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Home My WebLink About2003 12-01 CCP Initial Hearing on Propety Taxes R AGENDA CITY COUNCIL MEETING INITIAL HEARING ON PROPERTY TAXES DECEMBER 1, 2003 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 8, 2003, at 6:00 p.m. in the City Council Chambers if Initial Hearing Cannot be Completed 5. Adjourn Truth in Taxation Hearing • Minnesota Statutes Sec. 275.065 Subd. 6 (d) • Discuss — %increase in property taxes — specific purposes for which property tax revenues are being increased — hear comments regarding increase and explain reasons for proposed increase — allow public to speak &ask questions • 2003 proposed tax levy was less than 2002 levy December 1, 2003 r , Notice of Proposed Total Budget and Property Taxes The Brooklyn Center city council 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 2004. SPENDING: The total budget amounts below compare the city's 2003 total actual budget with the amount the city proposes to spend in 2004. 2003 Total Change Proposed 2004 p Cage from Actual Budget I Budget 2003 —2004 $23,351,240 $21,077,248 -9.74% TAXES: The property tax amounts below compare that portion of the current budget levied in property taxes in the city of Brooklyn Center for 2003 with the property taxes the city proposes to collect in 2004. 2003 Property Proposed 2004 Change from Taxes Property Taxes 2003 —2004 $9,359 $9,759,978 +4.27% LOCAL TAX RATE COMPARISON: The following compares the city's current local tax rate, the city's tax rate for 2004 if no tax levy increase is adopted, and the city's proposed tax rate for 2004. 2003 2004 Tax Rate if 2004 Proposed Tax Rate NO Levy Increase Tax Rate 52.791% 49.727% 52.399% Operating, Debt &Authority Levies + State Aids Budget 2002 Operating Levy 2003 State Aid HRA Levy ❑ Debt Service Levy 2004 $0 $5 $10 $15 Millions r Revenues $14 $12 $10 (n $g ® Intergovernmental Rev. o Taxes $6 $4 $2 $0 _ ....... 2001 2002 2003 2004 Chart is without debt service All Tax Levies 2003 2004 Change % General Fund Operations $9 $9,497,064 $398,833 4.38% Housing & Redevelopment Authority 213562 232395 18833 8.82% 1994 Bonds $66 $69,536 $2,685 4.02% 1995 Bonds $73,522 $70 ($2 -3.44% 1996 Bonds $121,073 $122,383 $1,310 1.08% Police & Fire Bonds $782,048 $786,584 $4,536 0.58% Total of All Levies: $10 $10 $423 4.09% State Tax Truth in Taxation Levy Notice 20 03 2004 Cban , General Fund Operations $9 $9 $398 4.384% 1994 Bonds $66,851 $69 $2 4.016% 1995 Bonds $73 $70 ($2,527) - 3.437% 1996 Bonds $121,073 $122,383 $1,310 1.082% $9,359,677 9 759 978 $400 4.277% Major Budget Influences • 2004 Loss of $1.68 Million in State Aid — Levy authority up to $10,040,665 in 2004 (60% recapture of lost aid) — Proposed 2004 Operating Levy is $9,497,064 — Proposed use of gas &electric franchise fees to replace lost aids and General Fund transfers for Street reconstruction Major Budget Influences State Aid Cuts — 2003 Loss of $1.18 Million in State Local Government Aid • No ability to replace any portion of this loss • Results in — No General Fund Operating Transfers for Street Reconstruction or Capital Projects — Reduced service levels 2003 to 2004 • 2003 General Fund $15,408,221 — Less Debt, Street, &Capital Projects >> 1,648,494 2003 Operating Budget $13,759,777 2004 Operating Budget $12,982,258 Operating Cuts $ 777,519 2004 Levy Limit • 2004 Levy Limit $10,040,665 • Preliminary Levy $ 9,497,064 • Amount Below Limit $543,601 General Fund Operating Budget • Maintain Police Patrol at full strength • Maintain Fire operations at current levels • Maintain general operations with reduced budget • Reduce — Street &Park maintenance • Not replace recent retirements • Reduced seasonal hiring I Operations Continued • Programs retained: — Senior Transportation — Staffing for Earle Brown Days Committee • Support for Earle Brown Days Parade • Programs eliminated in Draft Budget: — PRISM medical Transportation (funding maybe accomplished at reduced amount from 2003 budget for 2004 service) — North Hennepin Mediations Services — COOP Northwest — DARE Operations Continued • Programs Reduced — Reduced Pool hours — Reduced Programming • Senior • Youth after school • Recreation programs — Ice rinks • Reduced # (5) • Elimination of warming houses Personnel Reductions • 2003 Budget — Eliminated 3 full -time positions from budget 2004 Budget — Eliminates 6 full -time positions from budget • Engineering Tech , •Street Maintenance • (2) Park Maintenance • Administrative Tech • Aquatics Supervisor Tax Implications • Impact of raising $398,833 in additional real estate taxes — $398,833 divided by 8,371 houses multiplied by 60% _ $28.60 per year I •Impact of reductions in limited market value and increasing residential value — Shifts tax to residential — Estimates from Henn. Co. $200 per year due to shifts General Fund Revenues _ ;Taxes $9,098,231 $9,497,064 $ 398,833 4.38% Est. Uncollectable ($272,947; $284,912 $11 4.38% Miscellaneous Taxes $700,000 $660,000 -5.71% ($40,000, Licenses & Permits $612,720 $698 $85 13. 93% mental Re Inter overn _ _ a v. $2 $1,335,216 ($1,663,969; 55.48% Charge e for Service $24 $30 $6,050 24 .57% Public Safety Charges $17 $18 $1,000 5.73% Recreation $32 4,172 $273,150 ($51,022, -15.74% Y ($12 -3.90% Communit Center Fees $316 900 $304 550 Court Fines $200,000 $225,000 $25 12.50% Misc. Revenue $75,000 $75,000 $0 0.00% Interest $300,750 $150,000 ($150,750; - 50.12% TOTAL $14,396 $12 ($1,413,823; -9.82% Note: 2003 & 2004 shown without debt service reflecting ASB 34 requirements g q Ge ner al Fund Re venue s 2004 Real Estate Taxes 71.0% I Interest 1.2% Court Fines 1.7% Rec. & Carm Center Fees 4.4% Charge for Service 0.2% State Acis 10.3% Putt is Safety Charges Licenses & Permi is 0.1% 5.4% Misc. Taxes Misc. Rewnue 5.1% u 0.6% Tax rates across schools TAX RATES PAYABLE 2004 (applied to 2003 assessment) Juriscictions sd 11 sd 279 sd 281 sd 0286 County 47.195 47.195 47.195 47.195 City 52.401 52.401 52.401 52.401 School 21.218 23.688 34.264 48.527 Watershed 0 0 0 0 Sewer 0 0 0 0 Metro 3.495 3.495 3.495 3.495 Other 4.095 4.095 4.095 4.095 Total Extension Rate 128.404 130.874 141.45 155.713 Total (County, Metro & Other) 54.785 54.785 54.785 54.785 HRA Levy 1.255 1.255 1.255 1.255 City with HRA 53.656 53.656 53.656 53.656 Total - Other Special Taxing Districts" excluding the HRA 54.785 54.785 54.785 54.785 Total Extensio Ra te- all 929.659 132.129 142.705 156.968 City Market Value Rate 0.04837 0.04837 0.04837 0.04837 School Dist Voter Approved Market Value Rate 0.134020 0.162120 0.159340 0.115320 School Dist Other Market Value Rate 0.009360 0.007250 0.006450 0.035950 Solid Waste Fee - Taxable Market Value 0.01886 0.01886 0.01886 0.01886 Total Market Value Based Rate 0. 