2. Financing Alternatives
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227. 1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227. 1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.US
Q\
MEMORANDUM
TO:
Park & Recreation Commission
FROM:
Greg Sticha, Finance Director (,. ') .
DA TE:
October 27, 2009
SUBJ:
Financing Alternatives
BACKGROUND
Todd Hoffman asked me to discuss some of the various financing alternatives
available for use on park and recreation capital improvement projects with the
COmlll1SS10n.
The different financing alternatives available to you are relatively limited. This
is primarily due to the limitation of the incoming resources you have. The funds
receipted into the park dedication fund (as I am sure you are aware), are from
park dedication fees paid at the time a property is developed. There are no other
significant resources that come into the park dedication fund on a regular basis
to fund projects.
The only other significant revenue source available to you would be a tax
referendum or tax levy dollars. In these difficult financial times, any new tax
levy, regardless of the benefit or project, would be a very challenging obstacle to
overcome.
Knowing that the resources are limited, the key is to have smart long term
financial plans in place to use the limited resources wisely. I think your
commission has done an excellent job in doing just that. Based on the document
that Todd has provided to me, it appears your commission is aware of that and
has prepared a very comprehensive long-term planning document.
You do have the option of bonding or issuing debt to advance projects if cash
flow is a problem with financing larger projects. I will discuss the limitations of
doing this with the commission on the 2ih, the largest being that a dedicated
financial revenue stream needs to be identified to repay any debt that is issued.
ATTACHMENT
1. Park Dedication CIP
2. Park Revenue & Expense Projections
3. Tax Levy Impact Spreadsheet
4. Debt Levy Schedule
5. Revolving Assessment Construction Fund Schedule
6. History of Past Park & Recreation Referendums
f\gregs\council\2009\park comm IO-27.docx
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
City of Chanhassen, MN
Capital Improvement Program
2010 thru 2014
PROJECTS BY FUNDING SOURCE
Source Project# Priority 2010 2011 2012 2013 2014 Total
IPark Dedication Fund I
Hwy 101 North/Pleasant View Rd Trail Connections PK&T-029 nfa 400,000 400,000
Picnic Tables/Park Benches PK& T-042 nfa 10,000 10,000 10,000 10,000 10,000 50,000
Trees PK& T-043 nla 25,000 25,000 25,000 25,000 25,000 125,000
Hwy 41 Pedestrian UnderpasslTrail Grant Match PK& T-069 nla 400,000 400,000
Tennis Courts PK& T-072 nla 125,000 125,000
Rice Marsh Lake Trail PK&T-074 nla 375,000 375,000
Liberty at Creekside Trail PK& T-075 n/a 275,000 275,000
Bluff Creek Drive Gap Trail PK& T-083 nla 390,000 390,000
Pedestrian Trail to Arboretum PK& T-098 nla 500,000 500,000
Chanhassen Native Preserve Trail, Final Phase PK& T-099 nla 90,000 90,000
Manchester Park, Phase 1 Development PK&T-102 nfa 100,000 100,000
Highway 41 Pedestrian Stairway PK&T-104 nla 100,000 100,000
Roundhouse Park Playground Phase II PK&T-105 nfa 25,000 25,000
Sugarbush Park Playground Phase II PK& T-106 nfa 25,000 25,000
City Center Park Band ShelVPoles/Fabric PK&T-107 nfa 45,000 45,000
TH5 Pedestrian Underpass at Minnewashta PK&T.108 nla 80,000 80,000
Lyman Boulevard Improvements ST-003 nla 200,000 200,000
Park Dedication Fund Total 580,000 1,005,000 500,000 510,000 710,000 3,305,000
GRAND TOTAL 580,000 1,005,000 500,000 510,000 710,000 3,305,000
City of Chanhassen
Park Dedication Fund History
Increase (Decrease) Year End
Year Revenues Expenses In Fund Balance Fund Balance
2001 $435,167 $503,661 ($68,494 ) $1,735,991
2002 477,237 1 ,543,166 (1,065,929) 670,062
2003 1,165,011 1,269,639 (104,628) 565,434
2004 616,334 264,194 352,140 917,574
2005 930,450 79,854 850,596 1,768,170
2006 2,286,277 476,006 1,810,271 3,578,441
2007 741,294 731,736 9,558 3,587,999
2008 626,267 589,020 37,247 3,625,246
2009 100,000 1,595,000 (1,495,000) 2,130,246
2010 100,000 580,000 (480,000 1,650,246
2011 300,000 1,005,000 (705,000 945,246
2012 300,000 500,000 (200,000 745,246
2013 300,000 510,000 (210,000) 535,246
2014 300,000 710,000 (410,000) 125,246
Park Dedication Fund History and
Predicted Future Performance
$4,000,000
$500,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
