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Home My WebLink About2004 12-06 CCP Initial Hearing on Taxes AGENDA CITY COUNCIL MEETING INITIAL HEARING ON PROPERTY TAXES DECEMBER 6, 2004 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 Council Action: -Open Public Hearing - Public Comments and Questions -Close Public Hearing or Continue to December 13, 2004, at 6:00 p.m. in the City Council Chambers if Initial Hearing Cannot be Completed 5. Adjourn r Truth in Taxation Hearing • Minnesota Statutes Sec. 275.065 Subd. 6 (d) • Discuss — %increase in property taxes — specific purposes for which roe p P � property rtY tax revenues are being increased — hear comments regarding increase and explain reasons for proposed increase — allow public to speak &ask questions NOTICE OF PROPOSED TOTAL BUDGET AND PROPERTY TAXES The City of Brooklyn Center will hold a public hearing on its budget and on the amount of property taxes it is proposing to collect to pay for the costs of services the City will provide in 2005. SPENDING: The total budget amounts below compare the City's 2004 total actual budget with the amount the City proposes to spend in 2005. 2004 Total Proposed 2005 Change from Actual Budget Budget 2004 to 2005 $ 20,939,463 $ 21,693,308 +3.60% TAXES: The property tax amounts below compare that portion of the current budget levies in property taxes in the City of Brooklyn Center for 2004 with the property taxes the City proposes to collect in 2005. 2004 Property Proposed 2005 Change from Taxes Propertv Taxes 2004 to 2005 $ 10,778,957 $ 11,319,018 +5.01% LOCAL TAX RATE COMPARISON: The following compares the City's current local tax rate, the City's tax rate for 2005 if no tax levy increase is adopted, and the City's proposed tax rate for 2005. 2004 2005 Tax Rate if 2005 Proposed Tax Rate NO Lew Increase Tax Rate 52.435% 47.117% 50.424% i, 2 City of Brooklyn Center :70W Property Tax Levy Total Levy All Sources Pay 2004 Pay 2005 $ Change % Change i General Fund Operations 9,497,064 9,798,806 301 3.18% LGA Loss Replacement - 310,422 310,422 - 1994 Bonds 69,536 - (69,536) (100.00 %) 1995 Bonds 70,995 73,626 2,631 3.71% 1996 Bonds 122,383 118,023 (4,360) (3.56 %) Police & Fire Bonds 786,584 759,074 (27,510) (3.50 %) Housing & Redevelopment Authority 232,395 259,067 26,672 11.48% 10,778,957 11,319,018 540,061 5.01% 3 Operating, Debt & H-RA Levies +State Aids 2002 2003 Operating Levy ■ State Aids HRA Levy 2004 El Debt Service Levy 2005 ----------------------- - - - - ------ --------- -- ----------------------------------------------------------- - - - - ----- ----- -------- $0 $5 $10 $15 Millions Major Budget Influences • 2004 Loss of $1.68 Million in State Aid • 2005 Loss of an additional $335,000 in State Aid • Loss of $3.3+ Million in HACA &Local Government Aid 2002 - 2005 Revenues $14 $12 $10 cn $8 c ❑ Taxes $6 State Aids $4 $2 2001 2002 2003 2004 2005 Chart is without debt service 6 2003 to 2005 General Fund Operations 2003 Operating Budget $13,759,777 2004 Operating Budget $12,982,258 ' 2005 Operating Budget $13,391,078 General Fund Operating Budget • Maintain Police Patrol at full strength • Maintain Fire operations at current levels • Maintain general operations at 2004 levels • Provide modest technology funding 8 General Fund Re venue s 2005 