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HomeMy WebLinkAbout1996 12-04 CCP Truth in Taxation BUDGET HEARING " FREQUENTLY ASKED QUESTIONS N 1. How much of my total property tax bill pays for the City Services? Depending upon which school district you live in, approximately 22 to 25 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 $139,023 in 1996, but $251,315 is needed in 1997. 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? By state law, the City Council must adopt the budget no later than December 20, 1996. The City Council has set a meeting for December 16, 1996 for the purpose of adopting the 1997 budget. 7. I disagree with the final 1996 market value for 1997 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 1997 Tax Statement. In order to effect a change in the market value a Tax Court Petition will need to be filed prior to April 1, 1997. 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 several components. One component is targeted towards 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 towards 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, 1997, 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. 3 City of Brooklyn Center A great place to start. A great place to stay. DRAFT TRANSMITTAL To: Mayor Kragness and Council Members Carmody, Hilstrom, Mann, and Nichols From: Michael J. McCauley City Manager Date: December 3, 1996 Re: Draft Budget OVERALL BUDGET On September 9th the City Council adopted the preliminary 1997 budget and preliminary levy. P � tY P P rY g P Y . Y Since the adoption of the preliminary General Fund Budget, additional revenues have been identified from recreation fee increases, primarily for adult recreation and swimming lessons. Additional reductions in expenditures have been achieved to provide funds for capital projects in 1997 and subsequent budget years. The proposed preliminary levy would increase the real estate taxes levied by the City, Economic Development Authority and Housing and Redevelopment Authority by a total of 3.87% above the gross levy for 1996: 1996 1297 C HRA 123,336 124,927 1,591 EDA 177,220 179,124 1,904 General Fund( &debt) 6,194,650 6.442.436 247.786 TOTAL TAX LEVY: 6,495,206 6,746,487 $251,281 (3.9°lo) Debt Service requirements will increase in 1997 due to the issuance of special assessment bonds including general obligation of the City for 1996 street projects: The gross levy for debt service in the draft budget is: 1996 1997 1994 Bonds 69,035 67,830 1995 Bonds 69,988 68,578 1996 Bonds 0 114.907 Difference TOTAL: $139,023 $251,315 $112,292 1 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 The gross levy for debt service is $20,875 greater than the actual debt service. The City is required under the terms of the bonds to levy a gross levy at this higher level to cover unpaid taxes (delinquencies) and contingencies. The 1997 budget involves several changes in presentation and substance. The budget is being developed on the premise that bonds will not be issued in 1997 for street projects or in the future, where such projects represent a continuing replacement effort, as opposed to buildings or other major capital projects that are not an annual effort. (If bonds were issued for the City's share of the 1997 street projects, an additional $198,000 in costs would be incurred for interest and issuance costs over the life of the bonds.) The 1997 draft budget has all city General Fund and Debt Service real estate taxes in the general fund with a corresponding transfer out for the payment of the city's portion of debt service. This allows for a clearer picture of the total city real estate tax levy. The real estate taxes levied by the separate legal entities of the HRA and EDA will continue to be set forth in their respective budgets. The impact of including the entire city levy in the general fund is to add $139,023 to the total general fund budget in 1997 that was only shown in the budgets for the Special Assessment Bonds of 94 and the Special Assessment Bonds of 95 in the 1996 budget. The budget provides for 158 full time positions in all funds. This represents a stable number of full time employees. With two exceptions, all full time employees are assigned in the budget to one division for payroll purposes. This represents a shift from the previous budget allocation that had small fractions of full time employees distributed across a number of divisions. The budget reflects a 3 % increase in wages, with the exception of members of the Teamsters Union. The Teamsters negotiated a multi -year contract that provides a 3.2% increase in 1997. The personnel budget also includes step adjustments. Administrative service charges are at approximately $399,000, allocating personnel costs from the General Fund to