2013Proposed Budget

Continued decline in home prices leading to a decrease in the tax capacity over which the tax levy is spread (-7.2%). Decertification of the tax increment financing district added tax capacity resulting in a net increase of 9.47% (less than the 17.34% projected)

Continuing instability with budgets at the state level and loss of all state aids.

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

Budget Challenges

History of Aids Received from the State of Minnesota

2002-2013

2002 2013$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$13,467 $13,467

$467,462

$0

$396,820

$0

PERA Aid LGA MVHC

Revenue Trends – General Fund

2007 2008 2009 2010 2011 2012 2013$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

LICENSES & PERMITS

INTERGOVERNMENTAL

CHARGES FOR SERVICES

FINES

OTHER

Fiscal Year End

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

Budget Challenges Rising costs translating to higher prices charged to

the City for operating supplies and services (2% was allocated for line item goods and services)

Increasing personnel costs –pension and health care. A 3.2% cost of living increase is proposed.

Aging infrastructure – analysis of the pro forma statements contained in the Financial Management Plan (FMP) to provide adequate funding of future infrastructure needs.

Capital Projects Fund Reserves

2006 2007 2008 2009 2010 2011$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000 PARK RESERVECAPITAL EQUIPMENTCAPITAL IMPROVEMENTSTORM SEWERSTREET LIGHT

Fiscal Year End

NMMA 2011Tax Burden Per Capita

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

2011 Tax Burden Per Capita

State Average= $521/capita

NMMA Area Average =

$408/ per capita

Champlin$336/per capita

Tax Levy 2013

Percent

2012 2013 Change

Net Tax Capacity 14,195,163 15,538,839 9.47%

General Levy 6,921,671 7,531,450 8.81%

Special Levies:

PERA 26,179 26,179

Facilities Expansion Loan - 250,000

Bond Principal & Interest 291,600 515,700

Gross Tax Levy 7,239,450 8,323,329 14.97%

Less Fiscal Disparity (1,396,203) (1,367,003)

Net Tax Levy (Actual Levy) 5,843,247 6,956,326 19.05%

City Tax Rate for Champlin 0.41162 0.44768 8.75%

Year

State Aid & Credits

Property Tax

Other Sources

2013

$13,467 0% $7,334,417 72% $2,793,188 28%

2012 $13,467 0% $6,727,642 71% $2,702,203 29%

2011 $13,467 0% $6,843,258 71% $2,830,834 29%

2010 $22,077 0% $6,538,821 70% $2,798,115 30%

2009 $13,467 0% $6,712,277 70% $2,828,378 30%

2008 $13,467 0% $6,173,519 73% $2,314,758 27%

2007 $13,467 0% $5,877,860 75% $1,965,638 25%

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 2007-2011 reflect actual numbers and the years 2012-2013 reflect budgeted amounts. The City historically budgets conservatively for these revenue streams.

Estimated City Tax Burden on an Average Home in ChamplinValue of Average

Home in Champlin 2008-2012

2008 $225,000

2009 $207,000

2010 $190,000

2011 $181,000

2012 $166,000

Tax Capacity Value for an Average $166,000 Home 2012/2013

Market ValueMarket Value ExclusionTaxable Market Value1% of the First $500,000

$166,000($22,300)$143,700

$1,437

1.25% over $500,000 0

Tax Capacity Value $1,437

2011/2012 ($181,000) 2012/2013 ($166,000) Difference

City Tax Rate 41.162%After exclusion

$745$659

City Tax Rate 44.768%After exclusion

$743$643

($2)($16)

General Fund Revenues78% of General Fund Revenues are derived from

Taxes

Local Government Aid0%

Other Financing Sources

2%

Charges for Service9%

Fines & Forfeits3%

Miscellaneous3%

Fiscal Disparities15%

Licenses & Permits3%

Other Intergovernmental

2%

Other Taxes7%

Property Taxes56%

GENERAL FUND EXPENDITURES BY FUNCTION2013 BUDGET

                      % IncreaseFUNCTION -2009-   -2010-   -2011-   -2012-   -2013-   (Decrease)

