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HomeMy WebLinkAbout2008 12-01 CCP Public Meeting on Property Taxes CITY COUNCIL MEETING PUBLIC MEETING ON PROPERTY TAXES City of Brooklyn Center December 1, 2008 AGENDA 1. Call to Order 7 p.m. —The City Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Presentation on Proposed General Fund Tax Levy and GeneraT Fund Budget —Purpose of the Meeting —City Council Goals —General Fund Revenues and Operations —Special Revenue Funds —Debt, Debt Service Levy and Debt Payments —Utilities and Other Enterprise Funds —Capital Improvements —Internal Service Funds —2009 Property Tax Levy —Remaining Steps 4. Public Comment on Proposed Levy •Requested Council Action: —Open Public Comment period. —Take public input. —Close Public Comment period or continue to December 8, 2008, at 6:00 p.m. in the City Hall �ouncil Chambers if public mput cannot be completed. 5. Adjournment w■ w B�o o n en te� �o y Public Meeting on the 2009 Budget and Property Tax Levies Monda December 1 2008 y� 7:00 P.M. r g en a Purpose of the Meeting City Council Goals General Fund Revenues and Operations Special Revenue Funds Debt, Debt Service Levy and Debt Payments Utilities and Other Enterprise Funds CapitalImprovements Internal Service Funds 2009 Property Tax Levy Overview Impact Remaining Steps Questions and Comments Pu� ose o e 1�7ee�in g p A. city over 500 population. is exempt from the Truth in Taxation public hearing requirement if its tax levy does not exceed its pervious year. tax levy by more than. the implicit price deflator. IPD for 2009 Taxes 1.061943 Brooklyn Center 2009 Proposed increase 1.030739 Public Meeting to explain the City's goals and allocation of resources as reviewed by the City Council and the City's Financial Commission. Bu et oa s g Hi hest Priorit Strate ic Goa� s g y g Ensure a safe and secure community A ressive im lementation of redevelo ment lans gg p p p Positivel address changing demographics and y increased cultural diversity Maintain and u rade the City infrastructure pg Im rove Enforcement of Cit Codes p Y s r Bu e� oa s g Hi h Priorit Strate ic Goa� s g Y g Anticipate and respond to foreclosure issues Increase communications and collaborations with citizens and other government agencies and churche s Im rove the ualit and diversity of the City p q Y Housing Stock Res ond to increasin sin le famil rental p g g Y properties by promoting more home ownership i Bu e� oa s g On oin Strate ic Goa`s g g g Continue Quality Service Ensure Financial Stabilit I y Maintain or lower the level of City Property Taxes compared to other Cities Streamline and increase effectiveness of services Influence at the legislature Improve the City's Image with citizens and those outside the City Ensure safe drinkin water and ro er mana ement of g p p g storm water en e�a Fun ve�view H1 h� i hts g g Unit Continuatlon of the Community Services Fold Three Grant Funded Officers into Fund Continuation of Citizen Communication Efforts Implementation of Administrative Fines Program Foreclosures and Vacant Pro ert Maintenance, p Y Remediation and Abatement Program Organizational Realignment for implementation n 1 Housin Pro ram Crlme Free Re ta g Juvenile Crime First Offender Program i r City of Brooklyn Center Revenues by Source 2005-2009 Fiscal Years Actual Actual Actual Budget Proposed Revenue T�rpe 2005 2006 2007 2008 2009 chanqe Property Tax 10,418,176 10,418,863 11,088,015 11,233,679 11,804,016 5.08% Lodging Tax 710,619 738,776 706,930 665,000 720,000 8.27% Taxes 11,128,795 11,157,639 11,794,945 11,898,679 12,524,016 5.26% Licenses 