various enterprise funds for management, engineering, and financial services. An additional $300,000 is budgeted for engineering reimbursement for construction project work charged against construction projects. Both the administrative service charges and engineering reimbursement are at roughly the same level as the 1996 budget. The difference in presentation is that this reimbursement and administrative service charge is set forth in a separate division (474 Reimbursement from other Funds), rather than as a contra charge within the various departments. The goal of this presentation shift is to more easily understand the personnel costs in each department and the charging out of services. Overview of General Fund. As indicated, the overall increase in revenues, adjusted to compare 1997 in similar terms to 1996 is approximately 3 % or $358,070. Revenue increase also reflects the revenues raised to service the 1996 street improvement bond debt. As compared to the 1996 budget, there are significant decreases in revenues from licenses and permits and miscellaneous taxes are projected at this time. The lodging tax decrease results in a number closer to the actual receipts in 1995 and 1994 and 2 thus represents a downward estimate from a large increase in the 1996 budget over the 1995 actual. Roughly half the receipts from lodging tax are required to be sent to the Convention and Visitors Bureau, so the impact on the General Fund is not significant. Some of the other decreases also appear to indicate revenues levels more similar to 1995 numbers based on estimates by the police and inspection departments from their respective areas. The draft budget contains anticipated increases in adult recreation fees and swimming program fees. Aid from the State of Minnesota is up $124,469 over 1996 or 3.9 %. The 1997 budget is developing funding for infrastructure replacement work. The draft budget, less monies that will be earmarked for infrastructure and debt service, actually keeps overall budgeted expenditures at the 1996 budget level: 1997 Budgeted Expenditures: $12,125,987 Less Construction transfer 394,197 (code 4727) Debt Service 251.315 1997 in 1996 terms: $11,480,475 1996 Budgeted Expenditures: $11,632,894 The draft budget contains a contingency of $50,000. Additional contingency exists within the budget in the form of salary. The sum projected salary of all employees exceeds actual experience each year due to vacancies in positions in the normal course of the year. Providing a modest contingency provides the council with flexibility in responding to unanticipated requests, needs, and opportunities. It also provides some coverage for unanticipated impacts such as heavier or more frequent snow /ice removal that may exceed budgeting based on average expectations. Some revenues in the General Fund budget are also subject to influences beyond the City's control, such as building activity (building permits), court fines (judicial discretion), and sales of merchandise. The General Fund Budget process for 1997 involves converting to a new system from the multiple departments containing fractional employees to a more unified division format. The goals of the new format are to make the document relevant and useful by serving as a plan for the expenditure of money so as to provide municipal services. The transition to a new format means that many of the current year's budget and actual numbers do not correspond to the 1997 budget categories or assignments. This transition is complex and is still in progress. The Finance Department has worked, as much as has been possible, to have the 1996 actual expenditures converted to the 1997 categories to allow comparisons of actual 1996 to the 1997 budget. The Finance Department's goal is to have the 1996 actual numbers fully converted at year end 1996 for purposes of the 1998 budget. This new format has eliminated taking the Logis sheets and putting them on Excel spreadsheets to develop the actual budget document. The new format, as indicated previously, has all City levied real estate taxes placed in the General Fund budget. Previously, these revenues were split between the General Fund and the Special Assessment Bond Funds for the 1994 and 1995 bonds. (This was the revenue needed for the City's share of the debt service.) The 1997 draft budget transfers funds from the General Fund for debt service. The impact on the 1997 General Fund budget is to increase the budget by $135,023 3 without actually increasing the actual amount of taxes or net expenditures by that same amount. A new category has been established for civic events, such as Earle Brown Days, to capture costs of civic events. This process will continue in 1997 to identify and to remove costs from recreation/community center