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Home My WebLink About2012 12-03 CCP Budget Hearing CITY COUNCIL MEETING PUBLIC MEETING ON PROPERTY TAXES City of Brooklyn Center December 3, 2012 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 C. Capital Improvement Program 5. Presentation on Proposed Property Taxes Payable in 2013 6. Opportunity for Public Comment and Questions 7. Review Remaining Actions for Adoption 8. Adjourn City of Brooklyn Center 2013 Budget and Property Tax Levies Payable in 2013 Monday, December 3, 2012 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: • July 2 Capital Improvement Plan and Capital Funds • July 30 Debt Service, Special Revenue Funds, Internal Service Funds and Property Tax Levy • August 20 General Fund Revenues, Expenses and Property Tax Levy • August 30 General Fund, Other Governmental Funds and Property Tax Levy • October 1 General Fund Departmental Details • October 15 Utility Funds, Cash Flows and Rates for 2013 • October 29 Enterprise Funds (BC Liquor, Ceneterbrook Golf, EBHC) • November 5 General Fund Departmental Details • 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 2012 Council Goals • Strategic goals 1 . Aggressively proceed with city redevelopment 2. Stabilize and improve residential neighborhoods 3 . Ensure a safe and secure community 4. Improve the image of the City 5. Value and benefit from the community's demographic makeup and cultural diversity 6. Increase the engagement of all segments of the community 7. Continue to maintain and upgrade city infrastructure improvements 8. Encourage environmental sustainability 3 2012 Council Goals • Ongoing goals 1 . Provide 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 4 Ensure the city's influence at the legislature y g 5 . Ensure the city's drinking water is high quality and that the storm water is properly managed P ay 2013 Pro posed City Levies • General Fund Operations $ 13,4529971 • Fire Relief Association Pension $ 12,711 • Foreclosure Special Levy $ 1251000 • Abatement for Economic Development $ 41 ,644 • Housing and Redevelopment Authority $ 246, 160 • Police and Fire Bonds Levy $ 711 ,725 i • 2013 Proposed Total Levy $ 1495909211 • 2012 Adopted Total Levy $ 14,218,823 • Increase in dollars $ 371,388 • Increase as percentage 2.61% 5 2013 General Fund Overview • 2.00% Base wage increases for employees budgeted • Increase Cafeteria Plan contribution $ 40 per month • $ 150,000 position "Vacancy Factor" for 2012 • Creation of 1 New FTE position: Assistant City Engineer • Expansion of Part-Time employees in Public Works Department • Reinstate .5 FTE Assessing Tech and upgrade 2 current staff • Assume funding for Police Juvenile Officer — end of grant cycle • Auto Theft Officer funding expires mid-year • Fewer Elections • Other Departmental Expenses & Services maintained at or near 2012 levels. I • Less LGA Uncertainty; 2013 Budget includes $ 411,378 in State LGA Aid • Total 2013 Budget increase of 3.58% • General Fund Budget Expenditures $ 1755281989 • Compared to 2012 approved Expenditures $ 16,9221989 6 City of Brooklyn Center Revenues by Source 2010-2013 Fiscal Years Actual Actual Budget Proposed % Revenue Type 2010 2011 2012 2013 change Property Tax 11,832,434 12,273,330 13,207,954 13,590,682 2.90% Market Value Homestead Credit 125,175 127,785 - - 0.00% Lodging Tax 696,746 852,302 800,000 825,000 3.13% Taxes 12,654,355 13,253,417 14,007,954 14,415,682 291% Licenses 309,252 303,582 254,867 308,977 21.23% Permits 754,693 658,365 380,700 332,231 (12.73%) Licenses&Permits 1,063,945 961,947 635,567 641,208 0.89•/6 Federal Revenues 2,432 1,210 125,000 150,000 20.00% LGA 411,378 411,378 200,000 411,378 105.69% Other State Revenues 455,439 450,341 449,365 425,117 (5.40%) County/Other Local Govemment Revenues 68,582 72,019 69,950 70,755 1.15% Intergovemmental Revenue 937,831 934,948 844,315 1,057,250 25.227. General Charges for Service 262,047 357,322 218,050 190,500 (1263%) Public Safety Charges for Service 72,492 89,850 84,100 58,100 (30.92%) Code EnIbrcement Charges 1br Service 12,020 7,668 20,000 15,000 (25.00%) Recreation Charges for Service 295,097 285,671 296,582 271,374 (8.50%) Community Center Charges for Service 343,960 357,823 390,100 378,600 (2.95%) Charges for Service 985,616 1,098,334 1,008,832 913,574 (9.44°1.) Fines&Forfeits 359,937 340,356 348,500 365,000 4.73°/. Interest Income 25,977 44,364 35,000 32,000 (8.57%) Refunds and Reimbursements 34,794 90,091 30,000 12,075 (59.75%) Other Miscellaneous Revenues 202,127 300,370 30,000 92,200 207.33% Miscellaneous Revenue 262,898 434,825 95,000 136,275 43.457. TOTAL GENERAL FUND REVENUES 16,264,582 17,023,827 16,940,168 17,528,989 3.487. 