Dear Chanhassen Residents,
Most people think of April when it comes to taxes. However, the City Council and staff have been hard at work for several months discussing, analyzing, and reviewing various budget scenarios for the 2021 tax levy.
The City Council has focused on keeping the levy as low as possible for 2021. Understanding the continued hardships residents are facing due to the pandemic, it is prudent to continue our practice of aligning our levy closely to new growth which is 1.46%. We are in the process of evaluating the impacts on services that will occur at that level of taxation. Chanhassen City Council will set a preliminary levy September 28, 2020. This is the “maximum not-to-exceed tax levy” before setting a final tax levy in December. This “maximum levy” is what will be reflected in the property tax statements you receive in November. The Council may not exceed that level and has typically come in under the maximum levy. The Council is considering two scenarios:
- Scenario #1 – total levy of $12,066,700 an increase of $325,332 (2.77% increase) resulting in a $12-$13 increase in city’s property tax bill on the average home with no reduction in city services.
- Scenario #2 – total levy of $12,034,700 an increase of $293,332 (2.50% increase) resulting in a $10-$11 increase in city’s property tax bill on the average home with some impacts to city services.
For more specific details, please go to the agenda item: Set Preliminary Tax Levy Long-term Planning
The time has come for Chanhassen to embark on long-term financial planning. I have asked our Interim City Manager to begin a financial planning process, so we are prepared and positioned for long-term success. City staff is beginning to outline the anticipated future needs and associated costs to create a broader financial outlook for Chanhassen. We have a 5-year Capital Improvement Plan (CIP), but it has become abundantly clear similar planning needs to be done in all areas of the city to ensure that we can provide the high-quality services that we expect in Chanhassen. The City’s strategic goals must align with realistic financial goals to create a fiscally responsible approach to our growing demands of city services.
The financial planning discussion will be front and center in 2021. Community feedback will be an integral component of the decision-making process, so please stay tuned for continued updates and opportunities to engage. Upcoming dates for 2021 levy discussions:
September 28 –
Preliminary Levy – Maximum Levy is Set
October 12 – Special Revenue and Enterprise Funds Operating Budgets and CIP
October 26 – Utility Rate Study discussion
November 9 – Long-term Financial Direction discussion
December 7 –
December 14 – Final Budget & Tax Levy payable in 2021
With any questions, please don’t hesitate to contact me.