etc. and place them in this category to more clearly identify those costs. The budget does not include the issuance of general obligation bonds for 1997 street projects as in the previous 3 years, the debt service of which is supported by real estate taxes. Regularly planned street projects in 1997 are funded, for the City's portion, through funds raised in the year of construction rather than bonds. Tax revenues approaching $252,000 are needed to service the debt on 1994, 1995, and anticipated 1996 street project bonds for the city's portion. Bonds would continue to be issued to cover the assessed portion of street projects unless they could be internally funded with a higher return from resident assessment payments for the City than competing investments would give the City on investments. Specific changes /issues in the draft budget: COUNCIL The annual audit and all commission related expenses have been combined in the City Council budget. The amount of money included for conferences and training would allow for a facilitated council retreat and the implementation of the proposed council policy on training to expand the opportunities for council training. The proposed council policy would allow each council member to attend state conferences such as the League of Minnesota Cities Annual conference and would provide for the Mayor and 2 council members on a rotating basis to attend 1 national conference. CITY COUNCIL GOALS The City Council established several goals for 1997. Those goals are reflected in the draft budget narrative. Some specific ways the budget supports those goals is as follows: Goal 1. Complete comprehensive plan and associated zoning ordinances to support causing and controlling development. - The budget provides the personnel to participate in the planning process and its implementation. Funds from 1996 will be used to cover the cost of the comprehensive plan update. Goal 2. Initiate community vision and actions to attain that vision. The objective of this goal is to sustain the code enforcement program, meet with residents of "targeted" neighborhoods regarding development plans, as well as establish a community -wide vision for the future of Brooklyn Center. - The budget contains monies for council visioning process with a facilitator, as well as funds to support training for the City Council and Staff. The personnel who conduct the code enforcement activities are included in the budget: police, inspectors, prosecutor, and 4 support personnel. Goal 3. Make visible the positive aspects and accomplishments of Brooklyn Center as a community while maintaining the momentum on code enforcement and continue to reach out to community organizations. - In addition to the items mentioned with reference to Goal 2, the budget contains funds for a community service officer in the police department (using existing personnel), participation in the Association of Rental Managers, and 6 rather than 4 newsletters per year. Goal 4. Establish a community-based information service and invite positive action by citizens that will generate citizen support for Council and administration of the City and identify options to the City for the achievement of this goal, and in 1997 begin to implement approved options. - The budgetary support for this goal lies in the Comprehensive Plan work and items identified above. Goal 5. Remove infrastructure impediments to the redevelopment of Brookdale, research funding sources, and continue discussion with Minneapolis. - Budgetary support lies in personnel levels and general protection (by not spending) the bond proceeds necessary to support a regional pond and other work around Brookdale when ownership and direction are determined. Also, work in 1996 to adjust the tax increment basis by removing and reinstating selected properties that have declined in value supports the goal by providing a potential tax increment base for development. Goal 6. Develop a five year financial plan for the City of Brooklyn Center. - The revamped budget presentation provides the starting point for developing and tracking financial goals. Goal 7. Adopt a comprehensive development plan for the City of Brooklyn Center to address housing, redevelopment, transportation opportunities, etc. - The budget support is described above for the comprehensive planning process. Goal. 8. Establish methods to evaluate /assess municipal operations and the benefits derived from the City's interactions with other entities and associations and determine the cost - benefit derived for the City. - The revised format will facilitate this work in the context also of the five year plan development. 