General

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2009
Proposed Budget
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Budget Challenges

• Rising costs translating to higher prices charged
  to the City for operating supplies and services
  (2.5 was allocated for line item goods and
  services)
• Increasing personnel costs COLAs, pension and
  health care
• Aging infrastructure (insufficient reserves)
• 220,000 in LGA recommended to be allocated to
• 110,000 to Park Reserve Fund
• 110,000 to Capital Equipment Fund

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Capital Projects Fund Reserves
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(No Transcript)
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Budget Challenges

• Staff reductions proposed for 2009 (30,000)
• Need to balance expectations associated with
  resource allocations and service provision levels
• Collapse in home prices leading to a decrease in
  the tax capacity over which the tax levy is
  spread.
• Levy limits
• Declining revenue streams in building (63),
  engineering (55) and community development (12).

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Budget Challenges

• Decreased level of investment interest earnings.
• The need to find alternative revenue sources.
• Franchise Fees
• Storm Water Utility Fee
• 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

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Revenue Trends General Fund
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National League of Cities City Fiscal Report
2008
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NMMA 2006 Tax Burden Per Capita
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Statewide Growth in Average Homestead Property
TaxesCompared to Change in Per Capita City/Town
CountyTotal Revenue and Per Pupil School Total
RevenuePercent Change from Pay 2002 to 2008 in
Inflation Adjusted Dollars
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Tax Levy 2009
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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 2003-2007 reflect actual
numbers and the years 2008-2009 reflect budgeted
amounts. The City historically budgets
conservatively for these revenue streams.
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Survey of Other Governments by Three Rivers Park
District

• Following several newspaper articles regarding
  tax levy increases, a survey of cities and
  counties was done. While many of the
  organizations stressed that the levies they were
  reporting were preliminary, it is clear that very
  few of them are limiting their levies to 3.9.
• A total of 14 cities and one county responded to
  our survey. The range of responses is from 3.9
  to 9.85, with the average being 5.18. The two
  cities proposing a 3.9 increase are using
  reserves to fund a portion of their budget. The
  city proposing a 9.85 increase has a new bond
  issue hitting its levy that accounts for 2.8 of
  the increase. The remaining governments are
  using the allowed growth factor and special
  levies to increase their total levy beyond the
  3.9.

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Estimated City Tax Burden on an Average Home in
Champlin
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General Fund Revenues
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General Fund Expenditures By Type
2009 Budget
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General Fund Expenditures By Function
2009 Budget
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Monthly Tax Supported Services by Department
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CITY OF CHAMPLINWho gets your property tax
dollars?
Based on 2008 tax rates
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Where Your Tax Dollar Goes
(Based on 2008 Tax Rates)
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BUDGET SUMMARY

• 3.98 increase in personnel compensation includes
  cost of living increases for City staff (3.5)
  and an increase of 45,574 in the Citys
  contribution to PERA passed by the legislature in
  2005.

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• Infrastructure Replacement Program
• Budget provides 525,000 for streets
• Budget provides 560,000 for parks
• Budget provides 385,000 for capital equipment
  replacement
• Budget provides 50,000 for Ice Forum

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• 7.0 or 161,458 Non-Personnel Adjustment.
  Increase includes 43,705 for fuel, 54,213 for
  natural gas and electricity, 3,000 for Hennepin
  County Assessing, 22,245 for maintenance line
  items and 8,188 for insurance. The increase for
  all other non-personnel items was 38,295 or
  1.65.
• Provides for a decrease of .61 in the net tax
  levy which equates to a 3.99 increase in the tax
  rate for the City or an increase in taxes of 30
  for the median house value of 225,000.