HomeMy WebLinkAbout2018 07-30 CCP Joint Work Session with the Financial CommissionAGENDA
CITY COUNCIL/FINANCIAL COMMISSION JOINT WORK SESSION
Monday, July 30, 2018
6:30 p.m.
City Hall - City Council Chambers
Call to Order
II. Approval of Agenda
IlL 2019 Budget Overview
a.Work Session Objectives
b.Operating Budget/Revenue Policies
c.Budget Goals & Outcomes
i. Strategic Priorities Review
d.Debt Service Levy
e.Market Value Trends
f.Preliminary Property Tax Implications
IV."Target Levy" Interactive Activity
V.CIP Work Session - Follow-up
a.City Bond Payments
b.Met Council Municipal Wastewater Charge (MWC)
VI. Future Budget Discussions
a.August 8, 2018— General Fund Budget Requests (Finance/CARS/Community
Development)
b.August 20, 2018 - General Fund Budget Requests (Police/Fire/Administration!
Public Works)
c.September 17, 2018— Recommended Preliminary Levy & Budget
d.September 24, 2018 (Regular City Council Meeting)— City Council Adopts
Preliminary Budget and Levy
VII. Adjournment
MEMORANDUM - COUNCIL/FINANCIAL
COMMISSION WORK SESSION
DATE: July 30, 2018
TO: Curt Boganey, City Manager
FROM: Nathan Reinhardt, Finance Directort#-
SUBJECT: 2019 Budget Overview
Recommendation:
It is recommended that the City Council-Financial Commission consider providing direction to
staff regarding the next steps in developing the 2019 preliminary property tax levy and budget to
be adopted in September.
City Council/Commission Considerations/Work Session Objectives:
This evening staff is seeking City Council/Commission input on the following considerations:
1)We are operating under the assumption that we currently have the necessary major
programs in place and our 2019 budget requests will continue to provide the services
needed, with additional advancements as we work towards our strategic goals. Does City
Council/Commission agree with this assumption?
2)What is the maximum levy adjustment that City Council/Commission would like to see
proposed?
Based on preliminary departmental requests, the 2019 budget would require a levy increase
of 12.85 percent to maintain and enhance City service levels, provide additional revenue to
pay for the debt service, and move toward the achievement of our Strategic Priorities.
Chart 1: Levy Impact Based on General Fund Department Requests
Description $ Amount Levy Impact %
Debt Service (2018 Bond Issue)$249,992 1.46%
Impact of revenue adjustments 119,601 0.70%
Increase in contingency 75,000 0.44%
Increase needed to maintain operations (4.69%):
Personnel 610,110 3.57%
Supplies/Services/Charges 163,626 0.96%
Capital outlay 28,950 0.17%
Increase for requested advancements (5.56%):
Personnel 440,092 2.57%
Supplies/Services/Charges 236,200 1.38%
Capital outlay 275,000 1.61%
Requested Levy $2,198,572 12.85%
Our Vision: We envision Brooklyn Center as a thriving, diverse co,nnninitv with afull range of housing, business, cultural and
recreational offerings. It is a safe and inclusive place that people of all ages love to call home, and visitors eli/or clue to its
convenient location and commitment to a healt/rm' envilolimnent
MEMORANDUM COUNCIL/FINANCIAL
COMMISSION WORK SESSION
Background:
Operating Budget Policies
The Operating Budget Policies provide a basic framework for the overall budget process.
Operating independently of changing circumstances and conditions, these policies assist the
decision making process of the City Council and Administration. The Operating Budget Policies
are as follows:
1.In accordance with Chapter 7, Section 7.06 of the City Charter, the total sum appropriated in the General
Fund annual budget shall be equal to the total estimated General Fund revenue and any allocated General
Fund balance.
2.The City will pay for all current expenditures with current revenues. The City will avoid budgetary
procedures that balance current expenditures at the expense of meeting future year's revenues, or rolling
over short-term debt, or that rely on accumulated fund balances to meet current obligations.
3.The City will annually appropriate a contingency appropriation in the General Fund budget, not to exceed
five percent of the total budget, to provide for unanticipated expenditure of a non-recurring nature.
