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Home My WebLink About2010 11-29 CCP Budget Hearing CITY COUNCIL MEETING PUBLIC MEETING ON PROPERTY TAXES City of Brooklyn Center November 29, 2010 AGENDA 1. Call to Order — 7 p.m. —The City Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Presentation on 2011 Proposed Budgets a. General Fund b. Utility Funds C. Capital Improvement Plan 4. Video Presentation 5. Presentation on Proposed Property Taxes Payable in 2011 6. Opportunity for Public Comment and Questions 7. Review Remaining Actions for Adoption 8. Adjourn City of Brooklyn Center Public Meeting on the 2011 Budget and Property Tax Levies Payable in 2011 Monday, November 29, 2010 7:00 P.M. 1 Format • Introduction • Purpose of the Meeting • City Council Goals • General Fund Revenues and Operations • Utilities Funds and Rates • Capital Improvements • "14 Reasons" Video • 2011 Property Tax Levy • Public Comment • Calendar for Budget and Levy Adoption 2 Purpose of the M • Chapter 7 of the City Charter requires that the City Manager submit an annual operating budget to the City Council. • Budget Study Sessions held with the Financial Commission: • June 21 Goals & Strategies • July 19 Tax Base, Property Tax Levy & Taxation Issues • August 4 Capital Improvement Plan • August 16 General Fund Detail, Part I • August 30 General Fund Detail, Part II plus Property Tax Levy for 2011 • November 1 Utility Funds, Rates, Cash Flows & Other Enterprise Funds • November 16 Special Revenue, Debt Service and Capital Projects Funds • November 22 Capital Improvement Fund, TIF Funds and Other Funds • Truth in Taxation legislation for 2010 requires cities to hold a public meeting at which the general public be allowed to comment on the proposed budget and property tax levy prior to adopting the final budget and property tax levy. 3 2011 Council Goals • Strategic goals 1. Ensure a safe and secure community 2. Aggressively proceed with city redevelopment 3. Stabilize and improve residential neighborhoods 4. Positively address the community demographic makeup and increasing cultural diversity 5. Continue to maintain and upgrade city infrastructure improvements 6. Environmental sustainability 4 2011 Council Goals • Ongoing goals 1. Continue providing streamlined, cost effective, quality services with limited resources 2. Ensure the financial stability of the city 3. Move toward maintaining or lowering the level of city property taxes 1. 4. Ensure the city's influence at the legislature 5. Improve the image of the city with citizens and those outside the city's borders 6. Ensure the city's drinking water is high quality and that the storm water is properly managed 5 2011 Council Desired Outcome Priorities • The threat and fear of peal and perceived crime ... will be greatly reduced • Opportunity site redevelopment will commence • EDA owned property redevelopment will proceed expeditiously • Owners and occupants of housing in residential neighborhoods will comply with City Codes and regulations ... To assure a safe, well maintained, attractive community. 6 2011 Council Desired Outcome Priorities • Problems associated with foreclosures will be dramatically reduced or eliminated. • Youth will be ... served by recreation and educational programs and activities • City government buildings, major equipment and other physical assets of the City will be maintained and improved • Neighborhood streets and utilities will be maintained and improved 2011 Gene Fund O • 0.00% Base wage increases for employees budgeted • 3 FTE position "Vacancy Factor" for 2011 • r n Other Departmental Expenditures and S ervice Levels Maintained At or Near Amended 2010 Plan. • State Budget Deficit leaves