HomeMy WebLinkAbout1998 12-07 CCP Truth in Taxation e
BUDGET HEARING
FREQUENTLY ASKED QUESTIONS
0 1. How much of my total property tax bill pays for the City Services?
P Y P Y Y
Depending upon the value of your home and the school district you live in, approximately 30 to 33
cents out of each dollar of property tax goes to the City.
2. What is the General Fund?
The General Fund is the entity which provides the services such as police, fire, streets, parks,
recreation, inspections, and administration which citizens most often think of as the City.
3. What is debt service?
This is payment of principal and interest on past borrowing for capital outlays of the City which are
repaid using the property tax. The tax levy for debt service was $1,042,230 in 1998, but an estimated
$1,048,707 is needed in 1999.
4. What are the Economic Development Authority and the Housing and Redevelopment Authority?
These funds conduct housing and redevelopment projects funded by a combination of state and federal
grants and property taxes.
5. What is the purpose of tonight's meeting?
Tonight's meeting is to give the public an opportunity to give input to the City Council on the budget.
By state law, the City Council may not take action to adopt the budget at a meeting at which it takes
public input.
6. When will the budget be adopted?
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By state law, the City Council must adopt the budget no later than December 27, 1998. The City
Council has set a subsequent hearing and meeting to adopt the 1999 budget for December 14, 1998.
7. I disagree with the final 1998 market value for 1999 taxes shown on my Proposed Property Tax
Notice. How can I get that changed?
The market values have been finalized at this point and cannot be changed by the City of Brooklyn
Center. Your avenues of appeal will be listed on the back of your 1999 Tax Statement. In order to
change the market value, a Tax Court Petition will need to be fled prior to March 31, 1999. The Tax
Statement will provide a telephone number for assistance and forms needed to file that tax appeal.
8. I am on a fixed income and cannot afford the increase. What can I do?
The State of Minnesota provides a property tax refund program that has two components. One
component is targeted toward individuals on fixed or low income and is tested and based on the
relationship between the amount of your property taxes and your income. The second component is
targeted toward property owners whose taxes have increased faster than an established rate. There is
no income test for this tax increase refund. The qualifying levels and the amount of refunds change
each year so it is impossible today to predict whether or not an individual would qualify for a refund.
If you would like to order forms for next year, you may contact the Department of Revenue after
January 15, 1998, at 296 -4444 in order to request form M1PR. Questions on the refund program
® should be directed to the Minnesota Department of Revenue at 296 -3781.
City o Brookl n Center
_ y f y
A great place to start. A great place to stay.
•
To: Mayor Kragness and Council Members Carmody, Hilstrom, Lasman and Peppe
From: Michael J. McCauley
City Manager
Date: December 7, 1998
Re: General Fund Budget
OVERVIEW:
Revenues are increased in the 1999 proposed budget by $317,350. This is a 2.41% increase. The rate
of increase is insufficient to keep up with the increased costs of personnel over time. Personnel costs
represent 62.42% of the General Fund Budget in 1999. Personnel costs were 61.71% of the 1998
budget. Real estate taxes account for 56% of the General Fund revenues. Intergovernmental
revenues, primarily from the State of Minnesota are increasing only 1.06% over 1998. The State
increased the costs of pension contributions in 1998, but only funded the resulting increase at the
1998 levels. Thus the increased pension costs as salaries rise are solely the burden of the City.
Miscellaneous taxes comprised primarily of lodging taxes and permit fees account for the only other
significant increase in revenues. These sources provide $139,685 of the increase or 33.15% of the
revenue increase. Salaries and fringe benefits alone constitute $291,350 of the $317,350 budget
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increase. This does not include a a g reater potential increase in fringe benefit costs that may result
from the recent arbitration award to the Teamster's union employees.
Recreation fees are budgeted at lower levels in the 1999 budget reflecting current and recent past
revenue rates. Enclosed is a review of recreation fees and performance by Mr. Glasoe. His analysis
reflects the experience in operations. It also reviews the policy goal of having adult programs pay
their entire marginal costs and make some contribution to the overhead of the department.
This budget absorbs a $57,348 increase in building costs due to the new police station. This is a
partial year. The 2000 budget will have to be increased for a full year and actual experience. The
enclosed sheets show the areas of budget increase by divisions.
