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Home My WebLink About2006 12-04 CCP Truth in Taxation Hearing AGENDA CITY COUNCIL MEETING INITIAL HEARING ON PROPERTY TAXES DECEMBER 4, 2006 7:00 P.M. CITY COUNCIL CHAMBERS 1. Call to Order 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 December 11, 2006, at 6:00 p.m. in the City Council Chambers if Initial Hearing cannot be completed 5. Adjourn Truth in Taxation Hearing December 4 Oo mil C.o 2 J u r Ale, Good Evening Mr. Mayor and Council Members, My name is Amy Luesebrink, resident of BC for 5 years. (5557 James Ave N, 763 -561 -1616) I'm here to see if there is a refund line for paying for dirt on my City taxes? Really I'm here to give my perspectives on how the Brooklyn Center City Council taxes affect me and to advocate that the City creatively find ways to help support ISD#286 until the "proposed developments" become "bricks and mortar" tax- revenues for the City and school district. On my way over here tonight, 1 drove by and waved at the newest flock of geese grazing at 57` and Logan Ave N, and wish we could get a use tax from them to help pay the $55,000 needed for a Librarian at Brooklyn Center High School. I remember the City saying the had to possess that property and demolish Y Y 9 Y P P P Y demolish the businesses and they thought it reasonable to take the valuable tax base away from school District 286 to "better market the property'. e p operty District 286 sits smack dab in the heart of the City's 4 TIF districts, much of which is vacant and boarded property. Which is good if there's development happening to return the tax -base to the school district but bad the longer it's just dirt and geese. Yes, development takes time, but the BC School district needs our help now. They have National Award- winning programs and are poising themselves to do even more great things in the near future. The 1900 households in the school district spoke very loudly and clearly for the 5"' time that our annual incomes raising at 3% for the past five years won't keep up with the annual tax rate increases of 9or 10% from the City and the County, let alone any additional levies by the school. Since moving into BC just 5 years ago in 2001, my City taxes have risen 61 and my County taxes have risen 71 with an overall increase in taxes of 83 Before passing any goals or increases in the City's 2007 budget, and before reaching for the "increased market value" side of the argument, consider this: As of Dec 1, there were over 4,500 bankruptcies in the state, compared to IA's 1900 and that "The rate of mortgage foreclosures across the state hasn't been this high since the Great Depression ",(From the Shingle Creek Neighborhood Association November meeting). We five in an inverted and low property wealth tax base, and because the taxation calculation is based on "market value" and not so much on "income" if the only way for me to afford to pay any increased taxes, or schoof levies, is to "sell and cash out who will be moving into our 1.5 story 3 Br 60 year old home when they could move to another city and have more businesses, services, and newer housing stock to chose from in another school district for perhaps less taxes? Thank you for finding any help for ISD 286, for continuing to find new revenue streams for the City, and being especially frugal in the coming years with expenses. Respectfully, Amy Luesebrink *The rate of inflation has only risen an average of 2.6% since 2006 (htto: /infla data, com /Inflatio /Inf lation Rate,'Historicallnflation as:�x) **My personal Taxes: Total 2002 2003 2004 2005 2006 2007 Increases 1EMV 1$105,000 1 122,100 t $136,400 $146,700 $151,000 ITMV 1$ 89,100 1 $98,0001 $109,7001 $126,100 1 $146,700 $166,7001 I I I 1 I I I I I I I I I Total Tx 1HCTY 1 349.64 1 415.85 1 431.761 481.791 531.461 597.59 247.95 ICitv.BC 447.50 1 478.31 1 478.41 596.07 656.151 721.22) 273.72 c State GenTx School 286.94 439.13 1 388.661 447.771 474.721 493.181 206.24 10ther Local Levies 15.80 166.58 136.781 62.21 202.731 188.391 172.59d....