Power Point Slides
CITY OF HOPKINS
PUBLIC HEARING
FOR THE
2007 LEVY AND BUDGET
December 4, 2006
6:30 PM
City Council Chambers
Power Point Slides
Public Hearing for the
2007 Levy and Budget
December 4, 2006
Taxation Process
. Preliminary Levy was set in September
. Truth in Taxation notices mailed
. Public hearing for final proposed levy
and general fund budget.
. Continuation hearing set for Tuesday,
December 12th (if needed).
. Final adoption of budget and levy is set
for December 19th council meeting.
How Your Property Taxes
Are Determined
Step 1 - Determine Levy
Total proposed local budget
Less: Non-property tax revenue
Equals: Property tax levy
1
How Your Property Taxes
Are Determined
Step 2 - Determine Tax Capacity of
Individual Properties
Market value of individual property
Multiplied by: State mandated class rate
Equals: Tax capacity of individual
properties
How Your Property Taxes
Are Determined
Step 3 - Determine Property Tax Rate
Total tax capacity of all property
Divided by: Total city property tax levy
Equals: Property tax rate for Hopkins
How Your Property Taxes
Are Determined
Step 4 - Calculate Property Taxes
Tax capacity of Your property
Multiplied by: Hopkins property tax rate
Equals: Hopkins portion or your taxes
2
How Your City and County Property
Taxes Are Determined
TotoI
: PrOpoled Local
Budget
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Tax Rft'ttnue
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: R~=~d dIvldad by: .T'X~~:cIty"
: (L.vy) i (bmo<tr-
: Value)
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Property
Tax Rate
rr.cap:lyJII.....
Legislative Impacts
.2003 lost state aids $731,000
(8.5% of 2003 budget)
.2004 lost state aids $1 ,100,000
. The legislature continues to review
the formula for LGA allocations
Tax Shift
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
. 2003
m 2004
82005
. 2006
Q 2007
Residential Commllndus Apartments
3
Market Values
~__1lI1
Tax Capacity Comparison
!--RIliIdInlIIl.....................QIII
2007 Proposed Tax Levy
Purpole
Oener.IOperatlons
Gene...1 Fund
Other levie.:
PERA L.'l'
Capito/LOll)'
HRA Le'Y
TollIl Oon...' Levy
Spocl.1 Levi."
101l9D GO PORn Imp< R_hlno Bando
2001 GO Refunding Bondo . ImpnlY Rev
2001 GO RoIundlng Bondo . P.rIe & Roc
2OO2B GO ImpnlV_ng Bondo
HRA R_u. B.....
Sublotol. Spocl.' Levi..
Z007 2007
Not L.vy Net Levy
Pro MId Rovl_d
$ 7,728,711 $ 7,516,943
$ lU15 $ 11,515
$ 50,000 $ 50,000
$ ZO,OOO $ ZO,OOO
S 7,510,526 S 7,_,755
S 26,000 $ 26,000
S 62,000 $ 62,000
S 175,000 $ 175,000
$ 50,000 $ 59.000
$ 585,000 $ 585.000
$ I,Z07,OOO $ I,Z07,OOO
Z005 2006
$ 7,261.263 $ 7,194,203
$ lU15 $ lU15
$ 25.000 $ 25,000
$ 10.000 $ ZO.OOO
S 7,305,078 S 7,221,078
26.000 $ 26.000
62,000 $ 62.000
190.000 $ 160.000
59.000 $ 59.000
475.000 $ 890.000
812,000 S 1,217,000
TOTAL LEVIES
S 8.120,078 S 8.438.075
I"ere.. over priory..'
S 415.942 S 318.000 S 570.448 S 387,lltlO
Percentage Iner (Doer).. Total
5.40%
3.02% I 8.87% I I 4.38% I
TOll Copoclty Rote 481194% 46 262%
P.......g. Incrlllocr In Tn C.p.clty Rotc .13.524% 01.303%
48 224%
04.223%
47 472%
01.637%
4
2007 Proposed General Fund Budget and
2007 Revised Levy
General Fund
$9,269,767
This is an increase
from the 2006
budget of 4.29%.
2007 Lew - Revised
$8,805,758
This is an increase
over the current
year's levy of
$367,680 or 4.36%
and a decrease from
the preliminary
certified levy of
$211,768.
Expenditure Budget
General Fund
City Council
Adminlstratlw SeNces
Finance
Legal
Municipal Building
Receptionist
Assessing
City Clerk
Inspections
Police
Fire
Public Works
Recreation
Actl\ity Center
Planning & ZOning
Other Fmanclng Uses
I Grand Total expendItures
2006
Budget
$ 90,822
$ 382,580
$ 151,582
$ 126,600
$ 314,276
$ 39,769
$ 146,421
$ 98.264
$ 528,808
$ 3,755.403
$ 661.927
$ 1.889,470
$ 215,635
$ 296.706
$ 95,385
$ 94.580
$ 8,888,228
2007
Budget
$ 90,632
$ 413,125
$ 167,226
$ 126,625
$ 304,980
$ 39,776
$ 138,619
$ 107,959
$ 500,938
$ 3.883,348
$ 732,897
$ 1.953.606
$ 220,570
$ 305.622
$ 117.864
$ 166,000
$ 9,269,767
Budget 0/.
