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Home My WebLink About2007 12-03 CCP Budget Hearing CITY COUNCIL MEETING INITIAL HEARING ON PROPERTY TAXES City of Brooklyn Center December 3, 2007 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 General Fund Budget 4. Hearing and Discussion of Proposed Levy •Requested Council Action: —Open the Public Hearing. —Take public input. —Close the Public Hearing or continue to I�ecember 10, 2007, at 6:00 p.m. in the City Hall Council Chambers if Initial Hearing cannot be completed. 5. Adjournment B�oo n ente� �o y Truth in Taxation Public Hearing Monda December 3, 2007 y 7:00 P.M. en a g Pu ose of the Hearin g Genera� Bud et High�ights g Pro osed Pro ert ax =evy for 2008 p p Y H w wi�� the �ev affect Tax a ers`? Y �Y Genera�. Fund Bud et for 2008 g �ebt Service Budgets for 2008 Remainin Ste s g p uestions and Comments Q H a�ln �'u�oseo te e g p Minnesota Statutes Sec. 275.065, Subd. 6(d): "At the initia hearing under this subdivision, the p ercentage increase in property taxes proposed by the taxing authority, if any, and the specific purposes for i, which property tax revenues are being increased must be discussed. During the discussion, the governing body sha hear comments regarding a proposed increase and exp ain the reasons for the proposed increase. The pub ic sha be a owed to speak and to ask questions:' B e� ve�view u g Genera� Fund tota:�. 15 S 18 8 3 6. Com ensation and Staffing: p Base Wa es Rates increased 3% g Insurance contribution increased 19.00 per month per employee Retirement contribution (PERA) increased .25% (1.20% for Law Enforcement) because of a State legislative mandate. Additional personnel cost as a result: 597,080 i Bu e� ve�view g itiona� �ns ector in Code Enforcement One add p ne additiona� Po�ice Officer in Patro� O •�hree Additiona�. Po�ice Officers wi�'�_ be funded with rant do: �ars g One through Auto Theft Prevention Grant Two through S tate funde d C OP S Grant Bu e�` ve�view g Outcomes ex ected: p Continuation of uali basic services q Focus on the achievement of the eight City Goals established by Council Effective positive response to the changing demographics of the community Effective neighborhood code enforcement Safe and secure community while reducing crime The improvement of housing stock quality Maintenance of the City Infrastructure A ressive redevelopment efforts gg Ensured financial stability T Lev P�o ose P�o e� ax y City of Brooklyn Center Proposed Property Tax Levy Total Levy AII Sources 2007 to 2008 2007 to 2008 Pay 2006 Pay 2007 Pav 2008 Chanqe Chanqe I� General Fund Operations 10,494,126 10,939,788 11,404,750 464,962 4.25% I 1996 Bonds 118,830 0.00% Police Fire Bonds 757,394 753,955 730,152 (23,803) (3.16%) Housing RedevelopmentAuthority 257,065 265,000 302,191 37,191 14.03% 11,627,415 11,958,743 12,437,093 478,350 4.00% s City of Brooklyn Center 2007 Estimated Market Value Payable in 2008 Apartments 8% Commercial 12% Industrial 6% Farm 0% Residential 74% This chart is an illustration of the total estimated market value of $2,182,205,700 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 i Change in Median Residential Value Dist 11- Anoka Dist 17- Anoka I Dlst 279 Osseo I Dist 281 Robbinsdale I Dist 286 Brooklyn Ctr Dist 286 Brooklyn Ctr No Watershed Watershed N8 Watershed #8 Watershed #8 Watershed #8 No Watershed Taxable Market 2007 Tax 8 t150,00 $1,71 E1,52 $1,71 51,53 51,83 f1,687 57,86 57.82 $1,88 f1,97 '$1, 51,97 E155,00 $1,78 E1,58 $1,78 57,59 51,90 51.75 57,94 57.901 $1, f2,05 $1, 52,05 5160,00 $1,8 51,65 $1,6 51,65 51,98 f1.81 52,01 57.97 $2,03 52,13 $2,03 E2,13 5165,00 $1,92 51,71 $1,92 51.72 f2,05 f1.88 52.091 S2. $2,11 S2,z1 $2,11 52,20 f175,00 $2,06 57.84 $2,06 51,84 f2.20 52.02 52.241 52.7 $2,26 52,37 $2,26 52,36 5780,00 $2,13 t7, $2,13 51,91 52,27 52.09 52.31 52.26 $2,34 f2, 52.34 52.44 �785�00 $2,20 ft $2.20 .f1�97 .