246,612 260,166 210,621 279,345 231,795 (17.02%) Permits 428,918 462,467 462,533 444,500 499,500 12.37% Licenses Permits 675,530 722,633 673,154 723,845 731,295 1.03% I Federal Revenues 3,623 1,646 0.00% LGA 543,183 667,665 1,229,388 1,113,243 1,483,492 33.26% OtherStateRevenues 527,973 519,163 498,246 479,365 474,365 (1.04%) County/Other Local Govemment Revenues 64,488 78,554 68,351 59.400 64,475 8.54% Intergovemmental Revenue 1,135,644 1,269,005 1,797,631 1,652,008 2,022,332 22.42% General Charges for Service 47,131 40,950 37,426 33,125 34,400 3.85% Public Safety Charges for Service 42,076 20,219 24,828 15,600 19,000 21.79% Code Enforcemer�t Charges for Service 3,000 100.00% Recreation Charges for Service 310,641 310,377 296,431 306,229 311,543 1.74% Community Center Charges for Service 321,206 312,422 334,615 339,150 351,650 3.69% Charges for Service 721,054 683,968 693,300 694,104 719,593 3.67% Fines Forfeits 253,748 256,600 291,423 248,000 296,000 19.35°/a Interest Income 151,612 237,711 251,392 185,000 185,000 0.00% Refunds and Reimbursements 16,647 76,210 34,808 67,000 10,450 (84.40%) I Other Miscellaneous Revenues 48,000 11,317 52,266 50,200 125.000 149.00% 0 Miscellaneous Revenue 216,259 325,238 338,466 302,200 320,450 6.04/0 TOTAL GENERAL FUND REVENUES 14,131,030 14,415,083 15,588,919 15,518,836 96,613,686 7.05% i o a i General Fund Revenues is,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 2005 2006 2007 2008 2009 i General Fund Revenues 2008 Licenses Permits 4.66% Intergovernmental Revenue 10.65%a Taxes 76.67% Charges for Service I 4.47 Fines Forfeits 1.60% Miscellaneous Revenue 1.95 General Fund Revenues 2009 Licenses Permits 4.40 Intergovernmental Revenue 12.1796 Taxes 75.38% Charges for Service 4.33 Fines Forfeits 1.78% Miscellaneous Revenue 1.93% w i City of Brooklyn Center Expenditures by Department 2005-2009 Fiscal Years Actual Actual Actual Budget Proposed 2005 2006 2007 2008 2009 chan ec� General Govemment 1,971,944 2,033,990 2,149,387 2,381,905 2,465,939 3.53% Police 5,586,429 5,773,939 5,843,079 6,202,901 6,593,348 6.29% Fire 828,695 914,975 925,173 1,003,605 1,059,513 5.57% Community Development 479,289 488,045 525,448 735,618 995,317 35.30% Other Services 423,618 474,091 410,110 388,894 412,819 6.15% i Buildings Grounds 621,056 712,902 833,839 742,385 767,639 3.40% 0 Public Works 2,494,380 2,586,003 2,875,363 2,954,276 3,132,579 6.04 /o C.A.R.S. 1,176,694 1,312,432 1,385,537 1,395,432 1,450,207 3.93% Miscellaneous 186,271 (95,396) (319,742) (286,180) (263,675) (7.86%) GENERAL FUND 13,768,376 14,200,981 14,628,194 15,518,836 16,613,686 7.05% I i i General Fund Expenditures ia,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 2005 2006 2007 2008 2009 General Fund Expenditures 2008 C.A.R.S. 8.83� -General Government d 15.07% Public Works 18.69 Buildings Grounds 4.70% Other Services 2.46% Police 39.25%a Community Development 4.65% Fire 6.35� General Fund Expenditures 2009 C.A.R.S. 8.61% General Government 14.65 Public Works 18.60% h Buildings Grounds 4.56� Other Services 2.45% Police �9.16 Community Development 5.67 Fire� 6.29% City of Brooklyn Center Expenditures by Type 2005-2009 Fiscal Years Actual Actual Actual Budget Proposed 2005 2006 2007 2008 2009 chanqe Wages 7,393,239 7,622,896 8,107,187 8,436,215 9,009,766 6.80% Retirement Contributions (LR) 1,022,406 1,099,798 1,193,653 1,333,020 1,456,089 9.23% Insurance Contributions 771,932 863,826 962,560 1,086,050 1,226,540 12.94% Worker's Compensation Insurance (LR) 182,866 209,860 207,669 295,513 250,850 (15.11%) Personal Services 9,370,443 9,796,380 10,471,069 