Snecific Areas
1. Budget Format.
The budget summary sheets now refer to "Purchased Services" rather than "Consulting" for the
grouping of the following expenses
t Charter Commission
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
Professional Services
. Benefits Administration
Legal Services
Audit & Financial Services
Medical Services
Instructors
Casual labor
2. City Council Goals
Goal 2 is supported by continued funding of code enforcement. The liaison position is in the budget
and will continue. Continuity from 1998 into 1999 should enable the program to improve and be
more effective.
Goal 3 is supported by continued funding of police positions and the newsletter publication.
Goal 5 is supported with the administrative assistant position that would provide greater capacity to
undertake projects and research.
Goal 7 is supported by funds in Central Supplies and Services for professional services and the
police department's commitment to increased and systematic traffic enforcement.
Goals 1, 4, 6, and 8 are supported by personnel levels to undertake the projects and provide support
to the City Council in achieving the goals.
3. CARS Administration
CARS administration has been separated from Recreation Administration into two separate sections
of the budget.
4. Personnel
The budget reflects retention of the full -time position in Administration that was reduced to a part -
time position earlier this year as an experiment moving a person from Community Development to
the front desk. Actual experience and the auditor's delineation of limitations on the use of personnel
(Auditor has indicated use of assessing secretary and water billing clerks poses audit control
problems), indicates that having shifted permits to the front, we need to staff the front desk with 2
people to cover absences and provide service. The shift has improved service. The position will be
reconfigured as customer service.
The fire chief has requested additional part-time pay for drills and duty. Drill pay was added in the
1997 budget ($35,000). Chief Boman's original request was for $30,000 in 1999. His modified
request to phase in an additional $10,000 in each of the next 3 years has been incorporated in a
S $10,000 increase in the proposed 199 budget.
Public Works requested an additional engineering technician and the reduction of the use of seasonal
personnel as a partial offset to the cost of an additional technician. The specific justification is in
keeping up with the updating of project information. Specific goals have been established for the
position to replace seasonal work in the field, complete inventories of as builts, catalogue as builts,
update drawings, eliminate 50% of the backlog that has been identified in inventory, eliminate
backlog of sight triangle complaints, update eight sections, and complete inventory of city base
maps. The net impact on the budget would be an additional $6,190.
Police Building Maintenance includes a full -time custodian position. Mr. Glasoe has reviewed a
number of options, including a janitorial service, and has recommended this as the most effective
approach.
Central
Supplies reduces the 74 800 in wages and benefits in the 1998 budget to provide for
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additional assistance to $44,195 in wages and benefits. I am proposing an entry level administrative
assistant/special projects person be hired instead of hiring a department head level person as
contained, but not authorized for hiring in the 1998 budget. That position would be in administration
and be assigned to special projects. For example, the person could relieve Tom Bublitz of portions
of the 53rd project, work on issues at the Heritage Center and other studies and projects. This would
provide more flexibility in directing the assistance where it is needed, rather than having another
department head level position that would not be as versatile and would be more expensive and
harder to recruit.
• The proposed budget reflects a change from the August work session by adding a full time position
in recreation at a cost of $32,972 and eliminating $31,070 of part-time wages. Recreation is using
a substantial amount of part time secretarial assistance. It currently has only one full -time secretarial
position. This vulnerability to losing personnel in a very competitive job market would be
ameliorated with a switch. Providing an additional full time person would also provide opportunities
for better staff development and staffing in recreation.
Another change from the August draft, is a reorganization of MIS and police. The proposed budget
reduces approximately $14,000 in salary costs in police. Two clerical positions in the police
department would be slightly upgraded and have additional computer responsibilities. One position
would be re -filled at a lower assistant level (This would be replacing the Administrative Analyst
position with and administrative assistant.). The currently vacant MIS Coordinator position would
be merged with the analyst duties. Patty Hartwig would have her job then re- organized to include
the MIS Coordinator duties and be re- classified as the MIS/Technology Coordinator in
Administration. The salary range for the MIS Coordinator position would remain unchanged. By
combining duties, we would re- organize several positions and be able to undertake the MIS and
technology duties. $10,000 of the salary cost savings has been programed in the MIS budget to cover
additional technical assistance. The opportunity to reorganize presents many advantages for the City.
Ms. Hartwig has filled in during Ms. Berg's maternity leave and now during the vacancy. We have
benefited from her expertise and her knowledge of the City's operations.
