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2. Budget Process 2  Preliminary budgets submitted by Department Directors in early July  Budget reviewed by Finance Director and City Manager in late July  Detailed Budget Meeting held in August  Preliminary Tax Levy Adopted for Truth-in- Taxation Statement purposes on September 8  Public budget meeting held on December 1  Budget adoption on December 8

3. Expenditures 2014 Final Budget 2015 Preliminary Budget 2015 Recommended Final Budget % Change from 2014 General Government $2,016,449$2,070,700$2,064,300+2.4% Law Enforcement/Fire $3,148,700$3,276,400$3,253,100+3.3% Public Works $2,360,300$2,436,700$2,406,800+2.0% Community Development $434,400$446,500$464,400+6.9% Park & Recreation $1,969,100$2,006,200$1,975,900+0.4% Total $9,928,949$10,236,500$10,164,500+2.4% 3 3

4. Revenues 2014 Final Budget 2015 Preliminary Budget 2015 Recommended Final Budget % Change from 2014 Property Tax $7,629,950$7,876,831$7,804,831+2.3% Licenses & Permits $999,500$1,002,500 +0.3% Intergovernmental Rev. $285,000$330,000 +15.8% Charges for Services $569,900$588,500 +3.3% Fines & Penalties $122,500$112,500 -8.2% Other Revenue $322,099$326,169 +1.3% Total Revenue $9,928,949$10,236,500$10,164,500+2.4% 4 4

5. General Fund Expenditure History 5

6. What factors change the budget for 2015? 6  Most expenditure line items remain flat for 2015  General Fund expenditures increased $235,551 (+2.4%)  Wage increases of 3.0% included  Budgeted permit revenue same as 2014  Healthcare Cost decreased by 6%  New growth for taxes payable in 2015 is 1.76%

7. Operational/Capital & Debt Levy Changes Operational & Capital Levies2014 Final Levies 2015 Preliminary 2015 Recommended Final Levies % Chg General Fund$7,629,950$7,811,831$7,779,831 Capital Replacement $800,000 MSA (Sealcoating) Revolving Street Const Fund $185,000 $395,192 $185,000 $395,192 Total Operational & Capital Levies$8,614,950$9,192,023$9,160,023 +6.33% 7 Debt Levies General Obligation Debt (212 Bonds) $233,800 $232,300 Audubon$444,410$55,000 Public Works Facility$592,100$590,600 Library Referendum$448,880$446,098$444,098 Total Debt Levies$1,719,190$1,323,998 -22.3% TOTAL ALL LEVIES$10,334,140$10,516,021$10,484,021+1.45% 7

8. Total Levy vs. New Growth 8

9. Effect on Homeowners Below are some examples of how the 2015 levy will impact property owners. The average home in Chanhassen increased in value approximately 10.9% in taxable market value for 2015. Parcel 2014 Value 2015 Value Percent Change 2014 City Property Tax 2015 City Property Tax Percent Change 1$273,000$301,600+10.5%$781.62$782.36+0.0% 2$312,100$361,800+15.6%$892.92$937.70+5.0% 3$345,800$384,700+11.3%$988.83$996.79+0.8% 4$707,700$764,300+8.0%$2,163.55$2,143.13-1.0% 5$1,016,400$1,108,100+9.0%$3,255.91$3,245.96-0.3% 9

10. Actual Property Tax Statement for Proposed 2015 Taxes (School District #112) 10

11. KFS Budgeted Expenditure Comparison 11 Budgeted Expenditures **% Increase CityPopulation *20132014From 2013 Andover 31,125 13,205,076 12,762,112-3.35% Chanhassen 23,779 9,889,000 10,103,2492.17% Chaska 24,211 10,928,934 12,063,47310.38% Lino Lakes 20,6258,287,885 8,366,0480.94% Cottage Grove 35,18715,406,485 17,347,09412.59% Rosemount 22,384 11,117,100 11,495,3003.40% Savage 27,552 12,347,17312,707,5612.92% Farmington 21,79210,429,653 11,340,0198.73% Prior Lake 23,385 10,917,600 11,580,5736.07% Elk River 24,361 13,641,750 13,889,5501.30% Stillwater 18,638 11,420,416 12,192,5126.76% Average 24,822 11,599,207 12,161,5904.72% * Met Council Population Estimate ** Minnesota State Auditors Office City Summary Budget Report for 2013 and 2014

12. Carver County Cities Budgeted Expenditure Comparison 12 Population * Budgeted Expenditures ** % Increase From 2013 City20132014 Chanhassen23,779 9,889,000 10,103,2492.17% Chaska24,211 10,928,934 12,063,47310.38% Waconia11,065 5,028,758 5,726,32013.87% Victoria7,793 3,651,206 3,633,932-0.47% Carver4,012 1,848,987 2,012,3678.84% Average14,172 6,269,377 6,707,8686.96% * Met Council Population Estimate ** Minnesota State Auditors Office City Summary Budget Report for 2013 and 2014

13. KFS Per Capita Spending Comparison 13 Per Capita CitySpending 2014 Lino Lakes 402 Andover 403 Chanhassen 418 Savage 444 Prior Lake 478 Chaska 486 Cottage Grove 490 Rosemount 509 Farmington 514 Elk River 591 Stillwater 643 Average 489

14. 14 Carver County Cities Per Capita Spending Comparison City Per Capita Spending 2014 Chanhassen418 Victoria447 Chaska486 Carver493 Waconia505 Average470

15. 15 Carver County Tax Rates City2014 Tax Rate** Chaska26.586 Chanhassen27.238 Victoria37.887 Waconia49.423 Carver54.555 Norwood Young America64.086 Watertown65.305 Mayer67.784 Cologne78.650 New Germany118.059 Hamburg123.734 Average64.846 ** Based on Urban Tax Rates

16. City of Chanhassen Tax Rate History 16 Rate is based on urban rates and includes both tax capacity and market value based levies.

17. Recommendation 17  Staff recommends setting a final Levy of $10,484,021 and a General Fund Budget of $10,164,500.

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