7 2013 General Fund Sources of Revenue Miscellaneous 0.35% Interest Income 0.18% Fines & Forfeits 2.08 Charges for Service 5.21 Licenses & Permits Prope` xes 3.66% 77.53% h Other Intergovernmental Revenue 3.68 LGA 2.35% Other Taxes 4.71% - ` City of Brooklyn Center Expenditures by Function 2010-2013 Fiscal Years Actual Actual Budget Proposed % 2010 2011 2012 2013 change General Government 2,182,082 2,283,665 2,289,476 2,329,887 1.77% Police 6,444,867 6,568,321 6,821,285 7,322,795 7.35% Fire 1,006,442 965,619 1,071,369 1,059,879 (1.07°/x) Community Development 1,105,840 1,205,283 1,347,364 1,399,362 3.86% Other Services 408,600 500,692 477,250 537,407 12.60% Buildings & Grounds 860,285 764,224 731,462 764,248 4.48% Public Works 2,908,557 2,924,365 3,130,513 3,318,843 6.02% C.A.R.S. 1,419,890 1,402,678 1,469,908 1,468,496 (0.10%) Miscellaneous (468,684) (491,903) (415,638) (671,928) 61.66% GENERAL FUND 151867,879 16,122,944 16,922,989 17,528,989 3.58% 9 2013 General Fund Expenditures by Function General overnment Public Work 18.23%_ ; Buildings & Grounds 4.20% Police 40.23% Other Services 2.95% Community Development 7.69% Fire 5.82% Water Utility • Issues : • Maintain 115 miles of water main and service to 8,950 customers • Capital funding through debt issuance in order to minimize rate increases and stabilize rates Rates : 2010 2011 2012 2013 Rate Increase: 4.00% 4.00% 8.00% 6.00 Basis Rate per 1 ,000 gallons: $ 1 .34 $ 1 .40 $ 1 .51 $ 1 .60 11 Sanitary • Issues : • 5.8% increase in MCES wastewater processing charge based on proportion of total flow • Internal financing of capital projects 2016 — 2020. • Rates : 2010 2011 2012 2013 Rate Increase: 1.00% 3.00% 3.00% 4.00% Monthly Rate per Dwelling: $ 21 .29 $ 21 .93 $ 22.59 $ 23.49 12 Storm Drainage Utility • Issues : • All street sweeping and catch basin maintenance done from this Fund • Wetland Maintenance and Pond Dredging • Rates : 2010 2011 2012 2013 Rate Increase: 1.00% 1.00% 0.00% 0.00 Quarterly per Residential Lot: $ 14.33 $ 14.48 $ 14.48 $ 14.48 13 Meet Light Utility • Issues : • Cost control and energy efficiency • Additional capital costs for updating of existing fixtures during street reconstruction projects • Upkeep and maintenance for ornamental streetlights • Rates : 2010 2011 2012 2013 Rate Increase: 3.00% 3.00% 25.32% 20. 18 Quarterly Rate per Dwelling: $ 3.84 $ 3.95 $ 4.95 $ 5.95 14 Recycling Utility ® Issues : • No increase in the HRG contract rate for 2013 • Bi-weekly pickup of 60 gallon mixed material recycling ® Rates : 2010 2011 2012 2013 Rate Increase: 6.00% 2.00% 0.00% 3.00 Quarterly Residential Rate: $ 8.27 $ 8.43 $ 8.43 $ 8.68 15 Utility Customer Charges Summary • For a residential customer using 181000 gallons of water in a quarter the 2013 charges will be: Quarterly Quarterly Bill Bill Quarterly 2012 2013 Change Water $ 28.90 $ 30.79 $ 1.89 Sanitary Sewer $ 67.76 $ 70.47 $ 2.71 Storm Sewer $ 14.48 $ 14.48 $ - Street Lights $ 4.95 $ 5.95 $ 1.00 Recycling $ 8.43 $ 8.68 $ 0.25 $ 124.52 $ 130.37 $ 5.85 16 Capital Improvement Projects • Connections Shingle Creek Restoration Project • Trail lane addition to CR 1015 7 bridge at Highway 100 • Park enhancement projects: — Baseball backstop replacements — Centennial Park youth soccer field • Resume Street Reconstruction program with Kylawn Park Area Improvements • Capital Building Maintenance Program — Large project for replacement of roof, HVAC and windows in the Community Center is dependent upon identifying funding sources 17 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 • Increase in property taxes requested for operations of City General Fund activities and programs • Four different school districts in Brooklyn Center with different levies and property tax implications 18 Changes in Assessed Valuefor Pay 2013 (excluding new construction) City Wide Values ( 7 .0%) • Residential ( 11 .9%) • Commercial ( 3 . 