5 ADMINISTRATION Administration has been reconfigured to create separate divisions for human resources and city clerk. No replacement of the communications specialist position is included, but an intern position is included at slightly '/z the cost of the previous communications position. MANAGEMENT INFORMATION SYSTEMS The MIS department's capital monies are now allocated primarily for system equipment. Individual computer equipment has generally been allocated within individual departments to more fully state the true cost of individual departmental operations to include their cost of computer equipment used exclusively within a department. POLICE The police department requested 3 additional staff positions: a full time investigator, a full time dispatcher, and a part-time civilian aid. The draft budget does not include any of those positions, but does include a pay differential to take an existing patrol position and rotate it through inspections. The goal is to use existing personnel more efficiently and to assess the impact of MDT's on efficiency. The costs of the canine unit will be separated in the narratives, but not set out in a separate division. FIRE The Fire Chief requested compensation for drill, training, equipment maintenance to remain competitive with surrounding jurisdictions. The draft budget includes the drill compensation of $35,00, but not the other components. The useful life of expensive fire apparatus has been increased to make the equipment replacement charges more manageable. CENTRAL GARAGE While not part of the General Fund, the Central Garage charges have a profound impact on the General Fund. When the Central Garage was instituted, the full replacement of equipment was not funded since charges for depreciation had not accumulated for equipment being replaced prior to full accumulation of depreciation charges necessary for replacement. The goal is to have replacement fully funded in order to fully implement the central garage concept. As part of the implementation, several changes are incorporated into the General Fund budget: 1) interest earned in the fund has been spread out against the individual pieces of equipment 2) items having a value below $5,000 have been removed from the central garage fund replacement schedule (items below $5,000 for garage use, as opposed to other departments, will still be budgeted, but not on a depreciation schedule) 3) police vehicles will be sold rather than recycled in the fleet; this will reduce the cost of squads to the police by giving them credit for the sale proceeds and eliminating charges previously levied against them to refurbish squads for use in the fleet; maintenance costs and fuel costs for other divisions should decrease; 6 4) departments will acquire new or slightly used vehicles on their depreciation schedule; this will, as indicated, reduce their costs for maintenance, give them better equipment and allow them to keep equipment longer; the anticipated impact of this change is to reduce the overall cost of vehicles used by the police and other departments 5) certain pieces of equipment are being frozen or eliminated from the replacement funding; this includes: a) police are trading a 4X4 and a car for a new 4X4 b) the police mobile command vehicle has been funded at a non- motorized replacement over a much longer life and the balance of accumulated funds has been spread to other police vehicles; c) used equipment will be purchased to replace the grader and two loaders, greatly reducing the amount needed for depreciation replacement d) 1/4 ton truck replacement where appropriate for 1 to 2 vehicles, reducing cost e) eliminate replacement of $18,000 van to pull puppet wagon; this will cause shift in method upon retirement of vehicle in the future: use existing, fully used vehicle to tow it on a different schedule; it did not seem reasonable to have such a high overhead for a seasonal activity when other means of moving could be developed or a different schedule used f) the concession trailer and the band shell were removed from the depreciation schedule: this would be consistent with requiring a re- evaluation of these activities and keeping the depreciation for ongoing equipment replacement BUILDINGS The recommended budget starts a process of reducing annual plantings in favor of perennial plants and the use of existing staff rather than contractual. The requested wading pool refurbishing has been removed from the draft budget at the City Council's direction to have that issue studied in connection with the overall building plans for City Hall, police, and Community Center. PARKS The recommended budget eliminates a request for new hockey lights ($16,000) at Willow Lane. If there are savings within the program itself, then lights might be a possibility, but the recommended budget does not recommend an increase for the lights. There is also a minor