4.The City Manager, when submitting the Proposed Budget to the City Council, shall submit a balanced
General Fund budget in which appropriations shall not exceed the total of the estimated General Fund
revenue and any fund balance appropriated by the City Council.
5.Prior to adopting the General Fund Annual Budget, the City Council shall review the Reserve Policy,
6.In the event that there is a shortfall of revenues in a current year budget, the City Manager may recommend
the use of a portion of the General Fund balance not to exceed the amount available after deducting
amounts reserved for items not readily convertible to cash or reserved for working capital.
7.The budget will provide for adequate maintenance of the capital plant and equipment, and for their orderly
replacement.
8.The budget will provide for adequate funding of all retirement systems.
9.The City will maintain a budgetary control system to assist in adhering to the budget.
10.The City administration will prepare regular monthly reports comparing actual revenues and expenditures
to the budgeted amount.
11.Each year the City will update expenditure projections for its Enterprise Funds for at least the ensuing five
years. Projections will include estimated operating costs of future capital improvements included in the
Capital Budget.
12.The Operating Budget will describe the major goals to be achieved, and the services and programs to be
delivered for the level of funding provided.
13.Where possible, the City will integrate performance measurement and productivity indicators with the
budget.
14.Enterprise funds shall be budgeted to have positive net income plus a sufficient margin to provide for
replacement cost of property, plant, and equipment.
0111 f'isio,i: iVe envision Brooklyn Center cis a thriving, diverse co,mnwnii' ni/li a full range of housing, business, cultural and
recreational ofterings. his ci safe ci;id inclusive place that people of ciii ages love to call home, and visitors enjoy due to its
convenient location and commitment to ci healthy environment
MEMORANDUM - COUNCIL/FINANCIAL
COMMISSION WORK SESSION
Revenue Policies
Revenue Policies direct how the City maintains the ability to pay for the services it provides its
customers. The Revenue Policies are as follows:
1.The City will attempt to maintain a diversified and stable revenue system to shelter it from short-run
fluctuations in any one revenue source and to minimize property taxes.
2.The City will estimate its annual revenue by an objective conservative analytical process.
3.The City will project revenues for the next three years and will update this projection annually. Each
existing and potential revenue source will be reexamined annually.
4.The City will ensure the County maintains sound appraisal procedures to keep property values correct.
Property will be assessed at the legally mandated market value for each type of property. Reassessments
will be made of all property at least every five years.
5.The City will follow an assertive policy of collecting property tax revenues. The annual level of
uncollected property taxes should generally not exceed two percent.
6.Each year the City will recalculate the full costs of activities supported by user fees to identify the impact
of inflation and other cost increases.
7.The City staff will recommend revised user fees with review by the City Council on an annual basis, to
adjust for cost factors and inflation on the City's cost of providing services.
8.The City will set fees and user charges for each Enterprise Fund, such as Water and Sewer, at a level which
fully supports the total direct and indirect costs of the activity. Indirect costs include the cost of annual
depreciation of capital assets.
9. User charges and fees determined to be appropriate for City services will generally be established at a level
which will recover the full cost of providing the service, including administrative costs.
Budget Goals & Outcomes
The City Council has adopted the following six strategic priorities. For each priority we have
provided the definition, progress update and identified resources proposed in the 2019 budget
that continue to support each priority.
Resident Economic Stability
The economic stability of residents is essential to vibrant neighborhoods and to retail,
restaurant, and business growth. We will lead by supporting collaborative efforts of
education, business, and government sectors to improve income opportunities for residents.
Accomplishments and goals completed and in progress include:
1.Creation of a Business and Workforce Development Specialist position which is
providing assistance to current, start-up and relocating businesses. The position is
also working to identify workforce opportunities for Brooklyn Center residents.
2.Provided sponsorship and staff support to the First Saturday Pop-up Market,
which seeks to cultivate local startup and existing businesses.
Our !is ion.' He envision Brooklyn Center as a thriving, diverse comnninitv with a full range o/'ho using, business, cultural and
recreational of/erings. Itis a sale and inclusive place that people of all ages love to call home, and visitors enjoy clue to its
convenient location and commitment to a healthy environ/neat
MEMORANDUM - COUNCIL/FINANCIAL
COMMISSION WORK SESSION
3.Creation of a Revolving Loan Fund program to support new and existing
businesses with gap financing for expansion and relocation.