Incr/(Decr)
-0.21%
7.98%
10.32%
0.02%
-2.96%
0.02%
-5.33%
9.87%
-5.27%
3.41%
10.72%
3.39%
2.29%
3.00%
23.57%
75.51%
4.290/~
Savings & Efficiencies
. Police Department
. Implemented police vehicle fuel monitoring
program to save on fuel costs
. $582,294 in total savings over last 4 years
. $394,329 in grants received to offset program and
capital expenses
. $23,309 in donations received to offset program
expenses
. $164,656 savings realized by using local vendors,
omitting capital purchases and reworking cell
phone program
5
Savings & Efficiencies
_ Fire Department
. Daytime rescue standby program
. Responded to over 100 calls since inception of
program
. Frees up police allowing them more street time
. Reduced cost in number of firefighters responding
to rescue calls
. Faster response to medical emergencies
. $10,000 savings in payroll costs
. $2,000 savings in building maintenance costs
Savings & Efficiencies
_ Public Works
. Refuse containers in CeD allow for servicing with
automated refuse truck - manpower savings
. City Hall HV AC Upgrade - replacement of old
chiller with efficient rooftop units
. Savings of $20,OOO/yr - 5 yr payback
. In-house Utility Rate Study - savings of $1 0,000
. In-house Pavement Management Inspections
. Savings on annual consultant fees
. Fire Alarm Central Reporting System
. Fire, boiler & intrusion alarms routed to dispatch
. Savings on annual service contract of $2,500
Savings & Efficiencies
_Public Works - cont.
. Restructured PW Department
. Combined three depts., re-organized staff and eliminated
one superintendent
. Savings of $50,000 per year
. HC Sentencing to Service Work Force Program
. Low risk offenders with Co. Supervisor perform litter
control, landscape area maintenance and grass cutting
. Cost savings of $7 per hour over PW seasonal staff
. Diseased Elm Tree Removal
. Combined PW depts. resulting in larger workforce
. Reduced need for contractual services
6
Savings & Efficiencies
. Other Departments
. Administration
. Since 2005, received 1153 hrs donated for clerical
service, a savings of over $20,000
. Assessing contract with Hennepin Co saves $74,000/yr
. Scanning of documents into digital storage
. Planning & Zoning
. Utilizing current staff to assist in administering Section 8
program
. Utilizing current staff to do in-house GIS mapping
. Finance
. Implemented mandatory direct deposit for employee
payroll
. Fully integrated finance software
Budget Constraints
. Health care costs
. PERA rate increase - state mandated
.1 nflation
. Energy costs
. Fuel & fuel related projects
. Property & liability insurance
. Personnel
Long-Range Planning
. Capital Improvement Plan
. Equipment Replacement Plan
Both are 20 year plans for major expenditures
. Focus is on next 5 years
. Allows us to plan for funding of major
projects and equipment purchases
7
.
.
.
Revenue Budget
2006 2007 %
General Fund Budget Budget Incr/(Decr)
Property Taxes $ 7,211,078 $ 7,557,758 4.81%
InlergO\emmenlal Rewnue $ 411,910 $ 436,010 5.85%
Licenses, Pennils & Fees $ 639,400 $ 649,000 1.50%
Charges for Ser\1ce $ 200,750 $ 209,800 4.51%
Miscellanews Rewnue $ 315,150 $ 307,250 -2.51%
Interest Eamings $ 110,000 $ 109,949 -0.05%
ITotal Revenues 8,888,288 $ 9,269,767 4.29o/~
General Fund - Sources of Revenue
Proposed Property Tax Notices
. City overall Market Value growth was 6.2%
. Market Value increased approximately 15% on
a median value residential property
. Median valued home went from a value of
$189,000 in 2006 to $217,400 in 2007
. City tax increase on a median valued home
totaled 15% after impact of Market Value
Homestead Credit
. City tax impact is $128 annually on a median
valued home
8
Current Levy Proposal
. Reduced levy by $211,768
. Increase in city taxes on a median
valued home now becomes an
estimated increase of 10.7%.
. City taxes on a median valued home
now increase by approximately $102
Analysis of Median Valued Home
.2007 Median Valued home = $217,400
. Assuming constant market value
.2006 City Taxes $1,049
.2007 Proposed City Taxes $1,032
. Decrease of $17 over 2006
.2007 Revised City Taxes $1,005
. Decrease of $44 from 2006
Property Tax Breakdown
on Median Valued Home
of $217,400
. City
. County
. School District
. Special Districts
Total Taxes
$1,005
$ 851
$ 415
~
$2,456
This inciudes the proposed reduction
in the city levy.
9
Where My Taxes Go
35%
. Special
Districts
o Schools
m City
. County
Tax Rate Comparison
. Current city tax rate = 48.262%
. TNT 2007 proposed tax = 47.472%
.2007 revised tax rate = 46.224%
(Decrease over proposed 2007 rate
and the current rate)
Property Tax Levy Changes
Overall Increase in levy
$367,680
. Increased General levy $377,680
. Decreased Debt Service levy $10,000
10
Compare the Value
Monthly Costs
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_ Shop hMovIo
How much will we pay?
. $84 a month in property taxes for
city services.
. $1- $2 a month in franchise fees.
. $20 a month in refuse & recycling
charges
. $28 for water distribution and
collection charges.
What do we get?
. 24-Hour Police and Fire Protection
. Emergency medical treatment and management services
. Well Maintained Streets, Trails, and Sidewalks
. Refuse and Recycling Services
. Utility Services- Water, Sanitary Sewer and Storm Sewer
. Boulevard Tree and Forestry Program
. Beautiful Parks and Open Space
. High Quality Recreation programs
. Hopkins Activity Center and Hopkins Depot
. Hopkins Center for the Arts
. Community and Economic Development
. Housing Services and Programs
. Building Inspections, Licensing, and Code Enforcement
. Elections
11
Public Hearing for the
2007 Levy and Budget
December 4, 2006
12