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Home My WebLink About2011 12-05 CCP Budget Hearing CITY COUNCIL MEETING PUBLIC MEETING ON PROPERTY TAXES City of Brooklyn Center December 5, 2011 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 2012 Proposed Budgets a. General Fund b. Utility Funds -- e:- Capital Improvement Program 5. Presentation on Proposed Property Taxes Payable in 2012 6. Opportunity for Public Comment and Questions 7. Review Remaining Actions for Adoption 8. Adjourn I • C ity ofBro h � e to r 2012 Budget and Property Tax Levies Payable IR 2012 Monday, December S 2011 ?:00 R MI 1 l n e B Process u g e� • 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: • August 3 Process, Policies. Legislation and Assumptions • August 15 Capital Improvement Plan and Capital Funds August 29 General Fund Revenues, Expenses and Property Tax Levy • September 6 General Fund, Other Governmental Funds and Property Tax Levy October 17 Utility Funds, Cash Flows and Rates for 2012 November 7 Enterprise Funds November 21 Consideration of Water Rates, Capital Funding and CBMP • Truth in Taxation legislation 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. 2 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. Embrace the community demographic makeup and increasing cultural diversity 5. Continue to maintain and upgrade city infrastructure improvements 6. Encourage environmental sustainability 3 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. Maintaining or lowering the level of city property taxes 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 4 2012 Budget Priorities • Continue to Reduced Crime • Neighborhood compliance with city codes and regulations • Maintained and improve City government .buildings, major equipment • Maintain and improve Neighborhood sheets and .utilities • Opportunity Site redevelopment • EDA owned property redevelopment 2012 Proposed City Levies • General Fund Operations $ 13,070 • Fire Relief Association Pension $ 12,711 • Foreclosure Special Levy $ 125 • Housing and Redevelopment Authority $ 302,288 • Police and Fire Bonds Levy $ 708 • 2012 Proposed Total Levy $14,218,823 0 2011 Adopted Total Levy $ 13 •Increase in dollars $ 307,020 • Increase as percentage 2.21 s 2012 General Fund Overview • 2.00% Base wage increases for employees budgeted • $ 100,000 position "Vacancy Factor" for 2012 • Elimination of 1 vacant FTE position • Other Departmental Expenditures and Service Levels Maintained at or near 2011 Plan. • State Budget Deficit leaves LGA Uncertainty • 2012 Budget includes $ 200,000 in State LGA Aid • Total 2012 Budget increase of 3.17% • General Fund Budget Expenditures $ 16,922 • Compared to 2011 approved Expenditures $ 163,4021,573 c ir N Jog fill a 999 11H III it PON$ $Nvx� jffi�%s J�y 1� ,11 1 p I lip I,. p 511 1 10im 2012 General Fund Sources of Revenue Miscellaneous 0.35% Interest Income 0.21% Fines & Forfeits 2.06% Charges for Service 5.96% Licenses & Permits Property Taxes 3.75% -- 77.97% Other Intergovernmental Revenue 3.80 LGA 1.18% Other Taxes 4.72% E E I City of Brooklyn Center Expenditures by Department 2009 -2012 Fiscal Years Actual Actual Budget Proposed % 2009 2010 2011 2012 change General Government 2,086,645 2,182,082 2,186,281 2,289,476 4.72% Police 6,508,143 