4.Successfully completed a Minnesota Investment Fund Loan application on behalf
of Bizzy Coffee, Inc. to allow them to relocate into the City of Brooklyn Center as
they expand their business operations and create 50 jobs over the next two years.
5.Established a partnership with Women Venture to provide entrepreneurial
resources and support for women-owned businesses in Brooklyn Center.
6.Goal of developing and implementing a Business Retention and Expansion
(BR&E) program which will engage local businesses to identify their needs,
establish relationships, and gather information to further support business
development.
7.Goal of creating and implementing a communication strategy to inform residents
and business owners about entrepreneurial resources available in the community.
8.Goal of continuing to develop relationships with service providers in the
community and other governmental agencies to identify ways to support wealth
creation and economic stability of existing residents. This includes identifying
opportunities where the City can directly support or provide these services.
9.Goal of exploring a home ownership incentive program to assist individuals
facing barriers to home ownership (particularly Brooklyn Center renters) with
purchasing homes in Brooklyn Center.
10.Goal of evaluating policies and ordinances which would preserve affordable
housing in the community, protect tenants, and support the creation of new legally
binding affordable housing units.
Resources allocated in the 2019 Budget to achieve this strategic priority include:
1.A liveable wage objective for City employees that includes $100,000 allocation
(across all functions) directed towards lowest earners to bring them closer to
DEED's identified Hennepin County cost of living wage of $16.16 per hour.
2.$25,000 allocated from the EDA to support the First Saturday Market in 2018,
with the potential for continuing in 2019 dependent on outcomes from 2018.
3. $15,000 allocated from the EDA fund to support the development of a Business
Retention and Expansion program. This would cover the purchase of tracking
software, and/or professional services to grow the outreach of the program and
provide follow-up services to respond more efficiently to business needs.
Targeted Redevelopment
Redeveloping properties to the highest value and best use will accomplish our goals
regarding housing, job creation, and growth of the City's tax base. We will appropriately
prepare sites and provide the necessary supporting infrastructure investments to guide
redevelopment of publicly and privately owned properties.
Accomplishments and goals completed and in progress include:
1. Preliminary development agreement approved with Alatus, LLC for the
redevelopment of the opportunity site. The preliminary development concept
Our Vision: We envision Brooklyn Center as a thriving, diverse conununitv with afull range of ho using, business, cultural and
recreational offerings. 11 is a sqfe and inclusive place that people ofall ages love to call home, and visitors enjoy clime to its
convenient location and commitment to a healthy environment
MEMORANDUM - COUNCIL/FINANCIAL
COMMISSION WORK SESSION
proposed involves the construction of a mixed-use apartment/hotel/commercial/
single-family development.
2.Sale of 2.5 acres of land to Ebert Construction for the commercial development of
a four story, 112,000 square foot commercial storage building at 57th & Logan.
3.Applied for and received Opportunity Zone designation for Census Tract
(#27053020200), which encompasses the Opportunity Site. This designation is
designed to increase investor interest in the area.
4.Acquisition of the former Perkins site at 5915 John Martin Drive to facilitate
redevelopment of the Opportunity Site.
5.Completion of the TopGolf facility.
6.In progress is the completion of the 2040 Comprehensive Plan, which will
identify future land use designations for the City's targeted redevelopment areas.
7.In progress is the construction of the Fairfield Hotel, formerly EDA-owned
property, at Earle Brown Heritage Center.
8.In progress is the construction of the HOM Furniture store in the former Kohl's
building.
9.In progress is the construction of a Bank of America on formerly EDA-owned
property, adjacent to Shingle Creek Commons.
10.Goal of developing a Master Development Strategy for four of the targeted
redevelopment sites that will provide a market driven, financially feasible path
towards redevelopment.
11.Goal of completing a corridor land use study for Brooklyn Boulevard, which will
identify redevelopment opportunities at key intersections that complement the
transportation investments on the corridor, and creates a regulatory framework for
redevelopment at those nodes.
12.Goal of evaluating existing EDA-owned property for market readiness, creating
marketing materials for EDA-owned sites which are ready for redevelopment, and
actively engaging the private sector in identifying desired reuses of those
properties.