� Metro Special Tax Is MtCouncil 1$ 24.29 1$ 31.22 1 31.951 35.52 37.611 40.461$ 16.17 w Fiscal Disr) 1$ 31.27 1$ 38.18 1 47.851 50.311 59.611 73.031$ 41.76 Solid Waste 16.98 1$ 18.58 1 19.591 20.111 23.21 26.421$ 9.44 CommunityDividend zno: x,.; zan i htto: /woodrow.mr)ls.frb. fed. us /pubs /cd /06 -4 /foreclosure.cfm 2002 Foreclosure Locations in Minneapolis 2005 Foreclosure Locations in Minneapolis y r. t..t x, i..'a., �a c. w.r....r�. w i ...t�...... on w.« uo.®+ra. w..t.•c.w. a.r. ow. .rs t>,ts...•n T.w,wr..w, u.9T.a.. sre cm 2005 Foreclosure Density in Minneapolis 2002 Foreclosure Density in Minneapolis owARy d ft d to fttr N• IM 81-1 nt• d tcn "mum fro 0X9 Y-.q I :",,ata i�a190d 99W AU901►t. .0w w Dace A 1ne aXf� awe NW9 JIOX!MA tus9n. vanes,xlox r wA•e x .c4•Mab ft~ UOeCb Mimires.•oe+,Ates i0rN M1*INatMIDY ~d Wv+ p lorecbau JL EWp9 ....,t•.. Exsnpie. "y. FOt 9AlMhGF�p1f Fa a+M4in[ 1%g1 Y011P I'yitlf�'p 11D4F Re•E aR'b I9.9O[e. IyMIM OM •1agIe Q1! MT c�.w. T lnpsn r•.' Cu•,...n., w.m xm+i+w. nrm,�.. r.r v'•. r �•.•T Tb•i .T<r.or. sx• 9T.++. Yr.Yw.. w •MSxa. Oea ra.tef' �T [R••nv.M.A. aY. Zs. rnw.JrO• ?M At! Truth in Taxation Hearing Minnesota Statutes Sec 275.065 Subd. 6(d) Discuss o %increase in property taxes o Specifice purposes for which property tax revenues are being increased o Hear comments regarding increase and explain reasons for proposed increase o Allow public to speak and ask questions Close Public Hearing Adjourn Capital Increase o a return to normal level of minor equipment replacement including 48,600 of OSHA required fire Department equipment replacements Other increases o 40,000 in community development pay for consulting fees required to meet the Comp plan update for Met Council review mandated by state statute. General inflationary cost increases o Utility charges o Health Care o Pension Charges Staffing changes 0 2000 134 budgeted general fund full time employees and 166 total 0 2006 120 budgeted general fund full time employees and 151 total 0 2007 118 budgeted general fund full time employees and 149 total City of Brooklyn Center Proposed Property Tax Levy (using 767,665 of LGA for Operations) Total Levy All Sources 2006 to 2007 2006 to 2007 Pay 2005 Pay 2006 Pay 2007 Change Change General Fund Operations 10,117,000 10,494,126 10,939,788 445,662 4.25% 1994 Bonds 0.00% 1995 Bonds 73,626 0.00% 1996 Bonds 118,023 118,830 (118,830) (100.00 Police Fire Bonds 759,074 757,394 753,955 (3,439) (0.45 Housing Redevelopment Authority 251,295 257,065 265,000 7,935 3.09% 11,319,018 11,627,415 11,958,743 331,328 2.85% Residential Homestead Tax Capacity Tax Capacity Taxable Market Value x 1 Class Rate City Tax Rate City Levy Total Tax Capacity of All Property Taxes City Rate x Tax Capacity Taxes on $186.400 Limited Market Value Home in 2006 2007 Year Rate pacity Citv Taxes 2007 44.294% 1,864 $825.64 2006 47.015% 1,864 $876.36 ($50.72) Difference Impact of Increased Value Taxes on Median Limited Market Value 2006 to 2007 Year Med. Value Capacity Citv Taxes 2007 $186,400 1,864 $825.64 2006 $169.000 1.690 $794.55 Difference $17,400 174 $31.09 Impact of Police Fire Bonds i Taxes based on Market Value rather than tax capacity Year Market Value Rate Tax 2007 $186,400 0.03576% $66.66 Total City Tax General Tax Police Fire Bond Tax Example: Taxable Value $186,400 General Tax $825.64 Police Fire Bond $66.66 Total City Tax $859.94 PROPOSED TAX RATES PAYABLE 2007 Juriscictions sd 11 I sd 279 sd 281 I sd 0286 County 39.129 39.129 39.129 39.129 City 44.294 44.294 44.294 44.294 School 19.337 23.956 28.960 36.188 Shingle Creek Watershed 0 0 0 0 Sewer 0 0 0 0 Metro 2.709 2.709 2.709 2.709 Other 4.693 4.693 4.693 4.693 Total Extension Rate 110.162 114.781 119.785 127.013 Total (County, Metro Other) 46.531 46.531 46.531 46.531 HRA Levy 1.074 1.074 1.074 1.074 City with HRA 45.368 45.368 45.368 45.368 Total "Other Special Taxing