reduction in part-time hours. Special assessment charges for the Orchard Lane East Project adjacent to Cahlander Park are included in the 1997 budget as a one time payment of the entire specially assessed amount for the street work. (Code 449 -4531 $17,000) RECREATION Recreation will require a great deal of analysis in the five year planning process to envision where 7 the Council and community wish to place resources. The recommended budget will start the process by increasing the fees for adult recreation to accomplish two things: cover the marginal costs of activities and make a contribution to the cost of overhead (staff scheduling) for these programs. The target is a $40,000 net increase in revenues from adult recreation using a $54,000 gross increase in charges. Senior recreation is not included in these targets since it consists of general recreation activities with few marginal costs. Specifics would include raising basketball and broomball from $48-49 per person to $60.00 per person. Softball teams would pay an additional $75.00 per team for residents and $85.00 per team for non - residents. Exercise and other classes would be priced to generate $10.00 per person overhead contributions. Pottery would go from $48.00 to $70.00 to capture the cost of utilities, instructors and overhead. The flexible target will allow changes due to market response to fee increases. The Dudley tournament will have a goal of covering marginal costs through fee and admission increases. COMM1UNITY CENTER Slight reductions in the requested budget have been recommended to encourage a process of seeking more efficient and cost effective use of printing and postage and part-time help. Entertainment in the park has been reduced approximately 20% in the recommendation and the director is seeking sponsors to cover this reduction. The sale of items will be studied as part of the planning process to see if it is effective. POOL Swimming lesson fees have been increased slightly to generate more revenue and to be competitive with fees charged by neighboring programs. Part-time monies are recommended reduced to reflect the need to examine hours of operation and usage. YOUTH Youth programs contain no monies for payments to support outside organizations. Those requests are in social services for the Council to review. SOCIAL SERVICE Social Service /Joint Powers is included in the draft budget at the 1996 level of funding plus 4 %. The City Council's allocation of funding is set forth in the narrative sheet for the social service activities. ( #435, Social Services) EARLE BROWN HERITAGE CENTER The Heritage Center operations have been established in the draft budget to provide for an Administration division to capture the overall administrative costs. Previously the cost of administrative personnel were spread out amongst the individual operations such as the Inn and Convention Center. The substantive changes in the allocation of monies for the Heritage Center will cause the implementation of recommendations made by the Marquette study to focus marketing on the target conference users with personal promotion and to reduce expenditures at the Inn. Specifically, monies have been increased for trade show attendance to promote sales to the conference users most likely to use the core business at the facility: conferences. The Marquette study indicated that the Inn would not be able to cash flow its operations under a 8 municipal staffing configuration and that marketing would not overcome that deficit. Thus, the draft budget allocates resources sufficient for AAA membership in order to have the Inn listed in the AAA travel directory, which is a substantial source of business, and a limited amount of additional advertising. This will result in targeted advertising and a reduction in overhead expenses such as ads in bed and breakfast magazines. The level of funding for promotional materials has been reduced to scale back from 4 color to one color for the Inn's promotional brochure. In the conference area, while funds have been increased for direct marketing at trade shows etc., monies have been reduced for advertising agency work. There is a modest sum left in the budget for assistance in advertising material design from a professional agency. Rates will be increased at the Inn to increase revenues. Overdue capital expenditures will be made for carpeting replacement. The budget projects a carry over in the fund balance of $50,000 from 1996 operating surplus to cover most of the capital expenditures in the 1997 budget. These monies will cover the cost of capital improvements to the extent that operations do not generate sufficient resources for these capital expenditures and operations in 1997. As indicated in the chart on page 10 of this letter, the