6,444,867 6,730,009 6,821,285 1.36% Fire 851,031 1,006,442 1,062,142 1,071,369 0.87% Community Development 1,096,133 1,105,840 1,316,254 1,347,364 2.36% Other Services 350,533 408,600 434,025 477,250 9.96% Buildings & Grounds 826,718 860,285 766,808 731,462 (4.61 %) Public Works 2,894,185 2,908,557 3,019,246 3,130,513 3.69% C.A.R.S. 1,438,723 1,419,890 1,472,716 1,469,908 (0.19 %) Miscellaneous (550,506) (468,684) (584,908) (415,638) (28.94 %) GENERAL FUND 15,501,605 15,867,879 16,402,573 16,922,989 3.17% I 2012 General Fund Expenditures by Function C.A.R.S. 8.48% General Government 13.20% Public Works 18.06 Buildings & Grounds 4.22% Police 39.34% Other Services 2.75 Community Development 7.77/ Fire 6.18% Water Utility • Issues:. • Maintain 115 miles of water main and service to 8,950 customers • Somewhat larger increase for 2012 because of system capital needs in the future Rates: 2009 2010 2011 2012 Rate Increase: 3.00% 4.00% 4.00% 8.00% Rate per 1000 gallons: 1.29 1.34 1.40 1.51 12 Sanitary Sewer Utility • Issues: • 0:5% increase in MCES wastewater processing charge • Council . has elected to retain current flat rate sewer charges • Rates: 2009 2010 2011 2012 Rate Increase: 1.00% 1.00% 3.00% 3.00% Monthly Rate per Dwelling: $ 21.08 $ 21.29 $ 21.93 $ 22.59 13 Storm Drainage Utility • Issues: • All street sweeping and catch basin maintenance done from this Fund • Wetland Maintenance and Pond Dredging • Rates: 2009 2010 2011 2012 Rate Increase: 3.00% 1.00% 1.00% 0.00% Quarterly per Residential Lot: 14.19 14.33 14.48 14.48 14 Street Light Utility • Issues: • Cost control and energy efficiency • Additional capital costs for updating of existing fixtures during street reconstruction projects • Addition of ornamental lighting in several areas of the City require funding for upkeep and maintenance • Analysis of New Technologies Rates: 2009 2010 2011 2012 Rate Increase: 2.00% 3.00% 3.00% 25.32% Quarterly Rate per Dwelling: 3.73 3.84 3.95 4.95 15 Recycling Utility • Issues: • No increase in the HRG contract rate for 2012 • Bi weekly pickup of 60 gallon mixed material recycling • Hennepin County is considering new policies for recycling which may affect future costs � Rates: 2009 2010 2011 2012 Rate Increase: 3.00% 6.00% 2.00% 0.00% Quarterly Residential Rate: 7.80 8.27 8.43 8.43 16 I i Utility Customer Charges Summary • For a residential customer using 18,000 gallons of water in a quarter the 2012 charges will be: Quarterly Quarterly Bill Bill quarterly 2011 2012 change Water $ 26.74 $ 28.90 $ 2.16 Sanitary Sewer $ 65.79 $ 67.76 $ 1.97 - Stormwater $ 14.48 $ 14.48 $ - Streetlight $ 3.95 $ 4.95 $ 1.00 Recycling $ 8.43 $ 8.43 $ $ 119.39 $ 124.52 $ 5.13 17 Capital Improvement Projects • Storm Water Ponds Dredging and Rehabilitation • Sanitary Sewer Trunk Line at Shingle Creek Crossing • Various Park enhancement projects: — Evergreen Park fences, lighting and court — Centennial Park youth soccer field — Orchard Lane park shelter • Capital Building Maintenance Program — Move lower cost maintenance items into operating budgets for the various buildings — Large project for replacement of roof, HVAC and windows in the Community Center for 2013 18 Property Taxes - Introduction • Why is my property tax bill changing? • Change in value of