Real Estate Tames 734% _ Interest 1.1% Court Fines 1.7% Rec. & Ca Center Fees 4.6% Charge for Service 0.2% State Ai ds 7.9% Publ is Safety Charges Licenses & Pern i is 0.1% 5.1% Misc. Tams Misc. Re\,ente 4.8% 1.1% ` 9 General Fund IOUerating Revenues 2004 2005 : - ' , Increase Taxes $9 3 ,497 9 064' $10,117,000'; $619,936 6.53% :Est. Uncollectable ($284,912) ($293 ($8 3.00 %' !Miscellaneous Taxes $66000 $640 ($20 - 3.03% Licenses & Permits $698,070, $688 ($9,750) Intergovernmental Rev. $1,335,216 $1 ($223 - 16.73% Charge for Service $30 $26,150; ($4 - 14.74 %' :Public Safety Charges $18 $14 ($4 - 21.68% !Recreation $273 $268 ($4 - 1.71% (Community Center Fees $304 j $310,000 ! $5 1.79% Court Fines $225,000 $225,000:: $0. 0.00% Misc. Revenue $75 $208,250 $133 250 177.67% j Interest $150,000' $75 ! ($75,000) - 50.00% TOTAL $12,982,258 $13 $408 3.15% 10 Im pact of Levy Increase • Median House City Tax Increase: • Impact of Value Change and Limited Market Value (Shift to Residential): $31.60 year • Impact of Levy Increase $50.48 year � •Total Impact on Median House: $81.08 year ,'Tax Computation Residential Homestead Tax Capacity Tax Capacity = Taxable Market Value X 1% City Tax Rate = City Levy/Total Tax Capacity of all Property Taxes = Rate X Capacity :Taxes $128,400 limited market value home in 2004 & 2005 Year Rate Capacity Citv Taxes 2005 50.424% $1,284 $647.44 2004 52.435% $1,284 $673.27 ($25.82 Impact of Increased Value: Taxes on Median limited market value 2004 to 2005 Med. Value Capacity City Taxes : 2005 $149 $1 $754.34 2004 $128 $1 $673.27 Difference $21 $212 $81.08 '12 Impact of Police & Fire Bonds !.Taxes based on Market Value rather than tax capacity p Y Rate Tax Market Value $149,600 0.04837%1 $72.36 Total City Tax = General Tax + Police & Fire Bond Tax Example: I Value $149,600 !General Tax $754.34 Police & Fire Bond $72.36 $826.70 13 River Influence &Waterfront City Tax Median River Influence 2004 2005 Tax 2004 Tax 2005 Market Value $182,550 $196,600 Limited Value $149,950 $172,850 Tax Capacity $1,500 $1,729 $786 $872 Median Waterfront Market Value $266,150 $327,500 Limited Value $223,050 $257,100 Tax Capacity $2,231 $2,571 $1,170 $1,296 14 Tax Capacity 2004 I _ commercial 29.6% - - Industrial _ — I _ I Residential J — 51.8% Tax Capacity 19961 — commercial — 5Q 2% — apa-tmnt _ 11.4% Industrial Resident al — 9.4% 29.0% - - 15 i Values 1996 - Z005 Tax Ca acities 1996 -200 Market , P 1500 14 12 — 10 — 1000 8 — p G p o 6 — 500 — 4 _ 2 - i 0 y ido— 0 Apartrnent Commercial Industrial Residential Farm Apartment Commercial Industrial Residential Farm 16 Estimated and Limited Market Value Comparison on the Median Residential Home Value in Brooklyn Center 2002 through 2007 Assessment Years 250000 215100 215100 201102 197846 200000 182820 172040 166200 152000 149600 150000 140200 12saoo 115900 100000 50000 24300 23600 16600 10780 3256 0 0- 2002 2003 2004 2005 2006 2007 • EMV 140200 152000 166200 182820 201102 215100 • LMV 115900 128400 149600 172040 197846 215100 • Difference 24300 23600 16600 10780 3256 0 17 General Fund 2005 City Manager Mayor & Council 1.4% 0.9% City Clerk Convention & Tourism 1.3% 2.2% Finance Park M aint. 5.2% 6.3% Legal 1.9% Recreation Admin Human Res. 7.7% 1.6% CARS Admin. 