expenditures and revenues. The amendments are presented to the City Council throughout the year for approval, at the direction of the City Manager. INTERNAL CONTROLS In developing and altering the City’s accounting system, consideration is given to the adequacy of internal accounting controls. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. As a part of the annual audit the City's auditors review internal controls and annually City Finance Staff review procedures to ensure controls are updated as needed. The Finance Department believes the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. CASH MANAGEMENT The investment portfolio of the City is designed to attain an average rate of return regularly exceeding the average return on three month U.S. Treasury bills, while seeking to augment returns above this threshold consistent with budgetary cycles, economic conditions, risk limitations, and prudent investment principles. Portfolio diversification is considered so that investments are not concentrated in one institution, in one type of investment, or purchased from one dealer. Pursuant to this policy, cash temporarily idle during the year was invested in those investments authorized by law (short-term and long-term including, U.S. Government and Agency bonds and notes and the money market funds invested in U.S. Government securities). RISK MANAGEMENT The City has a risk management policy, the purpose of which is to maintain the integrity and financial stability of the City, protect its employees from injury, and reduce overall costs of operations. To avoid and reduce risk, the City maintains an active safety committee comprised of employees who periodically conduct educational safety and risk-avoidance programs within City departments. The City has insurance coverage through the League of Minnesota Cities Insurance Trust to insure City property and assets against loss. The blanket policy includes coverage for buildings, personal property, contractors and miscellaneous equipment, crime, employee performance bonds, autos and general liability. General liability coverage amounts to $500,000 per occurrence with a $1,500,000 aggregate, with a $5,000 per occurrence. City of Chanhassen 2022 Proposed Budget 10 FUND STRUCTURE The accounting system maintains a standard fund structure for a typical Minnesota city government. Following is a description of the funds included that are subject to appropriation, for which financial plans and budget appropriations are prepared annually. These funds are the General, Special Revenue, Capital Projects, Debt Service and Enterprise. GENERAL FUND The General Fund serves as the main operating fund of the City. The General Fund is used to account for all financial resources not accounted for in other funds. Most of the basic governmental services are included in the General Fund. The expenditures from the General Fund account for the majority of primary services provided by the City in the areas of public safety, public works, parks and recreation, planning, engineering and general government. The Fund uses the modified accrual basis of accounting for budgeting and financial reporting purposes. This means expenditures are recorded when the liability is incurred and revenues are recorded when they become measurable and available. SPECIAL REVENUE FUNDS The Special Revenue Funds are governmental funds to account for services and expenditures where revenue is restricted for a designated purpose. The City maintains four Special Revenue Funds and all are budgeted funds using the modified accrual basis for both financial statement and budgeting purposes. None of the Special Revenue Funds are major funds. Cable Franchise Fund - includes franchise fee revenue received from cable television restricted for City communications related use. Charitable Gambling Contributions Fund - is revenue received from 10% of gambling revenue and is restricted for the purchase of public safety training and equipment. Cemetery Fund - reflects operations of a City cemetery. The majority of revenues come from sales of plots. Grant Fund - accounts for revenue and expenditures related to federal, state and other financial assistance programs. CAPITAL PROJECTS FUNDS Capital Projects Funds are governmental funds to account for the acquisition and construction of major capital facilities and equipment (except those financed by proprietary funds). This includes expenditures relating to capital projects and large capital City of Chanhassen 2022 Proposed Budget 11 outlay purchases. The City has several budgeted funds in this category. The Capital Project Funds use the modified accrual basis for both financial statement and budgeting purposes. Capital Replacement Fund - records capital purchases of equipment, vehicles, technology, and facilities improvements. The resources may be provided by property taxes, issuance of Certificates of Indebtedness, sale of existing equipment, and transfers from other funds. Park Renovation Fund - The Park Renovation Fund is used to account for replacement or repair of major park equipment and infrastructure. Parks Development Fund - The Park Development Fund is used to account for park dedication fees as required by the City ordinance. These funds are used to finance new park and trail improvements. Street Pavement Maintenance Fund - reflects revenues and expenditures for street rehabilitation projects, major street maintenance projects, and small traffic control issues. Improvement Construction Funds - includes receipt and disbursement of bond proceeds, intergovernmental revenue or other sources obtained to finance large improvements and additions to the City’s infrastructure. Pavement Management Plan (Special Assessment Revolving) Fund - includes special assessment revenue, MSA Intergovernmental revenue, franchise fee revenue, and property taxes for the purpose of replacing streets. The Transit Assessment Fund - used to account for the special assessment revenues and interfund loan repayment for project Special Assessments related to the Dinner Theater Transit Station in TIF #10. This is the non-TIF funding portion of the project. DEBT SERVICE FUNDS Debt Service Funds account for the accumulation of resources for the payment of general long-term debt principal and interest. The City maintains individual debt service funds for each bond issue. The City has established annual financial plans for all general obligation bond funds. The Permanent Revolving Debt Fund is an accumulation of surplus funds from closed bonds. The City will address allocation of the amount available in this fund to other funds during the 2022 budget process. The Debt Funds use the modified accrual basis for both financial statement and budgeting purposes. ENTERPRISE FUNDS Enterprise Funds account for business-type activities. These activities provide services where most of the costs are recovered through user fees and charges. The City has three Enterprise Funds. The Enterprise Funds use the accrual basis of accounting for financial statement purposes. For budget purposes the funds use the accrual basis except for capital assets and debt payments which are budgeted on a modified accrual basis within each finance plan. Depreciation is noted at the bottom of the finance plans. Water Fund - receives its revenues from charges to all property owners to provide water utilities, fund operations and maintenance and capital improvements. Sewer Fund - receives its revenues from charges to all property owners to provide sewer utilities, fund operations provided by MCES and maintenance and capital improvements. Surface Water Management Fund - receives its revenues from charges to all property owners to fund water quality projects, operations and maintenance, and capital improvements. INTERNAL SERVICE FUND The City does not have any internal service funds budgeted during the 2021 budget process. Staff will be recommending the establishment of internal service funds for 2021 in the first quarter of 2021. City of Chanhassen 2022 Proposed Budget 12 The following table shows the relationship between functional departments and funds. Special Revenue Funds Capital Projects Funds Enterprise Funds Functional Departments General Fund Contribution Cable Franchise Cemetery Grant Park Replacement Park Development Capital Replacement Fd TIF Capital Special Assessment R li Improvement C i l F d Debt Service Funds Water Sanitary Sewer Surface Water M Law Enforcement X Fire X X X X Community Dev X X X X Engineering X X X X X X X X Parks X X X X Public Works X X X X X X Fleet X X Natural Resources X X X Recreation X X X Admin X X X X Communications X X Finance X X X X X X I.T. X X X X Facilities X X X Legal X Cable Franchise X City of Chanhassen 2022 Proposed Budget 13 BUDGET PROCESS AND CALENDAR The City of Chanhassen budget development is not just an annual process that occurs at a set time every year. In actuality, the entire process is an on-going approach that fits into an overall framework of the four primary principles of sound local government budgeting. The City’s budget process is built on a strong foundation of financial policies and goal setting. The City’s budget process begins with a review of the City’s Key Financial Strategies which defines the Council’s goals. Long-term financial planning is not new to the City’s annual budget process. The city always had several elements of long-term plans in place. It has annual operating budgets for the General Fund, Special Revenue Funds and Enterprise funds. Additionally the City has prepared 5 year capital plans, various other financial information and prepared a utility rate study that incorporates the both annual and long-term planning. Each year the City Council is required to adopt a maximum tax levy ceiling and preliminary budget by Sept. 30. The tax levy figure establishes the maximum tax levy increase that the Council can consider for the next budget year and is the amount used for the individual parcel specific Truth-in-Taxation notices. Historically, the City has used the maximum tax levy as a means for preserving flexibility in decision making until later in the year when considering final budget adoption. The City Council meets during November and December to review the recommended 2021 budget in preparation for the final adoption of the budget. The meetings are open to the public and the public is invited to comment on the budget at each meeting. Information is available on the City’s website and in the City’s newsletter to provide residents with information regarding the City budget and services. The public may comment on the 2021 Budget on the City’s website or at any of the public meetings. On December 14, the City Council adopts the final budget. 2021 FINANCIAL PLANNING AND BUDGET CALENDAR Meeting Dates Discussion Topics Adopt Revise Council & Public Input Detailed Plans Refine Needs & Options Council set Max Tax (Sept 30 deadline) Preliminary Review & Council Discussions - Public Input Identify Needs & Revenue Sources Policies & Priorities -Key Financial Strategies (KFS) (February) City of Chanhassen 2022 Proposed Budget 14 Feb 10 Work Session Discuss Early 2021 Budget Estimates June 8 Work Session Discuss 2020 And 2021 Budget Aug 10 Work Session Initial 2021 Budget Discussion Aug 24 Work Session Detailed General Fund Budget Discussion Sept 14 Work Session Tax Levy Discussion Sept 28 Council Meeting Set Preliminary Tax Levy “Max Tax” Oct 12 Work Session Special Revenue & Enterprise Funds Capital Improvement Plan(CIP) 2021-2025 Oct 26 Work Session Review 2020 Utility Rate Study Nov 9 Work Session Long-Term Financial Planning Discussion Nov 23 Work Session Budget Follow Up Discussion Dec 7 Council Meeting Truth In Taxation Public Hearing Dec 14 Council Meeting Council Adopts Tax Levies And Budget Budget amendments may be approved by the City Council throughout the year. City of Chanhassen 2022 Proposed Budget 15 EXPANDED BUDGET DOCUMENT This year the City took the first step to transition to a more comprehensive budget document with an integrated long-term financial focus. During the budget process the Council preliminary budgets were prepared consistent with prior years at the fund level for only some funds and only for operations. This final budget document was expanded to include all funds and incorporating capital, debt, other financial planning information that has been presented to Council separately at various times. Some information was completed using historical trends, future considerations and professional judgement and analysis. Additionally, four year trends were prepared for all funds for information purposes. Additionally, summary level combined fund statements were added for a full picture of the City’s financial picture. General Fund General Government Expenses Special Revenue Funds Charitable Gambling Fund Cable Television Fund Cemetery Fund Enterprise Funds (Operating Only) Water Sanitary Sewer Surface Water Management General Fund Special Revenue Funds Charitable Gambling Contribution Cemetery Fund Cable Franchise Grant Fund (new) Capital Funds Capital Equipment Fund (future split) Park Funds: ReplacementAcquisition & Dev Road Improvement: Pavement Mgmt Special Assmt Large Project Funds Transit Station Assessment Fund TIF Funds: TIF#11 Debt Service Funds Permanent Revolving Debt GO Refunding Bond Funds:Refunding 2009 Refunding 2016 GO Library Bonds (close in 2021) Enterprise Funds Water Sewer Surface Water Management Internal Service Funds (Future) Fleet Services Technology Operating Risk Management Compensated Absences City of Chanhassen 2022 Proposed Budget 16 At the end of the budget process the City expanded this annual budget document to a new format to integrate all of its separate but related financial planning documents into a more comprehensive long-term financial planning document combining operating budgets with capital budgets and expanding the operation outlook beyond next year. The main benefit of long-term financial planning is to provide context for today’s decision-making for both staff in preparing the budget and Council in making decisions. How do today’s decisions affect the following year and beyond? It gives decision makers the ability to predict what the City’s financial situation will be, not just next year, but in following years. It doesn’t limit the City Council’s choices but rather provides information about options in order to make more informed decisions. Long-term planning is not about putting a plan in place for the next 5 years that is set in stone. It is about projecting what the next 5 years might look like given the current situation and then annually updating the plan as situations change and priorities change. Key benefits include: Predicting costs of maintaining current service levels estimating the costs to continue to provide the same service levels provided today. Of course no one has a crystal ball but we can make broad estimates of the effects of inflationary and other changing costs over the next several years. Another key factor is revenue trends and expectations for non-tax revenues. Changes in other revenues affect how much of current services will need to be funded by tax levy. Long-term planning helps to stabilize future levy increases. Long-term planning can level out the peaks and valleys to avoid sharp increases in the property tax levy. Incorporating the CIP into the operating budget helps to clarify the answers to the questions about affordability of projects and financing strategies. It also demonstrates the effects on future budgets and tax levies when capital replacement and maintenance is delayed to futures years. This helps the Council to make decisions that protect the investment it’s made in the City’s valuable infrastructure. Long term planning increases the City’s strong financial positions and provides the flexibility to meet unexpected challenges. When you have planned ahead, it is easier to evaluate choices and changes to be made annually. And finally it puts in place a structure for planning and implementing strategic goals. City of Chanhassen 2022 Proposed Budget 17 SETTING THE STAGE FOR AN EFFECTIVE 2022 BUDGET PROCESS The new format identifies areas that will need more work and details added. With completion of this budget document, the City has the base to refine future long-term plans in 2022. It is fully expected that the 2022 budget document will address areas for more information, issues to resolve and opportunities to expand and enhance the plans through the budget process in 2022. Additionally, the Council has funded in the 2021 budget and strategic planning process. In February of 2021, Council and staff will work collaboratively with a consultant on a strategic plan for the City. The values and vision will be the basis for development of the 2022 budget that helps the City achieve the strategic goals that it sets for the City of Chanhassen. City of Chanhassen 2022 Proposed Budget 18 City of Chanhassen 2022 Proposed Budget 19 BUDGET SUMMARY 2022 ANNUAL BUDGET – ALL FUNDS EXECUTIVE SUMMARY City of Chanhassen 2022 Proposed Budget 31 INITIAL LEVY PROJECTIONS PROJECTIONS PRESENTED FOR PLANNING PURPOSES In the funds with tax levy support, each plan includes a projection of levy increases needed to keep the plan within fund balance targets given the assumptions made about future revenues and expenditures. The goal is to avoid surprises and to maintain a steady property tax change, avoiding future large increases. AN OVERVIEW OF PROPERTY TAXES IN ALL FUNDS All of the funds are presented on the Initial Levy Projection table in this section to illustrate a total forecast of levy trend over the next four years. This forecast is designed to give context to current decision-making by showing the effect current budget decisions may have on future years if trends continue. It provides the opportunity to think long-term about changes that may need to be made in future budgets. It also allows the City to develop funding strategies to maintain the City’s valuable assets, meet community needs and fund strategic Council initiatives. START WITH FORECAST OF OTHER REVENUE SOURCES AND EXPENDITURES ESTIMATES Each plan begins with impact that the results of 2020 and the 2021 budget will have on fund balance. Then, based on a number of assumptions specific to details within the fund, each plan includes forecasts of revenues and expenditures for the next four years to maintain services at the current level. Revenues are forecasted for the upcoming years based on historical trends and anticipated changes. Expenditures assume some inflationary factors and incorporate the capital projections in the Capital Improvement Plan (CIP). Any other anticipated pressures are also factored into the plan. COMPARE RESULTING FUND BALANCE TO TARGETS AND ADJUST LEVY PROJECTIONS The result in each plan is the cumulative fund balances at the end of each year. The results are compared to the target fund balance for the fund. The levy in each plan is adjusted to keep the fund balance in range. ARE THESE LEVY CHANGES CERTAIN? No. The 2021 budget only sets the levy for 2021. The future years are simply the beginning point for policy and strategy discussions. The projections create a transparent process where today’s decisions are not made in a vacuum and where the impact on future years can be anticipated. Actual results in future years will continue to refine the projections and budget decisions in future years will shape the final levy in each of those years. THIS IS THE FIRST YEAR OF THIS APPROACH TO LONG-TERM PLANNING This document is in