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A. 2012 Preliminary Budget DiscussionCITY OF CHANHASSEN (DECEMBER) TAX LEVY 2012 Budget TAX CAPACITY BASED TAX LEVY General Fund Capital Replacement Fund (for equipment) Pavement Mgmt Fund (Sealcoating) General Obligation Debt (212 Bonds) Audubon /Revolving Assess Fund /EDA Public Works Facility Potential Fire Station Debt of Other Agencies (EDA) TOTAL TAX CAPACITY BASED TAX LEVIES MARKET VALUE TAX LEVY Library Referendum TOTAL MARKET VALUE TAX LEVY Use of cash reserves to buy down debt levies TOTAL TAX LEVY Dollar Increase Taxes applied to Tax Generation Capacity General Fund Capital Replacement Pavement Mgmt Total Levy subject to levy limits Bond Funds Audubon Potential Fire Station Total Prior Year New Construction MVHC Adj to tax capacity TIF Dist1 Eden Trace TIF Gateway TIF Total Capacity Estimated Effect on avg Taxpayer Estimated Dollar Effect on avg Taxpayer 2011 2012 Percent Levy Levy Increase $7,508,200 $7,514,700 0.09% 750,000 750,000 0.00% 200,000 200,000 0.00% 336,800 335,900 - 0.27% 256,570 437,842 70.65% 594,000 593,800 -0.03% - 90,000 100.00% 126,420 - - 100.00% $9,771,990 9,922,242 1.54% 495,400 351,648 - 29.02% $495,400 $351,648 - 29.02% $0 $0 $10,267,390 $10,273,890 0.06% $6,500 Scenario 1 Scenario 2 Scenario 3 $7,514,700 $7,477,200 $7,477,200 750,000 750,000 750,000 200,000 200,000 200,000 $8,464,700 $8,427,200 $8,427,200 1,281,348 1,281,348 1,281,348 437,842 437,842 437,842 90,000 90,000 0 $10,273,890 $10,236,390 $10,146,390 $10,267,390 $10,267,390 $10,267,390 $119,000 $119,000 $119,000 - $150,000 - $150,000 - $150,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,236,390 $10,236,390 $10,236,390 0.37% 0.00% -0.88% $ 3.20. $ - $ (7.72) $6,500 2012 Preliminary Levy Budget Calendar ► September 12th —Set preliminary levy, preliminary levy certification form will be given to county tomorrow. ► September 26 - Review Paid Time Off (PTO) vs. Sick /Vacation Benefits and Compensated Absences ► October 12th — Review Enterprise and Special Revenue Fund Budgets. Review 2012 -2016 CIP. ► October 24th — Review 3rd quarter 2011 Revenue & Expense data & Ehlers presents 2012 rate study ► November 14 & 28th — Work session to discuss any remaining budget, CIP, or Utility Rate issues. ► December 5th — Hold public budget meeting. December 12 — Set final 2012 tax levy and budget, IF . /% !1 1 /% 1\ /1 1 / #, t 71 , 1 . 1 . . I J � A n 1 111 Budget Assumptions ► A 1.5% wage increase for employees in 2012 ($52,500 increase to the General Fund) ► A IS% increase in healthcare costs ($50,000 increase to the General Fund) $119,000 (1.16%) increase in levy dollars due to new construction ► Building permit revenue same as 2011 Scenario #1 ►Levy — Scenario #1 would be a total levy of $10,273,890 ($6,500 more than the 2011 levy, after adjusting for MVHC program change). ► Potential Budget Impact— This scenario would allow for all service levels to remain the same. ► Resident Impact —The result of this levy would be an increase in the city portion of the average property tax bill of $3-$4(witho ut projecting an impact of change in MVHC program). Scenario #2 ►Levy — Scenario #2 would be a total levy of $10,236,390 031,000 less than the 2011 levy, after adjusting for MVHC program change). ► Resident Impact —The result of this levy would be approximately the same property tax bill (cityportion)on the average home (without projecting an impact of change in MVHC program). Scenari o # 3 ►Levy — Scenario #3 would be a total levy of $10,146,390 ($121,000 less than the 2011 levy, after adjusting for MVHC program change). ► Resident Impact —The result of this levy would be a $7 -$8 decrease to the city portion of the property tax bill on the average home (without projecting an impact of change in MVHC program). KFS Budgeted Expenditure Comparison lak City Oakdale Population 27,378 Bud 2010 11,549,334 2011 11,447,965 % Increase From 2011 -0.88% Chaska 23,770 9,915,329 9,996,010 0.81% Chanhassen 22,952 $ 9,618,600 $ 9,727,800 1.14% Champlin 23,089 9,554,351 9,965,931 4.31% Lino Lakes 20,216 8,889,255 8 -1.68% Andover 30,598 12,219,037 13,267,414 8.58% Farmington 21,086 10,019,844 9,349,781 -6.69% Savage 26,911 11,774,071 