13.Goal of working with Alatus, LLC to move forward with a first phase of the
redevelopment of the opportunity site.
14. Transition of the BrookLynk internship program to City operations (Brooklyn
Center and Brooklyn Park). In 2018, the City hosted sixteen internships as part of
the BrookLynk Youth Internship Program.
Resources allocated in the 2019 Budget to achieve this strategic priority include.
1. Funds allocated towards master development planning for the following targeted
redevelopment areas:
a.Opportunity Site Redevelopment
b.57 and Logan Redevelopment
c.Brooklyn Boulevard Corridor
d.Former Jerry's Food Site
e. Former Sear's Site
2. Funds allocated to complete the 2040 Comprehensive Plan.
Our Vision: We envision Brooklyn Center (is a thriving, diverse conununitv with o/,ll range of housing, business, cultural and
recreational of/èrings. it is a safe and inclusive place that people of all ages love to call home, mid visitors enjoy due to its
convenient location and conunitunent to a healthy environment
MEMORANDUM - COUNCIL/FINANCIAL
COMMISSION WORK SESSION
Inclusive Community Engagement
In order to provide effective and appropriate services, we must clearly understand and
respond to community needs. We will consistently seek input from a broad range of
stakeholders from the general public, non-profit, and for-profit sectors. Efforts to engage
the community will be transparent, responsive, deliberately inclusive, and culturally
sensitive.
Accomplishments and goals completed and in progress include:
1.Continued expansion and participation in Mobile Recreation (Rec on the Go) at
neighborhood park facilities across the City.
2.Engagement by the Community Development Department on the 2040
Comprehensive Plan efforts, which involved attendance at several community-
wide events, online surveys, a youth art contest, and engagement with the City's
various commissions and committees as well as the business community.
3.Continue to engage youth in the community via a second community-wide art
contest which will provide public art opportunities for the City and also
opportunities for youth to express themselves creatively.
4.Explore Phase II of the Hands Together for Racial Equity by Everbodyin.
5. Engagement by the Police department in non-enforcement, positive and
informative ways through coffee/ice cream with a cop, Multi-cultural Advisory
Committee (MAC) meetings, Safe Summer Nights events, open gym activities
and neighborhood meetings.
a.Increase Social Media Footprint- Ongoing year to date police department
has a 28% increase in followership.
b.Hosted 3 Neighborhood Area Meetings to date. National Night Out and
National Night Out Kick-off parties upcoming in August 2018.
c.All department press releases disseminated via Facebook.
d.MAC members included on all hiring and promotional interview panels.
e. Regular communications to MAC members on significant police events
within the community.
Resources allocated in the 2019 Budget to achieve this strategic priority include:
1.Part-time position of Communication Engagement Specialist and four
Neighborhood Engagement Liaisons to continue to engage residents.
2.Additional allocations in CARS Recreation Division to provide additional low/no
cost programs to increase equitable access for youth programming.
Enhanced Community Image
Our ability to attract and retain residents and businesses is directly influenced by the
perception of the City. We will take specific actions to assure that Brooklyn Center is
recognized by residents, businesses, stakeholders, and visitors as a high quality, attractive
and safe community.
Our Vision: We envision Brooklyn Center as a thriving, diverse community with afull range of housing, business, cultural and
recreational ojièrings. It is a sa and inclusive place that people of all ages love to call home, and visitors enjoy clue to its
convenient location and commitment 10 a healthy em'ironmnent
MEMORANDUM - COUNCIL/FINANCIAL
COMMISSION WORK SESSION
Accomplishments and goals completed and in progress include:
1.Establishment of a Communication and Community Engagement division
including increased branding and marketing efforts and community engagement
initiatives.
2.Rollout of new City logo on materials, signage and water tower.
Resources allocated in the 2019 Budget to achieve this strategic priority include:
1.Continued posting of city related information and stories on the City's website,
social media platforms and newsletters.
2.Purchase of digital signage to replace existing signage outside City
Hall/Community Center to promote current events and City notifications.
3.Professional services to update the City's Zoning, Sign, Platting, and Shoreland
ordinances in order to provide a regulatory structure which is clear and promotes
redevelopment and property improvements that are high quality and forward the
City's vision and goals.
4.Purchase of winter banners for main City roadways to improve visual display.