a new format and is a work-in-progress. The budget process used the City’s traditional approach with some added long-term planning high-level presentations. Council discussed converting to the new format at the end of the budget process and concepts were approved. In order to prepare the first plans, staff began by combining the City’s traditional budget schedules with information from its other long-term planning documents. The initial implementation required building in some assumptions and strategies as a place to start. The 2022 budget process will be the Council’s first opportunity to discuss the five-year plans and strategies in depth. Alternative options for some of the plans will be presented for Council’s consideration of different strategies as we begin the 2022 budget process. Building a strong comprehensive long-term planning approach ensures continued long-term financial sustainability for the City of Chanhassen. FIVE YEAR LEVY PROJECTIONS Property Tax Levy Impacts2022 Budget Change2022 Levy Impact % Change % Change % Change % Change %Beginning Levy $      12,066,700  $    12,663,200  $  13,579,200  $  14,325,200  $  14,956,200 General FundEmployee Services 345,000              2.9%350,000            2.8%300,000          2.2%300,000          2.1%300,000          2.0%Current Expenses* 161,000              1.3%220,000            1.7%200,000          1.5%200,000          1.4%200,000          1.3%Total Expenses 506,000              4.2%570,000            4.5%500,000          3.7%500,000          3.5%500,000          3.3%Revenues net increase (other than tax levy)(200,000)             ‐1.7%‐                     0.0%‐                   0.0%‐                   0.0%‐                   0.0%Current Service Level 306,000              2.5%570,000            4.5%500,000          3.7%500,000          3.5%500,000          3.3%Service Level Enhancement ‐‐                   Increase fire response trend (2 firefighte110,000              220,000            1.7%110,000          0.8%20,000             0.1%20,000             0.1%ARPA funding ($110k phased out in 2024)Economic Development Manager 100,000              30,000              0.2%30,000             0.2%5,000               0.0%5,000               0.0%ARPA funding ($50k phased out 2023/2024)‐                   New Fire & Economic Dev Initiatives 210,000              1.7%250,000            2.0%140,000          1.0%25,000             0.2%25,000             0.2%General Fund 516,000              4.3%820,000            6.5%640,000          4.7%525,000          3.7%525,000          3.5%Capital Plan IncreasesFleet & Equipment Capital Fund 40,000                50,000              60,000             60,000             60,000             Facilities Capital Fund 25,000                30,000              30,000             30,000             30,000             Transportation Infrastructure Mgmt 11,500                12,000              12,000             12,000             12,000             Capital Project Funds 76,500                0.6%92,000              0.7%102,000          0.8%102,000          0.7%102,000          0.7%Debt Service 4,000                  0.0%4,000                 0.0%4,000               0.0%4,000               0.0%4,000               0.0%Proposed 2022 Tax Levy Increase (2023 Projected)596,500              4.9%916,000            7.2%746,000          5.5%631,000          4.4%631,000          4.2%Proposed Tax Levy12,663,200$      13,579,200$    14,325,200$  14,956,200$  15,587,200$  Future Capital Improvements being consideredPark Renovations ‐  build to annual average pay‐as‐you‐go 150,000            1.2% 150,000          1.1% 50,000             0.3% 50,000             0.3%Park Improvements & Facility Renovations would be funded by bondsFor example, debt service on $20m bonds for 20 years would be roughly $1.2m annually 600,000          4.4% 610,000          4.3%2026 Levy Impact2022 Levy ImpactFuture Projections2023 Levy Impact 2024 Levy Impact 2025 Levy Impact 2022 Budget ‐ Total Budget by Fund Type  General  Fund   Special  Revenue  Funds   Capital  Funds   Debt  Service  Funds   General  Government  Funds   Enterprise  Funds   Internal  Service  Funds   Total All  Funds  SOURCE OF FUNDS Property tax levy 10,194,746   ‐              1,984,490    483,840     12,663,076    ‐                 ‐              12,663,076   Property tax ‐ delinquent & other ‐                 ‐                  ‐                 Tax Increment ‐                 ‐              280,000         ‐              280,000         ‐                280,000         Other taxes ‐                175,000      1,860,000     ‐              2,035,000      ‐                2,035,000     Special Assessments ‐                 ‐              208,000         ‐              208,000         ‐                208,000         Licenses 96,600           ‐               ‐                 ‐              96,600            ‐                96,600           Permits 1,272,000     ‐              30,000           ‐              1,302,000      ‐                1,302,000     Fines and forfeits 76,500           ‐               ‐                 ‐              76,500            ‐                76,500           Investment income 135,000        5,500          47,200           ‐              187,700        200,000        387,700         Rents 262,000         ‐               ‐                 ‐              262,000         ‐                 ‐              262,000         Intergovermental ‐                  ‐               ‐                 Grants & Aids 550,000        1,398,000     ‐              1,948,000     38,000          1,986,000     Shared Capital Project ‐                 ‐               ‐                  ‐                 Charges for services 520,500        8,000           ‐                 ‐              528,500        7,379,800     ‐              7,908,300     Internal Service Fund Charges ‐                 ‐               ‐                 ‐               ‐                 1,961,575  1,961,575     Connection Charges ‐                 ‐               ‐                 ‐               ‐                 2,100,000     ‐              2,100,000     Other 93,200          50,000        20,000           ‐              163,200        122,300         ‐              285,500         Bond Proceeds ‐                 ‐              1,736,000     ‐              1,736,000     1,000,000     ‐              2,736,000     Transfer from other funds ‐                 ‐              376,000         ‐              376,000         ‐                130,000     506,000         TOTAL SOURCE OF FUNDS 13,200,546  238,500     7,939,690    483,840     21,862,576   10,840,100  2,091,575  34,794,251   USE OF FUNDS Personnel Services 6,952,253    107,946       ‐                 ‐              7,060,199     2,214,800    808,250     10,083,249   Current Expense 6,248,294    154,300      316,500         ‐              6,719,094     5,682,645    975,000     13,376,739   Capital Outlay (Equipment)‐                100,000      875,000         ‐              975,000        1,836,000    260,000     3,071,000     Capital Improvements (Infrastructure)‐              5,162,000     ‐              5,162,000      ‐                 ‐              5,162,000     Other ‐                 ‐              266,000         ‐              266,000         ‐                 ‐              266,000         Debt Service ‐                 ‐               ‐                452,775     452,775        975,695         ‐              1,428,470     Transfer to other funds 250,000         ‐              90,000           ‐              340,000         ‐                 ‐              340,000         TOTAL USE OF FUNDS 13,450,546  362,246     6,709,500    452,775     20,975,067   10,709,140  2,043,250  33,727,457   FUND BALANCE Net Change in Fund Balance (250,000)      (123,746)    1,230,190    31,065       887,509        887,509         Net Change in Net Assets (Enterprise Funds) 130,960        48,325       179,285         2021 Budget ‐ Debt Service Funds  Permanent  Revolving  Debt (closed)   2009A GO  Refunding  (closed)   2016A GO  Refunding  Bonds   Total Debt  Service Funds  300 368 370 SOURCE OF FUNDS Property taxes ‐                    ‐                   483,840          483,840           Investment income ‐                    ‐                    ‐                    ‐                    Other ‐                    ‐                    ‐                    ‐                    Transfer from other funds ‐                    ‐                    ‐                    ‐                    TOTAL SOURCE OF FUNDS ‐                    ‐                   483,840          483,840           USE OF FUNDS Debt Service ‐                    ‐                    ‐                    ‐                    Principal ‐                    ‐                   360,000          360,000           Interest & Fiscal Agent Fees ‐                    ‐                   92,775             92,775              Transfer to other funds ‐                    ‐                    ‐                    ‐                    TOTAL USE OF FUNDS ‐                    ‐                   452,775          452,775           FUND BALANCE Net Change in Fund Balance ‐                    ‐                   31,065             31,065              Fund Balance ‐ Beginning 743,824          440,983          627,059          1,811,866        FUND BALANCE ‐ ENDING 743,824          440,983          658,124          1,842,931        2021 Budget ‐ Capital Projects Funds  Fleet & Equip  Capital   Facilities  Capital   Park  Renovation   Park  Develop‐ ment   Transp  Infrastructure  Maint   TIF #11  Frontier Dev  #2   Pavement  Mgmt Plan   Total  Capital  Projects  Funds  400 401 410 420 480 601 SOURCE OF FUNDS Property taxes 565,000           125,000            ‐                ‐           394,490            ‐               900,000          1,984,490     Tax Increment ‐                     ‐                ‐            ‐                    280,000       ‐                   280,000        Franchise Fees ‐                     ‐                ‐            ‐                     ‐               1,860,000       1,860,000     Special Assessments ‐                     ‐                ‐            ‐                    208,000          208,000        Permits & development fees ‐                     ‐               30,000     ‐                     ‐                ‐                   30,000          Investment income 10,000               ‐                ‐            ‐                     ‐               37,200             47,200          Intergovermental MSA ‐                     ‐                ‐            ‐                     ‐               1,398,000       1,398,000     Other Agencies ‐                     ‐                ‐            ‐                     ‐                ‐                 Other 20,000               ‐                ‐            ‐                     ‐                ‐                   20,000          Bond Proceeds ‐           1,736,000       1,736,000     Transfer from other funds ‐                    36,000              340,000        ‐            ‐                     ‐                ‐                   376,000        TOTAL SOURCE OF FUNDS 595,000           161,000           340,000       30,000    394,490           280,000      6,139,200       7,939,690     USE OF FUNDS Current Expense ‐                     ‐                ‐           311,500           5,000            ‐                   316,500        Capital Outlay 263,000           160,000           340,000        ‐           112,000            ‐                ‐                   875,000        Capital Improvements ‐                     ‐                ‐            ‐                     ‐               5,162,000       5,162,000     Debt Service ‐                     ‐                ‐            ‐                    266,000       ‐                   266,000        Transfer to other funds 90,000               ‐                ‐            ‐                     ‐                ‐                   90,000          TOTAL USE OF FUNDS 353,000           160,000           340,000        ‐           423,500           271,000      5,162,000       6,709,500     FUND BALANCE  Net Change in Fund Balance 242,000           1,000                 ‐               30,000    (29,010)            9,000           977,200          1,230,190     Fund Balance ‐ Beginning 1,090,610         ‐                    22,716         14,001    390,677           5,930           3,713,532       5,237,466     FUND BALANCE ‐ ENDING 1,332,610        1,000                22,716         44,001    361,667           14,930        4,690,732       6,467,656     2021 Budget ‐ Special Revenue Funds  Charitable  Gambling  Contribution  (201)   Cemetery    Fund            (202)   Communications  Fund     (210)   Grant Fund    (212)   Total Special  Revenue Funds  SOURCE OF FUNDS Property taxes ‐                     ‐                     ‐                           ‐                     ‐                     Other taxes ‐                     ‐                    175,000                  ‐                    175,000            Investment income ‐                    500                   5,000                      ‐                    5,500                 Intergovermental ‐                     ‐                    8,500                      ‐                    8,500                 Charges for services ‐                    8,000                 ‐                           ‐                    8,000                 Other 50,000               ‐                     ‐                           ‐                    50,000               Transfer from other funds ‐                     ‐                     ‐                           ‐                     ‐                     TOTAL SOURCE OF FUNDS 50,000             8,500                188,500                  ‐                    247,000            USE OF FUNDS Personnel Services ‐                    5,125                102,821                  ‐                    107,946            Current Expense 50,000              2,500                101,800                  ‐                    154,300            Capital Outlay ‐                    25,000              75,000                    ‐                    100,000            Transfer to other funds ‐                     ‐                     ‐                           ‐                     ‐                     TOTAL USE OF FUNDS 50,000             32,625             279,621                  ‐                    362,246            FUND BALANCE Net Change in Fund Balance ‐                    (24,125)            (91,121)                   ‐                    (115,246)           Fund Balance ‐ Beginning 22,128              141,710           544,443                  ‐                    708,281            FUND BALANCE ‐ ENDING 22,128             117,585           453,322                  ‐                    593,035            City of Chanhassen 2022 Proposed Budget 35 This page intentionally left blank. City of Chanhassen 2022 Proposed Budget 36 FUND LEVEL FIVE-YEAR FINANCIAL PLANS This section includes a five-year finance plan for each of the City’s major funds. Each finance plan includes a narrative summary of the financial condition of the fund, including an explanation of major sources and uses of funds. Following the narrative summary is financial plan. The financial plans include historical data for comparison purposes, the budget for 2021 and projections for the following four years 2022 through 2025.General Fund Special Revenue Funds Capital Projects Funds Debt Service Funds Enterprise Funds Internal Service Funds City of Chanhassen 2022 Proposed Budget 37 GENERAL FUND FUND DESCRIPTION The General Fund serves as the main operating fund of the City. The General Fund is used to account for all financial resources not accounted for in other funds. Most of the basic governmental services are included in the General Fund. The expenditures from the General Fund account for the majority of primary services provided by the City in the areas of public safety, public works, parks and recreation, planning, engineering and general government. The Fund uses the modified accrual basis of accounting for budgeting and financial reporting purposes. This means expenditures are recorded when the liability is incurred and revenues are recorded when they become measurable and available. BACKGROUND This fund is the primary fund of the City. There are five main areas. Budgets are included for the departments in each area. Administration •Council (1110) •Administration (1120) •Finance (1130) •Legal (1140) •Property Assessment (1150) •MIS (1160) •City Hall (1170) •Elections (1180) Public Safety •Police (1210) •Fire (1220) •Community Service (1260) PW & Engineering •Engineering (1310) •Street Maintenance (1320) •Street Lighting & Signals (1350) •Fleet Department (1370) Community Development •Planning Commission (1410) •Planning Administration (1420) •Senior Commission (1430) •Code Enforcement (1250) Parks & Recreation •P&R Commission (1510) •Park & Rec Admin (1520) •Park Maintenance (1550) •Park Development (15xx) •Senior Citizens' Center (1560) •Recreation Center (1530) •Lake Ann Park Operations (1540) •Recreation Programs (1600) •Self-supporting programs (1700) •Recreation Sports (1800) City of Chanhassen 2022 Proposed Budget 38 GENERAL FUND FIVE-YEAR FINANCIAL PLAN FUND BALANCE The General Fund balance policy is to maintain a minimum fund balance of 35% of the following year’s expenditures for cash flow plus an additional contingency of 15% for unanticipated needs such as revenue shortages or expenditures exceeding budget due to such things as storms or other unusual outside variables which result in above average costs. Fund balance contingency provides the City with budgetary flexibility to respond to volatility which provides financial sustainability and resiliency. Estimates for 2020 year end anticipate growth in fund balance mainly due to permit revenue activity coming in higher than budget. CARES funding relief provided relief for revenue shortages and cost increase. Cost savings is also providing additional savings on the expense side. The Council has had the past practice of designating available fund balance over the 50% fund balance target to one-time uses. This budget includes a use of fund balance to provide a contingency in the operating budget for pandemic related financial considerations. The fund balance would only be used if necessary. Consideration to use of available fund balance will be addressed in 2021 during the budget process. City of Chanhassen 2022 Proposed Budget 39 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2013 2014 2015 2016 2017 2018 2019 2020 Est 2021 Est General Fund Balance Projections Fund Balance Minimum Cash Flow Needs Target Fund Balance City of Chanhassen 2022 Proposed Budget 47 This page intentionally left blank. City of Chanhassen 2022 Proposed Budget 48 SPECIAL REVENUE FUNDS FINANCIAL PLANS The Special Revenue Funds are governmental funds to account for services and expenditures where revenue is restricted for a designated purpose. The City maintains four Special Revenue Funds and all are budgeted funds using the modified accrual basis for both financial statement and budgeting purposes. None of the Special Revenue Funds are major funds. CHARITABLE GAMBLING CONTRIBUTIONS FUND This fund accounts for the proceeds that the City receives from charitable gambling. The city collects 10% of the net proceeds from the pull-tab operations in the City as allowed by Minnesota Statutes, section 349.213. CEMETERY FUND The City owns and operates a municipal cemetery at 8151 Galpin Boulevard. This fund accounts for all revenues and expenses related to the cemetery. COMMUNICATIONS (CABLE FRANCHISE) FUND The Communications (Cable Franchise) Fund is a Special Revenue Fund to account for the revenues from cable franchise fees for the purpose of City communication efforts and broadcasting public City meetings. GRANT FUND The Grant Fund is a Special Revenue Fund to account for the revenues and expenditures associated with various federal, state, and other financial assistance programs. City of Chanhassen 2022 Proposed Budget 49 CEMETERY FUND FUND DESCRIPTION The City owns and operates a municipal cemetery at 8151 Galpin Boulevard. This fund accounts for all revenues and expenses related to the cemetery. In 2014, improvements were made to add approximately 300 additional plots. Cemetery operations had previously been accounted for in the City’s General Fund. SOURCES OF FUNDS The main source of funds is the sale of cemetery plots and internment fees. The fund also earns investment earnings on unspent balances. USES OF FUNDS Use of funds consist of maintenance and repair expenses and future capital projects for the property. GRAVE SALES – Coordinate selling of plots to the public. MAINTAIN VITAL STATISTICS DATA – Keep historical records of all burials. MAINTENANCE – Park maintenance staff maintains property and marks gravesites as needed. TRANSFERS No transfers are planned. All expenditures have been expensed directly in this fund. City of Chanhassen 2022 Proposed Budget 50 FUND BALANCE The fund balance is assigned to future expenditures for the Cemetery. The City will maintain a fund balance in this account at a level to provide cash flow sufficient to fund the on-going maintenance and repairs and for future capital expenses for the property. 