1.2% Other Gen. Gov't. Social Services 7.8% 0.6% Maintenance Streets 8.9% Publ i c Works Ad mi n. 3.6% Emergency Prep. 0.5% Ins,)ections 2.5% Fi re 5.3% Pol ice 41.2% 18 Groupings 11 11 i l - ' Mayor & City Council $134,303 ? $128 $129,297 $889 0.69% City Manager $205,689 $185,554', $191,504' $5,950; 3.21% City Clerk $164 $168 $171 $2 1.71% Finance $675 $704 ! $708 $4 0.68% !Legal $250,000. $250 $265,000 $15 ! 6.00% ,Human Resources $225 $223 $220,814 ($2,431) -1.09% 'Other Gen. Gov't. $1,040,680 $1 $1 $36,794 3.59% Police $5,452,700 $5,331,400!,, $5 $305 5.73% (Fire $707 $692 $721,943 $29 026 4.19% Inspections $29304 $326 $341,760 $15 4.78% Emergency Prep. $61 $63 $64 $1 1.95% 'Public Works Admin. $575,683 $456 $495,911 $39 8.57% !Maintenance Streets $1,359 $1 $1 511 ($112 - 8.50% ,Social Services $93 $73 $79,790' $6 9.27% CARS Administration $154 $150 $159,214 $8,344 5.53% ;Recreation Admin $1,272,869' $1 $1,053,552 $24 2.42% 0 Maintenance Parks $1 $865 $866,106 $562 0.06 /0 Convention &Tourism $339 $330 $304 000' ($26 9 000) - 7.88% - - � 0 .Unallocated ($276868) ($370 ($362 7 733 - 2.09 !Other Financing $1 $25 $70,000 $45 180.00% j $15 $12 $13,391 $408 3.15% 19 Expenditures General Government — Public Safety — Poke & Fire Bonds — i Community Development — Public WQIs — Nor Social Services — Parks & Recreation — Convention & Tourism — RiskMamgement — , 1997 ❑ 1998 Unallocated Dept. — , 1999 2000 ® 2001 Reimbursement from Other Funds — 2002 2003 Transfers to Capital Prq ects — 2004 2005 Transfers to Debt Service - - -2 1 0 1 2 3 4 5 6 7 Mons 20 Types of Expenditures M 11 � 11 Per - Change Salaries $7,461,089 $7,599,415 ! 1.85% $138,326 ,Fringe Benefits $2,019,312 $2,086,414 3.32% $67,102 ; Supplies $507 $494 -2.55% ($12 Purchased Services $402,310 $401290 ($1,020) ,Communications $213,824 $258,958 21.11%: $45,134 Repair, rental $309 $293,666 - 5.16 % ($15,971) ,Other Contractual $1,164,050 $1,311,660 12.68% $147,610 ;Central Garage $987 $942,628 -4.54% ($44,855) Insurance $166 401 $170500 2.46% $4 099 > > ;Utilities $439,980' $459,660' 4.47% $19,680 ,Capital Outlay $27,500 $63,000 129.09%: $35,500 'Transfers to other funds $25 $70 000 180.00 /o ,000 ° , , ' $45,000 'Administrative Service ($354,084) ($354,084) - 0.00% $0 0 Reimburs ement ($430,000) ($454,638) 5.73 ($24 Cost of Sales $28,533 $8,500' - 70.21 %' ($20,033) Contin enc $13 $3934511 190.88% $25,819 �.Y TOTAL $12 $13,391,078', 3.15% $408 21 General Fund Expenditures by Type 2005 Personnel Costs 68.5% _ Capital Outlay 0.4% Transfers to Other Funds 0.5% Conting emy 0.3% Utilities 32% Insurance 12% Central Garage 6.7% Cost of Sales 0.1% Other Contractual 9.3% Supplies J _ 3.5% Rep L air, rental Services J 2.1 % 2.8% Conmurications 1.4% .2 City of Brooklyn Center 2005 Residential Property Tax Components $166,200 Estimated Market Value Median $149,600 Limited Market Value Median 2500 1 34 71, 2, $ 2,054 4 A iw 4 A 2000 E 6W-7" M School N Mw, Zq 1500 0 City 721 721 721 721 IL 1000 i �� .er 0 U UOUIRY 3 1 4 500 n ww, ,;j "s ww�m O ther Dist 128 J 28 0 _*U District 11 District 279 District 281 District 286 $149,600 Limited $149,600 Limited $149,600 Limited $149,600 Limited $166,200 Estimated $166,200 Estimated $166,200 Estimated $166,200 Estimated Property Tax $1,931 Property Tax $2,002 Property Tax $2,054 Property Tax $2,172 School District 23