......Revenues
~Expenses
-e- Year End Balance
C:\Documents and Settings\dwashburn\Local Settings\Temporary Internet Files\Content.Outlook\C1291 E28\park dedication history-1 (2).xls
__J
CITY OF CHANHASSEN (DECEMBER)
TAX LEVY
2010 Budget
2009 2010 Percent
TAX CAPACITY BASED TAX LEVY Levy Levy Increase
General Fund $7,173,500 $7,380,000 2.88% 206,500
Capital Replacement Fund (for equipment) 824,000 824,000 0.00%
Pavement Mgmt Fund (Sealcoating) 267,875 200,000 -25.34%
General Obligation Debt 297,900 0 -100.00%
General Obligation Debt (212 Bonds) 285,000 337,500 18.42%
Audubon 350,000 0.00%
Public Works Facility 599,300 100.00%
Debt of Other Agencies (EDA) 122,603 122,195 -0.33%
TOTAL TAX CAPACITY BASED TAX LEVIES $8,970,878 9,812,995 9.39%
MARKET VALUE TAX LEVY
Park Referendum 972,700 -100.00%
Library Referendum 491,300 496,400 1.04%
TOTAL MARKET VALUE TAX LEVY $1,464,000 $496,400 -66.09%
Use of cash reserves to buy down debt levies ($360,313) ($96,205)
TOTAL TAX LEVY $10,074,565 $10,213,190 1.38%
Dollar Increase $138,625
LEVY MAX
Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5
Full FTE + Full FTE + Full FTE . Minus 1 FTE- Minus 2 FTE -
Deputy + $53K Deputy. $53K Deputy. $53k Deputy. $53k Deputy. $53k
Taxes applied to: General Fund $ 7,593,223 $ 7,540,000 $ 7,452,000 $ 7,380,000 $ 7,320,000
Capital Replacement 824,000 824,000 824,000 824,000 824,000
Pavement Mgmt 200,000 200,000 200,000 200,000 200,000
Total Levy subject to levy limits $8,617,223 $8,564,000 $8,476,000 $8,404,000 $8,344,000
Bond Funds 1,555,395 1,555,395 1,555,395 1,555,395 1,555,395
Audubon 350,000 350,000 350,000 350,000 350,000
Reduction in OS Levy (96,205) (96,205) (96,205) (96,205) (96,205)
Total $10,426,413 $10,373,190 $10,285,190 $10,213,190 $10,153,190
Tax Generation Capacity
Prior Year $10,074,565 $10,074,565 $10,074,565 $10,074,565 $10,074,565
New Construction $139,000 $139,000 $139,000 $139,000 $139,000
Exsiting MV Inc $0 $0 $0 $0 $0
TIF Dist 1 $0 $0 $0 $0 $0
Eden Trace TIF $0 $0 $0 $0 $0
Gateway TIF $0 $0 $0 $0 $0
Total Capacity $10,213,565 $10,213,565 $10,213,565 $10,213,565 $10,213,565
Estimated Effect on avg Taxpayer 2.08% 1.56% 0.70% 0.00% -0.59%
Estimated Dollar Effect on avg Taxpayer $ 18.80 $ 14.10 $ 6.40 $ $ (5.30)
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CITY OF CHANHASSEN
HISTORY OF PAST PARK AND RECREATION REFERENDUMS
June 14, 1997
Failed Passed
X
Park, Open Space and Trail
Yes
1,142
No
707
Margin
435
Should the City of Chanhassen be
authorized to issue and sell its
General Obligation Bonds in an
amount not to exceed $4,900,000 to
finance the acquisition and
betterment of park, trail, and open
space recreational facilities?
November 6, 1990 Community Center Adjacent Main Fire Station
Failed Passed
X
Yes
1609
November 8, 1988 Trails
Failed Passed
X
February 24, 1988
Failed Passed
X
Yes
2586
No
3745
No
2594
Margin
2136
Margin
8
Shall the City of Chanhassen
borrow money by selling its
General Obligation Bonds in an
amount not to exceed $4,100,000 to
pay for the acquisition,
construction, betterment and
equipping of a community center
facility in the City?
Shall the City of Chanhassen issue
and sell its General Obligation
Bonds in an amount not to exceed
$800,000 for the construction of a
multipurpose trail system in the
City?
Community Center on Chanhassen Bowl Property, Lake Ann Park
Expansion, Trails and Acquisition of Parkland
Yes
773
No
934
Margin
161
Shall the City of Chanhassen issue
and sell its General Obligation
Bonds in an amount not to exceed
$2,600,000 for the construction and
equipping of a multipurpose
community center?
Failed Passed Yes No Margin
X 934 771 163 Shall the City of Chanhassen issue
and sell its General Obligation
Bonds in an amount not to exceed
$300,000 for the improvement of
Lake Ann Park
X 852 854 2 Shall the City of Chanhassen issue
and sell its General Obligation
Bonds in an amount not to exceed
$800,000 for the construction of a
multipurpose trail system in the
City?
X 854 850 4 Shall the City of Chanhassen issue
and sell its General Obligation
Bonds in an amount not to exceed
$300,000 for the acquisition of
parklands in the City?
November 4, 1969 Acquisition of Parkland
Failed Passed Yes No Margin
X 452 350 102 Shall the Village of Chanhassen
borrow money by issuing its
General Obligation Bonds in the
amount of $250,000 to provide
funds for the acquisition and
betterment of parks?
G: \park\th \h istoryofpastpark&recreferendums