City of Shorewood2013 Budget

Truth-in-Taxation Hearing

December 3, 2012

Truth-in-taxation requirements

• Present the 2013 City budget

• Discuss the budget and levy changes

• Invite public comment

• Adopt a balanced budget

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

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 fortaxable valuation

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 159,954Use 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.

Expenditures & Transfers 2007-2013

20072008

20092010

20112012

2013$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Expenditures

2013 Revenues

Taxes89%

Licenses/Permits

2%

Intergov-ern-mental

1%

Fines & Forfeits

1%

Charges for Service1%

Transfers & Misc4% Use of Reserves

2%

Total Revenues of $5,367,218

2013 ExpendituresGeneral

Govt23%

Public Safety38%

Public Works18%

Park & Rec4%

Capital Trans-

fers17%

Total Expenditures of $5,367,218

Tax Levy 2007-2013

0% Increase since 2009

20072008

20092010

20112012

2013$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

Expenditures

Tax Assessment & Levy Timeline

Market

Value

Property Sales

Board of Review

TNTNotice

Taxes Levied

Oct ,2010-Sept, 2011lesJan 2,2012 Apr-Jun, 2012l Nov, 2012 2013s

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.

2013 Property Tax Distribution School District34.7%

Hennepin County35.7%

City22.2%

Other7.4%

Based on Minnetonka School District

Impact of City Portion of 2013 Taxes

2012 Value 2013 Value 2012 Tax 2013 Tax $ Change$250,000 $239,000 $705 $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.

Total Tax $ Change - 2013Tax Change # of Parcels % of Parcels

Decrease 924 38.4%$0-300 984 44.6%

$301-600 251 11.3%$601-900 28 3.0%

$901+ 25 2.7%

Taxpayer input is invited at this time.