your. property • Change in the relative proportion of your property to the total property value in BC • Homestead Market Value Exclusion (HMVE) • Program developed by the 2011 legislature to provide relief to homeowner occupied residential properties by adjusting the taxable market value in lieu of a direct credit based in property value • Increase in property taxes requested for operations of City General Fund activities 19 2012 Pao os e Property Tax Lev V City of Brooklyn Center MTM Pay 2012 Property Tax Levy Proposal A B C Levied Levied Proposed Le Pay Pay Pay 2010 2011 2012 1 General Property Tax Levy 6,684,916 6,766,374 13,070,243 2 Police & Fire Levy: 5,122,581 5,173,806 - 3 Fire Relief Association Pension 65,945 40,000 12,711 4 Foreclosure Levy. 125,000 125,000 125,000 5 2008 LGA Una llotment: 42.100 - - 6 2009 LGA Una llotment: 463.502 - - 7 2010 LGA Una Ilotm ent 296,138 - 8 2010 MVHC Unallotment - - 9 2010 Supplemental Cuts to LGA/MVHC 504,022 - 10 2011 Supplemental Cuts to MVHC - - ........... _ ......... _ .................... _ ......... _......... _......_ ...... _ .............................. _ ....... _ ............... ..._ .................... _ ................................... .................. 11 2004A Bonds Levy: 715,183 695,632 708,581 12 HRA Levy: 349,745 310,831 302,288 13 TOTAL LEVY 13,568,972 13,911,803 14,218,823 14 General Fund Portion 12,504,044 12,905,340 13,207,954 15 General Fund Portion Change 700,028 401,296 302,614 16 Percentage 5.9% 3.2% 2.4% 17 Total Dollar Increase 675,764 342,831 307,020 18 Total % Increase 5.2 2.53% 2.21% Industrial Other 7.235% 0.045% Com ercial 15.34% Apartments 9 . 87 % Residential 67.53% Pay 2011 EMV Industrial Other 7.20% 0.04% Commercial 15.06 K Apartments 10.33 Residential 67.37 Pay 2012 E M V Chance in Median Residential Value Pay 2011 Median Estimated Market Value i $ 137,400 Pay 2012 Median Estimated Market Value $ 133,800 Median Change in Value (2.62 %) Other Industrial 0.04% 8.09% 1 Commercial l 16.92% Apartments 11.60% Residential 63.35% Pay 2012 TMV 1 1 800,000,000 Changes in Market Value Composition 1,600,000,000 21, , 0 -- 117,713,500 258,151,100 1,400,000,000 246,095,200 117,713,500 1,200,000,000 00 084, 000 246, 095, 200 168,768,000 1,000,000,000 168, 717, 40 800,000,000 600,000,000 1,136,515,700 1,100,906,000 21,726,00 400,000,000 • 200,000,000 Pay 2011 EMV Pay 2012 EMV Pay 2012 TMV ■ Residential ■ Apartments Commercial ■ Industrial Other Industrial Pay 2011 Tax Capacity 11.55% Other 0.04Yc Commercial 24.33% Residential 54.48 Apartments 9.60% Pay 2012 Tax Capacity Industrial Other 12.61 % - -- - 0.05% Residential Commercial 50.14% 26.18% Apartments 11.02% M:T City of Brooklyn Center : Estimated City PropertyTax for 2012 i Pay 2011 Pay 2012 Pay 2012 2011 2012 EMV EMV TMV City Taxes City Taxes $ % w /MVHC w /HMVE Difference Difference 87,295 85,000 55,410 426.34 387.25 (39.09) (9.17 %) 92,944 90,500 61,405 463.80 429.15 (34.65) (7.47 %) 98,079 95,500 66,855 497.86 467.24 (30.62) (6.15 %) 102,700 100,000 71,760 528.51 501.52 (27.00) (5.11 %) 107,835 105,E 77,210 562.57 539.61 (22.97) (4.08 %) 112,970 110,000 82,660 596.63 577.69 (18.94) (3.17 %) 118,105 115,000 88,110 630.69 615.78 (14.91) (2.36 %) 123,240 120,000 93,560 664.75 653.87 (10.88) (1.64 %) 128,375 