• Attached a the end of this memo is a summary of the proposed changes and their impacts.
5. LOGIS & COMPUTERS
Logis charges in the General Fund are up, even though an entire program has been dropped. The
recreation system is being purchased directly from the vendor. The cost of going through Logis has
been approximately $14,000 per year. We are budgeting a one -time fee of $14,000 to purchase a
license form the vendor and paying $4,000 for annual use and support. The cost of the police mobile
computing devices has increase approximately $10,000 for 1999. Logis is also talking about a
contingency charge of $25 000 for a new financial nancial software above the budgeted t. amount
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of contingency in the 1999 budget is very tight, potential year 2000 issues making a claim upon it.
6. Capital Items
The fire department is requesting an additional $10,000 for the replacement of the salvage truck
above the accumulated depreciation.
The police department requested an additional Taurus for the neighborhood liaison. My
recommendation will eliminate the additional car, replace a Taurus in the normal course with a
smaller car, have the captain's car be replaced with one of the scheduled Crown Victoria vehicles.
This will result in no increase in the number of cars and reduce the cost of one of the replacements
to be urchased in 1999. The proposed budget eliminated 8 000 for a multi - terrain vehicle
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added $1,600 to lease a cart for trail patrol.
The budget also includes $9,000 for new aerials of the city that were last done in 1989. $14,000 is
included for the special assessment against park property for the Bellvue project. $5,500 is included
for special fencing behind hockey goals to protect persons in the area. $20,000 is included to replace
the large copier at City Hall. A one time purchase cost is included in Recreation for software that I
currently provided by Logis. This will result in a substantial net decrease in 2000 for the recreation
software costs.
7. Transfers.
The level of transfers to the Special Assessment Construction Fund for street projects is level at
$394,197. This amount will need to be increased in future budgets to keep the program going.
S. Year 2000 Celebration
Civic events are funded at the same level as 1998. Included is money for Earle Brown Days police
overtime and an unallocated $3,000 for civic events. The Earle Brown Days Committee has not
requested any specific amount of contribution for City participation in the Year 2000 celebration they
have proposed.
9. Health Insurance
Preliminary indications are that health insurance premiums will rise dramatically. This will put
pressure on the City's contribution in union negotiations. As indicated previously, the arbitration
award with the Teamster's union will also put pressure on the amount of the City's contribution.
O 10. Five Year projections
As discussed in August, most departments have projected minor fluctuations in expenditure requests
i
. that would need to be accounted for only in inflationary changes in the budget. Public Safety
continues to make rather substantial projections for major personnel and equipment additions.. Of
concern also is the need to adjust our capital transfers for street construction etc. to provide for real
growth. Revenues will need to increase upon the lifting of levy limits to keep up with current
programs, fund future capital projects, and to the extent justified to or desired by the Council,
expand service provision.
11. Year 2000 and Contingency
I
The study currently going forward will help identify remaining year 2000 issues as will the planning
in 1999. The contingency fund would be the source of additional year 2000 issue resolution
assistance as need are identified.
The contingency fund contains $131,064. Preliminarily a portion of that must be reserved for
potential increases in health contribution by the City. This contingency represents less than I% of
the General fund budget.
12. Police
The police budget represents the largest single increase in costs, primarily due to personnel. The
budget reflects a reduced budgeted amount for prisoner incarceration and processing by Hennepin
County based on current experience and the additional space when the new police building is
finished. The Chief will continue to review possible use of Brooklyn Park's facility. There are
• increased costs in the police budget for printing for the transition to a new location.