21061 0.2366 0.23302 0.2185 City of Brooklyn Center 2004 Residential Property Tax Components $152,000 Estimated Market Value Median $128,400 Limited Market Value Median 2500 2000 $1,875 . $1,678 $1,743 ❑ School 73785 — 591.@ e „ 415.52 x 1500 414,4 ' ❑ City CL 640.55 1 631.06 633 649. U Ei County 500 52035 522.12 529.0 536 87 F� ® Other Dist O b? dY' "i "nYy 1 i +ts ',- ', BAY i''.Jt. ' .•t d`SlihS,1'J .E ;t w....+:, r�,.x. t' �fidr yKA o . : { , . u�. District 11 District 279 District 281 District 286 $128,400 Limited $128,400 Limited $128,400 Limited $128,400 Limited $152,000 Estimated $152,000 Estimated $152,000 Estimated $152,000 Estimated Property Tax $1,678 Property Tax $1,743 Property Tax $1,875 Property Tax $2,039 School District AADisl ComparelS 152,000 Median C ity of Brooklyn C enter 2004 Residential Proposed Property Tax $152,000 Estimated Market Value with $128,400 Limited Comparison of 2004 Proposed Property Tax to 2003 Actual Property Tax 2500 Yg 'All g d a �a p ? n r ' ,�=� .a ." M 'a�� S r ..D �'.� „ �'F r a Y @ n" <, �: ^§�.�£,`~'n ' �y -, ,?� ° u � � ^F3 � 'r k {a �x.. "��w.: &q'" �., r �" e vj x �, e „e 'Fr,��;:�° ' `* "� rr,,.2 ^}d.�.'�'; , * ":L t;�.,.f, rw �'a, .tlE t. ,r�i,,. " :e9 rtra,�.= ww•w 7 ,`�A,d, E; ..s1, �4' *'h�;K�, l l _«,w ��z k' }: i! �kp � CFC " r'�'� 2000 "W"KrO, Ii. A rw l 1 , Ito +'M `�` '��1645 , ;'�� , � ��,� ��§ `��? a��' , Jp x r � '�} �''!�`� 1648 A Y �:'� K �, u # �, � ,� �� X 1500 . . . . . .. . . .. . J L �, , �, �° NF1 �; � �� `! Zr�%K yy •+ 1 }' �`S+`,�,�yf �P " �} �a, • d �4� t # F `� S ° � t 1 . F ;n 11 •� vy '� v, .�" w �x u'�'' i Elf 1000 - 2 CM F v 500 . . . . . . . . . . . 0 IF 279 281 286 School District m 2003 n2004 Estimated and Limited Market Value Comparison on the Median Residential Home Value in Brooklyn Center 2002 through 2007 Assessment Years 250000 M543.2' 222543.2 202312 195280.35 200000 183920 1. . 169809 67200 152000 147660 150000 140200 128400 115900 100000 50000 24300 23600 1,9540, ,7031.65 0 0 2002 2003 2004 2005 2006 2007 ■ EMV 140200 152000 167200 183920 202312 222543.2 ❑ LMV 115900 128400 147660 169809 195280.35 222543.2 ■ Difference 24300 23600 I 19540 14111 7031.65 0 I Market Values 1500 12 ( Tax Capacities 10 — 1000 — g _ 1996 ® 2001 = ' 1996 o = ® 1997 2002 - 1997 1998 2003 6 _ _ - _ El 1999 0 ❑ 1999 2004 2 - 2000 ® 2000 2001 500 — = = s 4 2002 — _ _ 2003 r_ 2004 ,k - 2 r- - L _ { i Apartment Industrial Farm Commercial Residential Apaitment Commercial Industrial Residential Farm Tax Capacity 2 0 04 Commercial r 29.6% Industrial 8.6% � Apatment 10.0% Residential J 51.8% Tax Capacity 1996 Commercial 5(12% Apartment 11.4% Industrial Residential 9.4% 29.0% Types of Expenditures 2003 2004 • - Salaries $7,769,940 $7,461,089 -3.97% ($308,851) Fringe Benefits $2,013,456 $2,019,312 0.29% $5,856 Supplies $557,577 $507,697 -8.95% ($49,880) Purchased Services $437,250 $402,310 -7.99% ($34,940) Communications $303,340 $213,824 -29.51% ($89,516) i