125,000 99,010 698.81 691.96 (6.85) (0.98 %) 133,510 130,000 104,460 732.87 730.05 (2.82) (0.39 %) 137,413 133,800 108,602 758.76 759.00 0.24 0.03% Median Pay 2012 138,645 135,000 109,910 766.93 768.14 1.20 0.16% 141,110 137,400 112,526 783.28 786.42 3.14 0.40% 143,780 140,000 115,360 800.99 806.23 5.23 0.65% 148,915 145,000 120,810 835.05 844.32 9.26 1.11% 154,050 150,000 126,260 869.11 882.41 13.29 1.53% 159,185 155,000 131,710 903.17 920.49 17.32 1.92% 164,320 160,000 137,160 937.23 958.58 21.35 2.28% 169,455 165,000 142,610 971.29 996.67 25.38 2.61% 174,590 170,000 148,060 1,005.35 1,034.76 29.41 2.93% 179 175,000 153,510 1,039.41 1,072.85 33.44 3.22% 184,860 180,000 159,788 1,073.47 1,116.73 43.25 4.03% 189,995 185,000 164,410 1,107.53 1,149.03 41.49 3.75% 195,130 190,000 169,860 1,141.59 1,187.12 45.52 3.99% 200,265 195,000 175,310 1,175.65 1,225.21 49.55 4.21% 205,400 200,000 180,760 1,209.71 1,263.30 53.58 4.43% Value of Tax Aid cn o Ln o Ln o Ln 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 55,410 57,045 58,135 59,225 60,315 61,405 62,495 63,585 64,675 65,765 C 66,855 67,945 IT 69,035 O 70,125 71,215 c 71,760 = N 77,210 n 82,660 C E 88,110 N ( 93,560 = cu 99,010 ' 104,460 C n, 108,602 m fD 109,910 O 112,526 N 115,360 C 120,810 N 126,260 130,184 131,710 fD 137,160 N 142,610 148,060 153,510 159,788 164,410 f000 169,860 175,310 180,760 m n Distrbutbn of Property Tax Amount Changes by Number of Propertes 17 Each Category Decrease Decrease Decrease Increase Increase Increase Increase Increase 20% or more 10.0% to 19.9% 1% to 9.9% .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 189 1,698 3,310 1,494 283 28 19 32 Apartments - 4 8 25 43 1 - - Commercial & Industrial 5 6 19 74 64 1 - 2 Total # of Properties 194 1,708 3,337 1,593 390 30 19 34 % of Total Properties 2.66% 23.38% 45.68% 21.81% 5.34% 0.41% 0.26% 0.47% Of the 7,305 taxable properties in Brooklyn Center, 5,239 of them, or about 71.72 %, will see lower overall property taxes in 2012 according to data assembled Hennepin County. The other 28.28% will see increases ranging from 0.1 % over the 2011 amount to more than 20.0 %. About 1.14% of properties will see an increase of 10.0% or greater. 30 Remaining Steps 1. Consider resolution adopting the final property tax levy amount of $ 14,218,823 at the 12 December 2011 City Council meeting. 2. Consider resolution adopting the 2012 Employee Pay Plan at that same meeting. 3. Consider resolutions adopting all budgets for 2012 City operations at that same meeting. 4. The property tax levy is then certified to the Hennepin County Treasurer before December 28, 2011. 31 City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn. Center, IVIN 55430 763/569 -3300 • Curt Boganey, City Manager • Dan Jordet, Director of Fiscal &Support Services 32 City of Brooklyn Center 2012 Budget and Property Tax Levies Payable i in 2012 Monday, December 5 , 2011 7:00 P.M. 1 The Budget Process 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: • August 3 Process, Policies. Legislation and Assumptions • August 15 Capital Improvement Plan and Capital Funds • August 29 General Fund Revenues, Expenses and Property Tax Levy • September 6 General Fund, Other Governmental Funds and Property Tax Levy • October 17 Utility Funds, Cash Flows and Rates