2021 BUDGET INFORMATION • Repair existing foundations, monuments, markers that have settled or are in disrepair • Consider installing markers to identify currently unmarked occupied graves • Explore purchasing new cemetery records software FUTURE CAPITAL CONSIDERATIONS There is a need for driveway improvements to include a turnaround to improve funeral traffic flow and prevent driving on unpaved areas. City of Chanhassen 2022 Proposed Budget 51 CHARITABLE GAMBLING CONTRIBUTION FUND FUND DESCRIPTION This fund accounts for the proceeds that the City receives from charitable gambling. The City collects 10% of the net proceeds from the pull-tab operations in the City as allowed by Minnesota Statutes, section 349.213. Minnesota Statutes, section 349.213 provides for local control of charitable gambling within the City. The City is allowed to collect a fee up to 10% of the proceeds. The city may establish a fund to collect and distribute the proceeds. Distribution is limited to the same use of lawful purposes provided by State Statutes include parks, public safety-related services, equipment, and training and several other specifically identified expenditures areas of the City. The City must report activity by purpose annually to the State. The City has established a City ordinance (Chapter 10 Section V) implementing the City’s local control consistent with MN State Statutes definition of lawful purposes. The City has primarily used the funds for fire training. SOURCES OF FUNDS The main source of funds is the charitable gambling fee of 10% of net proceeds from local organizations conducting pull-tab operations within the City. The fund also earns investment earnings on unspent balances. USES OF FUNDS For the past decade, the City has used the proceeds primarily for fire training to improve leadership and enhance skills related to emergency response. Expenses include wages paid to firefighters while attending training and other related outside training expenses. In the past the city has also funded some fire equipment that enhances the safety of the fire department. Other lawful purposes could be considered. TRANSFERS No transfers are planned. All expenditures have been expensed directly in this fund. City of Chanhassen 2022 Proposed Budget 52 FUND BALANCE The fund balance is legally restricted to lawful purpose expenditures under MN State Statutes for Charitable Gambling. The City will maintain a fund balance in this account at a level to provide cash flow sufficient to avoid interfund borrowing. 2021 BUDGET INFORMATION The impact of the COVID pandemic bar and restaurant closures reduced 2020 gambling revenue and the 10% fee the City receives. It is anticipated that revenues will continue to be lower for an unknown length of time as the pandemic continues. Fire training expenses have also been lower due to in-person training limitations for the year. However, since fire training is mandated and required for safety, expenses may exceed revenues in this fund in the future. Fire training expenses will need to move to the General Fund budget if the fund balance reaches zero. Future budgets may consider reallocating fire training expenses to the General Fund and designating these revenues for other lawful purpose expenditures which have more flexible timing needs. City of Chanhassen 2022 Proposed Budget 53 COMMUNICATIONS FUND FUND DESCRIPTION The Communications Fund (formerly Cable TV Fund) is a Special Revenue Fund to account for the revenues from cable franchise fees for the purpose of City communication efforts and broadcasting City meetings. The Communications Fund provides communication and education to residents via programming on Channel 107.2. Through this programming, the city is dedicated to improving public education and communication. SOURCES OF FUNDS Under the terms of the franchise agreement with Mediacom, the City receives a 5% franchise fee on cable TV revenues in the City of Chanhassen as compensation for the use of the City right of way. The Plan assumes revenues will decline slightly in the future. This assumes there will be some gain in subscribers with household growth offset by some loss in subscribers as streaming options become increasingly popular. The City will monitor trends and adjust the plan as necessary. The City continues to pursue adding other cable providers. The plan will not include an increase due to new providers until final agreements are in place. USES OF FUNDS Use of funds consist of expenditures related to the broadcast of City public meetings including staffing, current expenses and technology equipment. BROADCAST MEETINGS – All City Council and Planning Commission meetings are broadcast live on Channel 107.2, and posted on the City website for reviewing within 24 hours of each meeting. PUBLIC INFORMATION BOARD – Operate a bulletin board that advertises events and important information on behalf of the city, library, schools, and area non-profits. TRANSFERS No transfers are planned at this time. All expenditures have been expensed directly in this fund. City of Chanhassen 2022 Proposed Budget 55 GRANT FUND FUND DESCRIPTION The Grant Fund is a Special Revenue Fund to account for the revenues and expenditures associated with various federal, state, and other financial assistance programs. This fund was created in 2020 to account for federal funding from the CARES Act to mitigate the impact of the COVID 19 pandemic. This fund will continue to exist to account for future grants not included in the operations and budget of another fund. SOURCES OF FUNDS The city may receive grant funds from various other government agencies. Grants may be accounted for in the City’s other funds if the practical. A portion of the CARES grant received to fund public safety employee expenses has been accounted for in the General Fund to appropriately match revenues and expenses. Currently, no grants are final for the upcoming budget and therefore none are included in the financial plan. As the city is awarded grants throughout the year, the budget is amended to reflect the additional total revenues and expense for each grant. USES OF FUNDS Use of funds consist of expenditures related grant agreements. TRANSFERS No transfers are planned at this time. All expenditures have been expensed directly in this fund. City of Chanhassen 2022 Proposed Budget 57 CAPITAL PROJECTS FUNDS Capital Projects Funds are governmental funds to account for the acquisition and construction of major capital facilities and equipment (except those financed by proprietary funds). This includes expenditures relating to capital projects and large capital outlay purchases. The City has several budgeted funds in this category. The Capital Project Funds use the modified accrual basis for both financial statement and budgeting purposes. Capital Replacement Fund The Capital Replacement Fund (Fund 400) is used to account for major capital purchases for governmental activities in the governmental funds. Enterprise equipment is not included in this fund. Capital expenditures in this fund include vehicles, equipment, technology, facilities renovation, and park facilities. This fund is proposed to be split into multiple funds in the future. Park Renovation Fund The Park Renovation Fund is used to account for replacement or repair of major park equipment and infrastructure. Park Development Fund The Park Development Fund is used to account for park dedication fees as required by the City ordinance. These funds are used to finance new park and trail improvements. Transit Assessment Fund The Transit Assessment Fund (Fund 413) is used to account for the special assessment revenues and interfund loan repayment for project Special Assessments related to the Dinner Theater Transit Station in TIF #10. This is the non-TIF funding portion of the project. This fund will be closed at the end of 2020. Transportation Maintenance Fund The Pavement Maintenance Fund (Fund 420) is used primarily to account for expenditures and revenues maintaining local roadways including seal coat, crack sealing, pavement marking, bridges, sidewalks and other right of way maintenance. TIF #11 Frontier Development #2 Fund The Transit Assessment Fund (Fund 413) is used to account for the special assessment revenues and interfund loan repayment for project Special Assessments related to the Dinner Theater Transit Station in TIF #10. This is the non-TIF funding portion of the project. Improvement Capital Funds Improvements and additions to the City’s infrastructure. The City has three funds to account for local streets, County roads, and State roads. Pavement Management Program Fund (Special Assessment Revolving) (Fund 601) is used primarily to account for expenditures and revenues of local street rehabilitation projects, including Municipal State Aid (MSA) eligible work. Improvements County Roads (Fund 605) is used to account for the revenues and expenditures for City improvement construction projects related to County Road construction projects. Improvements TH 101 City of Chanhassen 2022 Proposed Budget 58 (Fund 603) is used to account for the revenues and expenditures for street improvement projects excluding reconstruction projects and TH 101 projects. City of Chanhassen 2022 Proposed Budget 59 CAPITAL REPLACEMENT FUND FUND DESCRIPTION The Capital Replacement Fund is a Capital Projects Fund to account for major capital purchases for governmental activities in the governmental funds. Enterprise equipment is not included in this fund. This fund has been used as a combined capital fund for large purchases in fleet, equipment, technology, facilities, and other large governmental purchases. See below for planned changes to be considered for this fund. SOURCES OF FUNDS The principal source of revenue in this fund has been property tax levy, sale of replaced equipment, interest earned on cash balances in the fund. In certain years, the City has also transferred funds from the General Fund to provide additional funding. Shared equipment may have a share of funding provided from the Enterprise Funds. Proceeds from the issuance of certificates of indebtedness may also be used. USES OF FUNDS This fund includes capital equipment for the following: • Fleet vehicles and large equipment • Technology hardware purchases • Large software purchases • Facilities maintenance and replacement • Park facilities maintenance and replacement • Other capital expenditures in other departments In prior years, expenditures for some large operating expenses have also been included in this fund. For future years, these items should be included in operating budgets instead. This will require funding adjustments for those operating budgets. • Annual maintenance or hosted service agreements for software • Expenditures below the $10,000 capitalization threshold • Annual fire equipment replacement – group of items which are individually below capitalization threshold. DEBT The City prefers to fund capital equipment replacement on a pay-go basis. However, the City may issue certificates of indebtedness to fund larger purchases. Certificates are best used to fund an unusually high year of capital acquisitions to spread the cost over 3-5 years when spreading the purchases evenly over a number of years is not feasible. Construction of new facilities or major improvements to existing facilities with a life greater than 15 years may be funded with G.O. bonds. If debt is issued, the repayment of bonds would be accounted for in debt service fund with the use of a property tax levy. TRANSFERS All expenditures have been expensed directly in this fund. Expenditures for capital assets shared with enterprise funds may be funded with a transfer from the enterprise funds in the future. One-time funding transfers from the General Fund surpluses have been made in previous years. A funding transfer is proposed of the remaining balance in the transit fund which can be closed at the end of 2020. Transfers of other available funds will also be considered. FUND BALANCE For many years the annual property tax funding of this fund has not been increased. This has resulted in delayed replacement schedules and deferred maintenance. Lack of funding has also created an incomplete capital replacement plan. This has created a large future pressure on the capital replacement needs. The CIP proposes a facility study in 2022. City of Chanhassen 2022 Proposed Budget 60 The 2022 budget will need to consider a long-term plan to target resources to maintaining the City’s valuable assets. This capital slide was presented during the 2021 budget Council budget discussions. City of Chanhassen 2022 Proposed Budget 62 WHAT WILL THIS ACHIEVE? Targeted capital replacement funds give the Council and management a better view of replacement needs in key asset areas. This supports informed decisions to focus investment of limited resources in maintaining the City’s valuable assets for the future. • Focused Capital planning – what are the replacement schedules for vehicles, facilities and technology? • Best total economic decisions– separate funds allow for flexibility to delay or expedite the use of resources as situations arise. It also helps manage competing demands for resources. • Identify all funding strategies – targeted and focused allocation of resources and appropriate financing • Transparency & Consistency o How much is the City investing annual to maintain its assets? o Allocate costs to departments - how much does it cost to provide services? o Annual operating costs are in the operating budget o Capital investments are in the capital budget WHAT ISSUES REMAIN? The current funding gap will still need to be addressed in a long-term funding plan. Delayed replacement and deferred maintenance pressures have compounded over time to create a demand. WHAT NEEDS TO BE DONE? Redistribute current funds in 2021 as a budget amendment – o create new capital funds o redistribute beginning fund balances from capital replacement fund o consider allocating available funds from surpluses in other funds o move expense budgets o Redistribute property tax revenue to the funds identified Address funding gap in 2022 budget – make a long-term plan for allocating existing resources and measured annual increases in property tax levy to avoid future spikes. Complete studies of existing assets - Identify complete list of upcoming maintenance and replacement needs • Facility Study • Fleet Study • Technology Study Complete 10-15 year replacement plans – include all assets Strategic planning for new Council priorities – funding plans for new Council priorities City of Chanhassen 2022 Proposed Budget 63 City of Chanhassen 2022 Proposed Budget 65 IMPROVEMENT CAPITAL – PAVEMENT MANAGEMENT PROGRAM (PMP) FUND FINANCIAL PLAN (FORMERLY SPECIAL ASSESSMENT REVOLVING FUND) FUND DESCRIPTION The Pavement Management Program Fund (Fund 601) is used primarily to account for expenditures and revenues of local street rehabilitation projects, including Municipal State Aid (MSA) eligible work. This fund has not previously been included in the budget process outside of the Capital Improvement Plan (CIP) process. Some estimates were made to integrate CIP information into an annual budget document format. Additionally, this fund is being shown for the purposes of illustration of different available strategies. The strategies will be discussed at a future work session with Council for input and direction. In the year 2020, several major changes collided to impact this fund at the same time. This is the first year of the new funding source from franchise fees which provided the funding to significantly increase the volume of projects in this fund. The pandemic resulted in funding shortages from MSA revenue which put a freeze on MSA advance funding affecting the cash flow of the fund. The larger volume of special assessments also affected the cash flow of the fund. And finally, the Council was sensitive to the hardships that could be created by adding a large number of special assessments for road projects when residents were feeling a great deal of economic uncertainty due to the pandemic. This five year budget plan will benefit Council and Staff to continue to evaluate, communicate and respond to the current situation as well as prepare the City for stability and financial resiliency for the future. SOURCES OF FUNDS The principal source of revenue is utility franchise fees, property tax levy, and intergovernmental funds from MSA. FRANCHISE FEES In 2018 Council approved to begin a utility franchise fee to be dedicated to this fund to provide funding to expand street rehabilitation of the City’s aging infrastructure. Collections began in 2019. The CIP was adjusted to invest the franchise fees into additional street improvement projects. With a large volume of projects, the amount assessed for property owners’ 40% share has also grown significantly. MSA In July of 2020, funding for MSA was suddenly and drastically reduced due to the pandemic. The City had relied on advance funding of MSA which is currently not available. The change had to be addressed during the construction season while some projects had already been awarded and some had been bid and were about to be awarded. Council reviewed several options and analysis. Decision was made to postpone several projects to 2021 and beyond. Revisions to the 2020 and 2021 CIP project budgets were made. This plan attempts to reflect those changes although changes to budgets that crossed years and projects that were part of a combined CIP budget were somewhat fluid. The plan will be reviewed and revised as necessary with new information. SPECIAL ASSESSMENT FINANCING Projects in this fund have special assessments as portion of the revenues for the project. It