LGA/MVHC Uncertainty • -2011 Budget includes $ 738,346 in State Aid vs. $ 2,042,771 of State Aid allotted to Brooklyn Center • City Council imposed limitation of 4.50% of General Fund budget funded by State Aid • Total 2011 Budget increase of $ 2.49% • Compared to $ 16,003,578 Amended 2010 Budget • Less than$ 16,443,922 Original 2010 Budget 8 City of Brooklyn Center Revenues by Source 2007 -2011 Fiscal Years Amended Actual Actual Actual Budget Proposed % Revenue Type 2007 2008 2009 2010 2011 change Property Tax 11, 088, 015 11, 375, 539 11, 808, 091 12, 000, 022 12, 905, 340 7.54% Lodging Tax 706,930 619,962 591,291 750,000 705,000 (6.00 %) Taxes 11,794,945 11,995,501 12,399,382 12,750,022 13,610,340 6.75% Licenses 210,621 280,482 265,393 296,937 266,890 (10.12 %) Permits 462,533 363,252 350,741 414,000 339,500 (18.00 %) Licenses & Permits 673,154 643,734 616,134 710,937 606,390 (14.71%) Federal Revenues 1,646 1,798 1,317 150,000 100,000 (33.33 %) LGA 1,229,388 572,708 1,019,990 411,544 200,000 (51.40 %) Other State Revenues 498,246 460,730 453,369 509,843 459,365 (9.90%) County /Other Local Government Revenues 68,351 77,037 69,176 68,200 68,900 1.03% Intergovernmental Revenue 1,797,631 1,112,273 1,543,852 1,139,587 828,265 (27.32 0 /6) General Charges for Service 37,426 27,964 359,281 137,300 186,100 35.54% Public Safety Charges for Service 24,828 42,070 74,952 50,700 50,700 0.00% Code Enforcement Charges for Service - 1,590 12,851 12,000 10,000 (16.67 %) Recreation Charges for Service 296,431 316,564 296,429 311,182 307,768 (1.10 %) Community Center Charges for Sendce 334,615 360,813 365,657 381,380 389,590 2.15% Charges for Service 693,300 749,001 1,109,170 892,562 944,158 5.78% Fines & Forfeits 291,423 302,986 340,536 345,000 322,800 (6.43 0 /6) Interest Income 251,392 149,483 55,865 100,000 35,000 (65.00 %) Refunds and Reimbursements 34,808 47,372 187,660 40,000 40,000 0.00% Other Miscellaneous Revenues 52,266 26,794 35,573 25,470 15,620 (38.67 %) Miscellaneous Revenue 338,466 223,649 279,098 165,470 90,620 (45.23 %) 9 TOTAL GENERAL FUND REVENUES 15,588,919 15,027,144 16,288,172 16,003,578 16,402,573 1 2.49% General Fund Revenues 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 2007 2008 2009 2010 2011 10 2011 General Fund Sources of Revenue Miscellaneous Revenue 0.34% Interest Income 0.21% Fines & Forfeits .u= 1.97 %�� Charges for Service 5.76% Licenses & Permits 3.70% Other Intergovernmental rr r Revenue 3.83 LGA 1.22% Other Taxes 4.30% 11 City of Brooklyn Center Expenditures by Department 2007 -2011 Fiscal Years Amended Actual Actual Actual Budget Proposed % 2007 2008 2009 2010 2011 change General Government 1,864,288 2,129, 750 2,086,645 2,191, 723 2,186, 281 (0.25 %) Police 5,843,079 6,149, 347 6,508,143 6,625,374 6,730,009 1.58% Fire 925,173 906,357 851,031 1,037,794 1,062,142 2.35% Community Development 810,547 1,003,420 1,096,133 1,257,334 1,316,254 4.69% Other Services 410,110 369,225 350,533 437,188 434,025 (0.72 %) Buildings & Grounds 833,839 882,707 826,718 748,717 766,808 2.42% Public Works 2,875,363 2,841,519 2,894,185 2,940,341 3,019,246 2.68% C.A. R. S. 1,385,537 1,440,175 1,438,723 1,446,761 1,472,716 1.79% Miscellaneous (319,742) (501,379) (550,506) (681,654) (584,908) (14.19 %) GENERAL FUND 14,628,194 15,221,121 15,501,605 16,003,578 16,402,573 2.49% 12 General Fund Expenditures 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 2007 2008 2009 2010 2011 13 General Fund Expenditures 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 r 3,000,000 1 ^ } 2,000,000 UZ 1,000,000 III General Police Fire Community Other Services Buildings & Public Works C.A.R.S. Government Development Grounds _u' 2007 ■ 2008 ■ 2009 ® 2010 ■ 2011 14 City of Brooklyn Center Expenditures by Type 2007 -2011 Fiscal Years Amended Actual Actual Actual Budget Proposed % 2007 2008 2009 2010 2011 change Wages 8,107,187 8,491,843 8,994,633 8,803,498 8,765,504 (0.43 %) Retirement Contributions (LR) 1,193,653 1,285,336 1,374,916 1,505,661 1,453,860 (3.44 %) Insurance Contributions 962,560 982,321 1,097,798 1,333,783 1,398,720 4.87% Worker's Compensation Insurance (LR) 207,669 256,224 271,462 267,119 291,963 9.30% Personal Services 10,471,069 11,015,724 11,738,809 11,910,061 11,910,047 (0.00 %) Operating Supplies 272,410 270,622 254,295 266,868 279,166 4.61% Repair & Maintenance Supplies 170,624 196,352 163,254 180,900 185,600 2.60% Small Tools & Minor Equipment 82,485 90,899 52,334 111,675 103,150 (7.63 %) Supplies 525,519 557,873 469,883 559,443 567,916 1.51% Professional Services 550,202 686,437 581,140 575,996 558,835 (2.98 %) Communications 222,223 220,064 218,237 245,378 243,170 (0.90 %) Utilities 607,888 683,350 551,876 588,908 596,780 1.34% Insurance 155,167 148,956 141,659 180,700 188,270 4.19% Repair & Maintenance Services 329,627 405,518 432,895 338,406 367,090 8.48% Central Garage Charges 1,165, 374 1,063,880 1,039,425 1,270,937 1, 309, 321 3.02% Software /IT Licenses & Services 280,277 279,657 271,330 308,801 338,342 9.57% Other Services 919,945 926,438 895,689 1,067,763 1,259,570 17.96% Transfers (740, 369) (797, 775) (864, 229) (1,081,744) (964, 368) (10.85%) Other Charges & Services 3,490,334 3,616,525 3,268,022 3,495,145 3,897,010 11.50% Capital Outlay 141,272 35,999 24,891 38,929 27,600 (29.10 %) GENERAL FUND 14,628,194 15,226,121 15,501,605 16,003,578 16,402,573 2.49% 15 General Fund Expenditures by Type 2011 Capital Outlay 0.17% Other Charges & Services 8.73 Central Garage Charges 7.98 3., sir x r ,t Utilities 3.64% I Professional Services 3.41% Supplies 3.46% 16 Water • Issues: • Maintain 115 miles of water main and service to 8,950 customers • Regular testing for proper chlorine and fluoride levels, testing for lead, copper, iron, manganese, zinc, calcium. i • Rates: 2008 2009 2010 2011 Rate Percentage Increase: 6.25% 3.00% 4.00 % 4.00% Basis for Charge /1,000 gal. $ 1.25 $ 1.29 $ 1.34 $ 1.40 17 Sewer Utility • Issues: • 3.8% increase in MCES wastewater processing charge • Working on new rates based on water consumption readings — implementation in 3rd quarter of 2011 • Rates: 2008 2009 2010 2011 Rate Percentage Increase: 2.00 % 1.00% 1.00 % 3.00% Monthly Residential Fee: $ 20.87 $ 21.08 $ 21.29 $ 21.93 18 Storm Drainage Utility • Issues: • All street sweeping and catch basin maintenance done from this Fund •Wetland Maintenance and Pond Dredging • Rates: 2008 2009 2010 2011 Rate Percentage Increase: 7.00% 3.00% 1.00% 1.00% Quarterly Residential Fee: $ 13.78 $ 14.19 $ 14.34 $ 14.48 19 L ight U ti li ty � eel • Issues: • Cost control and energy efficiency • Analysis of New Technologies • Rates: 2008 2009 2010 2011 Rate Percentage Increase: 5.00 % 2.00 % 3.00 % 3.00 % Quarterly Residential Fee: $ 3.65 $ 3.73 $ 3.84 $ 3.95 20 Recycling ti i • Issues: • HRG contract rate increase of 3.00% • No annual or bi- annual curbside pickup included • Rates: 2008 2009 2010 2011 Rate Percentage Increase: 3.00% 3.00 % 6.00 % 2.00 % Quarterly Residential Fee: $ 7.57 $ 7.80 $ 8.27 $ 8.43 21 Capital Improvement Projects • Logan Neighborhood Reconstruction • Shingle Creek Parkway Street Improvement • Traffic Signal Replacement I -94 &Parkway Ramps • Storm Water Ponds Dredging and Rehabilitation • West Palmer Lake Park Building Replacement • Centennial Park Youth Soccer Field • Unity Avenue Reconstruction • East Palmer Lake Neighborhood Reconstruction • 2011 Capital Building Maintenance Program 