1%) • Industrial ( 1 .2%) • Apartments 0.7% • Condominiums ( 5.6%) • Townhouses ( 20. 1 %) • Double Bungalows ( 14.9%) 19 Change in Median Residential Value Homestead Residential Property Pay 2012 Median Estimated Residential Value EMV: $ 133,800 ETV: $ 119,450 Pay 2013 Median Estimated Residential Value EMV: $ 119,800 ETV: $ 96,830 Change in Median Value EMV: (10.46%) ETV: ( 1 8.94%) 20 Pay 2012 Tax Capacity Other 0.05% Industrial 2.61% ... i i Residential Commercial 50.14% 26.18% =NowuTe. ,air,.v Pay 2013 Tax Capacity Residential 45.46% Commercial 29.42% ,4 2013 P Property Tax Lev y City of Brooklyn Center Pay 2013 Property Tax Levy Proposal A B C Levied Levied Proposed Pay Pay Pay 2011 2012 2013 1 General Property Tax Levy 6,766,374 13,070,243 13,452,971 2 Police & Fire Levy: 5,173,806 - - 3 Fire Relief Association Pension 40,000 12,711 12,711 4 Foreclosure Levy: 125,000 125,000 125,000 5 2010 LGA Unallotment 296,138 - - 6 2010 Supplemental Cuts 504,022 - - 7 Improvement Bond Levy - 8 Abatement Embassy Suites - - 41,644 9 2004A Bonds Levy., 695,632 708,581 711,725 10 HRA Levy.• 310,831 302,288 246,160 11 OTAL LEVY 13,911,803 14,218,823 14,590,211 12 eneral Fund Portion 12,905,340 13,207,954 13,590,682 13 General Fund Portion Change 906,898 302,614 382,728 14 Percentage 7.6% 2.3% 2'90% 15 Total Dollar Increase 848,433 307,020 371,388 16 Total % Increase 6.49% 2.21% 2.61% 23 City of Brooklyn Center Projected City Property Tax Change for Taxes Payable 2013 2.61% If Increase as Proposed 2012 City 2013 City $ % Properly Tax Property Tax Change Measure Classification Median Single Family Residential $ 786.17 $ 734.27 $ (51.90) (6.60%) Average Commercial Property $19,068.32 $21,716.19 $ 2,647.87 13.89% Average Industrial Property $24,99132 $27,669.31 $ 2,677.59 10.71% Average Multi-Tennant Apartment $13,880.38 $ 15,894.75 $ 2,014.37 14.51% *-these are specific examples for specific property values. If a particular property has a deferent rate of valuation change from year to year or additional new value added,these values wil be different. **2013 Median Residerdail Estirrra6ed Market Value(F-bmesbead)is 119,800 (Taxable Marl et Value 96,830) 24 go u or down . WWII m ro ert taxes p Yp p y Distribution of Property Tax Amount Changes by Number of Properties in Each Category Decrease Decrease Decrease Increase Increase Increase Increase Increase #of Properties in Category 20%or more 10.0%to 19.9% -0.0%t09.9% .1%to 4.9% 5.0%to 9.9% 10.0%to 14.9% 15.0%to 19.9% 20.0%or more 7,049 Single Family Residential 468 1,820 4,605 92 27 6 20 11 6.6% 25.8% 65.3% 1.3% 0.4% 0.1% 0.3% 0.2% 82 Apartments - - 3 9 56 14 - - 3.7% 11.0% 68.3% 17.1% -- . _......_-----_---------- 163 Commercial& Industrial 19 5 8 21 93 12 5 11.7% 3.1% 4.9% 12.9% 57.1% 7.4% 3.1% 7,294 Total#of Properties 487 1,825 4,617 122 177 32 25 11 %of Total Properties 6.7% 25.0% 63.3% 1.7% 2.4% 0.4% 0.3% 0.2% Source:Hennepin County Taxpayer Services 25 By how much ? Distribution of Residential Property TaxAmount Changes by Dollar Range Decrease Decrease Decrease Increase Increase Increase Increase Increase #of Properties in Category $750 or more $300 to$749 $0 to$299 $0 to$150 $151 to$300 $301 to$450 $451 to$750 $751 or more 7,049 Single Family Residential 63 1,004 5,826 145 9 2 - Source:Hennepin County Taxpayer Services 26 Remaining Steps 1 . Consider resolution adopting the final property tax levy amount of $ 14,590,211 at the December 10, 2012 City Council meeting. 2. Consider resolution adopting the 2013 Employee Pay Plan at that same meeting. 3 . Consider resolutions adopting all budgets for 2013 City operations at that same meeting. 4. The property tax levy is then certified to the Hennepin County Treasurer before December 28, 2012. 27 r° BMW", W, x City Brooklyn of Center 6301 Shingle Creek Parkway Brooklyn Center, IVIN 55430 763/569-3300 • Curt Boganey, City Manager • Dan Jordet, Director of Finance 23