{2.35 52�16 .{2�39 S2 _341 .$2,41 f2�52 $2�41 52�521 f�"" E186,40 $2,221 �1,98 $2,221 51,99 $2,37 E2,17 $2,41 E2,36 $2,43 52,54 $2,43 52,54 �190� $2,27 f2�03 $2,27 52�03 {2,42 52�22 .52�46 52,41 $2.491 52�60 $2,491 f2� ....a193,80 $2,32 52�08 $2.32 $2,08 $2,47 $2�281 $2,51 52,47 $2,54 $2,54 $2,65 195 000 2 34 2 09 $2 34 2 101 2 49 2 29 f2 53 2 48 �2 2 66 2 2 67 5200.000 $2,411 E2,75 $2,411 52,1 52,571 52,36 52,61 52,561 $2,64 52,761 $2,64 52.75 5210,00 $2,5 f2,28 $2,55 52,291 52,71 f2.50 S2,76 52,70 $2,79 SZ,9� $2.�9 52,91 5220,00 $2,66 E2,41 $2,68 52,41 f2.66 52,63 52.91 52,8 $2,94 E3,07 $2,94 53,06 I E230,00 $2,82 52,53 $2,82 52,54 53,01 52,77 f3,06 53,001 $3,0 E3,237 $3,0 53,22 Ez4U,0 $2, 52,66 $2,96 S2.671 53,15 52.91 Z3,211 53,7 $3,24 53,3 $3,24 53,38 250 00 310 2 79 $310 2 79 3 30 3 05 3 361 3 2 $3 39 3 54 3 39 3 5 Distribuaon 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 3 720 1 294 1 303 507 334 228 ntial Single Family Reside Commercial Industrial 72 40 24 14 7 11 Apartments 55 24 2 Total of Properties 3,847 1,358 1,329 521 341 239 Distribution of Property Tax Amount Changes by Percentage 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 50.37% 17.52% 17.64% 6.86% 4.52% 3.09°k Commercial Industrial 42.85% 23.81% 14.29% 8.33% 4.17% 6.55°k Apartments 67.90°/o 29.63% 2.47% 0.00% 0.00% 0.00% of Total PrOpertles 50.39°/a 17.79% 17.41% 6.82% 4.47% 3.13% Of the 7,635 properties in Brooklyn Center, 3,847 of them, or about half, will see lower property taxes in 2008 according to the "Truth in Taxation" notices sent in November. The other half will see increases ranging from 0.1 over the 2007 amount to more than 20.0%. About 15% 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 I i •School District or Watershed serving the property e w ��rt( 1 II E� II II II 1.�� R. /a.gR!!� e N ��.:fllo Ptl![IIlI�I w��'' ��ii i�-,d iiiF n il r 4 li#�+_ L,�� Some examples... Control Example House 1 Estimated Market Value at 1/1 /2006 195,000 Estimated Market Value at 1/1 /2007 198,900 Taxes Payable 2007 2008 Chanc�e Taxable Market Value 195,000 198,900 2.0% Tax Capacity 1,950 1,989 2.0% Tax Capacity Tax Rate 45.368 45.429 0.1% Market Value Tax Rate 0.03576 0.03336 (6.7%) Tax Capacity Tax 884.68 903.58 2.1% Market Value Tax 69.73 66.35 (4.8%) Total City Tax 954.41 969.94 1.6% i Chanqe in Limited Market Value House 2 Estimated Market Value at 1/1 /2006 195,000 Estimated Market Value at 1/1 /2007 198,900 Taxes Payable 2007 2008 Chanc�e Taxable Market Value 175,000 198,900 13.7% Tax Capacity 1,750 1,989 13.7% Tax Capacity Tax Rate 45.368 45.429 0.1% Market Value Tax Rate 0.03576 0.03336 (6.7%) Tax Capacity Tax 793.94 903.58 13.8% Market Value Tax 62.58 66.35 6.0% Total City Tax 856.52 969.94 13.2% Chanpe in Estimated Market Value House 3 Estimated Market Value at 1/1 /2006 195,000 Estimated Market Value at 1/1 /2007 205, 000 Taxes Payable 2007 2008 Chanc.�e Taxable Market Value 195,000 205,000 5.1% Tax Capacity 1,950 2,050 5.1% Tax Capacity Tax Rate 45.368 45.429 0.1% Market Value Tax Rate 0.03576 0.03336 (6.7%) Tax Capacity Tax 884.68 931.29 5.3% Market Value Tax 69.73 68.39 (1.9%) Total City Tax 954.41 999.68 4.7% i City of Brooklyn Center 2008 Residential Property Tax Components $193,800 Taxable Market Value Median 3000 $2,643 I $2, 460 o School 2500 $2,280 $2,098 918 735 2000 I 555 373 oCiry x 1500 m a 871 871 871 871 a o County 1000 I 692 692: 692 .69 500 h r Dist I Ot e 162 162 162 162 p_ Dist #11 Dist #279 Dist #281 Dist #286 School District All Proposed Property Tax Totals include a homestead credit of $198. 