11,150,798 11,943,245 7.11% Operating Supplies 239,996 253,542 272,410 290,462 290,259 (0.07%) Repair Maintenance Supplies 153,891 166,372 170,624 216,500 216,750 0.12% Small Tools Minor Equipment 40,370 74,456 82,485 113,965 102,060 (10.45%) Supplies 434,257 494,370 525,519 620,927 609,069 (1.91%) Professional Services 580,419 536,082 550,202 531,032 570,915 7.51 Communications 171,120 165,927 153,092 164,481 184,515 12.18% Utilities 511,995 565,857 607,888 556,405 621,760 11.75% Insurance 127,383 154,868 155,167 186,800 188,200 0.75% Repair& Maintenance Services 374,443 311,164 299,158 305,528 355,276 16.28% Central Garage Charges 959,650 1,150,262 1,165,374 1,115,541 1,325,271 18.80% Software/IT Licenses Services 322,199 279,190 280,277 295,524 291,550 (1.34%) Other Services 985,970 1,137,622 998,371 1,223,200 1,247,835 2.01 Transfers (129,085) (459,362) (212,867) (690,000) (769,500) 11.52% Other Charges Services 3,904,094 3,841,610 3,996,662 3,688,511 4,015,822 8.87% CapitalOutlay 59,582 53,579 141,272 58,600 45,550 (22.27%) GENERAL FUND 13,768,376 14,185,939 15,134,522 15,518,836 16,613,686 7.05% Expenditures by Type 2009 Supplies 3.67% 'fr; Other Charges Services 24.17% Personal Services 71.899� Capital Outlay 0.27% r Fns R enue u pecia ev HRA Fund: Levy 385,289 which funds the operations of the Economic Development Authority EDA Fund: Administers Housing and Economic Development Activities with HRA dollars and Tax Increment proceeds. 2009 budget: 347,915 Grants Fund: Auto Theft Grant and COPS Grant funding police officers for first six months. 2009 funding: 190,250 Recreation Grants for donations restricted to specified programs. 2009 proceeds: 21,721 pecla Revenue un s Tax �ncrement F inanc in i stricts g TIF 2: Portions of the expected 73 6,405 may be used for ro'ects under the 25% rule. p J TIF 3: Proceeds of 2 097 465 to be used with additional dollars from fund reserves for debt payments of 3,592,894. Housing reserve will be a roximately 3,390,000. pp TIF 4; Proceeds of 3 O 1, 5 62 used to repay note d elo ers. to ev p De e�vice Fun s Principal Interest Agent Fees TOTAL Ex�enditures PaVment Payments and Administration BUDGET Improvement Bonds 1998 Street Improvement Bonds 95,000 1,995 3,000 99,995 1999 Street Improvement Bonds 155,000 11,298 2,000 168,298 2000 Street Improvement Bonds 70,000 8,032 1,500 79,532 2001 Street Improvement Bonds 70,000 9,820 2,500 82,320 2003 Street Improvement Bonds 120,000 18,393 1,500 139,893 2004 Street Improvement Bonds 105,000 20,869 1,600 127,469 2006 Street Improvement Bonds 150,000 40,945 3,000 193,945 765,000 111,352 15,100 891,452 Ge7era/ Obligation Bonds Police Fire Building Refunding Bonds 610,000 93,903 1,500 705,403 Tax Increment Bonds G.O. Tax Increment Refunding Bonds 410,000 42,145 1,500 453,645 G.O. Tax Increment Bonds 685,000 810,971 1,500 1,497,471 i G.O. Tax Increment Bonds 1,670,000 163,497 1,500 1,834,997 2,765,000 1,016,613 4,500 3,786,113 TOTAL DEBT SERVICE DCPENDITURES 4,140,000 1,221,868 21,100 5,382,968 De e�vice un s Original Issue Prior Years 2009 Balance Due Final Maturity Issue Name Amount Payments Payment 12/31/2009 Date Improvement Bonds 1998 Street Improvement Bonds 1,085,000 990,000 95,000 2/1/2009 1999 Street Improvement Bonds 1,585,000 1,280,000 155,000 150,000 2/1/2010 2000 Street Improvement Bonds 735,000 535,000 70,000 130,000 2/1/2011 I 2001 Street Improvement Bonds 730,000 465,000 70,000 195,000 2/1/2012 2003 Street Improvement Bonds 1,205,000 645,000 120,000 440,000 2/1/2013 2004 Street Improvement Bonds 1,010,000 335,000 105,000 570,000 2/1/2015 2006 Street