for 2012 • November 7 Enterprise Funds • November 21 Consideration of Water Rates, Capital Funding and CBMP Truth in Taxation legislation 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 finial budget and property tax levy. 9 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. Embrace the community demographic makeup and increasing cultural diversity 5 . Continue to maintain and upgrade city infrastructure improvements 6. Encourage environmental sustainability 3 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. Maintaining or lowering the level of city property taxes 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 2012 Budget Priorities • Continue to Reduced Crime • Neighborhood compliance with city codes and regulations Maintained and improve City government buildings, major equipment • Maintain and improve Neighborhood streets and utilities j • Opportunity Site redevelopment • EDA owned property redevelopment S 2012 Pro posed City Levies • General Fund Operations $ 13,070,243 • Fire Relief Association Pension $ 121711 Foreclosure Special Levy $ 12500 • Housing and Redevelopment Authority $ 302,288 Police and Fire Bonds Levy $ 708,581 2012 Proposed Total Levy $ 14,218,823 • 2011 Adopted Total Levy $ 13,91103 • Increase in dollars $ 307,020 • Increase as percentage 2.21 6 2012 ene�a • 2.00% Base wage increases for employees budgeted 0 $ 100,000 position "Vacancy Factor" for 2012 • Elimination of 1 vacant FTE position • Other Departmental Expenditures and Service Levels Maintained at or near 2011 Plan. • State Budget Deficit leaves LGA Uncertainty • 2012 Budget includes $ 200,000 in State LGA Aid • Total 2012 Budget increase of 3 . 17% • General Fund Budget Expenditures $ 169922,989 • Compared to 2011 approved Expenditures $ 169402,573 7 City of Brooklyn Center Revenues by Source ° 2009-2012 Fiscal Years Actual Actual Budget Proposed % Revenue Type 2009 2010 2011 2012 change Property Tax 11,224,783 11,832,434 12,366,994 13,207,954 6.80% Market Value Homestead Credit 583,308 125,175 538,346 - (100.00%) Lodging Tax 591,291 696,746 705,000 800,000 13.48% Taxes 12,399,382 12,654,355 13,610,340 14,007,954 2.92% Licenses 265,393 309,252 266,890 254,867 (4.50%) Permits 350,741 754,693 339,500 380,700 12.14% Licenses&Permits 616,134 1,063,945 606,390 635,567 4.81% Federal Revenues 1,317 2,432 100,000 125,000 25.00% LGA 1,019,990 411,378 200,000 200,000 0.00% Other State Revenues 453,369 455,439 459,365 449,365 (2.18%) County/Other Local Government Revenues 69,176 68,582 68,900 69,950 1.52% Intergovernmental Revenue 1,543,852 937,831 828,265 844,315 1.94% General Charges for Service 359,281 262,047 186,100 218,050 17.17% Public Safety Charges tbr Service 74,952 72,492 50,700 84,100 65.88% Code Enforcement Charges for Service 12,851 12,020 10,000 20,000 100.00% Recreation Changes for Service 296,429 295,097 307,768 296,582 (3.63%) Community Center Charges for Service 365,657 343,960 389,590 390,100 0.13% Charges for Service 1,109,170 985,616 944,158 1,008,832 6.85% Fines&Forfeits 340,536 359,937 322,800 348,500 7.96% Interest Income 55,865 25,977 35,000 35,000 0.00% Refunds and Reimbursements 187,660 34,794 40,000 30,000 (25.00%) Other Miscellaneous Revenues 35,573 202,127 15,620 30,000 92.06% Miscellaneous Revenue 279,098 262,898 90,620 95,000 4.83% TOTAL GENERAL FUND REVENUES 16,288,172 16,264,582 16,402,573 16,940,168 3.280/6 2012 General Fund Sources of Revenue Miscellaneous 0.35% Interest Income 0.21 Fines & Forfeits 2.06 Charges for Service 5.96% - _----__._._ - _- Licenses & Permits -_-- Property Taxes 77.97% 3.75% - Other Intergovernmental Revenue 3.80% LGA 1.18% Other Taxes 4.72% 9 .