22 Capital Improvement Program Funding Sources for 2011 Street Light Utility, BC Liquor Transfer County Grants, $107,000.00 $350,000.00 $119,500.00 Other Sources, $460,100.00 1 4 Reasons Property Taxes Go Up or Down video presentation League of Minnesota Cities Association of Minnesota Counties Minnesota School Boards Association 24 Property Taxes - Introduction • 2008 LGA = $ 572,708 • 2009 LGA = $ 1,019,990 • 2010 LGA = $ 411,544 • 2011 LGA = $ ? $ 1, 505, 425 allotted $ 200, 000 in budget • 2008 MVHC = $ 543,128 • 2009 MVHC = $ 583,308 • 2010 MVHC = $ 126,968 • 2011 MVHC = $ ? $ 538,346 allotted $ 538,346 in budget 25 2011 Proposed T x Lev a MT City of Brooklyn Center Pay 2011 Propsed Property Tax Levy Total Levy All Sources Actual Preliminary $ % Pay Pay Increase or Increase or 2010 2011 (Decrease) (Decrease) Limited Levy 6,684,916 6,806,374 121,458 1.82% Police & Fire Levy 5,122, 581 5,173, 806 51,225 1.00% Fire Relief Association Pension 65,945 - (65,945) (100.00 %) Foreclosure Levy 125,000 125,000 - 0.00% 2008 LGA Unalbtment 42,100 - (42,100) (100.00 %) 2009 LGA Unallotment 463,502 - (463,502) (100.00 %) 2010 LGA Unalbtment - 296,138 296,138 100.00% 2010 Supplemental LGA/MVHC Reductions - 504,022 504,022 100.00% 2004A Bond Levy 715,183 695,632 (19,551) (2.73 %) HRA Levy 349,745 310,831 (38,914) (11.13 %) TOTAL LEVY: 13,568,972 13,911,803 342,831 2.53% 26 Tax Capacity for Taxes Payable in 2010 d1 h I � Y c ` 4 u 27 Tax Capacity for Taxes Payable in 2011 f� n } a+ z w u i Y w:t Change in Median Residential Value Pay 2010 Median Taxable Market Value $ 153,600 Pay 2011 Median Taxable Market Value $ 137,400 Change in Value (10.55 %) Change in Median Residential Cily Tax o Pay 2010 Pay 2011 change Median Taxable Market Value $ 153,600 $ 137,400 (10.55 %) Median Tax Capacity 1 1 (10.55 %) General Levy Rate TC 51.05600% 57.16800% 11.97% HRA Levy Rate TC 1.31600% 1.33900% 1.75% Debt Service Levy Rate MV 0.03773% 0.04132% 9.51% City Tax $ 862.39 $ 860.66 (0.20 %) i 0 Dstrbutan of Property Tax Amount Changes by Number of Properties r7 Each Category Increase Increase Increase Increase Increase Decrease .1% to 4.9% 5.0% to 9.9% 10.0% to 14.9% 15.0% to 19.9% 20.0% or more Single Family Residential 6,559 407 102 9 1 1 Apartments 36 21 13 2 1 1 Ccommercial & Industrial 90 26 41 16 1 - Total # of Properties 6,685 454 156 27 3 2 Distrbutbn of Property Tax Amount Changes by Percentage of Properties h Each Category Inrease Inrease Inrease Inrease Inrease Decrease .1% to 4.9% 5.0% to 9.9% 10.0% to 14.9% 15.0% to 19.9% 20.0% or more I Single Family Residential 92.65% 5.75% 1.44% 0.13% 0.01% 0.01% Apartments 48.65% 28.38% 17.57% 2.70% 1.35% 1.35% Ccommercial & Industrial 51.72% 14.94% 23.56% 9.20% 0.57% 0.00% % of Total Properties 91.24% 6.20% 2.13% 0.37% 0.04% 0.03% Of the 7,327 taxable properties in Brooklyn Center, 6,685 of them, or about 91.25 %, will see lower property taxes in 2011 according to data assembled Hennepin County. The other 8.75% will see increases ranging from 0.1 % over the 2010 amount to more than 0 0 0 or ill n increase of 10.0 /o 20.0 /o. Less than 1 /o of properties w see a greater. 31 Public Comment . . . . . . . . . . . . . . . . . . ........... Remaining Steps 1. City Council will consider a resolution adopting the final property tax levy amount of $ 13,911,803 at the 13 December 2010 City Council meeting. 2. City Council will consider resolution adopting the ' 2011 Employee Pay Plan at that same meeting. 3. At that same meeting, the City Council will consider resolutions adopting all budgets for 2011 City operations. 4. The property tax levy is certified to the Hennepin County Treasurer before December 28, 2010. 33 City of BROOKLYN CENTER