Improvement Bonds 1,460,000 260,000 150,000 1,050,000 2/1/2017 7,810,000 4,510,000 765,000 2,535,000 Ge,neral Obligation Bonds I Police Fire Building Refunding Bonds 5,045,000 1,770,000 610,000 2,665,000 2/1/2013 Tax Increment Bonds G.O. Tax Increment Refunding Bonds 2,470,000 1,240,000 410,000 820,000 2/1/2011 G.O. Tax Increment Bonds 17,245,000 2,250,000 685,000 14,310,000 2/1/2020 I G.O. Tax Increment Bonds 4,335,000 1,670,000 2,665,000 2/1/2018 24,050,000 3,490,000 2,7b5,000 17,795,000 TOTAL BONDED INDEBTEDNESS 36,905,000 9,770,000 4,140,000 22,995,000 �r r �r w w� r r a�e� ti i ssues: Rising cost of treatment chemica s Unknowns in we maintenance Automated Meter Reading Project: 2,600,000 Rates: 2 006 200 7 20 08 2009 Percentage Increase 3.00% 7.25% 6.25% 3.00% Per 1,000 gallons 1.11 1.19 1.25 1.29 r �r r s �r ewe� �l Z ssues: 3.9% increase in MCES wastewater processing cha rge Re ining of 27" concrete main a ong Mississippi River tes: Ra 2 006 200 7 20 08 2009 Percentage Increase 2.80% 2.75% 2.00% 1.00% Monthly Residential Fee 19.82 20.37 20.87 21.08 r e ti i �o�� D�aina g ssues: —Maintaincashfowsinyearsof high reconstruction costs Rates: I �I 2006 20 07 2 008 200 9 Percentage Increase 0.00% 4.00% 7.00% 3.00% Quarterly Residential Fee 11.85 12.86 13J8 14.19 r L t t� Z ��eet Z g ssues: Maintain ornamenta fixture inventory Sta n d a rd i ze o r n a m e n ta f i xt u re sty e Rates: 2006 20 07 2 008 200 9 Percentage Increase 7.50% 5.00% 5.00% 2.00% Quarterly Residential Fee 3.23 3.48 3.65 3.73 r ri■r r; ■■t w� r� Rec c ln �l Z y g ssues: Possib e inc usion of an annua curbside c eanup in Brook yn Center fees Estimated additiona cost per resident wou d be 11.00 to 12.00 per year Rates: 2 09 2006 20 07 2 008 0 Percentage Increase 5.00% 3.00% 3.00% 3.00% Quarterly Residential Fee 7.14 7.35 7.57 7.80 Fns E lse u e n�e p Centerbrook Golf Course: 21,000 to 25,000 rounds of golf played annually. 2009 Budget built on estimated 22,000 rounds BC Liquor: Will contribute more than 265,000 to operations and proj ects in 2009 Earle Brown Heritage Center: Connection to Embassy Suite hotel will increase revenue opportunities Has generated positive cash flow each of the past five years r P� ect` Fun s a i �a o p J Capita` Improvements Fun Transfer from BC Liquor Build and maintain parks and trails. 2009 budget 3 70,000 Municipa� State Aid Fund: Annual allocations from State for construction and maintenance. 2009 budget 650,00 Street Reconstruction Fund: Franchise fees from CenterPoint and Xcel 2009 budget 850,000 c� Fun s aPoe a lt J Ear�e Brown Herita e Center Ca ita� Fund: g p From operations of the Heritage Center 2009 budget 287,300 echno� o Capita� Fund: gY Annual allocations from General Fund of 70,000 annually 2009 bud et 345,000 g r Fns I te�na e�vlce u n Ce ntral Gara e Fund. g Pay-as-you-Go financing for vehicles and maj or equipment 2009 budget 920,43 0 Post Employment Benefit Fund: 2009 budget 105,273 Compensated Absence Fund: Records and reserves amounts carried forward for paid employee leaves T Le P�o ose P�o e� ax v y City of Brooklyn Center Proposed Property Tax Levy Total Levy AII Sources 2008 to 2009 2008 to 2009 Pay 2007 Pay 2008 Pay 2009 Chanqe Chanqe General Fund Operations (Limited) 10,939,788 11,404,750 6,593,550 (4,811,200) (42.19%) Police Fire Special Levy 5,085,466 5,085,466 new levy I Forecbsures Special Levy 125,000 125,000 new levy Police Fire Bonds 2004A 753,955 730,152 703,903 (26,249) (3.60%) Housing Redevelopment Authority 265,000 302,191 385,289 83,098 27.50% 11,958,743 12,437,093 12,893,208 456,115 3.67% r s s s 2007 Assessment Tax Capacity Payable in 2008 Property Type Breakdown Apartments 8% Commercial 20% Residential 62% Industrial 10% Farm 0% This chart is an illustration of the total tax capacity of $25,898,684 2008 Assessmerrt Tax Capacity Paya�le in 2409 PraP'�rtY T]r'Pe Breakdo�nrn Agart�rterMs 896 ���t �t ����-Y �M1 ��1 ��-�7 �'•OPii(11EfC3a� t �i Y +y �J� :`\'vi �ESK��llda� L.