1. 1

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 9  Public budget meeting held on December 2  Budget adoption on December 9

3. Additional Budget Reduction Items Being Recommended by Staff for 2014 3  Elimination of Temporary Building Department Wages$14,000  Elimination of Police Reserve Vehicle$15,000  Reduction in Copier Expenses $6,250  Reduction in MIS Programs & Purchases$10,000  Delay Hiring of FT Fire Chief$30,000 Expenditure Reductions$75,250  Reduction in Sealcoating Levy (Supplemented by RAC Fund)$15,000 Total Proposed Reduction in Levy and Expenses$90,250

4. Expenditures 2013 Final Budget 2014 Preliminary Budget 2014 Recommended Final Budget % Change from 2013 General Government $1,993,800$1,992,300$2,016,449+1.1% Law Enforcement/Fire $3,053,900$3,203,899$3,148,700+3.1% Public Works $2,332,700$2,391,800$2,360,300+1.2% Community Development $419,900$435,200$434,400+3.5% Park & Recreation $1,947,100$1,981,000$1,969,100+1.1% Total $9,747,400$10,004,199$9,928,949+1.9% 4 4

5. Revenues 2013 Final Budget 2014 Preliminary Budget 2014 Recommended Final Budget % Change from 2013 Property Tax $7,426,700$7,705,200$7,629,950+2.7% Licenses & Permits $996,800$999,500 +0.3% Intergovernmental Rev. $280,000$285,000 +1.8% Charges for Services $568,100$569,900 +0.3% Fines & Penalties $131,500$122,500 -6.8% Other Revenue $344,300$322,099 -6.4% Total Revenue $9,747,400$10,004,199$9,928,949+1.9% 5 5

6. General Fund Budget vs. Actual Expenditures 6 * Amended from original budget of $9,859,100

7. General Fund Budget vs. Actual Revenues 7 * Amended from original budget of $9,859,100

8. What factors change the budget for 2014? 8  Most expenditure line items remain flat for 2014  General Fund expenditures increased $256,799 (+2.6%)  Wage (Merit Based) increases of 3.0% included  Budgeted permit revenue same as 2013  Healthcare Cost Budgeted at 15% (actual 13.07%, adjustment will be made before final levy)

9. Operational/Capital & Debt Levy Changes Operational & Capital Levies2013 Final Levies 2014 Preliminary 2014 Recommended Final Levies % Chg General Fund$7,476,700$7,705,200$7,629,950 Capital Replacement $800,000 MSA (Sealcoating) $200,000 $185,000 Total Operational & Capital Levies$8,476,700$8,705,200$8,614,950 +1.63% 9 Debt Levies General Obligation Debt (212 Bonds) $550,000 $233,800 Audubon$130,680$444,410 Public Works Facility$593,200$592,100 Library Referendum$445,310$448,880 Total Debt Levies$1,719,190 +0.0% TOTAL ALL LEVIES$10,195,890$10,424,390$10,334,140+1.36% 9

10. Total Levy vs. New Growth 10

11. Effect on Homeowners Below are some examples of how the 2014 levy will impact property owners. The average home in Chanhassen increased in value approximately 3.8% in taxable market value for 2014. Parcel 2013 Value 2014 Value Percent Change 2013 City Property Tax 2014 City Property Tax Percent Change 1$257,900$273,000+5.9%$770.96$788.87+2.3% 2$299,700$310,000+3.4%$895.14$895.470.0% 3$304,100$312,100+2.6%$908.21$901.21-0.8% 4$562,800$583,700+3.7%$1,723.13$1,740.85+1.0% 5$796,600$824,600+3.5%$2,586.73$2,601.45+0.6% 11

12. Actual Property Tax Statement for Proposed 2014 Taxes (School District #112) 12 * TNT Statements for District 112 did not include the newly approved levy in the total estimated tax bill.

13. KFS Budgeted Expenditure Comparison 13 Budgeted Expenditures **% Increase CityPopulation *20122013From 2012 Andover 31,125 12,772,307 13,205,0763.39% Chanhassen 23,779 9,738,200 9,889,0001.55% Chaska 24,211 10,240,765 10,928,9346.72% Lino Lakes 20,6258,374,854 8,287,885-1.04% Cottage Grove 35,18714,644,395 15,406,6855.21% Rosemount 22,384 10,902,400 11,117,1001.97% Savage 27,552 12,060,92812,347,1732.37% Farmington 21,7929,820,841 10,429,6536.20% Prior Lake 23,385 10,630,202 10,917,6002.70% Elk River 24,361 13,472,900 13,641,7501.25% Stillwater 18,638 11,271,014 11,420,4161.33% Average 24,822 11,266,255 11,599,2072.88% * Met Council Population Estimate ** Minnesota State Auditors Office City Summary Budget Report for 2012 and 2013

14. Carver County Cities Budgeted Expenditure Comparison 14 Population * Budgeted Expenditures ** % Increase From 2012 City20122013 Chanhassen23,779 9,738,200 9,889,0001.55% Chaska24,211 10,240,765 10,928,9346.72% Waconia11,065 4,735,078 5,028,7586.20% Victoria7,793 3,554,138 3,651,2062.73% Carver4,012 1,859,726 1,848,987-0.58% Average14,172 6,025,581 6,269,3773.32% * Met Council Population Estimate ** Minnesota State Auditors Office City Summary Budget Report for 2012 and 2013

15. KFS Per Capita Spending Comparison 15 Per Capita CitySpending 2012 Andover 424 Chanhassen 416 Chaska 451 Lino Lakes 402 Cottage Grove 438 Rosemount 497 Savage 448 Farmington 479 Prior Lake 467 Elk River 560 Stillwater 613 Average 472

16. 16 Carver County Cities Per Capita Spending Comparison City Per Capita Spending 2013 Chanhassen416 Chaska451 Waconia454 Carver461 Victoria469 Average450

17. 17 Carver County Tax Rates City2013 Tax Rate** Chaska28.075 Chanhassen28.428 Victoria39.574 Waconia49.433 Carver57.320 Watertown60.690 Norwood Young America62.292 Mayer68.839 New Germany76.454 Cologne80.312 Hamburg122.833 Average61.295 ** Based on Urban Tax Rates

18. City of Chanhassen Tax Rate History 18 Rate is based on urban rates and includes both tax capacity and market value based levies.

19. Sales Tax Law Change 19

20. Sales Tax Law Change 20

21. Sales Tax Law Change 21