5.Purchase of a garbage truck, garbage cans and recycling bins to promote clean
and environmentally friendly park and open spaces.
6.New playground equipment to enhance the attractiveness of City parks.
Safe, Secure, Stable Community
For residents and visitors to fully appreciate and enjoy a great quality of life it is essential
that all neighborhoods are safe, secure and stable. We are committed to assuring
compliance with neighborhood condition and building safety standards, providing proactive
and responsive public safety protection, wise stewardship of City resources and policies that
promote safety, security and lasting stable environment.
Accomplishments and goals completed and in progress include:
1.Implementation of body-worn cameras alongside existing squad car camera
systems to enhance transparency and increase investigative effectiveness
2.Review Compliance of body-worn camera program- Monthly audits have been
conducted and since 1/1/2018 we have had a failure rate of 5% (on target with
goal) based off of 120 videos reviewed.
3.Purchase of training simulator for police officers that allow officers to receive
scenario style decision-based training. The simulator will be continually updated
for new scenarios based on targeted situational training needs and current events.
4.Reduction of Violent Crime by 18.75% year to date.
a.Weekly Crime Reduction meetings are held to address emerging crime
trends. Sergeants tasked with strategies to address emerging trends.
b.Crime stats are shared with staff at roll calls.
c. Signage has been installed for two parking spots at the Brooklyn Center
Police Department to allow for "safe exchanges" for online sales.
Our Vision: We envision Broolci n Center cis a thriving, diverse community ,t'iti, afimil range ot ho using, business, cu/final and
recreational offerings. It is a safe and inclusive place that people of all ages lave to call home, and visitors enjav clue to its
convenient location and commitment to ci /mecilthy environment
MEMORANDUM - COUNCIL/FINANCIAL
COMMISSION WORK SESSION
5.Enhanced crime prevention through neighborhood and business watch program
with 98 businesses currently registered.
6.Continuation and expansion of proactive monitoring and customer education of
code enforcement issues. This includes routine proactive sweeps of the
community as well as implementation of the "knock and talk" program which has
improved code enforcement compliance.
7.Adoption of a Median Safety Ordinance.
8.Goal of amending the City's Rental Licensing Program to better align with the
goals of the program.
9.Goal of amending the City's Transient Accommodations Ordinance to create
more effective tools to ensure hotels and motels in the City are utilizing best
management practices to reduce police calls and property maintenance violations.
10.Goal of adopting the International Property Maintenance Code in order to provide
more consistent and effective plan review and inspection services.
11. Goal of exploring funding opportunities with Hennepin County for a
rehabilitation program directed at existing multifamily properties in the City.
Resources allocated in the 2019 Budget to achieve this strategic priority include.
1.Hire and training for ten new fire department recruits.
2.Upgrade of current Fire Department Training Room technology equipment to
serve as the primary Emergency Operations Center.
3.Proposed additional full-time staffing in fire department or further changes in
staffing model to ensure appropriate response times.
4.An additional full-time Building Inspector position proposed to address the high
demand in construction plan review and inspection.
S. Additional funding for added Body Worn Camera's, necessary system
upgrades/warranties, and mandated auditing.
6. Increase training funding consistent with de-escalation, cultural awareness and
mental health issues.
Key Transportation Investments
Proactively maintaining an efficient and effective infrastructure will meet the high level of
community expectations. We will plan for and invest in critical infrastructure
improvements that enhance safety, improve life quality, and support opportunities for
redevelopment, while sustaining the natural environment.
Accomplishments and goals completed and in progress include:
1.Solidified the funding partnership for Brooklyn Boulevard Phase I (49th Avenue
to Bass Lake Road). Construction will commence in August that will reconstruct
and modernize the roadway to improve safety, enhance traffic operations, reduce
access points and provide improved bicycle and pedestrian facilities.
2.TH 252 project was selected for Corridors of Commerce funding ($163 million).
Our Vision: We envision Brooklyn Center as a thriving, diverse comaniniti' with a/u/I range of housing, business, cu//oral and
recreational of/eriiigs. It is ci soft and inclusive place flicit people of all ages love to cciii Iio,iie, al7d visitors c/to?' clue to its
convenient location and conimitineni to a health? environment
MEMORANDUM - COUNCIL/FINANCIAL
COMMISSION WORK SESSION
Resources allocated in the 2019 Budget to achieve this strategic priority include:
1.Oversee construction of Brooklyn Boulevard Phase I.