- City of Brooklyn Center f{, J Expenditures by Department 2009-2012 Fiscal Years Actual Actual Budget Proposed % 2009 2010 2011 2012 change General Government 2,086,645 2,182,082 2,186,281 2,289,476 4.72% Police 6,508,143 6,444,867 6,730,009 6,821,285 1.36% Fire 851,031 1,006,442 1,062,142 1,071,369 0.87% Community Development 1,096,133 1,105,840 1,316,254 1,347,364 2.36% Other Services 350,533 408,600 434,025 477,250 9.96% Buildings & Grounds 826,718 860,285 766,808 731,462 (4.61%) Public Works 2,894,185 2,908,557 3,019,246 3,130,513 3.69% C.A.R.S. 1,438,723 1,419,890 1,472,716 1,469,908 (0.19%) Miscellaneous (550,506) (468,684) (584,908) (415,638) (28.94%) GENERAL FUND 15,501,605 15,867,879 16,402,573 16,922,989 3.17% 2012 General Fund Expenditures by Function C.A.R.S. General 8.48% Government 13.20% Public Works 18.06% Buildings & - Grounds 4.22% Police 39.34% Other Services 2.75% Community Development 7.77% Fire 6.18% Water Utility d Issues : • Maintain 115 miles of water main and service to 8,950 customers • Somewhat larger increase for 2012 because of system capital needs in the future Rates : 2009 2010 2011 2012 Rate Increase: 3.00% 4.00% 4.00% 8.00% Rate per 1000 gallons: 1 .29 1 .34 1 .40 1 .51 Sanitary Sewer Utility P Issues : • 0.5% increase in MCES wastewater processing charge • Council has elected to retain current flat rate sewer charges 0 Rates : 2009 2010 2011 2012 Rate Increase: 1 .00% 1 .00% 3.00% 3.00% Monthly Rate per Dwelling: $ 21 .08 $ 21 .29 $ 21 .93 $ 22.59 Storm Drainage Utility e Issues : • All street sweeping and catch basin maintenance done from this Fund • Wetland Maintenance and Pond Dredging o Rates : 2009 2010 2011 2012 Rate Increase: 3.00% 1.00% 1.00% 0.00% Quarterly per Residential Lot: 14.19 14.33 14.48 14.48 'lA Street Light Utility Issues : • Cost control and energy efficiency • Additional capital costs for updating of existing fixtures during street reconstruction projects • Addition of ornamental lighting in several areas of the City require funding for upkeep and maintenance • Analysis of New Technologies e Rates : 2009 2010 2011 2012 Rate Increase: 2.00% 3.00% 3.00% 25.32% Quarterly Rate per Dwelling: 3.73 3.84 3.95 4.95 Recycling Utility • Issues : • No increase in the HRG contract rate for 2012 • Bi-weekly pickup of 60 gallon mixed material recycling • Hennepin County is considering new policies for recycling which may affect future costs Rates : 2009 Zoo 2011 2012 Rate Increase: 3.00% 6.00% 2.00% 0.00% Quarterly Residential Rate: 7.80 8.27 8.43 8.43 Utility C umma For a residential customer using 18,000 gallons of water in a quarter the 2012 charges will be: Quarterly Quarterly Bill Bill quarterly 2011 2012 change Water $ 26.74 $ 28.90 $ 2.16 Sanitary Sewer $ 65.79 $ 67.76 $ 1.97 Stormwater $ 14.48 $ 14.48 $ - Streetlight $ 3.95 $ 4.95 $ 1.00 Recycling $ 8.43 $ 8.43 $ - $ 119.39-1 $ 124.52 $ 5.13 I a ital Im rovement. Proj*ects