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    2012 Budget Presentation

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    City of Hopkins
    2012 Budget and Levy presentation slides presented in a public hearing at the Hopkins City Council meeting on December 6, 2011.

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    2012 Budget Presentation

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    City of Hopkins
    222 views29 pages
    2012 Budget and Levy presentation slides presented in a public hearing at the Hopkins City Council meeting on December 6, 2011.

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    2012 Budget and Levy presentation slides presented in a public hearing at the Hopkins City Council meeting on December 6, 2011.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    222 views29 pages

    2012 Budget Presentation

    Uploaded by

    City of Hopkins
    2012 Budget and Levy presentation slides presented in a public hearing at the Hopkins City Council meeting on December 6, 2011.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 29

    2012 Levy and Budget

    Taxation Process
    Preliminary Levy was set in September Proposed tax notices mailed Final adoption of budget and levy
    December 20th council meeting.

    2012 Proposed Tax Levy


    Purpose General Operations General Fund Capital Levy Special Levies: PERA Levy MVHC Levy Subtotal Special Levies - Other Debt Levies: 2002B GO Improv Revolving Bonds 2003 HRA Revenue Bonds 2007B GO Improv Revolving Bonds 2007 Capital Improvement Bonds 2010A GO Improvement Bonds 2010B Refunding Bonds Subtotal - Debt Levies Subtotal Special Levies TOTAL LEVIES Increase over prior year Percentage Incr (Decr) - Total 2011 $ 8,539,064 100,000 $ 8,639,064 35,500 222,850 258,350 2012 Net Levy Proposed $ 8,881,428 $ 125,000 $ 9,006,428 35,500 35,500 2012 Net Levy Revised $ 8,784,091 $ 125,000 $ 8,909,091 35,500 35,500

    59,000 200,000 172,000 710,000 100,000 $ 1,241,000 $ 1,499,350 $ 10,138,414 $ 212,729 2.14%

    220,000 184,500 765,900 77,000 59,000 $ 1,306,400 $ 1,341,900 $ 10,348,328 $ 209,914 2.07%

    220,000 184,500 765,900 77,000 59,000 $ 1,306,400 $ 1,341,900 $ 10,250,991 $ 112,577

    1.11%

    Tax Levy Changes


    General Levy Increase Capital Levy Special Levy Decrease
    (For MVHC unallotment)

    $245,027 25,000 (222,850) 65,400 $112,577

    Debt Levy Increase Total Levy Change

    2012 Proposed General Fund Budget and Levy


    General Fund Budget $10,470,526 This is an increase from the 2011 budget of 1.66%. This is an increase over the current years levy of $112,577 or 1.11% and a .96% decrease from the preliminary certified levy. Tax Levy $10,250,991

    Revenue Budget
    General Fund Property Taxes Intergovernmental Revenue Licenses, Permits & Fees Charges for Service Miscellaneous Revenue Interest Earnings Use of 2009 Savings Total Revenues 2011 Budget 2012 Budget % Incr/(Decr) 2.98% 15.90% -10.59% 52.08% -0.51% -66.67% -100.00% 1.66%

    $ 8,630,564 $ 8,887,591 442,070 512,370 544,790 487,115 161,200 245,150 314,900 313,300 75,000 25,000 130,803 $ 10,299,327 $ 10,470,526

    General Fund Revenues

    Expenditure Budget
    General Fund City Council $ Administrative Services Finance Legal Municipal Building Receptionist Assessing City Clerk Inspections Police Fire Public Works Recreation Activity Center Planning & Zoning Other Financing Uses Total Expenditures 2011 Budget 71,547 451,670 203,243 135,000 294,818 44,172 167,236 99,415 616,607 4,484,387 838,258 2,174,400 199,721 333,471 125,182 60,200 $ 2012 Budget 68,697 469,132 209,726 135,000 296,863 44,846 173,091 109,970 613,167 4,530,032 855,424 2,198,677 205,099 323,765 126,837 110,200 Budget % Incr/(Decr) -3.98% 3.87% 3.19% 0.00% 0.69% 1.53% 3.50% 10.62% -0.56% 1.02% 2.05% 1.12% 2.69% -2.91% 1.32% 83.06% 1.66%