2.Solidifying funding partnership for Brooklyn Boulevard Phase 11 and TH 252 and
complete required environmental impact study.
3. Identified 2019 Projects on 15-year Capital Improvement Plan
a.Neighborhood Reconstruction Project - Interstate Area Improvements
b.Significant mill and overlay projects for Bellvue and Southeast Area
c. Proposed 2019 Bond Issue
4. Proposed engineering technician to assist with in-house project design and
development.
In the upcoming work sessions, departments will be presenting their budget requests.
Department heads will provide insight into annual accomplishments as well their goals for their
budget. We will discuss how operating spending plans relate to strategic priorities and operating
goals and anticipated operating results for 2019. Departments will also provide further analysis
on trends that have budget implications. City Council will be asked to provide consensus on
department goals or further guidance on the results desired, based on feedback from departments.
Debt Service Levy
Chart 2: Debt Service (paid from property tax levy)
Debt Service Levy
-
-
$500,000
0-
2013 2014 AcI 2005 AthI 2015 A001 2017 A51 2015 A5I 2010 P,d0 2020 2020
The 2019 budget includes an additional debt service levy of $249,992, which will provide the
levy funding needed for the 2018 debt issue to fund the neighborhood reconstruction program.
Based on the Capital Improvement Plan discussion, the City anticipates a $270,000 annual
increase is needed over the next two years to continue to fund this program. The chart above
reflects the 2019 budgeted debt service levy increase and the future projected increases.
Our 'ision: We envision Brooklyn Center as a thriving, diverse community with a full lange ofhousing business, cultural and
recreational offerings. I/is a safe and inclusive place that people of ciii ages love to call home, and o'isito,'s enjoy due to its
convenient location and co,nn,itmenl to a healtin environment
$2,500,000
2,000000
$1,500,000
$1,000,000
MEMORANDUM - COUNCIL/FINANCIAL
COMMISSION WORK SESSION
Market Value Trends
Chart 3: Taxable Market Value (preliminary estimates)
Taxable Market Value
Payable Estimated
2018 2019 Change
Commercial $ 312,846,800 $322,351,800 3.0%
Farm
Industrial 133,666,600 136710,500 2.3%
Residential 1,186,339,754 1,327,653,599 11.9%
Apartment 235,949,040 275,022,304 16.6%
Other 469,000 478,000 1.9%
Totals $ 1,869,271,194 $ 2,062,216,203 10.3%
Preliminary estimates from the County assessor's office shows continued growth in taxable
market value. The City's taxable market value is estimated to increase by $192.9 million
(10.3%) for taxes payable in 2019. The market value continues to across the board with double
digit market value increases in residential and apartment.
The following chart depicts the trend of market value since 2004. As shown in the chart, City
taxable market value has reached its highest point since 2007-2009.
Chart 4: Taxable Market Value Trend
$2,400,000,000
$2,200,000,000
$2,000,000,000
$1,800,000,000
$1,600,000,000
$1,400,000,000
$1,200,000,000
$1,000,000,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
—0-- Estimated Market Value --M—Taxable Market Value
In 2011, the State legislature established a new property tax program called the homestead market eIue exclusion. This exclusion pro'Ades
a tax reduction to all homesteads valued below $413,800. This tax redoctior, essentially shifts a portion of the tax burden from these
properties to other types of property within the City. This program is the reason for the difference between estimated and taxable market
selue beginning in 2011. For taxes payable in 2018, taxable market value is 93.2% of estimated market value.
Our Vision: We envision Brook/vu Center as a thriving, diverse con tinu,dtv ii'ilh a full range of housing, business, cultural and
recreational ojj'ring.s'. It is a sal' aitcl inclusive place that people of all ages love to call home, and visitors enjoy due to its
COlt veil/c/li localion and connlutiuent to a hea/tlri' environment
MEMORANDUM COUNCIL/FINANCIAL
COMMISSION WORK SESSION
Chart 5: Tax Capacity Comparisons (preliminary estimates)
Tax Capacity - Payable 2018 Tax Capacity - Payable 2019
Other
0.0%
Other
Apartment - Apartment ---
12 051 12.9%
Aft
Commercial - Commercial
26.1% 4k 24.7%
Residential Residential50.5% 51.8%
industrial . __________________ Industrial
11.2% 10.5%
The tax capacity charts provide a breakdown of tax capacity by classification. The comparison
of this chart to last year shows that residential properties will pay 1.3% more of the share of total
City property taxes in 2019, with commercial about 1.4% less.
