1. City of Excelsior 2014 Budget Presentation December 2, 2013 City Council Meeting

2. What do your property tax dollars pay for? 34% 25% 34% 2%5% Approximately

3. Approximately 25% of your property tax dollars pay for City services. County City School Special Dist. Other Dist.

4. City of Excelsior Property Taxes City property taxes are determined by the City’s Levy. Excelsior’s levy consists of a general levy and a debt service levy to pay back the bonds issued for the 2010 and 2011 street projects.

5. 2.62% Proposed Levy Increase for 2014 The 2.62% increase is slightly higher than the Consumer Price Index (CPI) from 2011 to 2012 of 2.33%

6. 2014 Proposed Levy Increase The City’s operating levy increase is proposed to increase 0.41% or $5,353. The increase for future capital projects and related debt is proposed to increase 2.21% or $29,116.

7. 2014 General Fund Revenue by Source Property taxes make up about 69% of the City’s General Fund revenue.

8. 2014 General Fund Revenue by Source

9. What Does the Levy Pay for?

10. 2014 General Fund Expenditures

11. 2014 Sales Tax Exemption Projected savings due to the 2014 sales tax exemption.

12. 2014 Property Values For the first time since 2009, the City’s tax capacity is increasing which prevents the City’s tax rate from increasing drastically, even with an increase in the City’s levy.

13. Market Value Growth/Decline by Property Type Market values are increasing for all property classifications except condominiums. The overall market value for the City increased from $320,861,200 to $327,419,400. New improvements accounted for nearly $4 million of the increase in market value.

14. Taxable Tax Capacity by Property Type

15. Will Your Taxes Increase?

16. Residential Example #1 Property A - 2013 Market Value $164,000 Homestead Exclusion $22,480 Taxable Market Value $141,520 Total City Property Tax $521.55 Property A - 2014 Market Value $174,000 (+6.1%) Homestead Exclusion $21,580 Taxable Market Value $152,420 (+7.2%) Total City Property Tax $564.56 Property A will have an increase of $43.01 or 7.62% in the City portion of their property taxes in 2014

17. Residential Example #2 Property B - 2013Property B - 2014 Market Value $368,000 (-2.1%) Homestead Exclusion $4,120 Taxable Market Value $363,880 (-2.3%) Total City Property Tax $1,347.81 Market Value $376,000 Homestead Exclusion $3,400 Taxable Market Value $372,600 Total City Property Tax $1,373.36 Property B will have a decrease of $25.55 or (1.86%) in the City portion of their property taxes in 2014

18. Residential Example #3 Property C - 2013 Market Value $616,000 Homestead Exclusion $0 Taxable Market Value $616,000 Total City Property Tax $2,377.40 Property C - 2014 Market Value $602,000 (-2.3%) Homestead Exclusion $0 Taxable Market Value $602,000 (-2.3%) Total City Property Tax $2,324.26 Property C will have an decrease of $53.14 or (2.24%) in the City portion of their property taxes in 2014

19. Residential Example #4 Property D - 2013Property D - 2014 Market Value $1,553,000 Homestead Exclusion $0 Taxable Market Value $1,553,000 Total City Property Tax $6,694.69 Market Value $1,580,000 (+1.7%) Homestead Exclusion $0 Taxable Market Value $1,580,000 (+1.7%) Total City Property Tax $6,852.40 Property D will have an increase of $157.71 or 2.36% in the City portion of their property taxes in 2014

20. Commercial Example #1 Property E - 2013Property E - 2014 Market Value $209,000 Homestead Exclusion $0 Taxable Market Value $209,000 Total City Property Tax $827.11 Market Value $209,000 Homestead Exclusion $0 Taxable Market Value $209,000 Total City Property Tax $828.47 Property E will have an increase of $1.36 or 0.16% in the City portion of their property taxes in 2014

21. Commercial Example #2 Property F - 2013Property F - 2014 Market Value $404,000 Homestead Exclusion $0 Taxable Market Value $404,000 Total City Property Tax $1,767.38 Market Value $380,000 (-5.94%) Homestead Exclusion $0 Taxable Market Value $380,000 (-5.94%) Total City Property Tax $1,654.73 Property F will have an decrease of $112.65 or (6.37%) in the City portion of their property taxes in 2014

22. Commercial Example #3 Property G - 2013Property G - 2014 Market Value $1,006,000 Homestead Exclusion $0 Taxable Market Value $1,006,000 Total City Property Tax $4,670.76 Market Value $1,007,000 (+0.1%) Homestead Exclusion $0 Taxable Market Value $1,007,000 (+0.1%) Total City Property Tax $4,683.82 Property G will have an increase of $13.06 or 0.28% in the City portion of their property taxes in 2014

23. Commercial Example #4 Property H - 2013Property H - 2014 Market Value $1,650,000 Homestead Exclusion $0 Taxable Market Value $1,650,000 Total City Property Tax $7,776.51 Market Value $1,750,000 (+6.1%) Homestead Exclusion $0 Taxable Market Value $1,750,000 (+6.1%) Total City Property Tax $8,273.28 Property H will have an increase of $496.77 or 6.39% in the City portion of their property taxes in 2014

24. 2014 Utility Rates The 2014 proposed utility rates include the increases/decreases shown below.

25. The complete 2014 budget can be found on the City’s website. Hard copies may be obtained at City Hall during regular business hours. http://www.ci.excelsior.mn.us/ Excelsior City Hall 339 Third Street Excelsior, MN 55331

26. Any questions or comments? Contact Info: Heidi Tumberg, Finance Officer htumberg@ci.excelsior.mn.us (952) 653-3677 (direct)