\ 5896 Y ,r e'w:�� v �II1C�L15�13� Farm 0% This chart �s an i�ustration af the totai ta: cap�aan[�r of #2"5�i�6,�2�. Chan e in Median Residentia; Va�ue g Pa 2008 Median axab�e Market Va�ue y 193,800 Pa 2009 Median Taxab e Market Va�ue y 180,400 Change in Va� ue (6.91%) Chan e in Median Residentia� City ax g Percentage Pay 2008 Pay 2009 Chan�e Median Taxable Value 193,800 180,400 (6.91 Median Tax Capacity 1,938 1,804 (6.91 General Levy Rate TC 45.42900% 47.52500% 4.61% HRA TC 1.19400% 1.61700% 35.43% Debt Service Levy MV 0.03336% 0.03387% 1.53% City Tax 968.21 947.62 (2.13%) i Distribudon of Property Tax Amount Changes by Number of Properties in Each Category Increase Increase Increase Increase Increase Decrease .1% to 4.9% 5.0% to 9.9% 10.0% to 14.9% 15.0% to 19.9% 20.0% or more Single Family Residential 6,311 695 112 34 16 E Commercial Industrial 3 30 59 39 18 22. Apartments 11 40 24 5 1 Total of Properties 6,325 765 195 78 35 30 Distribution of Property Tax Amount Changes by Percentage of Properties in Each Category Increase Increase Increase Increase Increase DeCredSe .1% to 4.9% 5.0% to 9.9% 10.0% to 14.9% 15.0% to 19.9% 20.0% or more Single Family Residential 87.95°/a 9.69% 1.56% 0.47% 0.22% 0.11°/o Commercial Industrial 1.75°/a 17.54% 34.50% 22.81% 10.53% 12.87°/o Apartments 13.59°/a 49.38% 29.63% 6.17% 1.23% 0.00°/o of Total Properties 85.15°/a 10.30% 2.63% 1.05% 0.47% 0.40°/a I I Of the 7,428 properties in Brooklyn Center, 6,325 of them, or about 85%, will see lower property taxes in 2009 according to the Proposed Property Tax notices sent in November. The other 15% will see increases ranging from 0.1 over the 2008 amount to more than 20.0%. Less than 1% will see an increase of 10.0% or greater. What causes such a wide range of changes in property taxes? •Changes in individual property Estimated Market Value (EMV) •Limited Market Value (LMV) change for residential property •New Market Value created or Existing Market Value lost •Proportion of Growth or Decline of values in Property Type •School District or Watershed serving the property i p ::F_ i i F p u� ii ii ii ,dui I�I�� ,r�i� rrt s� L��. �;�P�l����' w#�_�� -r rr�r s r a a Variations in Property Tax on Median Residential Property Anoka Anoka Osseo District 11 District 11 District 279 No Watershed Shinqle Creek Shinqle Creek Pay 2008 Median Value 193,800 2,453 2,459 2,446 Pay 2009 Median Value 180,400 2,349 2,350 2,367 Change (104) (109) (79) Chan e 4.24% 4.43% 3.23%) 5 Robbinsdale Brooklyn Center Brooklyn Center District 281 District 286 District 286 Shingle Creek No Watershed Shingle Creek Pay 2008 Median Value 193,800 2,461 2,586 2,591 Pay 2009 Median Value 180,400 2,360 2,554 2,555 Change (101) (32) (36) Change (4.10%) (1.24%) (1.39%) a i■■ r ■i■� �w Re�ain in te s g City Council wlll conslder a resolution adopting the final property tax levy amount of 12,893,208 at the 8 December 2008 City Council meeting. City Council will consider resolutions setting all utility rates for 2009. At that same meeting, the City Council will consider resolutions adopting all budgets for 2009 City operations. The property tax levy is certified to the Hennepin County Treasurer before December 28, 2008. e ■r �■■i a uestions a n Com ments a �r