2014 Proposed Annual Budget

Preliminary Truth-in-Taxation Meeting September 11, 2013

Agenda

v Meeting Purpose v Public Process v How is the City doing? v Key 2014 Budget Highlights v Effect on Average Value Home

Truth-in-Taxation (TnT)
Meeting Purpose
v Improve local accountability v Enhance public participation v Educate the public on how property taxes

are determined v Understand the local governments budget process v Encourage the public to get involved

Truth-in-Taxation

Public Process

Public Process
A 12-Month Process (December to December)
v All meeting agendas are publically noticed

and available on-line v Public input is welcome at each step of the process v Budget document is available at the library, city hall or online

Public Process
Public Meeting Dates
Review of proposed 5-Year Capital Plan May 15 Approval of Capital Improvement Plan May 22 Set preliminary financial targets July 24 Presentation of proposed budget August 28 Set preliminary tax levy and TnT Public Meeting September 11 Budget check-in November 20 Truth in taxation public meeting and adopt tax levy and budget December 11

Truth-in-Taxation

How is the City doing?

Awards and Recognitions

v #11th Best Places to Live in America - Money

Magazine's list of the 100 Best Places to Live" July 2012 by the Business Journal December 2011

v Third highest quality of life in Minnesota - rated v Certificate of Achievement for Excellence in

Financial Reporting - Government Finance Officers Association Measurement reporting - International City/County Management Association Center for Performance Measurement

v Certificate of Excellence for Performance

Awards and Recognitions

v AAA bond rating Standards & Poors v Award of Excellence for website design

Minnesota Association of Government Communicators (MAGC) annual Northern Lights competition excellent, by 97% of Woodbury residents, according to the 2013 Community Survey conducted by Decision Resources, Ltd. of Minnesota Cities

v The quality of life in Woodbury as good or

v 2013 City of Excellence Award from League

Housing Activity
New Housing Units
981 1000 900 800 700 600 Units 500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 8/27/2013 Projected 2014 432 342 255 286 374 256 275 522 713

Year

Commercial Construction
New Commercial Construction 1996-2012 (Square-Feet Added)
1,200,000

1,000,000

Square-Feet

800,000

600,000

400,000

200,000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Year

Sheriffs Sales
Sheriff's Sales
450 400 350

421

335

333

Number of Sales

300 250 200 150 100

225

231 204

103 61 38

99

50 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 8/15/2013

Year

Property Valuation Trends

Annual Taxable Market Value

$8,000 $7,500 $7,000 $6,500

6,243 5,443 4,774 6,966

7,393

7,604 7,256 6,679 6,320 5,976 6,302

Value in Millions

$6,000 $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Estimated 2014

Year

Property Valuation Trends

Taxable Market Value Change

$900
Annual Increase (Decrease) in Millions

$800 $700 $600 $500 $400 $300 $200 $100 $$(100) $(200) $(300) $(400) $(500) $(600) $(700) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Estimated 2014

Year

Value as Expressed by Comparative Metro Region Tax Rates

Metro Tax Comparison: 2013 Final Certified Tax Rates of Selected Cities
Brooklyn Park Golden Valley Apple Valley Coon Rapids Maplewood Burnsville Inver Grove Hts Bloomington Maple Grove Lakeville Woodbury Eagan Minnetonka Shoreview Blaine Eden Prairie Plymouth Edina
0 10 20 61.311 58.204 49.216 48.835 48.659 47.021 46.312 45.485 42.142 41.234 39.44 38.272 36.996 36.97 36.74 34.397 29.243 27.216 30 Rate 40 50 60 70

Community

Value as Expressed by Comparative 2013 Washington Co. Tax Rates

2013 Final Certified Tax Rates by Washington County City
Newport Stillwater St. Paul Park Cottage Grove Oak Park Heights
Community 45.05 44.06 44.06 43.92 43.51 39.44 37.29 36.51 34.65 30.06 27.82 0 10 20 30 Rate 40 50 60 70 80 57.47 61.5 70.8

Oakdale Bayport Forest Lake Woodbury Scandia Hugo Mahtomedi Afton Lake Elmo

Trends in Property Tax Rates

City of Woodbury Property Tax Rates 2004 - 2014
38 36 Tax Rates (per $1 in Tax Capacity) 34 32 30 28 26 24 22 20 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Taxes Payable Estimated 2014

31.013

30.124

29.018

28.122

28.169

28.474

31.033

34.921

35.921

39.440

37.993

Truth-in-Taxation

Key 2014 Budget Highlights

2014 Budget Highlights

v Total Budget $69.8 million Property Tax Levy Revenue 43% User Fees 27%

Other Sources Use of Fund Balance /Escrow Accounts Licenses & Permit Fees

14% 11% 5%

2014 Budget Highlights

v Change in Budget Expenditures:
General Fund Special Revenue Funds Capital Projects Funds Enterprise Funds Internal Service Funds Debt Service Funds
Total Percentage Change