Chart 6: Median Value Home
$200,000
$180,400 $184,000
$180,000
$167,000
$160000 3o00 -- - 150,000
$142,100
$140,090 $137,400 $133,800 -- - $13t4 -
$119,800
$120,000 --- --- -- -- ---$1-14,2O
$100,000
$40,092 -
$20,000 - - - -- ---- -
$o - - --
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Most residents have probably experienced an increase in the assessed value of their home over
the past year. The Hennepin County's assessor's office estimated the median value home in the
City of Brooklyn Center to be $184,000, compared to $167,000 in 2018. This is a $17,000
(10.2%) increase as assessed home values have reached their highest levels since 2008 when the
median value home was assessed at $196,100.
Our Vision: We envision Brooklyn Center as a thriving, diverse comoiunitv with a full range of housing, business, cultural and
recreational offerings. It is a safe aiid inclusive place Elicit people of all ages love to call lso,iie, and visitors enjoy clue to its
convenient location and conunifinent to a healthi' ci isironn,ell/
MEMORANDUM - COUNCIL/FINANCIAL
COMMISSION WORK SESSION
Property Tax Implications
Chart 7: Preliminary Estimates (Based on preliminary assessment estimates)
2018 2019 Impact of 0% Levy 1% Levy Impact
Taxable Taxable 2018 2019 2019
Market Market $ %City City $ ¼City $Cl ass ifi ca ti on * Value Value Change Change Taxes Taxes Change Change Taxes Change
Single Family Residential $ 144,790 $ 163,320 $ 18,530 12.80%$ 990 $ 1,030 $ 39 3.98%$ 1,040 $ 10
Multi Family Residential $ 2,200,000 $ 2,564,321 $ 364,321 16.56%$ 18,810 $20,212 $ 1,402 7.45%$ 20,413 $ 201
Commercial $ 1,700,000 $ 1,751,650 $ 51,650 3.04%$ 22,743 $21,617 $ (1,126) -4.95%$ 21,832 $ 215
Industrial $ 1,900,000 $ 1,943,267 $ 43,267 2.28%$ 25,479 $ 24,034 $ (1,445) -5.67%$ 24,273 $ 239
2019 Median Residential Estimated Market Value (Homestead) was $184,000 (Taxable Market Value $163,320). 2018 Median Residential Estimated
Market Value (Homestead) was $167,000 (Taxable Market Value of $144,790).Multi Family Residential, Commercial, Industrial elues reflect the
aerage elue from the Hennepin County Assessors report. The hypothetical properties were assumed to increase in taxable market value at the same
proportion of total taxable market wlue for that classification type. Tax rates and taxes include NRA amounts.
The estimated property tax impact based on hypothetical properties of different classification
types are illustrated on the chart above. The above chart does include the impact of the increase
in the RRA levy. A few items that should be highlighted from the chart above:
• Under a scenario of "no change" in the City's levy, single family residential and
multi-family residential would see an increase in property taxes as a result of an
increase in their property values. The median value home could expect to see an
estimated increase of $39 a year.
• A one percent levy increase provides an additional $171,000 of funding for City
operations.
• For each additional one percent levy increase:
• The median value residential property would see an approximate $10
increase in property taxes
• An apartment valued at $2.6 million would see an approximate $201
increase in property taxes
• A commercial property valued at $1.75 million would see an approximate
$215 increase in property taxes
• An industrial property valued at $1.94 million would see an approximate
$239 increase in property taxes.