Districts" excluding the HRA 46.531 46.531 46.531 46.531 Total Extension Rate- all 111.236 115.855 120.859 128.087 City Market Value Rate 0.03576 0.03576 0.03576 0.03576 School Dist Other Market Value Rate 0.137790 0.171370 0.142970 0.084620 Solid Waste Fee Taxable Market Value 0.01585 0.01585 0.01585 0.01585 Total Market Value Based Rate 0.18940 0.22298 0.19458 0.13623 City of Brooklyn Center 2007 Residential Property Tax Components $186,400 Taxable Market Value Median 3000 r i 2500 52.370 12.403 12.420 $2,227 2000- —I 581 724 757 774 School X M2 1 1500 �.t ®Clty IL I a 1000: a r :....:iiti.:ti:. o Count 500 7 :$75 0 Other Dist Dist #11 Dist #279 Dist #281 Dist #286 School District All Proposed Property Tax Totals include a homestead credit of $205. Estimated and Limited Market Value Comparison on the Median Residential Home Value in Brooklyn Center 2002 through 2006 Assessment Years 200000 "l" 186400 180000 176500 169000 166200 IS 160000 14960 160000 140200fi 15 140000 �I28 1159004d� I 120000 ir. ..*e, X4 `6 +f.. {a: s Fi. a`d .k, rc.e!' 100000 �.r: i� 5gg a 80000. Vii. r��3 z�: s a ro 60000 41 w° s.. 4� r3i: rfi mu t d: 40000 �a 24300 23600 fr; 16600 d. +,is', to 6 20000 n m 7500 4000 r�A ..`,t, ,r a ,.F.„!, •uz t:, _�zMr1. .�k�9 nk:.- 2002 2003 I 2004 2005 2006 O EMV I 140200 152000 I 166200 176500 190400 a LMV 115900 128400 149600 169000 186400 12 Difference 24300 23600 16600 7500 4000 Tax Capacity for Apartments, Commercial and Residential Property Actual and Projected Growth for the 2002 2007 Assessment Years 16000000 14000000 15436761 18981662 13942961 12000000- 12179726 10632966 9362766 10000000 Tax Capacity 8000000- 7183M 77110660, 7748699 7294213 6000000 74741197 7624394.94 4000000 I 2000000 0- Residential qq ��pp 2002 Commercial 2003 2004 2005 Apartment 2006 Assessment Years 2007 o Apartment Commercial Residential 2006 Assessment Tax Capacity Payable in 2007 Property Type Breakdown Apartments 8% Commercial 21% Ono a MUMMEN Residential ��UM 62% NONE Industrial man so 9% Farm 0% p Apartments Commercial m Industrial p Farm Residential This chart is an illustration of the total tax capacity of $25,009,912 City of Brooklyn Center 2006 Estimated Market Value Payable in 2007 Apartments 8% Commercial 12% Industrial 5% Farm 0% Residential 75% Apartments Commercial o Industrial Farm Residential This chart is an Illustration of the total estimated market value of $2,125,686,700. GENERAL FUND REVENUES 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 2002 2003 2004 2005 2006 2007 City of Brooklyn Center Revenues by Source 2002 -2007 Fiscal Years Proposed Actual Actual Actual Actual Budget Budget Revenue Type 2002 2003 2004 2005 2006 2007 Property Tax 10,539,107 10,137,807 9,368,636 10,418,176 10,179,301 10,720,993 Lodging Tax 717,176 661,267 656,859 710,619 650,000 650,000 Taxes 11,256,283 10,799,074 10,025,495 11,128,795 10,829,301 11,370,993 Licenses 214,763 207,720 242,754 246,612 260,254 362,443 Permits 609,233 619,965 435,323 428,918 423,500 409,000 Licenses Permits 823,996 827,685 678,077 675,530 683,754 771,443 Federal Revenues LGA 2,265,267 1,319,661 877,555 543,183 667,665 767,665 Other State Revenues 578,362 601,143 485,477 527,973 527,365 467,365 County /Other Local Government Revenues 27,653 56,178 64,488 50,000 55,000 Intergovernmental Revenue 2,843,629 1,948,457 1,419,210 1,135,644 1,245,030 1,290,030 General Charges for Service 39,637 29,542 36,323 47,131 29,440 31,040 Public Safety Charges for Service 25,468 25,039 23,533 42,076 13,500 13,500 Public Works Charges for Service 461 180 Recreation Charges for Service 275,176 294,901 314,415 310,641 288,563 293,601 Community Center Charges for Service 235,005 329,213 303,784 321,206 323,250 332,650 Charges for Service 575,747 678,875 678,055 721,054 654,753 670,791 Fines Forfeits 281,575 290,408 254,980 253,748 220,000 240,000 Interest Income 205,340 96,522 86,208 151,612 130,000 156,015 Refunds and Reimbursements 89,287 86,553 90,222 16,647 60,000 40,000 