is the City’s policy to assess 40% of the street portion of the cost of reconstruction projects in the City’s annual street improvement program to benefiting property owners. The remaining 60% is paid by all property owners through the City’s other available revenue sources. Property owners may elect to pay assessments over a number of years (typically 8-10 years). When property owners elect to pay the assessments over time, the City must finance that portion of the project cost either by using available funds or by issuing bonds. The City has historically, financed the 40% assessed portion on a pay-go basis. The annual repayments of special assessment receivables from prior year projects provided funding for the current 40% assessed portion. With the larger volume of the street reconstruction projects, the assessed totals are significantly more than the payments coming in. The growing receivable balance restricts the City’s funds to finance a receivable rather than investing in street reconstruction. This plan demonstrates it is not financially sustainable to continue to finance the receivable on a pay-go basis. The following chart illustrates how much property tax City of Chanhassen 2022 Proposed Budget 66 levy annually is required to finance special assessments on a pay-go basis. If the City bonds for special assessments, these revenues could be directed to fund improvements. Council decided not to use of special assessment bonds in July 2020 to address the immediate issue. This plan seeks to add additional clarity to illustrate the City’s available funds from assessment repayment revenue. An optional version of the plan has been prepared with bonding for review and discussion during the 2022 budget process. USES OF FUNDS Project expenditures will include engineering, construction and Right-of Way (ROW). Project budgets for the purposes of this fund were developed from the CIP and from Council actions on project approvals. Occasionally, there are costs associated with design and planning for projects that do not go forward or other costs that are incurred after projects have been completed for which there is no remaining project funding sources. The plan includes an annual budgeted use of fund balance for these expenses. DEBT The City prefers to fund the City portion (60%) of the projects on a pay-go basis. The City plans capital projects to annually match average funding sources. However, the City may choose to issue G.O. bonds to fund larger than the usual average annual projects in the future. If debt is issued, the repayment of bonds would be accounted for in debt service fund with the use of a property tax levy. PROJECT ACCOUNTING The City will maintain a project accounting system which will account for the balances of each project within the fund. Each project will have a budget from the CIP with sources of funds (revenues) equal to uses of funds (expenditures) for the life of the project. Most street improvement projects have a small percentage of expenses in the year before and the year after the project construction year. For CIP and budget purposes the project budget will be shown in the year of construction as a total. For large project which are constructed over multiple years, the budget will be shown with an estimate budget split between years. The project accounting system will provide a reconciliation of current projects in process. TRANSFERS Repaid S/A 265,000 Repaid S/A 402,400 Repaid S/A 590,460 Repaid S/A 733,810 Repaid S/A 890,240 Property Tax, 930,000 Property Tax, 930,000 Property Tax, 929,540 Property Tax, 826,190 Property Tax, 709,760 0 200000 400000 600000 800000 1000000 1200000 1400000 1600000 1800000 2021 Budget 2022 2023 2024 2025 Revenue Required to Finance New Assessements Each Year Cash Available Repaid S/A Property Tax City of Chanhassen 2022 Proposed Budget 67 In the past, utility infrastructure was accounted for in the fund and the utility funds transferred funds to pay for the infrastructure. Beginning in 2020 the utility infrastructure will be accounted for directly in the utility funds and no transfers will be necessary. This provides clarity for both the capital and enterprise funds. FUND BALANCE The fund balance is assigned to future expenditures for projects. Each project will have a budgeted with revenues equal to expenditures for the life of the project. The fund will maintain a fund balance to provide reasonable cash flow for the design and planning of projects before revenue sources are collected. Cash flow for each project will be determined on a project basis. Additionally, the fund balance will be maintained at a level to finance the following year’s budget as a contingency for unexpected revenue changes or project costs changes. As evidenced by the sudden change to the MSA program in 2020, an adequate fund balance is required to give the City the time and ability to adjust to changes to remain financially resilient. There may be one or two year fund balance fluctuations in projections in the future years due as project sizes vary annually. The fund balance available should be evaluated as a long-term trend and strategy. 2021 BUDGET INFORMATION City has historically used this fund finance the future assessments. As special assessment payments are received from prior projects, fund balance is replenished and available to be either finance future assessments or it may be reinvested into future projects. This graphic illustrates the options for using RSAF fund balance. The City may determine to use bonds to finance future special assessments. The future pledged assessments would be accounted for in the debt service fund for the bond. This is a fiscally appropriate use of bonds which matches the revenue source payment stream to the debt repayment stream. This would make the funds in the PMP Fund available to fund other project costs currently. The City has approximately 10 years of special assessment revenues that would continue to be received from prior assessments committed to this fund. The funding would phase out over that time. The following charts demonstrates the growth in the special assessment receivable balance. if the City continues to self-fund special assessment receivables the City would need to invest nearly $7m by 2025 to finance special assessments. Alternatively, the new Project Funding Utilities Collector Roads MSA Roads -60% All Property Owners Franchise Fees RSA Fund or other City Funds Property Taxes Roads -40% Directly Benefiting Property Owners Special Assessment paid over 8-10 yrs This fund has been used to be the financing source Option to use this fund to reduce property tax instead City of Chanhassen 2022 Proposed Budget 68 assessments could be financed with G.O. Assessment debt. Debt payments of principal and interest would be structured to match incoming revenue of special assessment principal and interest without any additional property tax investment by the City. - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 2018 2019 2020 2021 2022 2023 2024 2025 Special Assessment Receivable New Assessment Added Existing SA Receivable City of Chanhassen 2022 Proposed Budget 69 City of Chanhassen 2022 Proposed Budget 70 IMPROVEMENT CAPITAL – COUNTY ROAD PROJECTS FUND FINANCIAL PLAN FUND DESCRIPTION The Improvement County Road Projects Fund (Fund 605) is used to account for the revenues and expenditures for City improvement construction projects related to County Road construction projects. This fund was established specifically for projects related to Lyman Boulevard. The surplus from earlier projects has provided an available fund balance of approximately $400,000 which has been carried since 2009. In the future, this fund will be used for all street improvement construction projects (excluding street reconstruction projects) and the City will use project accounting within the fund to account for each project. At the end of each project, project expenditures will be reconciled to sources of funds and the budget. Any balances will be identified as available fund balance for future projects in the plan. SOURCES OF FUNDS The principal source of revenue will be intergovernmental revenue from State, County and State MSA funds. Enterprise funds will provide funding for utility infrastructure. If the plan identifies that there is surplus available fund balance, a project may include use of fund balance as a source. The fund will have non-project revenue from investment interest and other miscellaneous revenue. These will contribute to available fund balance for cash flow. USES OF FUNDS Project expenditures will include engineering, construction and Right-of Way (ROW). Occasionally, there are costs associated with design and planning for projects that do not go forward or other costs that are incurred after projects have been completed for which there is no remaining project funding sources. The plan includes an annual budgeted use of fund balance for these expenses. DEBT The City prefers to fund capital equipment replacement on a pay-go basis. However, the City may issue certificates of indebtedness to fund larger purchases. Certificates are best used to fund an unusually high year of capital acquisitions to spread the cost over 3-5 years when spreading the purchases evenly over a number of years is not feasible. Construction of new facilities or major improvements to existing facilities with a life greater than 15 years may be funded with G.O. bonds. If debt is issued, the repayment of bonds would be accounted for in debt service fund with the use of a property tax levy. TRANSFERS The City’s portion of the funding for any utility assets may be funded from transfers from the Enterprise Funds. PROJECT ACCOUNTING The City will maintain a project accounting system which will account for the balances of each project within the fund. Each project will have a budget from the CIP with sources of funds (revenues) equal to uses of funds (expenditures) for the life of the project. Most street construction projects have a small percentage of expenses in the year before and the year after the project construction year. For CIP and budget purposes the project budget will be shown in the year of construction as a total. For large project which are constructed over multiple years, the budget will be shown with an estimate budget split between years. The project accounting system will provide a reconciliation of current projects in process. FUND BALANCE City of Chanhassen 2022 Proposed Budget 71 The fund balance is assigned to future expenditures for projects. Each project will have a budgeted with revenues equal to expenditures for the life of the project. The fund will maintain a fund balance to provide reasonable cash flow for the design and planning of projects before revenue sources are collected. Cash flow for each project will be determined on a project basis. The projects with large intergovernmental revenue sources will include a plan for timely reimbursement and/or advances for cash flow of project costs. Enterprise transfers will be made at the beginning of the construction of the project for cash flow purposes and will be adjusted at the end of the project based the actual cost of the project for water, sanitary sewer, and storm sewer improvements. 2021 BUDGET INFORMATION The 2021 CIP represents the total project budget for Lyman Boulevard improvements. Design and engineering began in 2020 and is included under the project budget. The plan as shown includes two projects. The CIP includes a future project for Galpin Improvements which has been included in this fund. For the current Lyman Boulevard project, design began in 2020 and construction will complete in 2021. The project is being completed in cooperation with Carver County. City will manage the project but the majority of the expenses will be reimbursed by the County. The City of Chanhassen cost will be funded by use of MSA. City of Chanhassen 2022 Proposed Budget 72 City of Chanhassen 2022 Proposed Budget 73 IMPROVEMENT CAPITAL – TH101 FUND FINANCIAL PLAN FUND DESCRIPTION The TH 101 Improvement Capital Fund (Fund 605) is used to account for the revenues and expenditures for the project to reconstruct TH101 from Pioneer Trail (CSAH 14) to Flying Cloud Drive (CSAH 61). This fund was established in 2017. The TH 101 reconstruction is a multi-year project. Construction began in 2020 and will complete in 2021. The project is being completed in cooperation with MnDOT and Carver County since the TH 101 is currently under MnDOT jurisdiction and the roadway will be turned back to Carver County upon the completion of the proposed improvements. The City is the fiscal agent for the project so the total project will be paid by the City but the majority of the expenses will be reimbursed by the State and the County. The City of Chanhassen cost is associated with the trunk sanitary sewer and watermain construction. Funding will come from the City’s Enterprise Funds and has been included in the utility rate study. The total project budget was included in the CIP in the years 2019, 2020 & 2021. 2019 2020 2021 Total Project Budget MnDOT & Carver County 8,000,000 15,000,000 15,000,000 $38,000,000 City of Chanhassen Enterprise Funds - Water 500,000 500,000 1,000,000 City of Chanhassen Enterprise Funds - Sewer 500,000 500,000 1,000,000 Total Project 8,000,000 16,000,000 16,000,000 $ 40,000,000 SOURCES OF FUNDS The principal source of revenue will be intergovernmental revenue from MnDOT and Carver County. USES OF FUNDS Expenditures will include engineering, construction and Right-of Way (ROW). DEBT The City prefers to fund capital equipment replacement on a pay-go basis. However, the City may issue certificates of indebtedness to fund larger purchases. Certificates are best used to fund an unusually high year of capital acquisitions to spread the cost over 3-5 years when spreading the purchases evenly over a number of years is not feasible. Construction of new facilities or major improvements to existing facilities with a life greater than 15 years may be funded with G.O. bonds. If debt is issued, the repayment of bonds would be accounted for in debt service fund with the use of a property tax levy. TRANSFERS The City’s portion of the funding will be from transfers from the Enterprise Funds. Transfers will be completed at the end of the project based the actual cost of the project for water and sanitary sewer improvements. FUND BALANCE The fund balance is restricted to future expenditures for the project. Revenues will equal expenditures for the life of the project and the fund balance will end at zero. 2021 BUDGET INFORMATION City of Chanhassen 2022 Proposed Budget 74 The 2021 CIP represents 50% of the total budget. The unspent portion of the project budget from prior year will be carried forward for use in 2021. City of Chanhassen 2022 Proposed Budget 75 City of Chanhassen 2022 Proposed Budget 76 PARK DEVELOPMENT FUND FINANCIAL PLAN FUND DESCRIPTION The Park Development Fund is used to account for park dedication fees as required by the City ordinance. These funds are used to finance new park and trail improvements. SOURCES OF FUNDS The principal source of revenue in this fund is developer park dedication fees collected for parks, playgrounds, public open spaces and trails, The fund also receives interest earned on cash balances in the fund. USES OF FUNDS Expenditures for new park and trail infrastructure and amenities. The fund may not be used for park replacement. DEBT No debt at this time. Construction of new park facilities or major improvements to existing facilities with a life greater than 15 years may be funded with G.O. bonds. If debt is issued, the repayment of bonds would be accounted for in debt service fund with the use of a property tax levy. TRANSFERS No transfers are planned at this time. One-time funding transfers from the General Fund surpluses have been made in previous years. FUND BALANCE The fund balance is restricted to future expenditures for the park development projects. The City will maintain a fund balance in this account at a level to provide cash flow sufficient to fund the following year’s capital replacement. 2021 BUDGET INFORMATION Funding has been included for the Arboretum Trail and Hwy 41 Underpass Cost Share with Carver County. The project included funding from 2020 and was amended in 2021 for additional costs. The County has provided a five year financing agreement for the additional costs for the City. City of Chanhassen 2022 Proposed Budget 77 PARK RENOVATION FUND FINANCIAL PLAN FUND DESCRIPTION The Park Renovation Fund is used to account for replacement or repair of major park equipment and infrastructure. This fund is for replacement and repair of parks equipment and infrastructure. This fund has not had a regular funding source. Some park building maintenance has been included in the Capital Replacement Fund. The resurfacing of park pavements have been included in the Pavement Management Fund. SOURCES OF FUNDS The principal source of revenue in this fund has been transfers of surplus funds from the General Fund and interest earned on cash balances in the fund. USES OF FUNDS Expenditures for replacement of playground equipment, picnic shelters, hockey rinks, skate park, bridges, fences & backstops. DEBT No debt is outstanding or planned at this time. Construction of new facilities or major improvements to existing facilities with a life greater than 15 years may be funded with G.O. bonds. If debt is issued, the repayment of bonds would be accounted for in debt service fund with the use of a property tax levy. TRANSFERS No transfers are planned at this time. In the past there have been one-time funding transfers from the General Fund surpluses. FUND BALANCE The fund balance is assigned to future expenditures for the park replacement expenditures. The City will maintain a fund balance in this account at a level to provide cash flow sufficient to fund the following year’s capital replacement. 2021 BUDGET INFORMATION This fund does not have a regular funding source. Identified playground replacement for future years are unfunded in this plan. This has resulted in delayed replacement schedules and deferred maintenance. Lack of funding has also created an incomplete capital replacement plan. The 2022 budget will need to consider a plan to address both capital needs and a long-term plan to address the funding of replacing and maintaining the City’s assets. WHAT NEEDS TO BE DONE? • 2022 budget - address funding long-term funding plan • Complete 10-15 year replacement plan – include all assets • Park facilities – Decide to include park facilities in general facilities or in the park replacement fund City of Chanhassen 2022 Proposed Budget 78 City of Chanhassen 2022 Proposed Budget 79 TRANSPORTATION INFRASTRUCTURE MANAGEMENT (TIM) FUND (FORMERLY PAVEMENT MAINTENANCE FUND) FINANCIAL PLAN FUND DESCRIPTION The fund balance is assigned to future expenditures for the park replacement expenditures. The City will maintain a fund balance in this account at a level to provide cash flow sufficient to fund the following year’s capital replacement. 