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2014

2014. Proposed Budget. Budget Challenges. Continued decline in home prices leading to a decrease in the tax capacity over which the tax levy is spread (2.41%) Continued lower revenue streams in building and development. Decreased level of investment interest earnings.

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2014

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  1. 2014 ProposedBudget

  2. Budget Challenges Continued decline in home prices leading to a decrease in the tax capacity over which the tax levy is spread (2.41%) Continued lower revenue streams in building and development. Decreased level of investment interest earnings. Need to balance expectations associated with resource allocations and service provision levels. Levy limits for cities mandated by the 2013 legislature.

  3. Revenue Trends – General Fund

  4. Budget Challenges • $500,000 of annual expenditures associated with Federal and State mandates regarding maintenance of storm water system. • NPDES – National Pollutant Discharge Elimination System • SWPPP – Storm Water Pollution Prevention Program • Reduction of City Council Contingency Fund to ½% from 1% (one year only).

  5. Budget Challenges • Rising costs translating to higher prices charged to the City for operating supplies and services (0% was allocated for line item goods and services) • Increasing personnel costs –pension and health care. A 2% cost of living increase is proposed. Reductions in staff hours and reallocation of IT staff hours. • Aging infrastructure – analysis of the pro forma statements contained in the Financial Management Plan (FMP) to provide adequate funding of future infrastructure needs. Commitment of local government aid allocations to infrastructure.

  6. Capital Projects Fund Reserves

  7. History of Tax Levies 2006-2014 Tax levies for the City of Champlin decreased from 2008 to 2012. The increase in 2013 was the result of decertification of the tax increment district providing the ability to increase the levy without increasing taxes for property owners.

  8. NMMA 2013Tax Burden Per Capita

  9. Tax Levy 2014

  10. General Fund Revenue Base Note: Fluctuations occur in revenue from other sources due to the uncertain nature of certain revenue streams such as building permit revenues, fines, etc. The years 2008-2012 reflect actual numbers and the years 2013-2014 reflect budgeted amounts. The City historically budgets conservatively for these revenue streams. Note: The City is currently scheduled to receive $237,533 in local government aid in 2014. Due to the volatility of this revenue stream, the revenue will be used for infrastructure replacement rather than to fund operations.

  11. Estimated City Tax Burden on an Average Home in Champlin

  12. 78% of General Fund Revenues are derived from Taxes GeneralFund Revenues

  13. General Fund Expenditures By Type 2014 Budget

  14. General Fund Expenditures By Function 2014 Budget

  15. Monthly Tax Supported Services by Department

  16. School District EXAMPLE: $457.00 (21%) Property Tax on a $162,000 Champlin Home is $2,194.10 (100%) Hennepin County $807.72(37%) RETURNED AS SERVICES $724.64 Special Taxing Districts • Recreation • programs • Bldg & health • inspections • Other City • services • Police & fire • protection • Street • maintenance • & plowing • Parks & trails City of Champlin $204.74 (9%) $724.64 (33%) CITY OF CHAMPLINWho gets your property tax dollars? Based on 2014 tax rates

  17. Where Your Tax Dollar Goes (Based on 2014 Tax Rates)

  18. BUDGET SUMMARY • Infrastructure Replacement Program • Budget provides $755,000 for streets • Budget provides $450,000 for parks • Budget provides $385,000 for capital equipment replacement • Budget provides $75,000 for Ice Forum • Budget provides $50,000 for storm sewer

  19. BUDGET SUMMARY 2.04% or ($53,245 increase) supplies and services. Of this amount, $26,300 is for elections (held only in even-numbered years and $26,336 is for payments to the Anoka-Champlin Joint Fire Department for personnel and infrastructure increases. This provides for a net overall increase of $809 in all other supplies and service line items in the General Fund. No increase in transfers to infrastructure ($210,000 increase was scheduled to achieve levels indicated in Financial Management Plan.) Total Increase in the General Fund totaling $95,817 (0.94%) Provides for a decrease of 0.08% in the net tax levy which equates to an $18 decrease in City taxes for the median house value of $162,000.

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