Repair, rental $576,578 $309,637 - 46.30% ($266,941) I Other Contractual $917,245 $1,164,050 26.91% $246,805 Central Garage $1,003,869 $987,483 -1.63% ($16,386) Insurance $157,301 $166,401 5.79% $9,100 Utilities $450,980 $439,980 -2.44% ($11,000) Capital Outlay $247,915 $27,500 - 88.91% ($220,415) i 1 Transfers to other funds $1,648,494 $25,000 - 98.48% ($1,623,494) Administrative Service ($354,084) ($354,084) -0.00% $0 i i Reimbursement ($430,000) ($430,000) -0.00% $0 Cost of Sales $39,300 $28,533 - 27.40% ($10,767) Contingency $69,110 $13,526 - 80.43% ($55,584) TOTAL $15,408,271 $12,982,258 - 15.74% ($2,426,013) General Fund 2004 City Manager Mayor & Council 1.4% 1.0% _ City Clerk Convention & Tourism 1.3% 2.5% Finance Park Maint. 5.3% 6.5% Legal 1.9% Recreation Admin Human Res. 7.7% 1.7% CARS Admin. 1.1% Other Gen. Gov't. Social Services 7.7% 0.5% Maintenance Streets 9.9% Public Works Admin. _ 3.4% Emergency Prep. 0.5% Inspections 2.4% Fire J 5.2% Police 40.0% General Fund Expenditures 2004 Public Safety 44.2% General Government 12.6% Transfers to Capital Projects - - 0.2% -�- \_ Unallocated Dept. 1.6% Risk Management 1.4% Convention & Tourism 2.4% Community Development 5.2% Parks & Recreation 14.9% Public Works Social Services 17.0% 0.5% General Fund Expenditures by Type 2004 Personnel Costs 68.9% I Capital Outlay u n V.,VJiilkiilr 0.2% Transfers to Other Funds 0.2% Contingency 0.1% Utilities 3.2% Insurance 1.2% Central Garage 7.2% I Cost of Sales 0.2% Other Contractual 8.5% Supplies 3.7% Repair, rental Services 2.2% 2 9% Communications 1.6% Expenditures General Government — •��- .. Public Safety — Police & Fire Bonds — Community Development — Public Works — Social Services — Parks & Recreation — Convention & Tourism — Risk Management — 1997 ❑ 1998 Unallocated Dept. — . 1999 E 2000 Reimbursement from Other Fund— 0 2001 ■ 2002 Transfers to Capital Projects 2003 E2004 Transfers to Debt Service — -2 -1 0 1 2 3 4 5 6 7 Millions Groupings 2003 2004 % cut Mayor & Council $134,303 $128,552 - 4.28% City Manager $205 $185,554 - 9.79% City Clerk $164,505, $168 2.45% Finance $675 $704,193 4.25% Legal $250 $250,000 0.00% Human Res. $225 $223 -0.85% Other Gen. Gov't. $1,040 $1,024,080 -1.60% Police $5,452,700 $5 - 2.22% Fire $707 $692 -2.11% Inspections $293 $326 11.07% Emergency Prep. $61 $63 2.20% Public Works Admin. $57503 $456,764 - 20.66% Maintenance Streets $1 $1 -2.55% Social Services $93 $73,024 - 21.57% CARS Admin. $154 $150 -2.66% Recreation Admin $1 $1 - 19.19% Park M aint. $1 $865,544 - 15.86% Convention & Tourism $339 $330,000 - 2.87% Unallocated ($276 ($370,280) 33.74% Other Financing $1 ; $25 -98% $15,408 $1219825402 Cash Flows $7 $6 $5 ' o $4 Revenue $3 ® Expenditure $2 $1 $ — ' L CL 0 0 z Franchise Fee • Gas &Electric Franchise Fee — Would raise roughly $650,000 using flat customer charges (instead of originally proposed percentage rates) — Would be used to fund street reconstruction — Replaces $480,000 budgeted transfer from General Fund and $300,000 planned surplus transfer for streets (some unspent monies will occur in 2004) Franchise Fee. • Gas &Electric Franchise Fee — Impact on residential customer of $2.96 per month: • Gas $1.48 per month • Electric $1.48 per month