2021 BUDGET INFORMATION This fund does not have a regular funding source. Identified playground replacement for future years are unfunded in this plan. This has resulted in delayed replacement schedules and deferred maintenance. Lack of funding has also created an incomplete capital replacement plan. The 2022 budget will need to consider a plan to address both capital needs and a long-term plan to address the funding of replacing and maintaining the City’s assets. What needs to be done? • 2022 budget - address funding long-term funding plan • Complete 10-15 year replacement plan – include all assets • Park facilities – Decide to include park facilities in general facilities or in the park replacement fund SOURCES OF FUNDS The principal source of revenue will be property tax levy. If the plan identifies that there is surplus available fund balance, a project may include use of fund balance as a source. The fund will also have a small amount of investment interest. This will contribute to available fund balance for cash flow. USES OF FUNDS Project expenditures will include crack sealing, seal coating, pavement marking, sidewalk maintenance and other right-of-way maintenance. DEBT No debt issued or planned. The uses of funds are considered operational and not capital and therefore are intended to be paid on a pay-go basis. TRANSFERS All expenditures have been expensed directly in this fund. Expenditures for capital assets shared with enterprise funds may be funded with a transfer from the enterprise funds in the future. FUND BALANCE The fund balance is assigned to future expenditures in this fund. The fund will maintain a fund balance at a minimum of 35% of the following year’s budgeted expenditures to provide cash flow plus contingency for future maintenance. City of Chanhassen 2022 Proposed Budget 80 City of Chanhassen 2022 Proposed Budget 81 TIF DISTRICT #11 – FRONTIER 2 REDEVELOPMENT DISTRICT FUND FINANCIAL PLAN FUND DESCRIPTION This district was established in 2017 as a Redevelopment District, pursuant to M.S. 469.174 Subd. 10a for the purpose of enabling redevelopment of certain property within the Chanhassen Downtown Redevelopment Project Area. The district was created to facilitate the redevelopment of three parcels known as the former Frontier property into 134 market rate apartments and 19,000 square feet of retail, as well as the construction of public improvements adjacent to the site. The maximum duration of the district is 25 years after receipt of the first tax increment. TIF DISTRICT IMPORTANT INFORMATION Type of district Redevelopment Plan Approved Date September 11, 2017 Certification Date Pay 2018 Base Value Original Market value $2,193,800 Original Tax Capacity $43,126 Converted to current class rates $30,024 Minimum assessed value / Tax capacity Apartments $21,400,000 Retail $2,160,000 Fiscal Disparities Inside the district First Increment Receipted Date 2020 Maximum Duration 25 Expected Decertification Date 2045 Interfund loan authorized, if needed Authorized for up to $50k from revolving debt fund plus 4% interest if fund had a negative balance in the future The original budget approved in the TIF plan is shown below. The plan authorizes TIF notes to finance the project costs. City of Chanhassen 2022 Proposed Budget 82 SOURCES OF FUNDS The principal source of revenue tax increment. The fund also receives investment earnings on cash balances. USES OF FUNDS Developer Site Improvements - The City has a developer pay-go note to reimburse the developer for site improvements and interest from 95% of available tax increment. The developer has agreed to a minimum property value assessment. The improvements were completed for a total of $1.3m and the payments on the note began in 2020. Based on the minimum assessment and estimate tax rates, it is estimated that the developer agreement will be paid in full by 2026. Developer Special Assessment payments for Public Improvements – The developer has agreed to a special assessment of $2.1m to be paid over 10 years to fund a portion of an improvement project for Market Boulevard. The City has agreed to use available tax increment in the TIF Fund to reimburse the developer for its special assessment payments. The improvement project will be accounted for in the Improvement Capital Fund. The project is estimated to be $3.1m with the balance of the project to be funded from other City revenue sources (MSA) in the City’s capital fund. Bonds will be issued to finance the special assessment over 10 years with the assessment payments to fund the debt service. TRANSFERS No transfers are planned at this time. FUND BALANCE The fund balance is restricted to future TIF eligible expenditures. Expenditures will not exceed tax increment for the life of the project. Any unspent fund balance at the end of the district will be required to be returned as excess TIF. City of Chanhassen 2022 Proposed Budget 83 City of Chanhassen 2022 Proposed Budget 84 TRANSIT STATION ASSESSMENT FUND FINANCIAL PLAN FUND DESCRIPTION The Transit Assessment Fund (Fund 413) is used to account for the special assessment revenues and interfund loan repayment for project Special Assessments related to the Dinner Theater Transit Station in TIF #10. This is the non-TIF funding portion of the project. In 2013, a project in TIF #10 to rehabilitate the Dinner Theater Transit Station included a special assessment as a funding source. The fund received an interfund loan from the Water Fund to fund cost of the project until the special assessments were collected. The assessments have been received and the interfund loan was repaid in 2019. The fund will be closed at the end of 2020. The balance in the fund is special assessment revenue for interest collected over the life the assessment. SOURCES OF FUNDS The final assessment was received in 2019. In 2020 the only revenue will be the investment earnings on cash balance in the fund. USES OF FUNDS The final payment to repay the interfund loan was made in 2019. The fund will be closed at the end of 2020. DEBT No outstanding debt. TRANSFERS In the year end action to close the fund, Council will consider the transfer of the remaining cash balance to the Capital Replacement Fund as proposed in the 2021 budget process. The plan shows the transfer in both funds as a budget amendment to be approved. FUND BALANCE The fund balance is assigned to future expenditures for capital projects. At the end of the year 2020 the fund will be closed and the balance will be zero. City of Chanhassen 2022 Proposed Budget 85 City of Chanhassen 2022 Proposed Budget 86 DEBT SERVICE FUNDS Debt Service Funds account for the accumulation of resources for the payment of general long-term debt principal and interest. The City maintains individual debt service funds for each bond issue. The City has established annual financial plans for all general obligation bond funds. The Debt Funds use the modified accrual basis for both financial statement and budgeting purposes. PERMANENT REVOLVING DEBT FUND The Permanent Revolving debt Fund is an accumulation of surplus funds from closed bonds. The City will address allocation of the amount available in this fund to other funds during the 2022 budget process. G.O. BOND FUNDS The G.O. Bond Funds are used to account for revenues and expenditures for debt service principal and interest related to general obligation bonds issued. 2009A G.O. REFUNDING BONDS FUND Debt issued to finance the construction of the public works facility. 2010A G.O. LIBRARY BONDS FUND Debt issued to finance the construction of the Chanhassen library facility. 2016A G.O. REFUNDING BONDS FUND The City of Chanhassen 2022 Proposed Budget 87 PERMANENT REVOLVING DEBT FUND FINANCIAL PLAN FUND DESCRIPTION The Debt Service Funds are used to account for the accumulation of resources for and the payment of interest, principal and related costs on general long term debt. The funds are restricted for debt service use until the debt has matured. BACKGROUND Permanent Revolving Debt – This fund is used to account for excess resources from matured bond issues. These funds are no longer restricted for debt service use. The funds are now undesignated reserve funds available for the City. The Council may direct use of these resources to any fund. SOURCES OF FUNDS Investment earnings are earned on cash balances held in the fund. USES OF FUNDS There is no remaining debt service in this fund. TRANSFERS In 2020, approximately $35,000 will be transferred to the G.O. Library Refunding Bond fund at the end of the year to fund the remaining deficit balance in the fund to close the fund after the bonds were fully called. This allowed the City to eliminate the remaining annual property tax levy in the Library bonds fund for 2021. FUND BALANCE The fund balance is assigned to future expenditures in the debt service funds. The City Council may change the assignment of these funds to any City purpose as the bonds have fully matured. FUTURE BUDGET CONSIDERATION As the end of 2020, the fund is estimated to have approximately $743,000 in undedicated cash reserves. The Council has discussed various uses in the capital project funds. The funds may be redirected by a budget amendment in 2021 or through the 2022 budget process. City of Chanhassen 2022 Proposed Budget 88 City of Chanhassen 2022 Proposed Budget 89 2009A G.O. REFUNDING BONDS FUND FINANCIAL PLAN FUND DESCRIPTION The Debt Service Fund was used to account for the accumulation of resources for and the payment of interest, principal and related costs on the general long term debt issued to refund G.O. Improvement Bonds. The funds were restricted for debt service use until the debt matured in 2017. BACKGROUND The debt in this fund is fully matured and the balance is excess resources from the matured bond issue. These funds are no longer restricted for debt service use. The funds are now undesignated reserve funds available for the City. The Council may direct use of these resources to any fund. SOURCES OF FUNDS Investment earnings are earned on cash balances held in the fund. USES OF FUNDS There is no remaining debt service in this fund. TRANSFERS When the funds are redirected to another City purpose the funds will be transferred out. FUND BALANCE The fund balance is assigned to future expenditures in the debt service funds. The City Council may change the assignment of these funds to any City purpose as the bonds have fully matured. FUTURE BUDGET CONSIDERATION As the end of 2020, the fund is estimated to have approximately $440,000 in undedicated cash reserves. The Council has discussed various uses in the capital project funds. The funds may be redirected by a budget amendment in 2021 or through the 2022 budget process. City of Chanhassen 2022 Proposed Budget 90 City of Chanhassen 2022 Proposed Budget 91 2010A G.O. LIBRARY REFUNDING BONDS FUND FINANCIAL PLAN FUND DESCRIPTION The Debt Service Fund was used to account for the accumulation of resources for and the payment of interest, principal and related costs on the general long term debt issued to finance the construction of the library building. The funds were restricted for debt service use until the debt has matured. BACKGROUND In 2020 the bonds were callable and the fund had accumulated enough nearly enough cash reserves to pay off the bonds and the final interest. The City committed the remaining amount from the Permanent Revolving Debt Fund and the bonds were called in December 2020. The fund will be closed at the end of the year and the remaining deficit will be transferred in. SOURCES OF FUNDS The fund at a property tax debt levy and Investment earnings are earned on cash balances held in the fund. USES OF FUNDS Principal, interest and fiscal agent fees on the debt. TRANSFERS In 2020, approximately $35,000 will be transferred from the Permanent Revolving Debt Fund at the end of the year to fund the remaining deficit balance in the fund to close the fund after the bonds were fully called. This allowed the City to eliminate the remaining annual property tax levy in the Library Bonds Fund for 2021. FUND BALANCE The fund balance will be zero at the close of the year. City of Chanhassen 2022 Proposed Budget 92 City of Chanhassen 2022 Proposed Budget 93 2016A G.O. REFUNDING BONDS FUND FINANCIAL PLAN FUND DESCRIPTION The Debt Service Fund was used to account for the accumulation of resources for and the payment of interest, principal and related costs on the general long term debt issued to finance the construction of the public works facility. The funds are restricted for debt service use until the debt has matured. BACKGROUND In 2016 the City refunded the G.O. Debt for the public work facility with refunding bonds. SOURCES OF FUNDS The fund at a property tax debt levy and Investment earnings are earned on cash balances held in the fund. USES OF FUNDS Principal, interest and fiscal agent fees on the debt. TRANSFERS No transfers are planned currently. FUND BALANCE The fund balance is assigned to future expenditures in the debt service funds. The City Council may change the assignment of these funds to any City purpose as the bonds have fully matured. FUTURE BUDGET CONSIDERATION The fund balance is restricted for payment of debt service until the bonds are fully matured. City of Chanhassen 2022 Proposed Budget 94 DEPARTMENT INFORMATION 2022 ANNUAL BUDGET City of Chanhassen 2022 Proposed Budget 95 COUNCIL The City Council, composed of the Mayor and four at-large Council representatives, will formulate city policy, enact legislation, and oversee city administration. Our mission is to serve the public. We do this through delivery of reliable, cost-effective services designed to provide a safe, sustainable community. The goals for the City Council are to guide the Strategic Priorities of the City of Chanhassen set forth through the 2021-2024 Strategic Plan. Those Strategic Priorities are as follows: • Financial Sustainability • Asset Management • Development and Redevelopment • Operational Excellence • Communications BUDGET HIGHLIGHTS The city produces, prints and mails the bi-annual newsletter The Connection. This expense has been moved to the Communications department for 2022. The City belongs to a number of collaborative organizations. • Municipal Legislative Commission – legislative collaborative of 17 suburban communities that seek to advance sound policies that are fiscally responsible, allow for growth and development and further enhance strong communities. Guiding principles include financial accountability, support of local control and equitable property tax and fiscal disparity programs. • Southwest Corridor Transportation Coalition –comprised of local government officials, business owners, local residents and other interested parties. The Coalition advocates for safety and transportation improvements in the southwest metro, with a primary focus on Highways 5 and 212. • League of Minnesota Cities – serves more than 800 member cities through advocacy, education and training, policy development, risk management and other services. LMC is also the City of Chanhassen’s insurance carrier for auto, general liability and workers compensation. • Metro Cities – represents metro communities with the primary objective to be an effective and influential voice at the state and regional levels of government, including the state legislature and Metropolitan Council. • Southwest Metro Chamber of Commerce – The chamber’s mission is to ‘strengthen our member businesses and stimulate regional prosperity’. The City of Chanhassen partners with the chamber on several city events and maintains a membership to support the chamber and local businesses. 2022 BUDGET City of Chanhassen 2022 Proposed Budget 96 ADMINISTRATION The Administration department is responsible for overseeing and coordinating all aspects of the City of Chanhassen. Administration strives to provide effective and fiscally responsible municipal services in a manner which promotes a high standard of community life. BUDGET HIGHLIGHTS • CHIEF ADMINISTRATIVE OFFICER – The City Manager is the Chief Administrative Officer of the city and directs the administration of city affairs. • ENFORCEMENT – The City Manager is responsible for enforcing the city code and resolutions adopted by the City Council. • ANNUAL BUDGET – The City Manager’s office is responsible for submitting an annual budget to the City Council for approval. The City Manager also oversees and apprises the City Council of the city’s financial condition. • ELECTIONS – The City Manager’s office is responsible for coordinating and conducting elections. • LIQUOR LICENSING – The City Clerk is responsible for issuing all liquor licenses for the City of Chanhassen. • HUMAN RESOURCES – The Assistant City Manager is responsible for all Human Resources and workforce-related matters. 2021 ACCOMPLISHMENTS • Completed a classification and compensation study for all full-time and select part-time staff. • Hired the City of Chanhassen’s first-ever Communications Manager, and formalized the city’s communications function. • Facilitated the creation and beginning implementation of the 2021-2024 Strategic Plan. • Implemented new agenda software and automated code amendment software. 2022 GOALS • Implement additional measures and prescribed by the 2021 classification and compensation study. • Develop and implement complaint tracking system. • Update the City of Chanhassen’s personnel policy to support operational excellence. City of Chanhassen 2022 Proposed Budget 97 DEPARTMENT INFORMATION 2022 ANNUAL BUDGET City of Chanhassen 2022 Proposed Budget 98 COUNCIL The City Council, composed of the Mayor and four at-large Council representatives, will formulate city policy, enact legislation, and oversee city administration. Our mission is to serve the public. We do this through delivery of reliable, cost-effective services designed to provide a safe, sustainable community. The goals for the City Council are to guide the Strategic Priorities of the City of Chanhassen set forth through the 2021-2024 Strategic Plan. Those Strategic Priorities are as follows: • Financial Sustainability • Asset Management • Development and Redevelopment • Operational Excellence • Communications BUDGET HIGHLIGHTS The city produces, prints and mails the bi-annual newsletter The Connection. This expense has been moved to the Communications department for 2022. The City belongs to a number of collaborative organizations. • Municipal Legislative Commission – legislative collaborative of 17 suburban communities that seek to advance sound policies that are fiscally responsible, allow for growth and development and further enhance strong communities. Guiding principles include financial accountability, support of local control and equitable property tax and fiscal disparity programs. • Southwest Corridor Transportation Coalition –comprised of local government officials, business owners, local residents and other interested parties. The Coalition advocates for safety and transportation improvements in the southwest metro, with a primary focus on Highways 5 and 212. • League of Minnesota Cities – serves more than 800 member cities through advocacy, education and training, policy development, risk management and other services. LMC is also the City of Chanhassen’s insurance carrier for auto, general liability and workers compensation. • Metro Cities – represents metro communities with the primary objective to be an effective and influential voice at the state and regional levels of government, including the state legislature and Metropolitan Council. • Southwest Metro Chamber of Commerce – The chamber’s mission is to ‘strengthen our member businesses and stimulate regional prosperity’. The City of Chanhassen partners with the chamber on several city events and maintains a membership to support the chamber and local businesses. 