Storm Water Ponds Dredging and Rehabilitation Sanitary Sewer Trunk Line at Shingle Creek Crossing Various Park enhancement projects: — Evergreen Park fences, lighting and court — Centennial Park youth soccer field — Orchard Lane park shelter Capital Building Maintenance Program — Move lower cost maintenance items into operating budgets for the various buildings — Large project for replacement of roof, HVAC and windows in the Community Center for 2013 I' Property Taxes - Introduction • Why is my property tax bill changing? • Change in value of your property • Change in the relative proportion of your property to the total property value in BC • Homestead Market Value Exclusion (HMVE) • Program developed by the 2011 legislature to provide relief to homeowner occupied residential properties by adjusting the taxable market value in lieu of a direct credit based in property value • Increase in property taxes requested for operations of City General Fund activities 19 2012Pro ose Pao e�� TaxLevy City of Brooklyn Center Pay 2012 Property Tax Levy Proposal A B C Levied Levied Pro sed Le Vy Pay Pay Pay 2010 2011 2012 1 General Property Tax Levy 6,684,916 6,766,374 13,070,243 2 Police & Fire Levy: 5,122,581 5,173,806 - 3 Fire Relief Association Pension 65,945 40,000 12,711 4 Foreclosure Levy: 125,000 125,000 125,000 5 2008 LGA Unallotment: 42,100 - - 6 2009 LGA Unallotment: 463,502 - - 7 2010 LGA Unallotment 296,138 - 8 2010 MVHC Unallotment - 9 2010 Supplemental Cuts to LGA/MVHC 504,022 - 10 2011 Supplemental Cuts to MVHC - ....................................__........._........_.............._.........._........._...................._.......__........._................................................................................... 11 2004A Bonds Levy. 795,183 695,632 708,581 12 HRA Levy: 349,745 310,831 302,288 13 TOTAL LEVY 13,568,972 13,911,803 14,218,823 14 General Fund Portion 12,504,044 12,905,340 13,207,954 15 General Fund Portion Change 700,028 401,296 302,614 16 Percentage 5.9% 3.2% 2.4% 17 Total Dollar Increase 675,764 342,831 307,020 18 Total % Increase 5.20/6 2.53% 2.21% Change in Median Residential Value Pay 2011 Median Estimated Market Value $ 137 ,400 Pay 2012 Median Estimated Market Value $ 133 , 800 Median Change in Value (2 .62%) Industrial Other 7.23% 0.04% Commercial 15.34% Apartments 9.87% Residential 67.53 Pay 2011 EMV I 22 i M M Industrial Other 7.20% 0.04% Commercial 15.06% Apartments 10.33% Residential 67.37% Pay 2012 EMV - - 23 Other Industrial 8.09% Commercial 16.92% Apartments 11.60% Residential 63.35% Pay 2012 TMV 24 1,800,000,000 Changes in Market Value Composition 1,600,000,000 — 117,713,500 258,151,100 � 1,400,000,000 — 246,095,200 1,200,000,000 166,084,000 168,768,000 246,095,200 1,000,000,000 — -— 168,717,400 800,000,000 600,000,000 ---- 1,136,515,700 1,100,906,000 921,726,005 400,000,000 F 200,000,000 Pay 2011 EMV Pay 2012 EMV Pay 2012 TMV ■ Residential ■ Apartments Commercial ■ Industrial Other 25 Industrial Pay 2011 Tax Capacity 11.55% Other 0.04% i Commercial 24.33% Residential 54.48 Apartments 9.60% ---------- ----- - -- - 26 Pay 2012 Tax Capacity Industrial Other 12.61% 0.05% i l Residential Commercial 50.14% 26.18% Apartments 11.02% r City of Brooklyn Center Estimated City PropertyTax