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 i 2,000,000 2003 2004 2005 2006 2007 2008 City of Brooklyn Center Revenues by Source 2003-2008 FiscalYears Actual Actual Actual Actual Budget Proposed Revenue Tvpe 2003 2004 2005 2006 2007 2008 Property Tax 10,137,807 9,368,636 10,418,176 10,418,863 10,720,993 11,233,679 Lodging Tax 661.267 656,859 710,619 738.776 650,000 665,000 Taxes 70,799,074 10,025,495 11,128,795 11,157,639 11,370,993 11,898,679 Licenses 207,720 242,754 246,612 260,166 362,443 279,345 Permits 619.965 435,323 428.918 462,467 409.000 444,500 Licenses Permits 827,685 678,077 675,530 722,633 771,443 723,845 Federal Revenues 3,623 LGA 1,319,661 677,555 543,183 667,665 767,665 1,113,243 Other State Revenues 601,143 485,477 527,973 519,163 467,365 479,365 Counly/Other Local Govemment Revenues 27,653 56.178 64.488 78-554 55.000 59.400 Intergovernmental Revenue 1,948,457 1,419,210 1,135,644 1,269,005 1,290,030 1,652,008 General Charges for Service 29,542 36,323 47,131 40,950 31,040 33,125 Public Safety Charges for Service 25,039 23,533 42,076 20,219 13,500 15,600 Public Works Charges for Service 180 Recreation Charges for Service 294,901 314,415 310,641 310,377 293,601 306,229 Community Center Charges for Service 329.213 303.784 321.206 312.422 332.650 339.150 Charges for Service 678,875 678,055 721,054 683,968 670,791 694,104 Fines Forfeits 290,408 254,980 253,748 256,600 240,000 248,000 Interest Income 96,522 86,208 151,612 237,711 156,015 185,000 Refunds and Reimbursements 86,553 90,222 16,647 76,210 40,000 67,000 Other Miscellaneous Revenues 196.899 3.480 48.000 11,317 5.100 50.200 Miscellaneous Revenue 379,974 179,910 216,259 325,238 201,115 302,200 TOTAL GENERAL FUND REVENUES 14.924.473 13.235.727 14.131.030 14.415.083 14.544.372 15.518.836 I I I General Fund Revenues 2007 Licenses Permits 5.30% I I Intergovernmental Revenue Taxes g.g73� 78.189'a Charges for Service 4.61% Fines Forfeits 1.65% Miscellaneous Revenue 1.38 General Fund Revenues 2008 Licenses Permits 4.66 Intergovernmental Revenue 10.659�0 Taxes 76.67% Charges for Service 4.47% i I Fines Forfeits 1.60% Miscellaneous Revenue 1.95 i GENERAL FUND EXPENDITURES 18,000,000 16,000,000 14,000,000 I 12,000,000 I 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 2003 2004 2005 2006 2007 2008 City of Brooklyn Center Expenditures by Department 2003-2008 Fiscal Years Actual Actual Actual Actual Budget Proposed 2003 2004 2005 2006 2007 2008 General Government 1,917,123 1,966,890 1,971,944 2,033,990 2,243,934 2,381,905 Police 5,100,714 5,410,423 5,586,429 5,773,939 5,800,076 6,202,901 Fire 765,535 774,105 828,695 914,975 924,867 1,003,605 Community Development 406,626 457,726 479,289 488,045 563,836 735,618 Other Services 405,683 379,332 423,618 474,091 389,701 388,894 Buildings Grounds 580,483 618,708 621,056 712,902 739,393 742,385 Public Works 2,514,629 2,478,429 2,494,380 2,586,003 2,809,296 2,954,276 C.A.R.S. 1,223,946 1,183,010 1,176,694 1,312,432 1,341,348 1,395,432 Miscellaneous 1,921,999 (425,725) 186,271 (95,396) (268,079) (286,180) GENERAL FUND 14.836.738 12.842,898 13,768.376 14.200,981 14.544,372 15.518.836 General Fund Expenditures 2007 C.A.R.S. 9.06% General Government 15.15% ,r�, :x;:` r� R Public Works 18.97% r; i a Buildings Grounds 4.999�0 Other Services 2.63 Community Development Police 3.819� 39.16% Fire 6.24% General Fund