2022 BUDGET City of Chanhassen 2022 Proposed Budget 99 ADMINISTRATION (ADMIN, ELECTIONS, & COMMUNICATIONS) The Administration department is responsible for overseeing and coordinating all aspects of the City of Chanhassen. Administration strives to provide effective and fiscally responsible municipal services in a manner which promotes a high standard of community life. The City Manager is the Chief Administrative Officer of the city and directs the administration of city affairs. The City Manager’s office is responsible for submitting an annual budget to the City Council for approval. The City Manager also oversees and apprises the City Council of the city’s financial condition. • ELECTIONS – The City Manager’s office is responsible for coordinating and conducting elections. • LIQUOR LICENSING – The City Clerk is responsible for issuing all liquor licenses for the City of Chanhassen. • HUMAN RESOURCES – The Assistant City Manager is responsible for all Human Resources and workforce-related matters. 2021 ACCOMPLISHMENTS • Completed a classification and compensation study for all full-time and select part-time staff. • Hired the City of Chanhassen’s first-ever Communications Manager, and formalized the city’s communications function. • Facilitated the creation and beginning implementation of the 2021-2024 Strategic Plan. • Implemented new agenda software and automated code amendment software. • There was no general election on 2021. The City collaborates with ISD 276 on 2021 school board elections but the school district is responsible for special election costs. The City has annual software costs for election software. • 2021 redistricting – following each US Census, the City is responsible for redistricting the City into equal districts. A census is conducted every 10 years. 2022 BUDGET HIGHLIGHTS • Implement additional measures and prescribed by the 2021 classification and compensation study. • Develop and implement complaint tracking system. • Update the City of Chanhassen’s personnel policy to support operational excellence. City of Chanhassen 2022 Proposed Budget 101 FINANCE The Finance Department will maintain the city's overall financial stability through sound financial planning and management. We will safeguard the city’s assets through the use of proper internal controls and ongoing maintenance of long-range financial planning documents. We are committed to the highest standards of accountability, accuracy, timeliness, professionalism, and innovation in providing financial services to those we serve.  PAYROLL – Provide accurate payroll services for all city departments and follow all State and Federal reporting requirements.  AUDIT – To conduct the annual audit and continue to achieve the GFOA award for excellence in financial reporting.  BUDGET & CIP – Assist or complete the preparation of the city’s long-term financial planning documents including the Annual Budget and CIP.  UTILITY BILLING – Manage the city’s utility billing operation and assure accurate accounting of all related resources.  ACCOUNTS PAYABLE – Coordinate and produce all payments for services and products used by all city departments.  ASSESSMENTS – Provide updated assessment information to Carver & Hennepin Counties and assist residents with assessments related to their properties. 2021 ACCOMPLISHMENTS In 2021 the Finance Department focused on the City’s priorities of financial sustainability, asset management and operational excellence. All processes and procedures were reviewed to identify opportunities to take innovative approaches to improve automation and efficiencies in workflows. The City’s existing long-term planning was enhanced to create a more integrated approach to the City’s long-term financial planning.  Developed a comprehensive budget document to meet GFOA budget award criteria  Developed five year financial plans for all funds  Updated and expanded financial policies to include a comprehensive set of financial management policies to provide financial sustainability and resiliency for the City  Convert Springbrook Financial System to the current version of Cloud-based software. Project was delayed until fall due to vendor constraints but training and testing is currently in process and will be converted before year end.  Began Implementation of an on-line budget development software & budget document preparation software to support a collaborative approach to budget development and to provide enhanced information for better budget operational management. Delayed to due to Springbrook conversion delay but will be implemented for final 2022 budget document and will be in place for the entire 2023 budget process.  Update Chart of Accounts to provide enhanced information for budget management and to streamline consistent reporting for budget and CAFR.  Designed system for management of capital replacement with added funds and enhanced project accounting available implementation of finance software conversion  Worked with Public Works to develop an accelerated meter replacement program to address failing meters over one year with completion in summer of 2022. 2022 BUDGET HIGHLIGHTS Monthly utility billing – the replacement program automation adds capability to implement monthly utility billing. Council has approved implementation of monthly billing in 2022 which meets several strategic priorities for the City. It provides financial stability to the fund with consistent predictable revenue flow. Providing customers with a monthly bill improves operational excellence by giving customers regular monthly bills which is easier for household budgeting and also provides more timely feedback on water leaks and excessive usage to provide money savings for users and water conservation to protect the City’s assets. Departmental financial management tools - Provide training and support for decentralized departmental use of the financial system through use of dashboards, automated budget information, updated chart of accounts, project accounting and enhanced reporting capabilities from updated financial systems City of Chanhassen 2022 Proposed Budget 102 Automate manual processes – Several areas for automation have been identified which can be automated with electronic document processing and with the new finance system conversion to the Cloud. Highest priorities will be workflow for purchasing approvals and invoice processing and manual journal entries and approvals. We will replace manual software integrations with API’s for permit and recreation cash receipts systems. Complete review of internal control structure to include enhanced cross-training and updated internal controls available with updated financial systems. Addition of 1 FTE in Finance was approved by Council in 2021 to move to monthly utility billing. Position duties will be distributed across the finance department to enhance segregation of duties and cross-training for enhanced coverage and backup. City of Chanhassen 2022 Proposed Budget 103 CONTRACTED CENTRAL SERVICES (LEGAL, RISK, PROPERTY ASSESSMENT) Previously the City had separate departments for each these areas. These contracted services provide general government services across all divisions. LEGAL - Through our contract with Campbell Knutson, our mission is to efficiently and effectively administer the legal affairs of the city by internally providing professional, timely, and useful legal advice and services; to minimize liability exposure by recommending and implementing appropriate policies, practices, and procedures; and to administer such legal affairs in the most cost-efficient manner reasonable so as to contribute to the overall quality of life for the taxpayers of Chanhassen. Legal fees directly related to development agreements are charged to developers. Legal fees for projects in other funds are charged directly to the project and are funded by project funding. PROPERTY ASSESSMENT – The city contracts with Carver County for assessment services. Each property in the city is examined at least every four years. RISK MANAGEMENT – the City’s general liability and property insurance premiums were previously included in the City Hall Maintenance department and also direct charges to the Enterprise Funds. Deductibles were previously in each department as losses were incurred. In the future the internal service fund will account for deductibles, claims and premiums. The history has been reclassified to this department for comparison purposes. An internal service fund has been implemented for 2021 and charges to the each fund will be allocated based on policy. City of Chanhassen 2022 Proposed Budget 104 INFORMATION TECHNOLOGY (MOVED TO INTERNAL SERVICE FUND) The Information Technology Department moved to an Internal Service Fund for 2021 and will be distributed to funds and departments based on policies and formulas. The prior year budget which was in the General Fund is shown here for comparison purposes. City of Chanhassen 2022 Proposed Budget 105 Capital Improvement Program City of Chanhassen, MN FUNDING SOURCE SUMMARY 2022 thru 2026 TotalSource2022 2023 2024 2025 2026 Capital Fund -Facilities 1,208,000139,000 392,000 225,000 220,000 232,000 Capital Fund -Park Renovation 400,000340,000 60,000 Capital Fund -PMP Assessments 9,376,0001,736,000 2,400,000 1,640,000 1,680,000 1,920,000 Capital Fund -PMP Fund 13,750,0002,790,000 2,830,000 2,650,000 2,810,000 2,670,000 Capital Fund -PMP MSA 4,944,000464,000 2,680,000 1,500,000 300,000 Capital Fund -TIM Transp Infr Mgmt 580,000112,000 114,000 116,000 118,000 120,000 Certificates of Indebtedness 1,625,000800,000 825,000 Debt -TIF Bonds 2,100,0002,100,000 ISF -Fleet Capital 3,189,500263,000 663,400 895,200 750,600 617,300 ISF -Fleet Leased 955,250354,950 91,000 274,300 194,000 41,000 ISF -Technology 305,000205,000 100,000 Other Agency - State Grant 2,200,0002,200,000 Other Agency Contribution 9,485,0005,560,000 3,925,000 SR Fund -Cable TV Franchise Fee 105,00075,000 10,000 10,000 10,000 SR Fund -Cemetery Fund 25,00025,000 Utility Fund -Sewer 6,795,500852,000 1,023,500 1,885,000 580,000 2,455,000 Utility Fund -Surface Wtr 7,545,5001,392,000 1,939,500 1,442,000 1,338,000 1,434,000 Utility Fund -Water 12,329,4001,173,000 2,340,500 1,487,000 1,022,000 6,306,900 Utillity Assessments -Developer 8,850,000950,000 7,900,000 9,920,950 23,103,900 19,199,500 8,722,600 24,821,200 85,768,150GRAND TOTAL Thursday, November 18, 2021 Capital Improvement Program City of Chanhassen, MN DEPARTMENT SUMMARY 2022 2026thru Total2022 2023 2024 2025 2026Department Facilities 1,299,500195,000 402,500 225,000 245,000 232,000 Fleet - Capital 5,239,400263,000 1,793,400 986,200 725,600 1,471,200 Fleet - Leased Vehicles 1,004,250354,950 91,000 323,300 194,000 41,000 Park Renovation 400,000340,000 60,000 Spec Revenue Fund Capital 130,000100,000 10,000 10,000 10,000 Street Improvements 49,490,0006,400,000 16,920,000 13,890,000 5,815,000 6,465,000 Technology 585,000320,000 215,500 16,000 16,500 17,000 TIM Transportation Inf Mgmt 580,000112,000 114,000 116,000 118,000 120,000 Utiliities - Water 7,425,000546,000 1,441,500 411,000 495,500 4,531,000 Utilities - Sanitary Sewer 14,905,000590,000 380,000 2,470,000 325,000 11,140,000 Utilities - Surface Water Mgmt 4,710,000700,000 1,676,000 752,000 778,000 804,000 9,920,950 23,103,900 19,199,500 8,722,600 24,821,200 85,768,150TOTAL Thursday, November 18, 2021 Capital Improvement Program City of Chanhassen, MN PROJECTS BY CATEGORY AND DEPARTMENT 2022 2026thru Total2022 2023 2024 2025 2026 Department Category Facilities Fire 35,000 35,000Fire Station 1 Pavement & Drainage Repairs MBFire-047 35,000 35,000Sub-Total General Government Buildings 100,000 50,000 200,000 200,000 200,000 750,000Deferred Maintenance Allowance - All MB-048 300,000 300,000City Hall Roof Replacement MBCH-033 10,000 10,000Senior Center/Maple Room Kitchen Flooring Replace MBCH-045 10,000 10,000Senior Center / Maple Room Carpet Replacement MBCH-046 10,000 11,000 21,000Library Building Facility Maintenance MBLib-051 100,000 360,000 200,000 220,000 211,000 1,091,000Sub-Total Public Works 60,000 60,000PW Facility - Fuel island canopy MBPW-042 17,500 17,500PW Facility - Fuel Tank Monitoring Sytem Upgrade MBPW-043 25,000 25,000PW Facility - Salt Shed Canvas Cover Replacement MBPW-044 21,000 21,000PW Facility Maintenance MBPW-050 60,000 17,500 25,000 21,000 123,500Sub-Total Recreation 25,000 25,000 50,000Recreation Center Revitalization Project MBRec-140 25,000 25,000 50,000Sub-Total 195,000 402,500 225,000 245,000 232,000 1,299,500Department Total: Fleet - Capital Fire 825,000 825,000Fire Pumper Truck - 2007 Truck F-209 800,000 800,000Fire Pumper Truck - 1996 Toyne F-211 35,000 35,000Grass Response Rig - 2005 Polaris Ranger 4x4 F-231 23,500 23,500Boat Rescue - 2006 Dura Craft Boat/Motor/Trailer F-232 835,000 23,500 825,000 1,683,500Sub-Total Park Maintenance 90,000 90,000Dump Truck to replace 2008 Ford F450 4x4 w/Plow F-406 114,000 114,000Mower - 2009 Toro Groundsmaster 5900 F-450 86,000 86,000Mower - 2012 Toro Groundsmaster 4000 F-451 118,000 118,000Mower - 2015 Toro Groundsmaster 5900 F-452 83,000 83,000Mower - 2016 Toro Grounsmaster 4000-D F-456 Thursday, November 18, 2021 Total2022 2023 2024 2025 2026 Department Category 90,000 90,000Tractor - 2001 John Deere 5520 F-471 22,000 22,000Tractor 2001 John Deere 455 (replace w/ ABI)F-472 43,000 43,000Tractor - John Deere 4710 F-473 95,000 95,000Tractor w/ Snowblower 2004 John Deere 5520 F-474 15,000 15,000Tractor Snowblower for F-471 Erskine 1996 F-480 9,900 9,900Weed Sprayer F-4XX 305,000 104,900 230,000 126,000 765,900Sub-Total PW - Streets 7,400 7,400Trailer - 2009 Felling Tandem Axel F-01A 12,300 12,300Trailer - 2009 Felling Tandem Axel F-01B 7,600 7,600Trailer - 2010 Felling Tandem Axel F-01F 40,000 40,000Trailer - 2000 Towmaster Tri Axel F-01G 30,000 30,000Portable Message Boards F-100B 10,000 10,000Breaker Bar Attachment F-100C 15,000 15,000Compacting attachment for exavator F-100D 227,300 227,300Streets Dump/Plow 2006 Sterling LT9500 F-102 295,000 295,000Streets Dump/Plow 2007 Sterling LT9500 F-103 330,000 330,000Streets Dump/Plow 2008 Mack Tandem Axle GU713 F-104 235,000 235,000Streets Dump/Plow Truck 2001 Sterling L8513 F-127 242,000 242,000Streets Dump/Plow 2003 Sterling L8513 F-128 32,000 32,000Compressor 1993 Sullair F-137 121,300 121,300Tractor - 2006 John Deere w/ Broom F-141 154,500 154,5001989 Snowblower attachment for Loader F-142 286,700 286,700Streets Dump/Plow - Replace Loader 544G F-146 59,000 59,000Vibratory Compactor 1994 Cat F-152 46,000 46,000Hot Box with Asphalt Premix Heater F-158 28,000 28,000 28,000 28,000 28,000 140,000Annual Skid Loader Trade In F-skid 263,000 323,400 741,300 472,100 491,300 2,291,100Sub-Total Utilities - SWMP 20,000 20,000SteamerF-100A 310,000 310,000Street Sweeper 2003 Elgin F-136 330,000 330,000Sub-Total Utilities - W&S Capital Equipment 140,000 140,000Pickup - 2012 Ford F450 with crane F-302 28,900 28,900Scrubber - 2006 Tennant F-396 140,000 28,900 168,900Sub-Total 263,000 1,793,400 986,200 725,600 1,471,200 5,239,400Department Total: Fleet - Leased Vehicles CD - Inspections 31,000 31,000Pickup 2007 GMC Canyon F-607 32,000 32,000Pickup 2008 GMC Canyon F-611 32,950 32,950Pickup 2008 GMC Canyon F-612 95,950 95,950Sub-Total CD - Planning 33,000 33,000Van - 2010 Grand Caravan F-802 33,000 33,000Sub-Total Thursday, November 18, 2021 Total2022 2023 2024 2025 2026 Department Category Fire 74,150 74,150SUV - 2015 Chev Tahoe F-202 65,000 65,000SUV - 2013 Chev Tahoe F-203 74,150 74,150SUV - 2015 Chev Tahoe F-204 40,000 40,000Pickup 2016 GMC Sierra (formerly CSO)F-702 105,000 148,300 253,300Sub-Total Fleet Leased 35,000 35,000Pickup 2002 Chev 1/2ton 4x4 F-155 35,000 35,000Sub-Total Park Maintenance 46,000 46,000Pickup 2004 Chev 4x4 w/Plow F-401 41,000 41,000Pickup 2004 Chev 4x4 w/Plow F-402 46,000 46,000Pickup 2008 Chev 4x4 w/Plow F-408 41,000 41,000Pickup - 2015 Chev Silverado K2500 F-409 47,000 47,000Pickup 2010 GMC Sierra 4x4 w/Plow F-411 50,000 50,000Pickup 2012 Chev 4x4 w/Plow F-419 50,000 50,000Pickup 2012 Chev 4x4 w/Plow F-420 87,000 93,000 100,000 41,000 321,000Sub-Total PW - Engineering 32,000 32,000Pickup - 2010 Chev Silverado F-501 32,000 32,000Sub-Total PW - Streets 27,000 27,000Sedan - 2010 Chev Impala 4 door F-001 49,000 49,000Pickup - 2010 GMC Sierra 2500 w plow F-131 50,000 50,000Pickup w/plow - 2013 chev 1500 F-132 44,000 44,000Pickup -2013 2500 4x4 F-134 27,000 49,000 94,000 170,000Sub-Total Utilities - W&S Capital Equipment 31,000 31,000SUV - 2017 Chevrolet Equinox F-307 33,000 33,000Pickup - 2013 GMC Sierra F-308 64,000 64,000Sub-Total 354,950 91,000 323,300 194,000 41,000 1,004,250Department Total: Park Renovation Park Improvements 90,000 90,000Tennis Court Refurbishment P-072 150,000 150,000N Lotus Lake Park Hockey Rink PR-2022A 15,000 15,000Meadow Green & Rice Marsh Backstops/Benches PR-2022C 85,000 85,000Roundhouse Park Playground PR-2022D 60,000 60,000Lake Ann Lake Side Pavilion Roof Replacement PR-2023R 340,000 60,000 400,000Sub-Total 340,000 60,000 400,000Department Total: Spec Revenue Fund Capital Cemetery 25,000 25,000Cemetery Driveway Improvements CEM-001 Thursday, November 18, 2021 Total2022 2023 2024 2025 2026 Department Category 25,000 25,000Sub-Total Communications 75,000 10,000 10,000 10,000 105,000Audio/Visual Equipment T-026 75,000 10,000 10,000 10,000 105,000Sub-Total 100,000 10,000 10,000 10,000 130,000Department Total: Street Improvements Street Improvements 5,075,000 5,225,000 5,375,000 5,525,000 5,675,000 26,875,000Annual Street Improvement Program ST-012 5,625,000 5,625,000 11,250,000MSA-Galpin Blvd Imp (Hwy 5 N to City limits)ST-040 160,000 160,000MSA-TH 41 and 82nd Street Signal ST-042 320,000 200,000 520,000Downtown Traffic Signals ST-043 875,000 875,000MSA Roadway Improvements - Lake Lucy Road ST-045 4,000,000 4,000,000MSA Roadway Improvements - Market Blvd ST-048 700,000 700,000MSA Street Imprv - Lake Drive East/Great Plains ST-049 1,500,000 1,500,000Crimson Bay Road/Dogwood Road Connection ST-050 2,800,000 2,800,000TH41 MMSW Access Improvements ST-051 450,000 90,000 90,000 90,000 90,000 810,000Bluff Creek Boulevard Extension ST-052 6,400,000 16,920,000 13,890,000 5,815,000 6,465,000 49,490,000Sub-Total 6,400,000 16,920,000 13,890,000 5,815,000 6,465,000 49,490,000Department Total: Technology Technology 15,000 15,500 16,000 16,500 17,000 80,000Utility Fiber Connectivity - Sewer MBU-041 50,000 50,000Telecommunication Purchases/Upgrades T-014 55,000 55,000Storage Area Network (SAN)T-081 100,000 100,000 200,000Finance Software Replacement T-177 100,000 100,000 200,000Utility Billing Software Replacement T-177UB 320,000 215,500 16,000 16,500 17,000 585,000Sub-Total 320,000 215,500 16,000 16,500 17,000 585,000Department Total: TIM Transportation Inf Mgmt Transportation Maintenance 40,000 40,000 40,000 40,000 40,000 200,000ADA Transition Plan Improvements ST-047 72,000 74,000 76,000 78,000 80,000 380,000Trails & Parking Lots Pavement Mgmt TIM-02 112,000 114,000 116,000 118,000 120,000 580,000Sub-Total 112,000 114,000 116,000 118,000 120,000 580,000Department Total: Utiliities - Water Technology 15,000 15,500 16,000 16,500 17,000 80,000Utility Fiber Connectivity - Water Facilities MBU-040 15,000 15,500 16,000 16,500 17,000 80,000Sub-Total Utilities - Water 121,000 86,000 43,000 115,000 138,000 503,000Well Rehabilitation Program W-032 2,600,000 2,600,000Low Zone 1 MG Storage Tank W-046 Thursday, November 18, 2021 Total2022 2023 2024 2025 2026 Department Category 1,400,000 1,400,000Well #16 W-059 250,000 260,000 270,000 280,000 290,000 1,350,000Trunk Watermain Maintenance W-065 1,000,000 1,000,000TH5 Watermain - AATP W-067 40,000 80,000 82,000 84,000 86,000 372,000Water Treatment Plant Bldg & Equip W-068 120,000 120,000WTP Mechanical Improvements W-069 531,000 1,426,000 395,000 479,000 4,514,000 7,345,000Sub-Total 