2014Proposed Budget

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.

Budget Challenges

Revenue Trends – General Fund

2008 2009 2010 2011 2012 2013 2014$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

$500,000 of annual expenditures associated with Federal and State mandates regarding maintenance of storm water system.NPDES – National Pollutant Discharge

Elimination SystemSWPPP – Storm Water Pollution Prevention

Program* Reduction of City Council Contingency Fund

to ½% from 1% (one year only).

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.

Budget Challenges

Capital Projects Fund Reserves

2007 2008 2009 2010 2011 2012$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000 PARK RESERVECAPITAL EQUIPMENTCAPITAL IMPROVEMENTSTORM SEWERSTREET LIGHT

Fiscal Year End

History of Tax Levies 2006-2014

12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014$6,600,000

$6,800,000

$7,000,000

$7,200,000

$7,400,000

$7,600,000

$7,800,000

$8,000,000

$8,200,000

$8,400,000

$8,600,000

$7,600,356

$7,714,352

$7,564,352

$7,765,837

$7,239,450

$8,323,359

$8,322,059

TAXES

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.

NMMA 2013Tax Burden Per Capita

Tax Levy 2014

Percent

2013 2014 Change

Net Tax Capacity 15,538,839 15,164,186 (2.41%)

General Levy 7,531,450 7,531,450 0%

Special Levies:

PERA 26,179 26,179

Facilities Expansion Loan 250,000 250,000

Bond Principal & Interest 515,700 514,400

Gross Tax Levy 8,323,329 8,322,029 (0.02%)

Less Fiscal Disparity (1,367,003) (1,539,024)

Net Tax Levy (Actual Levy) 6,956,326 6,783,005 (2.49%)

City Tax Rate for Champlin 0.44767 0.44731 (0.08%)

Year

State Aid & Credits

Property Tax

Other Sources

2014

$13,467 0% $7,339,417 72% $2,884,005 28%

2013

$13,467 0% $7,339,417 72% $2,788,188 28%

2012 $15,404 0% $6,687,098 69% $2,991,520 31%

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%

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.

Estimated City Tax Burden on an Average Home in Champlin

Value of Average Home in Champlin

2009-20132009 $207,000

2010 $190,000

2011 $181,000

2012 $166,000

2013 $162,000

Tax Capacity Value for an Average $162,000 Home 2013/2014

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

$162,000($22,660)$139,340

$1,393

1.25% over $500,000 0

Tax Capacity Value $1,393

2012/2013 ($166,000) 2013/2014 ($162,000) Difference

City Tax Rate 44.767%After exclusion

$743$643

City Tax Rate 44.731%After exclusion

$725$623

($18)($20)

General Fund Revenues

78% of General Fund Revenues are derived from

Taxes

Property Taxes57%

Other Taxes6%

Fiscal Disparities15%

Other Intergovernmental2%

Licenses & Permits3%

Charges for Service9%

Fines & Forfeits3% Miscellaneous

3%

Other Financing Sources2%

GENERAL FUND EXPENDITURES BY FUNCTION2014 BUDGET

                      % IncreaseFUNCTION -2010-   -2011-   -2012-   -2013-   -2014-   (Decrease)

  Actual   Actual   Actual   Adopted   Proposed   2013 to 2014

General Fund Mayor and Council 74,775 75,649 87,154 88,154 87,489 (0.75%) Administration 187,777 195,164 206,725 212,622 212,738 0.05% Government Services 364,424 362,520 405,406 393,538 374,378 (4.87%) Elections 20,275 1,869 24,600 2,000 26,300 1213.00% Finance 189,853 196,769 210,237 214,627 223,494 4.13% Management Information 138,422 144,537 157,261 199,948 163,396 (18.28%) Assessing 142,049 156,462 154,000 155,000 158,000 1.94% Legal 55,729 41,355 49,500 50,000 50,000 0.00% Community Development 52,250 52,765 55,547 55,611 75,449 35.67%

   Total General Government 1,225,554 1,227,090 1,350,430 1,371,500 1,371,244 (0.02%)

Public Safety Police 3,024,892 3,125,289 3,269,971 3,431,510 3,485,625 1.58% Fire Protection 453,505 451,130 447,655 477,165 503,501 5.52% Protective Inspection 221,070 220,688 224,708 245,367 266,168 8.48% Code Enforcement 146,935 131,420 138,223 141,577 147,950 4.50% Emergency Preparedness Management 25,707 22,369 27,174 28,066 30,098 7.24%

   Total Public Safety 3,872,109 3,950,896 4,107,731 4,323,685 4,433,342 2.54%

Public Works Engineering 217,589 230,924 264,427 270,661 214,828 (20.63%) Parks and Public Works Maintenance 1,477,660 1,460,031 1,577,050 1,649,553 1,713,805 3.90%    Total Public Works 1,695,249 1,690,955 1,841,477 1,920,214 1,928,633 0.44%

Culture and Recreation Park and Recreation 496,400 496,869 536,043 560,230 564,753 0.81%

   Total Culture and Recreation 496,400 496,869 536,043 560,230 564,753 0.81%

Other Functions Cemetery 17,806 17,613 18,810 19,509 19,544 0.18% Other Financing Uses 1,609,071   2,290,669   1,588,821   1,945,934   1,919,373 (1.36%)

   Total Other Functions 1,626,877 2,308,282 1,607,631   1,965,443   1,938,917

TOTAL GENERAL FUND 8,916,189 9,674,092 9,443,312 10,141,072 10,236,289 0.94%

General Fund Expenditures By Type

Supplies4%

Capital Outlay6%

Personal Services

53%

Other Services & Charges

20%

Transfers & Other17%

2014 Budget

General Fund Expenditures By Function

General Government

10%

Public Safety42%

Public Works16%

Culture & Recreation

3%

Other22% Capital Outlay

7%

2014 Budget

Monthly Tax Supported Services by Department

Police and Civil Defense2013 201418.04 16.62

Public Works 10.01 9.12

Debt Service 6.82 6.21

Administration/Government Services/Finance/Legal 6.38 5.71

Infrastructure (transfers) 9.43 8.40

Street Light/Storm Sewer 2.27 2.07

Park and Recreation/Cemetery 3.02 2.76

Fire 2.49 2.38

Community Development/Protective Services 2.31 2.31

City Council .46 .41

OtherTotal

.71 .6861.94 56.67

CITY OF CHAMPLINWho gets your property tax dollars?

School District

$457.00 (21%)

Hennepin County

$807.72 (37%)

Special Taxing

Districts

$204.74 (9%)

City of Champlin

$724.64 (33%)

EXAMPLE:

Property Tax on a $162,000

Champlin Home is

$2,194.10 (100%)

RETURNED AS SERVICES

$724.64• Police & fireprotection• Streetmaintenance& plowing• Parks & trails

• Recreationprograms

• Bldg & healthinspections

• Other Cityservices

Based on 2014 tax rates

Where Your Tax Dollar Goes

City of Champlin$0.33

Hennepin County$0.37

School District$0.21

Special Taxing Districts

$0.09

(Based on 2014 Tax Rates)

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

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.

BUDGET SUMMARY