budget projects a slight decrease in cash balances due to the capital expenditures. But, the projection of a cash balance going forward into 1997 will cover the actual expenditures. The target for the Center is to cash flow its own operations. While previous budgets have made that projection, the year to date results of operations for 1996 indicate a strong likelihood of having operating costs covered by operating revenues as of the end of September. The rate of advance bookings for 1997 is also roughly $100,000 ahead of advance bookings at this time last year. One of the other goals for 1997 is to replace the tenancy at the D barn which will expire in the Spring of 1997. WATER, SEWER AND STORM SEWER FUNDS The budget presentation has been changed to budget for capital expenditures from these funds for their portions of construction projects. These expenditures were made in the past as authorized in connection with projects, but not set forth in the budget document. Modest increases in rates have been approved by the City Council to maintain the fiscal health of these funds. These funds are addressing future capital needs such as water tower painting, replacement of water lines, replacement of sanitary sewer lines and storm sewer work. These budgets do not include monies for the proposed Shingle Creek Regional Pond as a joint project with Minneapolis to deal with drainage issues in the Brookdale area and north Minneapolis. If that project goes forward, tax increment bond proceeds (from already issued bonds) would be used as the primary source of funding if assistance from the State is not received. OTHER ENTERPRISES The liquor and golf operations are projected to operate similar to 1996. Golf is projected to cash flow its operations and interest payments. Year to date results for 1996 in golf indicate a strong likelihood of succeeding in meeting that goal. The liquor operations are projected to increase their fund balance slightly and contribute $100,000 to the General Fund. Issues of store location will have to be resolved in the early part of 1997. CAPITAL IMPROVEMENT FUND 9 (Budgeted Impacts on Cash B a l ances of Selected Major Fund Fund: G eneral HRA EDA Ca_pktalIm Revenue $12,125,987 $139,483 $694,204 $336,436 Expenditures $12,125,987 $139,483 $3,324,989 $298,753 $0 $0 ($2,630,785) $37,683 Fund: Wat Sanitary e wer Storm Central Gara Revenue $1,393,774 $2,430,912 $1,237,669 $1,794,076 Expenditures $2,030,907 $2,452,641 $1,075,772 $1,794,076 ($637,133) ($21,729) $161,897 $0 Fund: Liquor Golf T.I. F Dist. #3 MSA Construction Fund Revenue $2,868,100 $329,535 $281,416 $653,000 Expenditures $2,829,881 $321,606 $260,000 $553,000 $38,219 $7,929 $21,416 $100,000 Fund: E. B. Farm Tax Incr. S aecial Assessment Construction Revenue $1,412,981 j $4,025,500 Expenditures $1,292,000 $4,025,500 $120,981 $0 Fund: EBHC * * E.B.H.C. anticipates carry over of $50,000 in 1996 operating surplus Revenue $2,665,208 for capital expenditures. Thus, budget projects negative impact on Expenditures $2,668,648 cash balance, but there is anticipated cash balance from 1996 to 1997. ($3,440) r The budget would slightly increase the Capital Fund Balance with identified projects. Year end 1996 is anticipated to provide funding to the Capital Fund and the Special Assessment Construction Fund so that the City's share of the Orchard West project is paid in 1997. Unresolved is the need to provide adequate and legally correct space for police /jail operations. Construction to resolve those issues would impact the fund balance in the Capital Improvement Fund and the City's debt assuming a bond issue to address the needs of the fire department for adequate space that complies with applicable safety codes. The issue is unresolved at this time awaiting final development of plans for construction and the decision of the voters on the issuance of bonds in 1997 for a portion of these construction projects. IMPACTS ON CASH BALANCES The following table illustrates approximate impacts on cash balances as a result of the draft budget. As indicated in the table, the water and sewer funds project a negative impact on cash balances. This is the result of major capital work in both funds. In the Water Fund, the Orchard West project (neighborhood street improvements) and painting tower #2 are major uses of funds. The approximate impact on cash will reduce an approximate $3.6 Million balance at year end 1996 to $2.7 Million at year end 1997 in the Water Fund. As indicated in the rate study presented to the City Council in connection with rate setting for 1997, the projected cash balance should level at approximately $1.5 Million in 1999 and 2000. In the Sewer Fund, the slight negative projected 1997 impact on cash will not impact overall balances as they are projected to increase through the year 2000 as expenditures for capital projects go forward at an annual expenditure level lower than in 1996 when Lift Station #1 and a force main were replaced along with substantial work in connection with the neighborhood street projects. 