Other Miscellaneous Revenues 15,377 196,899 3,480 48,000 19,000 5,100 Miscellaneous Revenue 310,004 379,974 179,910 216,259 209,000 201,115 TOTAL. GENERAL FUND REVENUES 16,091,234 14,924,473 13,235,727 14,131,030 13,841,838 14,544,372 General Fund Revenues 2007 Licenses Permits 5.30% Intergovernmental Revenue 8.87% Taxes 78.18% Charges for Service 4.61% Fines Forfeits 1.65% Miscellaneous Revenue 1.38% Local Government Aid 2,500,000.00 2,000,000.00 1,500,000.00 1,000,000.00 461,723 500,000.00 0.00 2002 2003 2004 2005 2006 2007 GENERAL FUND EXPENDITURES 16, 000, 000 14,000,000 12,000,000 10,000,000 L c 8,000,000 G 6,000,000 4,000,000 2,000,000 2002 2003 2004 2005 2006 2007 Year City of Brooklyn Center Expenditures by Department 2002 -2007 Fiscal Years Proposed Actual Actual Actual Actual Budget Budget 2002 2003 2004 2005 2006 2007 General Government 1,948,618 1,917,123 1,966,890 1,971,944 2,073,070 2,243,934 Police 5,088,384 5,100,714 5,410,423 5,586,429 5,829,622 5,800,076 Fire 746,493 765,535 774,105 828,695 820,929 924,867 Community Development 434,785 406,626 457,726 479,289 505,640 563,836 Other Services 444,150 405,683 379,332 423,618 392,275 389,701 Buildings Grounds 604,806 580,483 618,708 621,056 613,945 739,393 Public Works 2,715,092 2,514,629 2,478,429 2,494,380 2,674,008 2,769,296 C.A.R.S. 1,298,008 1,223,946 1,183,010 1,176,694 1,271,069 1,381,348 Miscellaneous 1,548,652 1,921,999 (425,725) 186,271 (338,720) (268,079) GENERAL FUND 14,828,988 14,836,738 12,842,898 13,768,376 13,841,838 14,544,372 General Fund Expenditures 2007 C.A.R.S. 9.33% General Government 15.15% Public Works 18.70% Buildings Grounds 4.99% I Other Services Police 2.63% 39.16% Community Development 3.81% Fire 6.24% City of Brooklyn Center Expenditures by Type 2002 -2007 Fiscal Years Proposed Actual Actual Actual Actual Budget Budget 2002 2003 2004 2005 2006 2007 Wages 7,237,145 7,227,537 7,516,840 7,393,239 7,812,008 7,978,482 Retirement Contributions (LR) 950,519 971,539 1,035,998 1,022,406 1,134,529 1,218,951 Insurance Contributions 649,179 675,690 771,750 771,932 960,720 1,011,908 Worker's Compensation Insurance (I-R) 131,125 199,763 169,217 182,866 239,301 262,373 Personal Services 8,967,968 9,074,529 9,493,805 9,370,443 10,146,558 10,471,714 Operating Supplies 254,986 226,431 228,470 239,996 270,150 282,217 Repair Maintenance Supplies 215,231 171,110 146,263 153,891 181,250 202,500 Small Tools Minor Equipment 29,047 42,300 46,504 40,370 56,550 94,075 Supplies 499,264 439,841 421,237 434,257 507,950 578,792 Professional Services 581,833 403,058 437,094 580,419 424,107 549,739 Communications 180,501 146,561 145,593 171,120 186,647 162,694 Utilities 373,467 449,854 469,042 511,995 486,480 511,495 Insurance 160,053 139,187 136,644 127,383 178,800 177,200 Repair Maintenance Services 318,592 185,067 349,678 374,443 253,467 257,575 Central Garage Charges 940,745 861,999 890,570 959,650 988,146 986,905 Software /IT Licenses Services 303,492 402,516 308,876 322,199 323,754 296,422 Other Services 1,007,035 962,385 949,443 985,970 1,051,844 1,138,930 Transfers 1,324,819 1,589,649 (759,084) (129,085) (760,365) (775,500) Other Charges Services 5,190,537 5,140,276 2,927,856 3,904,094 3,132,880 3,305,460 Capital Outlay 171,219 182,092 59,582 54,450 188,406 GENERAL FUND 14,828,988 14,836,738 12,842,898 13,768,376 13,841,838 14,544,372 City of Brooklyn Center Expenditures by Type 2002 -2007 Fiscal Years Proposed Actual Actual Actual Actual Budget Budget 2002 2003 2004 2005 2006 2007 Personal Services 8,967,968 9,074,529 9,493,805 9,370,443 10,146,558 10,471,714 Supplies 499,264 439,841 421,237 434,257 507,950 578,792 Other Charges Services 5,190,537 5,140,276 2,927,856 3,904,094 3,132,880 3,305,460 Capital Outlay 171,219 182,092 59,582 54,450 188,406 GENERAL FUND 14,828,988 14,836,738 12,842,898 13,768,376 13,841,838 14,544,372 Expenditures by Type 2007 Capital Outlay 1.30% Other Charges Services 22.19% I I Supplies 4.01 I Personal Services 72.50%