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Personnel Changes in General Fund Budget
Cost _w /o change Cost With Change
O entral Supplies
(budget 98, not hired) $74,800.00 $44,195.00
Recreation
change part-time to full
$31,700.00 $32,972.00
Police/MIS reorganization $167,976.00 $153,354.00
Police Custodian $17,298.00
Note: partial Year)
Engineering/Public Works
reduce seasonal add full time $6,190.00
$274,476.00 $254,009.00 ($20,467)
•
Types of Expenditures " • ' - - -
Salaries $6 $6,773,751 3.00% $197,409
Fringe Benefits $1 $1,655,561 6.02% $93,941
Supplies $530,818 $526,938 -0.73% ($3
Purchased Services $450 $447,812 -0.59% ($2
Communications $225,055 $226,402 0.60% $1
Repair, rental $391,134 $416,077 6.38% $24
Other Contractual $758 $785 3.60% $27,301
Central Garage $940,704 $912 -2.98% ($28
Insurance $12700 $126 - 0.39% ($500)
Utilities $479,450 $508 6.01% $28
Capital Outlay $310 $313 5 700 1.01% $3
Transfers to other funds $1 $1 0.47% $6,546
Administrative Service ($315 ($315 -0.02% $51
Reimbursement ($400 ($422 5.50% ($22,000)
Cost of Sales $37 $33 - 10.81% ($4
Contin,aency $136,130 $131,064 -3.72% ($5,066)
TOTAL $13,187,566 $13,504,916 2.41% $3175350
General Fund 12/07/98
Code 1997 1998 1999 IVR
GENERAL j
City council $126,089 $123,711 $120,603 -2.51%
• Administration $198,283 $200,219 $191,415 - 4.40% j
Human Resources $166,728 $165,069 $166,239 0.71%
City Clerk $48,397 $69,279 $70,855 2.27%
Elections $48,397 $69,088 $57,166 - 17.26%
Finance $384,563 $412,411 $414,774 0.57%
Data Processing $241,451 $222,719 $228,006 2.37%
Le $201.400 $198.400 $197,900 - 0.25%
TOTAL $1,415,308 $1,460,896 $1,446,958 -0.95%
POLICE
Patrol $2,653,301 $2,709,132 $2,796,754 3.23%
Investigation $588,580 $579,855 $544,099 - 6.17%
Support Services 418 $821,989 $840,719 $937,341 11.49%
Chief 419 $157.295_ $146.786 $131.966 - 10.10%
TOTAL: $4,221,165 $4,276,492 $4,410,160 3.13%
I
FIRE i
Fire 425 $603,820 $594,271 $592,737 - 0.26%
Emergencv Preo. 42 $51,871 $47,849 $47,184 -1.39%
TOTAL: $655,691 $642,120 $639,921 - 0.34%
COMMUNITY DEV.
Inspections 430 $229,633 $261,724 $268,174 2.46%
Planning & Zoning 431 $116,180 $111,107 $110,712 - 0.36%
Assessing 432 $247.358 $261.592 $262.620 0.39%
TOTAL $593 $634,423 $641,506 1.12%
Conv. & Tourism 433 $206,570 $218,500 $261,250 19.57%
Social Sevices $80,000 $80,104 $79,860 - 0.30%
BUILDINGS
Police Station Maint. $57,348
. Custodial Services 440 $49,964 $55,041 $60,329 9.61%
Bldg. Maint. 441 $297,469 $371,502 $398,616 7.30%
Govt. Bldg ground 442 $42.9 $65.364 $60,902 - 6.83%
TOTAL: $390,385 $491,907 $577,195 17.34%
PUBLIC WORKS
Engineering 443 $369,546 $380,104 $429,363 12.96%
Pub. Works Admin 444 $194,025 $195,329 $204,434 4.66%
Street Maint. 445 $919,751 $941,086 $897,028 - 4.68%
Traffic control 446 $168,747 $174,555 $181,746 4.12%
Snow & Ice 447 $183,161 $191,092 $200,403 4.87%
Street Lighting 448 $139,000 $134,000 $134,500 0.37%
Parks Maint 449 $348,290 $302,388 $311,393 2.98%
Park Fac. Maint 450 $267,630 $275,881 $276,930 0.38%
Maint. Rec. Prog 451 $53,026 $61,209 $64,195 4.88%
Forestry 452 $103,866 $106,829 $109,419 2.42%
Ice & Hockev 4 $90.777 $93,765 $102,541 9.36%1
$2,837,819 $2,856,238 $2,911,952 1.95%
CARS
CARS Admin $135,786
Rec. Admin 460 $400,701 $433,630 $322,080
Adult Rec 461 $273,683 $249,490 $234,223 - 6.12%
Teen Programs 462 $12,892 $12,966 $18,077 39.42%1
Youth Rec. ! o
463 $109,644 $109,942 $108,0921 -1.68 /o i
i
General Rec. 464 $56,813 $53,924 $55,088 1 2.16%
Community Cen. 465 $275,162 $225,580 $244,418 8.35%
Pool 4 $ -
66 33 _ 2 259 $239 -673 $249.848 4.25%
$1,461.,154 $1,325,205 $1,367612 3.20%
MISCELLANEOUS
Risk Mgmt. 470 $167,000 $157,000 $152,5001 -2.87%1
Central Supplies/ 471 $251,200 $375,369 $362,059 ! - 3.55%
Civic Events 472 $1,500 $6,425 $6,459 0.53%
Reimbursement Other Funds
474 ($699,141) ($715,538) ($737,487)1 3.07% 1
Transfers (debt) 475 $244,281 $1,378,425 $1,384,971 ,' 0.47%
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 1999.