10 SUMMARY The draft budget implements a return to a format that states expenditures in a fashion that is easier to track, places all general fund tax revenues in the General Fund, allocates most full -time employees as full persons within departments, reduces the number of divisions greatly, uses line- item detail, and provides more information regarding the planned use of monies than the previous budget. The final transmittal letter will be refined to include additional information as identified by the City Council and as the graphic display of this information is refined with the final allocations. 11 General Tax Levies 1995 - 1997 g 6 X o 4 2 0 95 Tax Levy 96 Tax Levy 97 Tax Levy X -Axis i ESTIMATED SOURCES OF FINANCING 1997 RECOMMENDED GENERAL FUND Lodging T Transfers & Misc 4% 3 °l0 Service Charges 7% r Licenses & Permits 2% Property Tax 52% Intergovernmental 30% Court Fines 2% APPROPRIATIONS BY FUNCTION 1997 RECOMMENDED GENERAL FUND Unallocated Transfers Out 3% 3% Public Works 12% Social Services 1% Public Safety 43% General Govt 15% Debt Service 2% Convention o Recreation 2% 19% APPROPRIATIONS BY OBJECT CLASSIFICATION 1997 RECOMMENDED GENERAL FUND Transfers Out Central Garage Utilities 5% 8 " capital Ou�y Supplies & Repairs 4% 2% 5% Other Contractual Prof Services 10% 6% insurance & Conbngcy 2% Personal Services 58% i LEVY TAXRATE _ ---------------------------- TAX BASE (Capacity) TAX CAPACITY = ASSESSED VALUE X CLASS RATE TAX DUE = TAX RATE X TAX CAPACITY 1997 PROPOSED TAXES COMPARED TO 1996 ACTUAL TAXES CITY OF BROOKLYN CENTER HOMESTEAD TAXES 1997 VS 1996 BROOKLYN ANOKA OSSEO ROBBINSDALE CENTER SCHOOL DISTRICT SCHOOL DISTRICT SCHOOL DISDTRICT SCHOOL DISTRICT #11 # 279 # 281 # 286 Market HOMESTEAD HOMESTEAD HOMESTEAD HOMESTEAD Value 97 Tax 96 Tax 97 Tax 96 Tax 97 Tax 96 Tax 97 Tax 96 Tax $40,000 $541 $580 $589 $629 $561 $565 $561 $588 $41,000 $554 $595 $604 $644 $575 $579 $575 $603 $42,000 $568 $609 $619 $660 $589 $593 $589 $618 $43,000 $581 $624 $633 $676 $603 $607 $603 $632 $44,000 $595 $638 $648 $692 $618 $621 $617 $647 $45,000 $608 $653 $663 $707 $632 $635 $631 $662 $46,000 $622 $667 $678 $723 $646 $649 $645 $676 $47,000 $635 $682 $692 $739 $660 $663 $659 $691 $48,000 $649 $696 $707 $754 $674 $677 $673 $706 $49,000 $662 $711 $722 $770 $688 $692 $687 $721 $50,000 $676 $725 $736 $786 $702 $706 $701 $735 $51,000 $689 $740 $751 $802 $716 $720 $715 $750 $52,000 $703 $754 $766 $817 $730 $734 $729 $765 $53,000 $716 $769 $781 $833 $744 $748 $743 $779 $54,000 $730 $783 $795 $849 $758 $762 $757 $794 $55,000 $743 $798 $810 $864 $772 $776 $771 $809 $56,000 $757 $812 $825 $880 $786 $790 $785 $824 $57,000 $770 $827 $840 $896 $800 $805 $799 $838 $58,000 $784 $841 $854 $912 $814 $819 $813 $853 $59,000 $797 $856 $869 $927 $828 $833 $827 $868 $60,000 $811 $870 $884 $943 $842 $847 $841 $882 $61,000 $824 $885 $898 $959 $856 $861 $855 $897 $62,000 $838 $899 $913 $974 $870 $875 $869 $912 $63,000 $851 $914 $928 $990 $884 $889 $883 $926 $64,000 $865 $928 $943 $1,006 $898 $903 $897 $941 $65,000 $878 $943 $957 $1,022 $912 $917 $911 $956 $66,000 $892 $957 $972 $1,037 $926 $932 $925 $971 $67,000 $905 $972 $987 $1,053 $940 $946 $939 $985 $68,000 $919 $986 $1,002 $1,069 $954 $960 $953 $1,000 $69,000 $933 $1,001 $1,016 $1,085 $968 $974 $968 $1,015 $70,000 $946 1 $1,015 $1,031 $1,100 $982 $988 $982 $1,029 $71,000 $960 $1,030 $1,046 $1,116 $996 $1,002 $996 $1,044 $72,000 $973 $1,044 $1,060 $1,132 $1,010 $1,016 $1,0101 $1,059 $73,000 $1,000 $1,073 $1,089 $1,162 $1,038 $1,044 $1,037 $1,087 $74,000 $1,026 $1,101 $1,117 $1,191 $1,066 $1,072 $1,064 $1,115 t,. $75,000 $1,053 $1,130 $1,145 $1,221 $1,094 $1,100 $1,091 $1,143 $76,000 $1,079 $1,158 $1,174 $1,251 $1,122 $1,128 $1,118 $1,171 $77,000 $1,106 $1,186 $1,202 $1,281 $1,150 $1,156 $1,145 $1,199 $78,000 $1,132 $1,215 $1,230 $1,311 $1,178 $1,184 $1,172 $1,227 $79,000 $1,159 $1,243 $1,259 $1,341 $1,206 $1,213 $1,199 $1,255 $80,000 $1,185 $1,272 $1,287 $1,371 $1,233 $1,241 $1,226 $1,283 $81,000 $1,212 $1,300 $1,315 $1,401 $1,261 $1,269 $1,253 $1,311 11/27/96 1997 PROPOSED TAXES COMPARED TO 1996 ACTUAL TAXES BROOKLYN ANOKA OSSEO ROBBiNSDALE CENTER SCHOOL DISTRICT SCHOOL DISTRICT SCHOOL DISDTRICT SCHOOL DISTRICT $11 # 279 # 281 # 286 Market HOMESTEAD HOMESTEAD HOMESTEAD HOMESTEAD Value 97 Tax 96 Tax 97 Tax 96 Tax 97 Tax 96 Tax 97 Tax 96 Tax $82,000 $1,238 $1,328 $1,344 $1,431 $1,289 $1,297 $1,280 $1,339 $83,000 $1,265 $1,357 $1,372 $1,460 $1,317 $1,325 $1,307 $1,367 $84,000 $1,292 $1,385 $1,400 $1,490 $1,345 $1,353 $1,334 $1,395 $85,000 $1,318 $1,414 $1,429 $1,520 $1,373 $1,381 $1,361 $1,423 $86,000 $1,345 $1,442 $1,457 $1,550 $1,401 $1,409 $1,388 $1,451 $87,000 $1,371 $1,470 $1,485 $1,580 $1,429 $1,437 $1,415 $1,479 $88,000 $1,398 $1,499 $1,514 $1,610 $1,457 $1,465 $1,442 $1,507 $89,000 $1,424 $1,527 $1,542 $1,640 $1,484 $1,493 $1,469 $1,535 $90,000 $1,451 $1,556 $1,570 $1,670 $1,512 $1,521 $1,496 $1,563 $91,000 $1,477 $1,584 $1,599 $1,699 $1,540 $1,549 $1,523 $1,591 $92,000 $1,504 $1,612 $1,627 $1,729 $1,568 $1,577 $1,550 $1,619 $93,000 $1,530 $1,641 $1,655 $1,759 $1,596 $1,605 $1,577 $1,647 $94,000 $1,557 $1,669 $1,684 $1,789 $1,624 $1,633 $1,604 $1,675 $95,000 $1,583 $1,697 $1,712 $1,819 $1,652 $1,661 $1,631 $1,703 $96,000 $1,610 $1,726 $1,740 $1,849 $1,680 $1,689 $1,658 $1,731 $97,000 $1,637 $1,754 $1,769 $1,879 $1,707 $1,717 $1,685 $1,759 $98,000 $1,663 $1,783 $1,797 $1,909 $1,735 $1,745 $1,712 $1,787 $99,000 $1,690 $1,811 $1,825 $1,939 $1,763 $1,773 $1,739 $1,815 $100,000 $1,716 $1,839 $1,854 $1,968 $1,791 $1,801 $1,766 $1,843 $105,000 $1,849 $1,981 $1,995 $2,118 $1,930 $1,942 $1,901 $1,984 $110,000 $1,982 $2,123 $2,137 $2,267 $2,070 $2,082 $2,036 $2,124 $115,000 $2,114 $2,265 $2,279 $2,417 $2,209 $2,222 $2,171 $2,264 $120,000 $2,247 $2,407 $2,420 $2,566 $2,349 $2,362 $2,306 $2,404 $125,000 $2,380 $2,549 $2,562 $2,716 $2,488 $2,502 $2,441 $2,544 $130,000 $2,512 $2,691 $2,704 $2,865 $2,627 $2,643 $2,576 $2,684 $135,000 $2,645 $2,833 $2,845 $3,014 $2,767 $2,783 $2,711 $2,824 $145,000 $2,910 $3,117 $3,129 $3,313 $3,046 $3,063 $2,981 $3,105 $150,000 $3,043 $3,259 $3,270 $3,463 $3,185 $3,203 $3,116 $3,245 $155,000 $3,176 $3,401 $3,412 $3,612 $3,324 $3,344 $3,251 $3,385 $160,000 $3,308 $3,543 $3,553 $3,762 $3,464 $3,484 $3,386 $3,525 $170,000 $3,574 $3,827 $3,837 $4,060 $3,743 $3,764 $3,657 $3,805 $180,000 $3,839 $4,111 $4,120 $4,359 $4,021 $4,045 $3,927 $4,086 $190,000 $4,105 $4,395 $4,403 $4,658 $4,300 $4,325 $4,197 $4,366 $200,000 $4,370 $4,679 $4,687 $4,957 $4,579 $4,606 $4,467 $4,646 $210,000 $4,635 $4,963 $4,970 $5,256 $4,858 $4,886 $4,737 $4,926 $220,000 $4,901 $5,247 $5,253 $5,555 $5,136 $5,166 $5,007 $5,207 $230,000 $5,166 $5,531 $5,537 $5,853 $5,415 $5,447 $5,277 $5,487 $240,000 $5,431 $5,815 $5,820 $6,152 $5,694 $5,727 $5,547 $5,767 $250,000 $5,697 $6,099 $6,103 $6,451 $5,973 $6,008 $5,817 $6,047 F:V155ESSSFMEOSMTIST %TAXMTffWAXMo7ALS"n? VE­ 11/27/96 1997 Percentage of Tax Base 11.28% 31.21% M APARTMENT ■ COMMERCIAL ❑ INDUSTRIAL ❑ RESIDENTIAL 10.49% 47% j 1996 Percentage of Tax Base 11.48% 28.95% ■APARTMENT • COMMERCIAL • INDUSTRIAL ■ RESIDENTIAL 9.38% 50.18% a VALUATION CHANGES FOR BROOKLYN CENTER RESIDENTIAL PROPERTIES Payable 1996 TO 1997 PERCENTAGE NUMBER OF PERCENTAGE OF OF CHANGE PARCELS RESIDENTIAL PARCELS -20 % TO -5 % 72 0.89% -4% TO -1 % 372 4.58% NO CHANGE 185 2.28% +1 % TO +5 % 5,228 64.38% +6 % TO +10% 1,982 24.41% +11% TO +15% 281 3.46% TOTAL 8,120 100.00% TOTAL NUMBER PARCELS WITH DECLINING VALUES 444 5.47% TOTAL NUMBER PARCELS WITH INCREASING VALUES 7,491 92.25% F:\A SSESS\ SPREDSHT \STEVEB\TAXRATES197TNT.XLS]RES EMV CHANGE 12/4/96 COMPARISON OF TOTAL ASSESSED VALUE AND TAX CAPACITY FOR NON - RESIDENTIAL PROPERTIES Payable 1996 vs 1997 VALUE PROPERTY TOTAL 1996 TOTAL 1997 CHANGE CHANGE TYPE VALUE VALUE (Dollars) (Percent) APARTMENT $78,724,800 $77,586,200 ($1,138,600) -1.45% COMMERCIAL $250,368,600 $232,681,900 ($17,686,700) -7.06% INDUSTRIAL $47,384,900 $52,062,400 $4,677,500 9.87% C &I COMBINED $297,753,500 $284,744,300 ($13,009,200) -4.37% TAX CAPACITY PROPERTY TOTAL 1996 TOTAL 1997 CHANGE CHANGE TYPE TAX CAPACITY TAX CAPACITY (Dollars) (Percent) APARTMENT $2,607,552 $2,522,730 ($84,822) -3.25% COMMERCIAL $11,398,981 $10,511,683 ($887,298) -7.78% INDUSTRIAL $2,131,047 $2,345,450 $214,403 10.06% COMMERCIAL and INDUSTRIAL COMBINED $13,530,028 $12,857,133 ($672,895) -4.97% COMMERCIAL, INDUSTRIAL AND APARTMENT COMBINED $16,137,580 $15,379,863 ($757,717) -4.70% F: WSSESS \SPREDSHT\STEVEB \TAXRATES\ 97TNT.XLS]C,I &A COMPARE 6 PROPOSED 1997 RATES FOR RESIDENTIAL - HOMESTEAD SCHOOL DISTRICT 279 - OSSEO 1996 VALUE $77,700 TAX CAPACITY $834 Tax Cap Market Value 1997 Proposed Percentage of Rate Rate Tax Total Bill CITY 32.099 $267.71 21.9% COUNTY 35.321 0.01901 $367.52 30.1% SCHOOL #279 61.133 0.09388 $524.62 42.9% MISC. DISTRICTS 7.449 $62.12 5.1% TOTALS 136.002 0.11289 $1,221.97 100.0% SCHOOL DISTRICT 286 - BROOKLYN CENTER 1996 VALUE $77,700 TAX CAPACITY $834 Tax Capacity Market Value 1997 Proposed Percents p tY a of p 9 Rate Rate Tax Total Bill CITY 32.099 $267.71 23.0% COUNTY 35.321 0.01901 $360.09 30.9 % SCHOOL #286 55.016 0.08432 $473.60 40.7% MISC. DISTRICTS 7.449 $62.12 5.3% TOTALS 129.885 0.10333 $1,163.53 100.0 % F:( ASSESS\ SPREDSHnSTEVEB \TAXRATESICTAXCLC97.XLS]RES TAX % 1212196