546,000 1,441,500 411,000 495,500 4,531,000 7,425,000Department Total: Utilities - Sanitary Sewer Utilities - Sewer 200,000 210,000 220,000 230,000 240,000 1,100,000Inflow and Infiltration Abatement SS-012 190,000 170,000 150,000 95,000 100,000 705,000Sanitary Sewer Lift Station Rehabilitation Program SS-017 1,900,000 1,900,0002010 MUSA Sanitary Lift Station SS-020 10,800,000 10,800,000Lower Bluff Creek Trunk Utility Improvements SS-024 200,000 200,000 400,000Lift Station Access Improvements SS-027 590,000 380,000 2,470,000 325,000 11,140,000 14,905,000Sub-Total 590,000 380,000 2,470,000 325,000 11,140,000 14,905,000Department Total: Utilities - Surface Water Mgmt Utilities - SWMP 675,000 100,000 725,000 750,000 775,000 3,025,000Stormwater Pond Improvements SWMP-032 500,000 500,000Lotus Lake Channels & Outfall Improvements SWMP-046 600,000 600,000Upper Riley Creek Channel Stabilization SWMP-048 350,000 350,000Downtown Water Reuse Project SWMP-057 25,000 26,000 27,000 28,000 29,000 135,000Stormwater Management Partnership Program SWMP-059 100,000 100,000Red Cedar Point Stormwater Improvements SWMP-061 700,000 1,676,000 752,000 778,000 804,000 4,710,000Sub-Total 700,000 1,676,000 752,000 778,000 804,000 4,710,000Department Total: 9,920,950 23,103,900 19,199,500 8,722,600 24,821,200 85,768,150GRAND TOTAL Thursday, November 18, 2021 Capital Improvement Program City of Chanhassen, MN PROJECTS BY DEPARTMENT 2022 2026thru Total2022 2023 2024 2025 2026Department Project # Priority Facilities MB-048 750,000100,000 50,000 200,000 200,000 200,000Deferred Maintenance Allowance - All n/a MBCH-033 300,000300,000City Hall Roof Replacement n/a MBCH-045 10,00010,000Senior Center/Maple Room Kitchen Flooring Replace n/a MBCH-046 10,00010,000Senior Center / Maple Room Carpet Replacement n/a MBFire-047 35,00035,000Fire Station 1 Pavement & Drainage Repairs n/a MBLib-051 21,00010,000 11,000Library Building Facility Maintenance n/a MBPW-042 60,00060,000PW Facility - Fuel island canopy n/a MBPW-043 17,50017,500PW Facility - Fuel Tank Monitoring Sytem Upgrade n/a MBPW-044 25,00025,000PW Facility - Salt Shed Canvas Cover Replacement n/a MBPW-050 21,00021,000PW Facility Maintenance n/a MBRec-140 50,00025,000 25,000Recreation Center Revitalization Project n/a 1,299,500195,000 402,500 225,000 245,000 232,000Facilities Total Fleet - Capital F-01A 7,4007,400Trailer - 2009 Felling Tandem Axel n/a F-01B 12,30012,300Trailer - 2009 Felling Tandem Axel n/a F-01F 7,6007,600Trailer - 2010 Felling Tandem Axel n/a F-01G 40,00040,000Trailer - 2000 Towmaster Tri Axel n/a F-100A 20,00020,000Steamer n/a F-100B 30,00030,000Portable Message Boards n/a F-100C 10,00010,000Breaker Bar Attachment n/a F-100D 15,00015,000Compacting attachment for exavator n/a F-102 227,300227,300Streets Dump/Plow 2006 Sterling LT9500 n/a F-103 295,000295,000Streets Dump/Plow 2007 Sterling LT9500 n/a F-104 330,000330,000Streets Dump/Plow 2008 Mack Tandem Axle GU713 n/a F-127 235,000235,000Streets Dump/Plow Truck 2001 Sterling L8513 n/a F-128 242,000242,000Streets Dump/Plow 2003 Sterling L8513 n/a F-136 310,000310,000Street Sweeper 2003 Elgin n/a F-137 32,00032,000Compressor 1993 Sullair n/a F-141 121,300121,300Tractor - 2006 John Deere w/ Broom n/a F-142 154,500154,5001989 Snowblower attachment for Loader n/a F-146 286,700286,700Streets Dump/Plow - Replace Loader 544G n/a F-152 59,00059,000Vibratory Compactor 1994 Cat n/a F-158 46,00046,000Hot Box with Asphalt Premix Heater n/a F-209 825,000825,000Fire Pumper Truck - 2007 Truck n/a F-211 800,000800,000Fire Pumper Truck - 1996 Toyne n/a F-231 35,00035,000Grass Response Rig - 2005 Polaris Ranger 4x4 n/a F-232 23,50023,500Boat Rescue - 2006 Dura Craft Boat/Motor/Trailer n/a F-302 140,000140,000Pickup - 2012 Ford F450 with crane n/a F-396 28,90028,900Scrubber - 2006 Tennant n/a F-406 90,00090,000Dump Truck to replace 2008 Ford F450 4x4 w/Plow n/a F-450 114,000114,000Mower - 2009 Toro Groundsmaster 5900 n/a F-451 86,00086,000Mower - 2012 Toro Groundsmaster 4000 n/a F-452 118,000118,000Mower - 2015 Toro Groundsmaster 5900 n/a Thursday, November 18, 2021 Total2022 2023 2024 2025 2026Department Project # Priority F-456 83,00083,000Mower - 2016 Toro Grounsmaster 4000-D n/a F-471 90,00090,000Tractor - 2001 John Deere 5520 n/a F-472 22,00022,000Tractor 2001 John Deere 455 (replace w/ ABI) n/a F-473 43,00043,000Tractor - John Deere 4710 n/a F-474 95,00095,000Tractor w/ Snowblower 2004 John Deere 5520 n/a F-480 15,00015,000Tractor Snowblower for F-471 Erskine 1996 n/a F-4XX 9,9009,900Weed Sprayer n/a F-skid 140,00028,000 28,000 28,000 28,000 28,000Annual Skid Loader Trade In n/a 5,239,400263,000 1,793,400 986,200 725,600 1,471,200Fleet - Capital Total Fleet - Leased Vehicles F-001 27,00027,000Sedan - 2010 Chev Impala 4 door n/a F-131 49,00049,000Pickup - 2010 GMC Sierra 2500 w plow n/a F-132 50,00050,000Pickup w/plow - 2013 chev 1500 n/a F-134 44,00044,000Pickup -2013 2500 4x4 n/a F-155 35,00035,000Pickup 2002 Chev 1/2ton 4x4 n/a F-202 74,15074,150SUV - 2015 Chev Tahoe n/a F-203 65,00065,000SUV - 2013 Chev Tahoe n/a F-204 74,15074,150SUV - 2015 Chev Tahoe n/a F-307 31,00031,000SUV - 2017 Chevrolet Equinox n/a F-308 33,00033,000Pickup - 2013 GMC Sierra n/a F-401 46,00046,000Pickup 2004 Chev 4x4 w/Plow n/a F-402 41,00041,000Pickup 2004 Chev 4x4 w/Plow n/a F-408 46,00046,000Pickup 2008 Chev 4x4 w/Plow n/a F-409 41,00041,000Pickup - 2015 Chev Silverado K2500 n/a F-411 47,00047,000Pickup 2010 GMC Sierra 4x4 w/Plow n/a F-419 50,00050,000Pickup 2012 Chev 4x4 w/Plow n/a F-420 50,00050,000Pickup 2012 Chev 4x4 w/Plow n/a F-501 32,00032,000Pickup - 2010 Chev Silverado n/a F-607 31,00031,000Pickup 2007 GMC Canyon n/a F-611 32,00032,000Pickup 2008 GMC Canyon n/a F-612 32,95032,950Pickup 2008 GMC Canyon n/a F-702 40,00040,000Pickup 2016 GMC Sierra (formerly CSO) n/a F-802 33,00033,000Van - 2010 Grand Caravan n/a 1,004,250354,950 91,000 323,300 194,000 41,000Fleet - Leased Vehicles Total Park Renovation P-072 90,00090,000Tennis Court Refurbishment n/a PR-2022A 150,000150,000N Lotus Lake Park Hockey Rink n/a PR-2022C 15,00015,000Meadow Green & Rice Marsh Backstops/Benches n/a PR-2022D 85,00085,000Roundhouse Park Playground n/a PR-2023R 60,00060,000Lake Ann Lake Side Pavilion Roof Replacement n/a 400,000340,000 60,000Park Renovation Total Spec Revenue Fund Capital CEM-001 25,00025,000Cemetery Driveway Improvements n/a T-026 105,00075,000 10,000 10,000 10,000Audio/Visual Equipment n/a 130,000100,000 10,000 10,000 10,000Spec Revenue Fund Capital Total Street Improvements ST-012 26,875,0005,075,000 5,225,000 5,375,000 5,525,000 5,675,000Annual Street Improvement Program n/a Thursday, November 18, 2021 Total2022 2023 2024 2025 2026Department Project # Priority ST-040 11,250,0005,625,000 5,625,000MSA-Galpin Blvd Imp (Hwy 5 N to City limits) n/a ST-042 160,000160,000MSA-TH 41 and 82nd Street Signal n/a ST-043 520,000320,000 200,000Downtown Traffic Signals n/a ST-045 875,000875,000MSA Roadway Improvements - Lake Lucy Road n/a ST-048 4,000,0004,000,000MSA Roadway Improvements - Market Blvd n/a ST-049 700,000700,000MSA Street Imprv - Lake Drive East/Great Plains n/a ST-050 1,500,0001,500,000Crimson Bay Road/Dogwood Road Connection n/a ST-051 2,800,0002,800,000TH41 MMSW Access Improvements n/a ST-052 810,000450,000 90,000 90,000 90,000 90,000Bluff Creek Boulevard Extension n/a 49,490,0006,400,000 16,920,000 13,890,000 5,815,000 6,465,000Street Improvements Total Technology MBU-041 80,00015,000 15,500 16,000 16,500 17,000Utility Fiber Connectivity - Sewer n/a T-014 50,00050,000Telecommunication Purchases/Upgrades n/a T-081 55,00055,000Storage Area Network (SAN) n/a T-177 200,000100,000 100,000Finance Software Replacement n/a T-177UB 200,000100,000 100,000Utility Billing Software Replacement n/a 585,000320,000 215,500 16,000 16,500 17,000Technology Total TIM Transportation Inf Mgmt ST-047 200,00040,000 40,000 40,000 40,000 40,000ADA Transition Plan Improvements n/a TIM-02 380,00072,000 74,000 76,000 78,000 80,000Trails & Parking Lots Pavement Mgmt n/a 580,000112,000 114,000 116,000 118,000 120,000TIM Transportation Inf Mgmt Total Utiliities - Water MBU-040 80,00015,000 15,500 16,000 16,500 17,000Utility Fiber Connectivity - Water Facilities n/a W-032 503,000121,000 86,000 43,000 115,000 138,000Well Rehabilitation Program n/a W-046 2,600,0002,600,000Low Zone 1 MG Storage Tank n/a W-059 1,400,0001,400,000Well #16 n/a W-065 1,350,000250,000 260,000 270,000 280,000 290,000Trunk Watermain Maintenance n/a W-067 1,000,0001,000,000TH5 Watermain - AATP n/a W-068 372,00040,000 80,000 82,000 84,000 86,000Water Treatment Plant Bldg & Equip n/a W-069 120,000120,000WTP Mechanical Improvements n/a 7,425,000546,000 1,441,500 411,000 495,500 4,531,000Utiliities - Water Total Utilities - Sanitary Sewer SS-012 1,100,000200,000 210,000 220,000 230,000 240,000Inflow and Infiltration Abatement n/a SS-017 705,000190,000 170,000 150,000 95,000 100,000Sanitary Sewer Lift Station Rehabilitation Program n/a SS-020 1,900,0001,900,0002010 MUSA Sanitary Lift Station n/a SS-024 10,800,00010,800,000Lower Bluff Creek Trunk Utility Improvements n/a SS-027 400,000200,000 200,000Lift Station Access Improvements n/a 14,905,000590,000 380,000 2,470,000 325,000 11,140,000Utilities - Sanitary Sewer Total Utilities - Surface Water Mgmt SWMP-032 3,025,000675,000 100,000 725,000 750,000 775,000Stormwater Pond Improvements n/a SWMP-046 500,000500,000Lotus Lake Channels & Outfall Improvements n/a SWMP-048 600,000600,000Upper Riley Creek Channel Stabilization n/a SWMP-057 350,000350,000Downtown Water Reuse Project n/a SWMP-059 135,00025,000 26,000 27,000 28,000 29,000Stormwater Management Partnership Program n/a SWMP-061 100,000100,000Red Cedar Point Stormwater Improvements n/a Thursday, November 18, 2021 Total2022 2023 2024 2025 2026Department Project # Priority 4,710,000700,000 1,676,000 752,000 778,000 804,000Utilities - Surface Water Mgmt Total GRAND TOTAL 85,768,1509,920,950 23,103,900 19,199,500 8,722,600 24,821,200 Thursday, November 18, 2021 Capital Improvement Program City of Chanhassen, MN PROJECTS BY FUNDING SOURCE 2022 2026thru TotalSource Project # Priority 2022 2023 2024 2025 2026 Capital Fund -Facilities MB-048 750,000100,000 50,000 200,000 200,000 200,000Deferred Maintenance Allowance - All n/a MBCH-033 300,000300,000City Hall Roof Replacement n/a MBCH-045 10,00010,000Senior Center/Maple Room Kitchen Flooring Replace n/a MBCH-046 10,00010,000Senior Center / Maple Room Carpet Replacement n/a MBFire-047 15,00015,000Fire Station 1 Pavement & Drainage Repairs n/a MBLib-051 21,00010,000 11,000Library Building Facility Maintenance n/a MBPW-042 24,00024,000PW Facility - Fuel island canopy n/a MBPW-043 7,0007,000PW Facility - Fuel Tank Monitoring Sytem Upgrade n/a MBPW-050 21,00021,000PW Facility Maintenance n/a MBRec-140 50,00025,000 25,000Recreation Center Revitalization Project n/a 1,208,000139,000 392,000 225,000 220,000 232,000Capital Fund -Facilities Total Capital Fund -Park Renovation P-072 90,00090,000Tennis Court Refurbishment n/a PR-2022A 150,000150,000N Lotus Lake Park Hockey Rink n/a PR-2022C 15,00015,000Meadow Green & Rice Marsh Backstops/Benches n/a PR-2022D 85,00085,000Roundhouse Park Playground n/a PR-2023R 60,00060,000Lake Ann Lake Side Pavilion Roof Replacement n/a 400,000340,000 60,000Capital Fund -Park Renovation Total Capital Fund -PMP Assessments ST-012 8,200,0001,560,000 1,600,000 1,640,000 1,680,000 1,720,000Annual Street Improvement Program n/a ST-045 176,000176,000MSA Roadway Improvements - Lake Lucy Road n/a ST-048 680,000680,000MSA Roadway Improvements - Market Blvd n/a ST-049 200,000200,000MSA Street Imprv - Lake Drive East/Great Plains n/a ST-050 120,000120,000Crimson Bay Road/Dogwood Road Connection n/a 9,376,0001,736,000 2,400,000 1,640,000 1,680,000 1,920,000Capital Fund -PMP Assessments Total Capital Fund -PMP Fund ST-012 12,300,0002,340,000 2,400,000 2,460,000 2,520,000 2,580,000Annual Street Improvement Program n/a ST-043 360,000160,000 200,000Downtown Traffic Signals n/a ST-050 180,000180,000Crimson Bay Road/Dogwood Road Connection n/a ST-051 100,000100,000TH41 MMSW Access Improvements n/a ST-052 810,000450,000 90,000 90,000 90,000 90,000Bluff Creek Boulevard Extension n/a 13,750,0002,790,000 2,830,000 2,650,000 2,810,000 2,670,000Capital Fund -PMP Fund Total Capital Fund -PMP MSA ST-040 3,000,0001,500,000 1,500,000MSA-Galpin Blvd Imp (Hwy 5 N to City limits) n/a ST-042 160,000160,000MSA-TH 41 and 82nd Street Signal n/a Thursday, November 18, 2021 TotalSource Project # Priority 2022 2023 2024 2025 2026 ST-045 464,000464,000MSA Roadway Improvements - Lake Lucy Road n/a ST-048 1,020,0001,020,000MSA Roadway Improvements - Market Blvd n/a ST-049 300,000300,000MSA Street Imprv - Lake Drive East/Great Plains n/a 4,944,000464,000 2,680,000 1,500,000 300,000Capital Fund -PMP MSA Total Capital Fund -TIM Transp Infr Mgmt ST-047 200,00040,000 40,000 40,000 40,000 40,000ADA Transition Plan Improvements n/a TIM-02 380,00072,000 74,000 76,000 78,000 80,000Trails & Parking Lots Pavement Mgmt n/a 580,000112,000 114,000 116,000 118,000 120,000Capital Fund -TIM Transp Infr Mgmt Total Certificates of Indebtedness F-209 825,000825,000Fire Pumper Truck - 2007 Truck n/a F-211 800,000800,000Fire Pumper Truck - 1996 Toyne n/a 1,625,000800,000 825,000Certificates of Indebtedness Total Debt -TIF Bonds ST-048 2,100,0002,100,000MSA Roadway Improvements - Market Blvd n/a 2,100,0002,100,000Debt -TIF Bonds Total ISF -Fleet Capital F-01A 7,4007,400Trailer - 2009 Felling Tandem Axel n/a F-01B 12,30012,300Trailer - 2009 Felling Tandem Axel n/a F-01F 7,6007,600Trailer - 2010 Felling Tandem Axel n/a F-01G 40,00040,000Trailer - 2000 Towmaster Tri Axel n/a F-100B 30,00030,000Portable Message Boards n/a F-100C 10,00010,000Breaker Bar Attachment n/a F-100D 15,00015,000Compacting attachment for exavator n/a F-102 227,300227,300Streets Dump/Plow 2006 Sterling LT9500 n/a F-103 295,000295,000Streets Dump/Plow 2007 Sterling LT9500 n/a F-104 330,000330,000Streets Dump/Plow 2008 Mack Tandem Axle GU713 n/a F-127 235,000235,000Streets Dump/Plow Truck 2001 Sterling L8513 n/a F-128 242,000242,000Streets Dump/Plow 2003 Sterling L8513 n/a F-131 49,00049,000Pickup - 2010 GMC Sierra 2500 w plow n/a F-137 32,00032,000Compressor 1993 Sullair n/a F-141 121,300121,300Tractor - 2006 John Deere w/ Broom n/a F-142 154,500154,5001989 Snowblower attachment for Loader n/a F-146 286,700286,700Streets Dump/Plow - Replace Loader 544G n/a F-152 59,00059,000Vibratory Compactor 1994 Cat n/a F-158 46,00046,000Hot Box with Asphalt Premix Heater n/a F-231 35,00035,000Grass Response Rig - 2005 Polaris Ranger 4x4 n/a F-232 23,50023,500Boat Rescue - 2006 Dura Craft Boat/Motor/Trailer n/a F-406 90,00090,000Dump Truck to replace 2008 Ford F450 4x4 w/Plow n/a F-450 114,000114,000Mower - 2009 Toro Groundsmaster 5900 n/a F-451 86,00086,000Mower - 2012 Toro Groundsmaster 4000 n/a F-452 118,000118,000Mower - 2015 Toro Groundsmaster 5900 n/a F-456 83,00083,000Mower - 2016 Toro Grounsmaster 4000-D n/a F-471 90,00090,000Tractor - 2001 John Deere 5520 n/a F-472 22,00022,000Tractor 2001 John Deere 455 (replace w/ ABI) n/a F-473 43,00043,000Tractor - John Deere 4710 n/a Thursday, November 18, 2021 TotalSource Project # Priority 2022 2023 2024 2025 2026 F-474 95,00095,000Tractor w/ Snowblower 2004 John Deere 5520 n/a F-480 15,00015,000Tractor Snowblower for F-471 Erskine 1996 n/a F-4XX 9,9009,900Weed Sprayer n/a F-skid 140,00028,000 28,000 28,000 28,000 28,000Annual Skid Loader Trade In n/a MBPW-044 25,00025,000PW Facility - Salt Shed Canvas Cover Replacement n/a 3,189,500263,000 663,400 895,200 750,600 617,300ISF -Fleet Capital Total ISF -Fleet Leased F-001 27,00027,000Sedan - 2010 Chev Impala 4 door n/a F-132 50,00050,000Pickup w/plow - 2013 chev 1500 n/a F-134 44,00044,000Pickup -2013 2500 4x4 n/a F-155 35,00035,000Pickup 2002 Chev 1/2ton 4x4 n/a F-202 74,15074,150SUV - 2015 Chev Tahoe n/a F-203 65,00065,000SUV - 2013 Chev Tahoe n/a F-204 74,15074,150SUV - 2015 Chev Tahoe n/a F-307 31,00031,000SUV - 2017 Chevrolet Equinox n/a F-308 33,00033,000Pickup - 2013 GMC Sierra n/a F-401 46,00046,000Pickup 2004 Chev 4x4 w/Plow n/a F-402 41,00041,000Pickup 2004 Chev 4x4 w/Plow n/a F-408 46,00046,000Pickup 2008 Chev 4x4 w/Plow n/a F-409 41,00041,000Pickup - 2015 Chev Silverado K2500 n/a F-411 47,00047,000Pickup 2010 GMC Sierra 4x4 w/Plow n/a F-419 50,00050,000Pickup 2012 Chev 4x4 w/Plow n/a F-420 50,00050,000Pickup 2012 Chev 4x4 w/Plow n/a F-501 32,00032,000Pickup - 2010 Chev Silverado n/a F-607 31,00031,000Pickup 2007 GMC Canyon n/a F-611 32,00032,000Pickup 2008 GMC Canyon n/a F-612 32,95032,950Pickup 2008 GMC Canyon n/a F-702 40,00040,000Pickup 2016 GMC Sierra (formerly CSO) n/a F-802 33,00033,000Van - 2010 Grand Caravan n/a 955,250354,950 91,000 274,300 194,000 41,000ISF -Fleet Leased Total ISF -Technology T-014 50,00050,000Telecommunication Purchases/Upgrades n/a T-081 55,00055,000Storage Area Network (SAN) n/a T-177 200,000100,000 100,000Finance Software Replacement n/a 305,000205,000 100,000ISF -Technology Total Other Agency - State Grant ST-051 2,200,0002,200,000TH41 MMSW Access Improvements n/a 2,200,0002,200,000Other Agency - State Grant Total Other Agency Contribution SS-027 25,00025,000Lift Station Access Improvements n/a ST-040 7,000,0003,500,000 3,500,000MSA-Galpin Blvd Imp (Hwy 5 N to City limits) n/a ST-043 160,000160,000Downtown Traffic Signals n/a ST-050 700,000700,000Crimson Bay Road/Dogwood Road Connection n/a ST-051 400,000400,000TH41 MMSW Access Improvements n/a SWMP-046 450,000450,000Lotus Lake Channels & Outfall Improvements n/a Thursday, November 18, 2021 TotalSource Project # Priority 2022 2023 2024 2025 2026 SWMP-057 250,000250,000Downtown Water Reuse Project n/a W-067 500,000500,000TH5 Watermain - AATP n/a 9,485,0005,560,000 3,925,000Other Agency Contribution Total SR Fund -Cable TV Franchise Fee T-026 105,00075,000 10,000 10,000 10,000Audio/Visual Equipment n/a 105,00075,000 10,000 10,000 10,000SR Fund -Cable TV Franchise Fee Total SR Fund -Cemetery Fund CEM-001 25,00025,000Cemetery Driveway Improvements n/a 25,00025,000SR Fund -Cemetery Fund Total Utility Fund -Sewer F-302 70,00070,000Pickup - 2012 Ford F450 with crane n/a MBPW-042 12,00012,000PW Facility - Fuel island canopy n/a MBPW-043 3,5003,500PW Facility - Fuel Tank Monitoring Sytem Upgrade n/a SS-012 1,100,000200,000 210,000 220,000 230,000 240,000Inflow and Infiltration Abatement n/a SS-017 705,000190,000 170,000 150,000 95,000 100,000Sanitary Sewer Lift Station Rehabilitation Program n/a SS-020 950,000950,0002010 MUSA Sanitary Lift Station n/a SS-024 1,800,0001,800,000Lower Bluff Creek Trunk Utility Improvements n/a SS-027 250,000125,000 125,000Lift Station Access Improvements n/a ST-012 1,225,000225,000 235,000 245,000 255,000 265,000Annual Street Improvement Program n/a ST-040 250,000125,000 125,000MSA-Galpin Blvd Imp (Hwy 5 N to City limits) n/a ST-045 60,00060,000MSA Roadway Improvements - Lake Lucy Road n/a ST-048 40,00040,000MSA Roadway Improvements - Market Blvd n/a ST-049 50,00050,000MSA Street Imprv - Lake Drive East/Great Plains n/a ST-050 200,000200,000Crimson Bay Road/Dogwood Road Connection n/a T-177UB 80,00040,000 40,000Utility Billing Software Replacement n/a 6,795,500852,000 1,023,500 1,885,000 580,000 2,455,000Utility Fund -Sewer Total Utility Fund -Surface Wtr F-100A 20,00020,000Steamer n/a F-136 310,000310,000Street Sweeper 2003 Elgin n/a MBFire-047 20,00020,000Fire Station 1 Pavement & Drainage Repairs n/a MBPW-042 12,00012,000PW Facility - Fuel island canopy n/a MBPW-043 3,5003,500PW Facility - Fuel Tank Monitoring Sytem Upgrade n/a SS-027 125,00075,000 50,000Lift Station