SPENDING: The total budget amounts below compare the city's
1998 total actual budget with the amount the city proposes to
spend in 1999.
1998 Total Proposed 1999 Change From
Actual Budget Budget 1998-1999
$13,921,929 $14,261,576 2.44%
TAXES: The property tax amounts below compare that portion of the
current budget levied in property taxes -in the city of Brooklyn Center
for 1998 with the property taxes the city proposes to collect in 1999.
• 1998 Property proposed 1999 Change From
Taxes Prooertv Taxes 1998-1999
$7,687,124 S7,896,858 2.73%
Attend the Public Hearing
All Brooklyn Center city residents are invited to attend the public
hearing of the city council to express their opinions on the budget
and on the proposed amount of 1999 property taxes. The_ hearing
will be held on:
Monday, December 7, at 7:00 p.m.`
Brooklyn Center City Hall
6301 Shingle Creek Parkway
Brooklyn Center_
You are also invited to send your written comments to:
City of Brooklyn Center, Mayor's Office
6301 Shingle Creek Parkway, Brooklyn Center, MN 55430
® CITY OF BROOKLYN CENTER
TRUTH IN TAXATION NOTICE
BUDGET CALCULATIONS
1998 1999 Change
Adopted Proposed 1998
Budget Budget to 1999
Gen Fd Budget 13,187,566 13,504,916
EDA Fd Budget 734,363 756,660
13,921,929 14,261,576 2.44%
TAX LEVIES
General Fund 6,332,314 6,514,597
Bonds:
Bonds of 94 66,457 70,165
Bonds of 95 72,482 70,844
Bonds of 96 120,145 123,006
Bonds of 97 783,146 784,692
HRA Fund
129,467 138,656
EDA Fund 183,113 194,898
7,687,124 7,896,858 2.73%
proptax \titnotic.xls 1217/98 3:13 PM
Revenues 1998 • ' • • - Increase
Taxes $7,374 $7,563 $188,760 2.56%
Est. Uncollectable ($247,971) ($253 ($5 -2.18%
Miscellaneous Taxes $461,000 $55100 $9000 19.52%
Licenses & Permits $364 $414 $49,685 13.63 %°
Intergovernmental Rev. $3,848 $3 $4003 1.06%
Charge for Service $21 $23,000 $1,100 5.,02%
Public Safety Charges $23,700 $23,050 ($650) - 2.74%
Recreation $425,794 $428 $2 0.53%
Community Center Fees $411,200 $388 ($23 -5.62%
Court Fines $192,000 $18600 ($6 -3.13%
Misc. Revenue $12 000 $12 $0 0.00%
Interest $300,000 $280,000 ($20,000) -6.67%
TOTAL $13,187,566 $13,504 $317,350 2.41%
Tax Computation
1999 State Rates 1998 State Rates
Orax Capacity 1st $75,000 1.00 % 1 st $75,000 1.00%
> $75,000 1.70% > $75,000 1.85%
Average Market Value $84
$75,000 1.00% $750
$900. 1.70% $153
Tax Capacity $903
City Tax Rate = City Levy /Total Tax Capacity of all Property
Taxes = Rate X Capacity
Year Rate CaDacity City Taxes
L
1999 36.03% $903 $325.36
1998 35.02% $917 $320.96
$4.40
Impact of Increased Value:
Avg. Value Capacity City Taxes
1998 $8000 $843 $295.04
1999 $84,000 $903 $325.36
Difference $400 $61 $30.32
Impact of Police & Fire Bonds
• Taxes based on Market Value rather than tax capacity
Rate Tax
Market Valu $84 0.07162% $60.16
Total City Tax = General Tax + Police & Fire Bond Tax
Example:
Value $84
General Tax $325.36
Police & Fire Bond $60.16
$385.52