Our f'ision: nc envision Brooklyn Center as a thriving, diverse conununitv with afull range o/ ho using, business, cultural and
recreational of/erings. It is ci sqfe and inclusive place that people of all ages lave to cciii home, cocci visitors enjoy dice to its
convenient location and commitment to ci healtin' environment
MEMORANDUM - COUNCIL/FINANCIAL
COMMISSION WORK SESSION
DATE: July 30, 2018
TO: Curt Boganey, City Manager
FROM: Nathan Reinhardt, Finance Director W
SUBJECT: Follow-up From Previous Joint Work Session
Background: At the July 16, 2018 Joint City Council/Financial Commission meeting it was
requested that more information be provided on total City debt and the Metropolitan Council's
Municipal Wastewater Charge (MWC).
A summary on total outstanding City debt is attached. The schedule shows total payment
(principal and interest) by year and payment source. Brooklyn Center's debt service per
Capital for its governmental funds is approximately $126 ($3,949,997 principal and
interest payments / 3 1,23 1 population). This compares favorably to the state-wide
average of cities with the population between 20,000 - 1 00,000 of $149 per capita.
The schedule shows that based on current outstanding debt payments, the City will see a
decrease in bond payments that are financed through the debt service property tax levy in
2023 and again in 2025 following the retirement of the 2013B bond issue.
2. The estimated 2019 wastewater service fee for Brooklyn Center is attached. The total
estimated municipal wastewater charge for 2019 is $2,473,436, which is an increase of
$76,644 (3.2%).
Our Vision: We envision Brooklyn Center as a thriving, diverse community with afull range of ho using, business, cultural and
recreational ot/erings. It is ci safe and inclusive place that people of all ages love to call home, and visitors e;/Qv clue to its
convenient location and conuinitinent to a healthy e,uvno,wIei it
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City of Brooklyn Center
In 2019, the estimated wastewater service fee for your community is
$2,473,435.80, a change of 3.20% from 2018. The table below details your
allocated wastewater flow, in millions of gallons (mg), and cost of service:
Community Allocation 2019 2018
Metered flow (mg)797.60
Unmetered flow (mg)181.06
Total flow (mg)978.66 989.78
Percent of regional flow 1.09%1.09%
Municipal wastewater charge $2,473,435.80 $2,396,791.48
Cost change from prior 3.20%3.30%
Your fee is based on the portion of wastewater flow discharged from your
community to the regional system in the past year (2017) multiplied by the
regional wastewater charge for the upcoming year (2019). Year-to-year
changes are affected by growth, water conservation, and inflow and
infiltration.
Community Map; see next page for details.
I2
)th A N N
Broklyn cfnter
lod
iN
'pSome wastewater may enter or leave your community bUt not be included in the metered flow total. These unmetered flows are
shown below. Assigned wastewater volumes per unit - such as single-family unit (SFU) or recognized equivalent connection
(REC) - vary based on past flow response to vet w eather, age of services and other data
( / vFlow from Brooklyn Center = 181.06 mg; added to allocated flow:
To;Calculation! Description 1st Q 2nd 3rd Q 4th Q Notes
Minneapolis (169 DU + (268 Apts. @ 80%) + 173 REC') x 80,000 10.98 11.10 11.22 11.22 Crystal Area
Minneapolis Joslyn indust. Groundwater remediation records 17.61 16.67 19.34 16.67 Crystal Area
Minneapolis (739 DU + (44 Apts. @80%) + 7 REC) x 80,000 15.41 15.58 15.75 15.75 North Boundary
Minneapolis Semi-annual recorded volume via 1WD permit 0.63 0.63 1.25 1.25 Surly Brewing
Flow to Brooklyn Center = 0.00 mg; deducted from allocated flow:
From: Calculation! Description 1' Q 2nd 3rd Q 4th Q Notes
Unmetered flow total = 181.06 mg
Region 2019 2018
Regional allocated flow (mg)89,991.18 90,747.95
Flow change from prior -0.83%6.4% A.
Regional wastewater charge $227,440,997 $219,749,75
Cost change from prior 3.5%3.7%
May 8, 2018
City of Brooklyn Center
4BP 540
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1-MN-3141 LLM
City of Brooklyn Center MCES Facilities
MXXX Metershed Interceptor
( ''---'i M Meters Forcernainii I -r —H 1 Interceptor
I L__.__, Li j I
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Unmetered Unmetered
(Flow From) (Flow To)
En Not Adjusted SSS Not Adjusted
E22 Adjusted
May 8, 2018