1. City of Shorewood 2013 Budget Truth-in-Taxation Hearing December 3, 2012

2. Truth-in-taxation requirements Present the 2013 City budget Discuss the budget and levy changes Invite public comment Adopt a balanced budget

3. City Services in General Fund Police & Fire Protection Street & Park Maintenance Recreation Programs Building Inspections Transfers to Southshore Center & Capital Funds Administration, Finance, Planning & Zoning, Elections, and other services

4. Budget Assumptions  No tax levy increase since 2009  No change in existing staffing or service levels from 2012  2% salary increase budgeted  $25 monthly increase for health insurance Street & Equipment transfers rise 3% $103,248 of reserves used to balance the budget  Shorewood homes decreased 4.4% on average for taxable valuation

5. General Fund Balance Policy General Fund Balance – established at 55-60% of operating budget 64.7% Reserve 3,460,021 60% Reserve (3,209,426) 4.7% above adopted policy level 250,595 3% max annual use of reserves 159,954 Use of reserves assumed in budget (103,248) Additional available reserves 56,706 Available reserves may be used for one-time projects, acquisitions, or transfer to any City capital fund.

6. Expenditures & Transfers 2007-2013

7. 2013 Revenues Total Revenues of $5,367,218

8. 2013 Expenditures Total Expenditures of $5,367,218

9. Tax Levy 2007-2013 0% Increase since 2009

10. Tax Assessment & Levy Timeline Market Value Property Sales Board of Review TNT Notice Taxes Levied Oct,2010- Sept, 2011les Jan 2,2012Apr-Jun, 2012lNov, 2012 2013 s Prelim Cert to Henn Co Sept, 2012 Property taxes are set based on sales that occurred over a year ago. Current values may be different than taxable values.

11. 2013 Property Tax Distribution Based on Minnetonka School District

12. Impact of City Portion of 2013 Taxes 2012 Value2013 Value2012 Tax2013 Tax$ Change $250,000$239,000$705 $0 $375,000$358,500$1114$1,116$2 $500,000$478,000$1,499$1,509$10 $750,000$717,000$2,436$2,435-$1 $1,000,000$956,000$3,373$3,378$5 Properties in the city experienced an average decline in value of 4.4%. If your property changed by a different percentage, then you will experience different results from those shown above.

13. Total Tax $ Change - 2013 Tax Change# of Parcels% of Parcels Decrease92438.4% $0-30098444.6% $301-60025111.3% $601-900283.0% $901+252.7%

14. Taxpayer input is invited at this time.