Expenditures 2008 C.A.R.S. 8.83% General Government i 15.07 Public Works 18.69 Buildings Grounds 4.70% Other Services 2.46% Police 39.25% Community Development 4.65% Fire 6.35% City of Brooklyn Center Expenditures by Type 2003-2008 Fiscal Years Actual Actual Actual Actual Budget Proposed 2003 2004 2005 2006 2007 2008 Wages 7,227,537 7,516,840 7,393,239 7,622,896 7,978,482 8,436,215 Retirement Contributions (LR) 971,539 1,035,998 1,022,406 1,099,798 1,218,951 1,333,020 Insurance Contributions 675,690 771,750 771,932 863,826 1,011,908 1,152,000 Worker's Compensation Insurance (LR) 199.763 169.217 182.866 209.860 262,373 295.513 Personal Services 9,074,529 9,493,805 9,370,443 9,796,380 10,471,714 11,216,748 Operating Supplies 226,431 228,470 239,996 253,542 282,217 290,562 Repair Maintenance Supplies 171,110 146,263 153,891 166,372 202,500 216,500 Small Tools Minor Equipment 42,300 46.504 40.370 74.456 94.075 113,965 I Supplies 439,841 421,237 434,257 494,370 578,792 621,027 Professional Services 403,058 437,094 580,419 536,082 549,739 531,032 Communications 146, 561 145, 593 171,120 165,927 162,694 164,481 Utilities 449,854 469,042 511,995 565,857 511,495 556,405 Insurance 139,187 136,644 127,383 154,868 177,200 186,800 Repair Maintenance Services 185,067 349,678 374,443 311,164 297,575 314,096 Central Garage Charges 861,999 890,570 959,650 1,150,262 986,905 1,115,541 Software/IT Licenses Services 402,516 308,876 322,199 279,190 296,422 295,524 OtherServices 962,385 949,443 985,970 1,137,622 1,118,730 1,134,536 Transfers 1,589,649 (759,084) (129.085) (459,362) (775.500) (690,000) Other Charges Services 5,140,276 2,927,856 3,904,094 3,841,610 3,325,260 3,608,415 CapitalOutlay 182,092 59,582 53,579 148,406 58,600 GENERAL FUND 14.836.738 12.842.898 13.768.376 14.185.939 14.524.172 15.504.790 City of Brooklyn Center Expenditures by Type 2003-2008 Fiscal Years Actual Actual Actual Actual Budget Proposed 2003 2004 2005 2006 2007 2008 PersonalServices 9,074,529 9,493,805 9,370,443 9,796,380 10,471,714 11,216,748 Supplies 439,841 421,237 434,257 494,370 578,792 621,027 Other Charges Services 5,140,276 2,927,856 3,904,094 3,841,610 3,325,260 3,608,415 CapitalOutlay 182,092 59,582 53,579 148,406 58,600 I GENERAL FUND 14.836.738 12,842.898 13.768.376 14.185.939 14.524.172 15.504,790 i Expenditures by Type 2008 Supplies 4% Other Charges Services 23% Personal Services 72% Capital Outlay 1% The Debt Service Levy is 730,192 for 2008. This levy covers the payment of principal and interest on General Obligation bonds issues to build the Police Building on Humboldt Avenue and refurbish the Fire Stations located at Brooklyn Boulevard and at Dupont Avenue. The bonds were issued in 1997 in the amount of 7,900,000 with an interest rate of 4.7352%. These bonds were refinanced in 2004 to obtain a lower interest rate of 3.0334%. For the 2008 budget the City will repay 600,000 in principal with interest costs of 110,552 for the year. Fees for administration of the bonds will also be paid. Remaining dollars will be held in this segregated fund to assure future payments. 3,275,000 in principal plus applicable interest remains outstanding at the end of 2008. The bonds will be fully paid on February 1, 2013. Re�ainin te s g City Counci wi consider a reso ution adopting the fina property tax evy amount of 12,437,093 at the 10 Decem ber 2007 City Cou nci meeti ng. At that same meeting, the City Counci wi consider reso utions adopting a budgets for 2008 City operations. The property tax evy is certified to the Hennepin County Treasurer before December 28, 2007. i u es tions a n Com ments 4