Access Improvements n/a ST-012 2,650,000500,000 520,000 540,000 560,000 530,000Annual Street Improvement Program n/a ST-045 65,00065,000MSA Roadway Improvements - Lake Lucy Road n/a ST-048 40,00040,000MSA Roadway Improvements - Market Blvd n/a ST-049 100,000100,000MSA Street Imprv - Lake Drive East/Great Plains n/a ST-050 100,000100,000Crimson Bay Road/Dogwood Road Connection n/a ST-051 100,000100,000TH41 MMSW Access Improvements n/a SWMP-032 3,025,000675,000 100,000 725,000 750,000 775,000Stormwater Pond Improvements n/a SWMP-046 50,00050,000Lotus Lake Channels & Outfall Improvements n/a SWMP-048 600,000600,000Upper Riley Creek Channel Stabilization n/a SWMP-057 50,00050,000Downtown Water Reuse Project n/a SWMP-059 135,00025,000 26,000 27,000 28,000 29,000Stormwater Management Partnership Program n/a SWMP-061 100,000100,000Red Cedar Point Stormwater Improvements n/a Thursday, November 18, 2021 TotalSource Project # Priority 2022 2023 2024 2025 2026 T-177UB 40,00020,000 20,000Utility Billing Software Replacement n/a 7,545,5001,392,000 1,939,500 1,442,000 1,338,000 1,434,000Utility Fund -Surface Wtr Total Utility Fund -Water F-302 70,00070,000Pickup - 2012 Ford F450 with crane n/a F-396 28,90028,900Scrubber - 2006 Tennant n/a MBPW-042 12,00012,000PW Facility - Fuel island canopy n/a MBPW-043 3,5003,500PW Facility - Fuel Tank Monitoring Sytem Upgrade n/a MBU-040 80,00015,000 15,500 16,000 16,500 17,000Utility Fiber Connectivity - Water Facilities n/a MBU-041 80,00015,000 15,500 16,000 16,500 17,000Utility Fiber Connectivity - Sewer n/a SS-024 1,100,0001,100,000Lower Bluff Creek Trunk Utility Improvements n/a ST-012 2,500,000450,000 470,000 490,000 510,000 580,000Annual Street Improvement Program n/a ST-040 1,000,000500,000 500,000MSA-Galpin Blvd Imp (Hwy 5 N to City limits) n/a ST-045 110,000110,000MSA Roadway Improvements - Lake Lucy Road n/a ST-048 120,000120,000MSA Roadway Improvements - Market Blvd n/a ST-049 50,00050,000MSA Street Imprv - Lake Drive East/Great Plains n/a ST-050 200,000200,000Crimson Bay Road/Dogwood Road Connection n/a SWMP-057 50,00050,000Downtown Water Reuse Project n/a T-177UB 80,00040,000 40,000Utility Billing Software Replacement n/a W-032 503,000121,000 86,000 43,000 115,000 138,000Well Rehabilitation Program n/a W-046 2,600,0002,600,000Low Zone 1 MG Storage Tank n/a W-059 1,400,0001,400,000Well #16 n/a W-065 1,350,000250,000 260,000 270,000 280,000 290,000Trunk Watermain Maintenance n/a W-067 500,000500,000TH5 Watermain - AATP n/a W-068 372,00040,000 80,000 82,000 84,000 86,000Water Treatment Plant Bldg & Equip n/a W-069 120,000120,000WTP Mechanical Improvements n/a 12,329,4001,173,000 2,340,500 1,487,000 1,022,000 6,306,900Utility Fund -Water Total Utillity Assessments -Developer SS-020 950,000950,0002010 MUSA Sanitary Lift Station n/a SS-024 7,900,0007,900,000Lower Bluff Creek Trunk Utility Improvements n/a 8,850,000950,000 7,900,000Utillity Assessments -Developer Total 85,768,1509,920,950 23,103,900 19,199,500 8,722,600 24,821,200GRAND TOTAL Thursday, November 18, 2021 Capital Improvement Program City of Chanhassen, MN PROJECTS & FUNDING SOURCES BY DEPARTMENT 2022 2026thru Total2022 2023 2024 2025 2026Department Project # Priority Facilities MB-048 750,000100,000 50,000 200,000 200,000 200,000Deferred Maintenance Allowance - All n/a Capital Fund -Facilities 100,000 50,000 200,000 200,000 200,000 750,000 MBCH-033 300,000300,000City Hall Roof Replacement n/a Capital Fund -Facilities 300,000 300,000 MBCH-045 10,00010,000Senior Center/Maple Room Kitchen Flooring Replace n/a Capital Fund -Facilities 10,000 10,000 MBCH-046 10,00010,000Senior Center / Maple Room Carpet Replacement n/a Capital Fund -Facilities 10,000 10,000 MBFire-047 35,00035,000Fire Station 1 Pavement & Drainage Repairs n/a Capital Fund -Facilities 15,000 15,000 Utility Fund -Surface Wtr 20,000 20,000 MBLib-051 21,00010,000 11,000Library Building Facility Maintenance n/a Capital Fund -Facilities 10,000 11,000 21,000 MBPW-042 60,00060,000PW Facility - Fuel island canopy n/a Capital Fund -Facilities 24,000 24,000 Utility Fund -Sewer 12,000 12,000 Utility Fund -Surface Wtr 12,000 12,000 Utility Fund -Water 12,000 12,000 MBPW-043 17,50017,500PW Facility - Fuel Tank Monitoring Sytem Upgrade n/a Capital Fund -Facilities 7,000 7,000 Utility Fund -Sewer 3,500 3,500 Utility Fund -Surface Wtr 3,500 3,500 Utility Fund -Water 3,500 3,500 MBPW-044 25,00025,000PW Facility - Salt Shed Canvas Cover Replacement n/a ISF -Fleet Capital 25,000 25,000 MBPW-050 21,00021,000PW Facility Maintenance n/a Capital Fund -Facilities 21,000 21,000 MBRec-140 50,00025,000 25,000Recreation Center Revitalization Project n/a Capital Fund -Facilities 25,000 25,000 50,000 1,299,500195,000 402,500 225,000 245,000 232,000Facilities Total Fleet - Capital F-01A 7,4007,400Trailer - 2009 Felling Tandem Axel n/a ISF -Fleet Capital 7,400 7,400 F-01B 12,30012,300Trailer - 2009 Felling Tandem Axel n/a ISF -Fleet Capital 12,300 12,300 F-01F 7,6007,600Trailer - 2010 Felling Tandem Axel n/a ISF -Fleet Capital 7,600 7,600 F-01G 40,00040,000Trailer - 2000 Towmaster Tri Axel n/a ISF -Fleet Capital 40,000 40,000 F-100A 20,00020,000Steamer n/a Utility Fund -Surface Wtr 20,000 20,000 F-100B 30,00030,000Portable Message Boards n/a ISF -Fleet Capital 30,000 30,000 Thursday, November 18, 2021 Total2022 2023 2024 2025 2026Department Project # Priority F-100C 10,00010,000Breaker Bar Attachment n/a ISF -Fleet Capital 10,000 10,000 F-100D 15,00015,000Compacting attachment for exavator n/a ISF -Fleet Capital 15,000 15,000 F-102 227,300227,300Streets Dump/Plow 2006 Sterling LT9500 n/a ISF -Fleet Capital 227,300 227,300 F-103 295,000295,000Streets Dump/Plow 2007 Sterling LT9500 n/a ISF -Fleet Capital 295,000 295,000 F-104 330,000330,000Streets Dump/Plow 2008 Mack Tandem Axle GU713 n/a ISF -Fleet Capital 330,000 330,000 F-127 235,000235,000Streets Dump/Plow Truck 2001 Sterling L8513 n/a ISF -Fleet Capital 235,000 235,000 F-128 242,000242,000Streets Dump/Plow 2003 Sterling L8513 n/a ISF -Fleet Capital 242,000 242,000 F-136 310,000310,000Street Sweeper 2003 Elgin n/a Utility Fund -Surface Wtr 310,000 310,000 F-137 32,00032,000Compressor 1993 Sullair n/a ISF -Fleet Capital 32,000 32,000 F-141 121,300121,300Tractor - 2006 John Deere w/ Broom n/a ISF -Fleet Capital 121,300 121,300 F-142 154,500154,5001989 Snowblower attachment for Loader n/a ISF -Fleet Capital 154,500 154,500 F-146 286,700286,700Streets Dump/Plow - Replace Loader 544G n/a ISF -Fleet Capital 286,700 286,700 F-152 59,00059,000Vibratory Compactor 1994 Cat n/a ISF -Fleet Capital 59,000 59,000 F-158 46,00046,000Hot Box with Asphalt Premix Heater n/a ISF -Fleet Capital 46,000 46,000 F-209 825,000825,000Fire Pumper Truck - 2007 Truck n/a Certificates of Indebtedness 825,000 825,000 F-211 800,000800,000Fire Pumper Truck - 1996 Toyne n/a Certificates of Indebtedness 800,000 800,000 F-231 35,00035,000Grass Response Rig - 2005 Polaris Ranger 4x4 n/a ISF -Fleet Capital 35,000 35,000 F-232 23,50023,500Boat Rescue - 2006 Dura Craft Boat/Motor/Trailer n/a ISF -Fleet Capital 23,500 23,500 F-302 140,000140,000Pickup - 2012 Ford F450 with crane n/a Utility Fund -Sewer 70,000 70,000 Utility Fund -Water 70,000 70,000 F-396 28,90028,900Scrubber - 2006 Tennant n/a Utility Fund -Water 28,900 28,900 F-406 90,00090,000Dump Truck to replace 2008 Ford F450 4x4 w/Plow n/a ISF -Fleet Capital 90,000 90,000 F-450 114,000114,000Mower - 2009 Toro Groundsmaster 5900 n/a ISF -Fleet Capital 114,000 114,000 F-451 86,00086,000Mower - 2012 Toro Groundsmaster 4000 n/a ISF -Fleet Capital 86,000 86,000 F-452 118,000118,000Mower - 2015 Toro Groundsmaster 5900 n/a ISF -Fleet Capital 118,000 118,000 F-456 83,00083,000Mower - 2016 Toro Grounsmaster 4000-D n/a ISF -Fleet Capital 83,000 83,000 F-471 90,00090,000Tractor - 2001 John Deere 5520 n/a ISF -Fleet Capital 90,000 90,000 F-472 22,00022,000Tractor 2001 John Deere 455 (replace w/ ABI) n/a ISF -Fleet Capital 22,000 22,000 Thursday, November 18, 2021 Total2022 2023 2024 2025 2026Department Project # Priority F-473 43,00043,000Tractor - John Deere 4710 n/a ISF -Fleet Capital 43,000 43,000 F-474 95,00095,000Tractor w/ Snowblower 2004 John Deere 5520 n/a ISF -Fleet Capital 95,000 95,000 F-480 15,00015,000Tractor Snowblower for F-471 Erskine 1996 n/a ISF -Fleet Capital 15,000 15,000 F-4XX 9,9009,900Weed Sprayer n/a ISF -Fleet Capital 9,900 9,900 F-skid 140,00028,000 28,000 28,000 28,000 28,000Annual Skid Loader Trade In n/a ISF -Fleet Capital 28,000 28,000 28,000 28,000 28,000 140,000 5,239,400263,000 1,793,400 986,200 725,600 1,471,200Fleet - Capital Total Fleet - Leased Vehicles F-001 27,00027,000Sedan - 2010 Chev Impala 4 door n/a ISF -Fleet Leased 27,000 27,000 F-131 49,00049,000Pickup - 2010 GMC Sierra 2500 w plow n/a ISF -Fleet Capital 49,000 49,000 F-132 50,00050,000Pickup w/plow - 2013 chev 1500 n/a ISF -Fleet Leased 50,000 50,000 F-134 44,00044,000Pickup -2013 2500 4x4 n/a ISF -Fleet Leased 44,000 44,000 F-155 35,00035,000Pickup 2002 Chev 1/2ton 4x4 n/a ISF -Fleet Leased 35,000 35,000 F-202 74,15074,150SUV - 2015 Chev Tahoe n/a ISF -Fleet Leased 74,150 74,150 F-203 65,00065,000SUV - 2013 Chev Tahoe n/a ISF -Fleet Leased 65,000 65,000 F-204 74,15074,150SUV - 2015 Chev Tahoe n/a ISF -Fleet Leased 74,150 74,150 F-307 31,00031,000SUV - 2017 Chevrolet Equinox n/a ISF -Fleet Leased 31,000 31,000 F-308 33,00033,000Pickup - 2013 GMC Sierra n/a ISF -Fleet Leased 33,000 33,000 F-401 46,00046,000Pickup 2004 Chev 4x4 w/Plow n/a ISF -Fleet Leased 46,000 46,000 F-402 41,00041,000Pickup 2004 Chev 4x4 w/Plow n/a ISF -Fleet Leased 41,000 41,000 F-408 46,00046,000Pickup 2008 Chev 4x4 w/Plow n/a ISF -Fleet Leased 46,000 46,000 F-409 41,00041,000Pickup - 2015 Chev Silverado K2500 n/a ISF -Fleet Leased 41,000 41,000 F-411 47,00047,000Pickup 2010 GMC Sierra 4x4 w/Plow n/a ISF -Fleet Leased 47,000 47,000 F-419 50,00050,000Pickup 2012 Chev 4x4 w/Plow n/a ISF -Fleet Leased 50,000 50,000 F-420 50,00050,000Pickup 2012 Chev 4x4 w/Plow n/a ISF -Fleet Leased 50,000 50,000 F-501 32,00032,000Pickup - 2010 Chev Silverado n/a ISF -Fleet Leased 32,000 32,000 F-607 31,00031,000Pickup 2007 GMC Canyon n/a ISF -Fleet Leased 31,000 31,000 F-611 32,00032,000Pickup 2008 GMC Canyon n/a ISF -Fleet Leased 32,000 32,000 Thursday, November 18, 2021 Total2022 2023 2024 2025 2026Department Project # Priority F-612 32,95032,950Pickup 2008 GMC Canyon n/a ISF -Fleet Leased 32,950 32,950 F-702 40,00040,000Pickup 2016 GMC Sierra (formerly CSO) n/a ISF -Fleet Leased 40,000 40,000 F-802 33,00033,000Van - 2010 Grand Caravan n/a ISF -Fleet Leased 33,000 33,000 1,004,250354,950 91,000 323,300 194,000 41,000Fleet - Leased Vehicles Total Park Renovation P-072 90,00090,000Tennis Court Refurbishment n/a Capital Fund -Park Renovation 90,000 90,000 PR-2022A 150,000150,000N Lotus Lake Park Hockey Rink n/a Capital Fund -Park Renovation 150,000 150,000 PR-2022C 15,00015,000Meadow Green & Rice Marsh Backstops/Benches n/a Capital Fund -Park Renovation 15,000 15,000 PR-2022D 85,00085,000Roundhouse Park Playground n/a Capital Fund -Park Renovation 85,000 85,000 PR-2023R 60,00060,000Lake Ann Lake Side Pavilion Roof Replacement n/a Capital Fund -Park Renovation 60,000 60,000 400,000340,000 60,000Park Renovation Total Spec Revenue Fund Capital CEM-001 25,00025,000Cemetery Driveway Improvements n/a SR Fund -Cemetery Fund 25,000 25,000 T-026 105,00075,000 10,000 10,000 10,000Audio/Visual Equipment n/a SR Fund -Cable TV Franchise Fee 75,000 10,000 10,000 10,000 105,000 130,000100,000 10,000 10,000 10,000Spec Revenue Fund Capital Total Street Improvements ST-012 26,875,0005,075,000 5,225,000 5,375,000 5,525,000 5,675,000Annual Street Improvement Program n/a Capital Fund -PMP Assessments 1,560,000 1,600,000 1,640,000 1,680,000 1,720,000 8,200,000 Capital Fund -PMP Fund 2,340,000 2,400,000 2,460,000 2,520,000 2,580,000 12,300,000 Utility Fund -Sewer 225,000 235,000 245,000 255,000 265,000 1,225,000 Utility Fund -Surface Wtr 500,000 520,000 540,000 560,000 530,000 2,650,000 Utility Fund -Water 450,000 470,000 490,000 510,000 580,000 2,500,000 ST-040 11,250,0005,625,000 5,625,000MSA-Galpin Blvd Imp (Hwy 5 N to City limits) n/a Capital Fund -PMP MSA 1,500,000 1,500,000 3,000,000 Other Agency Contribution 3,500,000 3,500,000 7,000,000 Utility Fund -Sewer 125,000 125,000 250,000 Utility Fund -Water 500,000 500,000 1,000,000 ST-042 160,000160,000MSA-TH 41 and 82nd Street Signal n/a Capital Fund -PMP MSA 160,000 160,000 ST-043 520,000320,000 200,000Downtown Traffic Signals n/a Capital Fund -PMP Fund 160,000 200,000 360,000 Other Agency Contribution 160,000 160,000 ST-045 875,000875,000MSA Roadway Improvements - Lake Lucy Road n/a Capital Fund -PMP Assessments 176,000 176,000 Capital Fund -PMP MSA 464,000 464,000 Utility Fund -Sewer 60,000 60,000 Utility Fund -Surface Wtr 65,000 65,000 Utility Fund -Water 110,000 110,000 ST-048 4,000,0004,000,000MSA Roadway Improvements - Market Blvd n/a Capital Fund -PMP Assessments 680,000 680,000 Thursday, November 18, 2021 Total2022 2023 2024 2025 2026Department Project # Priority Capital Fund -PMP MSA 1,020,000 1,020,000 Debt -TIF Bonds 2,100,000 2,100,000 Utility Fund -Sewer 40,000 40,000 Utility Fund -Surface Wtr 40,000 40,000 Utility Fund -Water 120,000 120,000 ST-049 700,000700,000MSA Street Imprv - Lake Drive East/Great Plains n/a Capital Fund -PMP Assessments 200,000 200,000 Capital Fund -PMP MSA 300,000 300,000 Utility Fund -Sewer 50,000 50,000 Utility Fund -Surface Wtr 100,000 100,000 Utility Fund -Water 50,000 50,000 ST-050 1,500,0001,500,000Crimson Bay Road/Dogwood Road Connection n/a Capital Fund -PMP Assessments 120,000 120,000 Capital Fund -PMP Fund 180,000 180,000 Other Agency Contribution 700,000 700,000 Utility Fund -Sewer 200,000 200,000 Utility Fund -Surface Wtr 100,000 100,000 Utility Fund -Water 200,000 200,000 ST-051 2,800,0002,800,000TH41 MMSW Access Improvements n/a Capital Fund -PMP Fund 100,000 100,000 Other Agency - State Grant 2,200,000 2,200,000 Other Agency Contribution 400,000 400,000 Utility Fund -Surface Wtr 100,000 100,000 ST-052 810,000450,000 90,000 90,000 90,000 90,000Bluff Creek Boulevard Extension n/a Capital Fund -PMP Fund 450,000 90,000 90,000 90,000 90,000 810,000 49,490,0006,400,000 16,920,000 13,890,000 5,815,000 6,465,000Street Improvements Total Technology MBU-041 80,00015,000 15,500 16,000 16,500 17,000Utility Fiber Connectivity - Sewer n/a Utility Fund -Water 15,000 15,500 16,000 16,500 17,000 80,000 T-014 50,00050,000Telecommunication Purchases/Upgrades n/a ISF -Technology 50,000 50,000 T-081 55,00055,000Storage Area Network (SAN) n/a ISF -Technology 55,000 55,000 T-177 200,000100,000 100,000Finance Software Replacement n/a ISF -Technology 100,000 100,000 200,000 T-177UB 200,000100,000 100,000Utility Billing Software Replacement n/a Utility Fund -Sewer 40,000 40,000 80,000 Utility Fund -Surface Wtr 20,000 20,000 40,000 Utility Fund -Water 40,000 40,000 80,000 585,000320,000 215,500 16,000 16,500 17,000Technology Total TIM Transportation Inf Mgmt ST-047 200,00040,000 40,000 40,000 40,000 40,000ADA Transition Plan Improvements n/a Capital Fund -TIM Transp Infr Mgmt 40,000 40,000 40,000 40,000 40,000 200,000 TIM-02 380,00072,000 74,000 76,000 78,000 80,000Trails & Parking Lots Pavement Mgmt n/a Capital Fund -TIM Transp Infr Mgmt 72,000 74,000 76,000 78,000 80,000 380,000 580,000112,000 114,000 116,000 118,000 120,000TIM Transportation Inf Mgmt Total Utiliities - Water MBU-040 80,00015,000 15,500 16,000 16,500 17,000Utility Fiber Connectivity - Water Facilities n/a Utility Fund -Water 15,000 15,500 16,000 16,500 17,000 80,000 W-032 503,000121,000 86,000 43,000 115,000 138,000Well Rehabilitation Program n/a Utility Fund -Water 121,000 86,000 43,000 115,000 138,000 503,000 Thursday, November 18, 2021 Total2022 2023 2024 2025 2026Department Project # Priority W-046 2,600,0002,600,000Low Zone 1 MG Storage Tank n/a Utility Fund -Water 2,600,000 2,600,000 W-059 1,400,0001,400,000Well #16 n/a Utility Fund -Water 1,400,000 1,400,000 W-065 1,350,000250,000 260,000 270,000 280,000 290,000Trunk Watermain Maintenance n/a Utility Fund -Water 250,000 260,000 270,000 280,000 290,000 1,350,000 W-067 1,000,0001,000,000TH5 Watermain - AATP n/a Other Agency Contribution 500,000 500,000 Utility Fund -Water 500,000 500,000 W-068 372,00040,000 80,000 82,000 84,000 86,000Water Treatment Plant Bldg & Equip n/a Utility Fund -Water 40,000 80,000 82,000 84,000 86,000 372,000 W-069 120,000120,000WTP Mechanical Improvements n/a Utility Fund -Water 120,000 120,000 7,425,000546,000 1,441,500 411,000 495,500 4,531,000Utiliities - Water Total Utilities - Sanitary Sewer SS-012 1,100,000200,000 210,000 220,000 230,000 240,000Inflow and Infiltration Abatement n/a Utility Fund -Sewer 200,000 210,000 220,000 230,000 240,000 1,100,000 SS-017 705,000190,000 170,000 150,000 95,000 100,000Sanitary Sewer Lift Station Rehabilitation Program n/a Utility Fund -Sewer 190,000 170,000 150,000 95,000 100,000 705,000 SS-020 1,900,0001,900,0002010 MUSA Sanitary Lift Station n/a Utility Fund -Sewer 950,000 950,000 Utillity Assessments -Developer 950,000 950,000 SS-024 10,800,00010,800,000Lower Bluff Creek Trunk Utility Improvements n/a Utility Fund -Sewer 1,800,000 1,800,000 Utility Fund -Water 1,100,000 1,100,000 Utillity Assessments -Developer 7,900,000 7,900,000 SS-027 400,000200,000 200,000Lift Station Access Improvements n/a Other Agency Contribution 25,000 25,000 Utility Fund -Sewer 125,000 125,000 250,000 Utility Fund -Surface Wtr 75,000 50,000 125,000 14,905,000590,000 380,000 2,470,000 325,000 11,140,000Utilities - Sanitary Sewer Total Utilities - Surface Water Mgmt SWMP-032 3,025,000675,000 100,000 725,000 750,000 775,000Stormwater Pond Improvements n/a Utility Fund -Surface Wtr 675,000 100,000 725,000 750,000 775,000 3,025,000 SWMP-046 500,000500,000Lotus Lake Channels & Outfall Improvements n/a Other Agency Contribution 450,000 450,000 Utility Fund -Surface Wtr 50,000 50,000 SWMP-048 600,000600,000Upper Riley Creek Channel Stabilization n/a Utility Fund -Surface Wtr 600,000 600,000 SWMP-057 350,000350,000Downtown Water Reuse Project n/a Other Agency Contribution 250,000 250,000 Utility Fund -Surface Wtr 50,000 50,000 Utility Fund -Water 50,000 50,000 SWMP-059 135,00025,000 26,000 27,000 28,000 29,000Stormwater Management Partnership Program n/a Utility Fund -Surface Wtr 25,000 26,000 27,000 28,000 29,000 135,000 SWMP-061 100,000100,000Red Cedar Point Stormwater Improvements n/a Utility Fund -Surface Wtr 100,000 100,000 4,710,000700,000 1,676,000 752,000 778,000 804,000Utilities - Surface Water Mgmt Total GRAND TOTAL 85,768,1509,920,950 23,103,900 19,199,500 8,722,600 24,821,200 Thursday, November 18, 2021 Capital Improvement Program City of Chanhassen, MN PENDING PROJECTS (Includes projects with a 'Status' set to 'Pending') Project Name Department Project # Priority Project Cost Pending P-123Bandimere Community Park Picnic Shelter n/a 640,000Park Plan Unfunded Projects P-129Bandimere Park Sport Court n/a 245,000Park Plan Unfunded Projects P-136Recreation Center Fenced Dugouts and Backstops n/a 150,000Park Plan Unfunded Projects P-143Lake Ann Ballfield LED Light Fixture Replacement n/a 1,000,000Park Plan Unfunded Projects TOTAL 2,035,000 Pending PR-2023Playgrounds Carver Beach/Sugarbush/SLotus Lake n/a 250,000Park Renovation Unfunded PR-2024Lake Ann Park Playground & Batting Cages n/a 250,000Park Renovation Unfunded PR-2025Bandimere Playgrounds-1 large & 1 small n/a 250,000Park Renovation Unfunded PR-2025BSkate Park Resurfacing n/a 75,000Park Renovation Unfunded PR-2026Meadow Green Playground & Tennis Court n/a 250,000Park Renovation Unfunded TOTAL 1,075,000 Thursday, November 18, 2021