4.0% 9.8% -8.9% 9.0% 0.0% 87.2%

12.8%

2014 Budget Highlights

v Change in Property Tax Levy: General Fund 2.8% Capital Improvements 2.0%

Street Maintenance Tax Abatement Debt service HRA

5.5% 12.2% .06% 0.0%

2.76%

Total Percentage Change

Trends in Cost Changes - 4th Lowest Levy Increase in 20 Years

Certified Property Tax Levy Changes (1995-2014)
35.00% 30.59% 30.00% 29.08%

25.00%

Percent Increase

20.00%

18.71% 17.46% 13.19% 11.99% 12.08% 9.62% 8.61% 4.60%

15.00%

9.33% 10.73% 8.09% 3.88%

10.00% 3.77%

5.00%

2.91% 2.45% 0.00%

2.44% 2.76%

0.00%

Average Annual Levy Increase since 1995 is 10.11%

Year

Comparative Change in Cost

Proposed 2014 City Levy % Change Comparison
Burnsville Lakeville Brooklyn Park St. Louis Park Bloomington Golden Valley
Community 3.06% 3.05% 2.87% 2.87% 2.76% 2.70% 2.50% 2.26% 1.90% 1.40% 1.50% 2.00% 2.50% 3.00% 3.50% Levy Change 4.00% 4.50% 5.00% 5.50% 6.00% 4.64% 4.59% 4.42% 5.70% 5.50%

AVERAGE Edina Minnetonka Woodbury Eagan Plymouth Maple Grove Eden Prairie Apple Valley
1.00%

Proposed % Levy Change AddiConal LGA

Population Valuation Trends

% Levy Increase Minus % Pop. Increase and Inflation (2005-2014) Equation: Annual Increase/Decrease = (Levy % Change for Budget Year - (Pop. Increase for budget year + % Inflation Increase in Budget Year))
8.00%

6.00%

Increase (Decrase) %

4.00%

2.00%

0.00%

-2.00%

-4.00%

-6.00%

Year

General Fund Budgetary Factors

v Revenue Levy Limit
Spirit of the Law = 2.8% Literal to the Law = 7.3%

Local Government Aid (no change $0) Non-Property Tax Revenue Increase

General Fund Budgetary Factors

v Expenditures: Sale Tax Elimination:
o $308,0000 total, $157,850 General Fund benefit o Not applicable to motor vehicles, fuel, Central Park,

EVGC, BSC purchases

Held line on General Fund Operating Expenses ($10 K decline) General Fund Personnel Services 100% of Increase split between existing personnel cost and new personnel

Proposed Personnel Changes

Position FTE

Police Officer/Firefighter Public Service Worker/Mechanic Accountant II/Budget Analyst Assistant Park and Recreation Director Community Development Technician Part-time Paramedics Engineering Specialist water/storm water Engineering Technician Administrative Assistant - BSC Administrative Assistant Admin. Total Additions:

2.0 1.0 1.0 1.0 .45 .52 .50 .25 .25 .12 7.09

Proposed Personnel Changes

Deletions FTE

Parks / Forestry Intern Sustainability Specialist Total Deletions

- .48 - .05 - .53

Proposed Personnel Changes

FTE Employees per 1,000 Residents
5.00

FTE Employees per 1,000 Residents

4.50

4.00 2003 2004 2005 2006 2007 2008 2009 Year 2010 2011 2012 2013 2014

Truth-in-Taxation

Tax Impact

Trends in Tax Impact on Average Value Home

Estimated Change in Residential Property Taxes Based on Average Residential Value - ISD 833

$80 $70

$71

Dollar Change

$60 $50 $40 $30 $20 $10 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Estimated 2014

$37

$33

$8

$9

$11 $6 $1

$7

$6

Year

Proposed 2014 Tax Impact

Estimated 2014 Property Tax Impact
$60 $50 $40 $30 Tax Impact $20

$56

$10
$10 $$(10) $(20) $(30)

$11

$6

-$16

-$19
Evergreen
Property

Average Value Home

Ridgegate Patio

Wild Canyon

Stonemill Farms

Rural Homestead

Proposed Fees
v Water no change v Sanitary Sewer no change v Storm Water no change v Street Lighting no change v EMS / Ambulance increase 3%

Recommendation
1.

Adopt the attached RESOLUTION NO. 13-163, a resolution establishing a proposed tax levy and general fund budget for 2014 for purposes of the truth-in- taxation public meeting. Adopt the attached RESOLUTION NO. 13-164 ,a resolution approving the proposed 2014 HRA levy for purposes of the truth-in-taxation public meeting. Adopt a motion confirming that the truth-in-taxation public meeting is scheduled for Wednesday, December 11, 2013 at 7:30 p.m.

2.

3.