for 2012 Pay 2011 Pay 2012 Pay 2012 2011 2012 EMV ENV TMV City Taxes City Taxes $ w/MVHC w/HMVE Difference Difference 87,295 85,000 55,410 426.34 387.25 (39.09) (9.17%) 92,944 90,500 61,405 463.80 429.15 (34.65) (7.47%) 98,079 95,500 66,855 497.86 467.24 (30.62) (6.15%) 1021700 100,000 71,760 528.51 501.52 (27.00) (5.11%) 107,835 1051000 77,210 562.57 539.61 (22.97) (4.08%) 112,970 110,000 82,660 596.63 577.69 (18.94) (3.17%) 118,105 115,000 88,110 630.69 615.78 (14.91) (2.36%) 123,240 120,000 931560 664.75 653.87 (10.88) (1.64%) 128,375 125,000 99,010 698.81 691.96 (6.85) (0.98%) 133,510 130,000 104,460 732.87 730.05 (2.82) (0.39%) 137,413 133,800 108,602 758.76 759.00 0.24 0.03% Median Pay 2012 138,645 135,000 109,910 766.93 768.14 1.20 0.16% 141,110 137,400 112,526 783.28 786.42 3.14 0.40% 143,780 140,000 115,360 800.99 806.23 5.23 0.65% 148,915 145,000 120,810 835.05 844.32 9.26 1.11% 154,050 150,000 126,260 869.11 882.41 13.29 1.53% 159,185 155,000 131,710 903.17 920.49 17.32 1.92% 164,320 1601000 137,160 937.23 958.58 21.35 2.28% 169,455 165,000 142,610 971.29 996.67 25.38 2.61% 174,590 170,000 148,060 1,005.35 1,034.76 29.41 2.93% 179,725 175,000 153F510 1,039.41 1,072.85 33.44 3.22% 184,860 180,000 159,788 1,073.47 1,116.73 43.25 4.03% 189,995 185,000 164,410 1,107.53 1,149.03 41.49 3.75% 195,130 190,000 169,860 1,141.59 1,187.12 45.52 3.99% 200,265 1951000 175r310 1,175.65 1,225.21 49.55 4.21% 205,400 200,000 180,760 1,209.71 1,263.30 53.58 4.43% Value of Tax Aid Ln N O O O O O O O O O O O O O O O 55,410 57,045 58,135 59,225 60,315 61,405 62,495 63,585 64,675 65,765 66,855 67,945 69,035 h 70,125 71,215 C c 71,760 = N 77,210 n X 82,660 N a 88,110 93,560 = 99,010 r°. 104,460 m o� 108,602 O fD 109,910 112,526 NG 115,360 120,810 N 126,260 130,184 X 131,710 N 137,160 142,610 148,060 153,510 159,788 164,410 169,860 175,310 180,760 i CO m n D&ributbn of Property Tax Amount Changes by Number of Propertes in Each Category Decrease Decrease Decrease Increase Increase Increase Increase Increase 20%or more 10.0%to 19.9% .1%to 9.9% 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 189 1,698 3,310 1,494 283 28 19 32 Apartments - 4 8 25 43 1 - - Commercial&Industrial 5 6 19 74 64 1 - 2 Total # of Properties 194 1,708 3,337 1,593 390 30 19 34 % of Total Properties 2.66% 23.38% 45.68% 21.81% 5.34% 0.41% 0.26%1 0.47% Of the 7,305 taxable properties in Brooklyn Center, 5,239 of them, or about 71 .72%, will see lower overall property taxes in 2012 according to data assembled Hennepin County. The other 28.28% will see increases ranging from 0. 1 % over the 2011 amount to more than 20.0%. About 1 . 14% of properties will see an increase of 10.0% or greater. 3 0 Remaining Steps 1 . Consider resolution adopting the final property tax levy amount of $ 14,218,823 at the 12 December 2011 City Council meeting. 2. Consider resolution adopting the 2012 Employee Pay Plan at that same meeting. 3 . Consider resolutions adopting all budgets for 2012 City operations at that same meeting. 4. The property tax levy is then certified to the Hennepin County Treasurer before December 28, 2011 . 31 r Y City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, IVIN 55430 763/569-3300 • Curt Boganey, City Manager • Dan Jordet, Director of Fiscal & Support Services