11,982,361 1.77% Prior Lake 22,796 10,031,046 10,198,453 1.67% Shoreview 25,043 12,093,196 12,409,115 2.61% Inver Grove Heights 33,880 19,111,100 19,223,500 0.59% Average 25,247 11,343,1971 11,482,6081 1.11% Met Council Population Estimate Budget Report for 2010 and 2011 Carver County Cities Budgeted Expenditure Comparison * Met Council Population Estimate Bud Expenditures city Po pulation Chaska 23,770 9,915 9,996 0.81% Waconia 10 4 4 -6.73% Chanhassen 22 9 952 9 9 9 727 9 800 1.14% Carver 3 1 1,821,312 2.73% Victoria 7 3 309 5.16% Average 12 9 116 5 5 0.26% * Met Council Population Estimate KI"S Per Capita Spending Comparison 40 city Oakdale Capita Per S pend ing 418 Chaska 421 Chanhassen 424 Champlin 432 Lino Lakes 432 Andover 434 Farmington 443 Savage 445 Prior Lake 447 Shoreview 496 Inver Grove Heights 567 Average 451 Carver County Cities Per Capita Spending Comparison City Chaska Capita Per S pend ing 421 Waconia 422 Chanhassen 424 Carver 489 Victoria 491 Average 441 Carver County Tax bates r City Chaska 2011 Tax R. 23.483 Chanhassen 26.602 Victoria 37.421 Waconia 41.891 Watertown 46.296 Carver 47.957 Norwood Young America 48.552 Mayer 59.472 Cologne 61.934 New Germany 62.059 Hamburg 98.404 Average 50.370 Debt Per Capita P Total City Champlin Total Debt $ 16 Debt Per Capita $ 699 Bond Rating AA+ Oakdale 24,115,064 881 Aa3 Lino Lakes 25,171,696 1 Aa2 Shoreview 34 1 AAA Chanhassen 35 1 AAA Prior Lake 37,185,122 1,631 Aa2 Inver Grove Heights 60,990,833 100 AA Andover 60,375 1 AA+ Farmington 42 1 Aa3 Chaska 85,135 3 AA Savage 104,902 3 AA+ Average 47 1,876 Data collected from published financial reports of each city, from the required indebtedness fond Rating Important Factor to Consider ► Standard & Poor's reaffirmed the City's AAA bond rating in 2010. At tonight's meeting, staff will present an updated rating based on the issuance of the General Obligation bonds, Series 2011A. The following reasons were cited for the reaffirmation in 2010: o The city's conservative management practices have resulted in the maintenance of strong financial reserves. o The city's financial management assessment is considered "strong, " with well - embedded financial practices that are likely sustainable. Recommendation Staff recommends setting a preliminary using Scenario #1 to allow for flexibility planning before setting a final levy in December: levy and CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: September 12, 2011 RESOLUTION NO: 2011- MOTION BY: SECONDED BY: A RESOLUTION ADOPTING THE PRELIMINARY 2012 GENERAL FUND BUDGET OF $ , AND ESTABLISHING A TOTAL PRELIMINARY LEVY OF $ FOR 2012, AND ESTABLISHING TRUTH IN TAXATION PUBLIC HEARING DATES FOR 2011, COLLECTIBLE IN 2012 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHANHASSEN AS FOLLOWS: That the 2011 Preliminary Budget for the City of Chanhassen is adopted in the aggregate revenue and expenditure amounts for the General Fund of $ ; and 2. That the total preliminary levy to be certified to Carver County by September 15, 2011 is $ ; and 3. That the following sums of money have been scheduled as "Proposed Levy Certification" to fund operations of the general fund, capital replacement fund, MSA fund and debt service funds to be levied in 2011 for collection in 2012 upon the taxable property in the City of Chanhassen as shown in this resolution; and 4. That the City Council of the City of Chanhassen determines that certain bonded indebtedness levies are hereby adopted to meet current and future bond requirements and that the County Auditor is hereby authorized and directed to increase or reduce the previously adopted bonded debt levies as shown on the attached Tax Levy Certification document; and That the Public Meeting date will be set for December 5, 2011 and the budget and tax levy adoption will be set for December 12, 2011 as allowed by law; and 6. That the City of Chanhassen authorizes the County Auditor to certify the amounts as set forth in the attached Proposed Levy Certification document for purposes of preparing the Truth in Taxation notices. Passed and adopted by the Chanhassen City Council this 12th day of September, 2011. ATTEST: Todd Gerhardt, City Manager Thomas A. Furlong, Mayor YES NO ABSENT