  Actual   Actual   Actual   Adopted   Proposed   2012 to 2013

General Fund Mayor and Council 94,416 74,775 75,649 87,154 88,154 1.15% Administration 188,806 187,777 195,164 206,725 212,622 2.85% Government Services 375,160 364,424 362,520 405,406 393,538 (2.93%) Elections 1,060 20,275 1,869 24,600 2,000 (91.87%) Finance 191,557 189,853 196,769 210,237 214,627 2.09% Management Information 136,398 138,422 144,537 157,261 199,948 27.14% Assessing 136,038 142,049 156,462 154,000 155,000 0.65% Legal 41,539 55,729 41,355 49,500 50,000 1.01% Community Development 51,589 52,250 52,765 55,547 55,611 0.12%

 Total General Government 1,216,563 1,225,554 1,227,090 1,350,430 1,371,500 1.56%

Public Safety Police 3,014,008 3,024,892 3,125,289 3,269,971 3,431,510 4.94% Fire Protection 464,270 453,505 451,130 447,655 477,165 6.59% Protective Inspection 218,740 221,070 220,688 224,708 245,367 9.19% Code Enforcement 146,785 146,935 131,420 138,223 141,577 2.43%

Emergency Preparedness Management 24,046 25,707 22,369 27,174 28,066 3.28% 

Total Public Safety 3,867,849 3,872,109 3,950,896 4,107,731 4,323,685 5.26%

Public Works Engineering 283,305 217,589 230,924 264,427 270,661 2.36% Parks and Public Works Maintenance 1,422,773 1,477,660 1,460,031 1,577,050 1,649,553 4.60%  Total Public Works 1,706,078 1,695,249 1,690,955 1,841,477 1,920,214 4.28%

Culture and Recreation Park and Recreation 503,805 496,400 496,869 536,043 560,230 4.51%

 Total Culture and Recreation 503,805 496,400 496,869 536,043 560,230 4.51%

Other Functions Cemetery 16,774 17,806 17,613 18,810 19,509 3.72% Other Financing Uses 1,603,449   1,609,071   2,290,669   1,588,821   1,945,934 22.48%

 Total Other Functions 1,620,223 1,626,877 2,308,282 1,607,631   1,965,443

TOTAL GENERAL FUND 8,914,518 8,916,189 9,674,092 9,443,312 10,141,072 7.39%

General Fund Expenditures By Type

Supplies4%

Capital Outlay6%

Personal Services

53%

Other Services & Charges

20%

Transfers & Other17%

2013 Budget

General Fund Expenditures By Function

General Government

13%

Public Safety40%

Public Works16%

Culture & Recreation

3%

Other21% Capital Outlay

7%

2013 Budget

Monthly Tax Supported Services by Department

Police and Civil Defense2012 201319.67 18.04

Public Works 10.98 10.01

Debt Service 3.10 6.82

Administration/Government Services/Finance/Legal 7.20 6.38

Infrastructure (transfers) 8.52 9.43

Street Light/Storm Sewer 2.66 2.27

Park and Recreation/Cemetery 3.31 3.02

Fire 2.67 2.49

Community Development/Protective Services 2.50 2.31

City Council .52 .46

OtherTotal

.96 .7162.09 61.94

CITY OF CHAMPLINWho gets your property tax dollars?

School District

$444.07 (20%)

Hennepin County

$819.19 (37%)

Special Taxing

Districts

$195.58 (9%)

City of Champlin

$743.15 (34%)

EXAMPLE:

Property Tax on a $166,000

Champlin Home is

$2,201.99 (100%)

RETURNED AS SERVICES

$743.15• Police & fireprotection• Streetmaintenance& plowing• Parks & trails

• Recreationprograms

• Bldg & healthinspections

• Other Cityservices

Based on Proposed 2013 tax rates

Where Your Tax Dollar GoesCity of Champlin

$0.34

Hennepin County$0.37School District

$0.20

Special Taxing Districts

$0.09

(Based on 2013 Tax Rates)

Infrastructure Replacement Program

– Budget provides $755,000 for streets (Increase of $230,000)

– Budget provides $450,000 for parks

– Budget provides $385,000 for capital equipment replacement (Increase of $120,000)

– Budget provides $75,000 for Ice Forum (Increase of $25,000)

– Budget provides $50,000 for storm sewer

BUDGET SUMMARY

1.02% or ($27,293 increase) supplies and services.

27.99% ($375,000 increase) in transfers to infrastructure.

Total Increase in the General Fund totaling $697,760 (7.39%)

Provides for an increase of 8.75% in the net tax levy which equates to a $2 decrease in City taxes for the median house value of $166,000.