    $ 10,299,327 $ 10,470,526

    GF Expenditures

    General Fund Budget Three Year Comparison


    Year Budget Incr/Decr % Change -0.02% 2.25% 2.14% 2010 $ 10,073,003 $ (2,489) 2011 $ 10,299,327 $ 226,324 2012 $ 10,519,463 $ 220,136

    Change over three year period = 4.43% Average change over three years is approximately 1.48% per year The rate of inflation from 2010 to 2011 was 3.8%

    Analysis of Average Valued Home


    2012 Home Valued at = $225,000 Assuming constant market value
    2011 City Taxes 2012 Proposed City Taxes
    Increase of $82 from 2011

    $1,252 $1,334

    2012 Revised City Taxes

    $1,319

    Decrease of $15 from preliminary levy

    RESIDENTIAL PROPERTIES TAX CHANGES FROM 2011

    Property Tax Breakdown on Home Valued at $225,000


    City County School District Special Districts Total Taxes $1,334 $1,097 $ 657 $ 272 $3,360

    This does not include referendum market value taxes levied by the school district(s) or reduction for the market value homestead exclusion which is new for 2012.

    Where My Taxes Go

    Budget Challenges
    Loss of significant revenue sources
    Inspection revenues Decline in investment income

    Change in Homestead Credit Program PERA rate increase state mandated Inflation
    Energy costs Fuel & fuel related projects Property & liability insurance

    Market Values

    MVHC vs MVHE
    Market Value Homestead Credit
    After tax credit Direct reduction of taxes

    Market Value Homestead Exclusion


    A portion of your home value is excluded from being tax Value is reduced before taxes are calculated

    Theoretical Illustration
    Average Tax Rate Illustration
    Old Law Credit Estimated Market Value Exclusion Taxable Market Value Class Rate Net Tax Capacity Tax Rate Gross Tax Credit Net Tax Capacity $116,000 $0 $116,000 1% $1,160 105.81% $1,227 $268 $959 New Law Exclusion $116,000 $26,800 $89,200 1% $892 110.92% $989 $0 $989

    Tax Shift

    Tax Capacity Values

    Fiscal Disparities
    Spreads commercial growth among all metro cities and benefits cities that are not experiencing commercial growth Hopkins had been a net gainer we received more than we contributed Hopkins is now a net contributor meaning we contribute more that we receive Results in higher tax rate

    Fiscal Disparities Changes


    Changes in the Fiscal Disparities Program affects the tax rate for Hopkins properties.
    Year Contribution 2012 2011 2010 2009 2008 2007 2006 2005 3,092,328 3,324,078 2,858,921 2,766,202 2,450,063 2,116,466 1,952,996 1,526,509 Distribution 2,650,437 2,645,025 2,913,208 2,840,070 2,405,483 1,997,455 1,836,753 1,673,106 Net Gain/(Loss) (441,891) (679,053) 54,287 73,868 (44,580) (119,011) (116,243) 146,597

    Responses to Budget Challenges


    Smart Growth and Development Innovation Savings and Efficiencies Grants Debt Savings/Refinancing Delayed hiring of vacant positions Eliminated capital items

    Smart Growth and Development


    LA Fitness Excelsior Crossing Phase III Hopkins Health & Wellness Center Expansion Marketplace & Main Apartments Pizza Luc

    Innovation
    Partnerships
    Hopkins School District Hennepin County Minnetonka Joint Recreation Program Other Neighboring Cities Three Rivers Park District Watershed Districts, etc.

    Savings & Efficiencies


    Go Green
    Implemented police vehicle fuel monitoring system to save on fuel costs Building and Facility Changes have saved over $15,000 annually Organics recycling Scanning of documents to digital storage Paperless Packets

    Grants
    During the past few years, the City has received almost $7 million in Grants: Police Department - $473,000 Fire Department - $592,000 Public Works - $230,000 Economic Development - $4,169,000 Dow Towers - $975,000

    Grants (cont.)
    Depot Coffee House - $271,000 Center for the Arts - $113,500 Recreation $82,000 In addition the City has received over $385,000 in Park Dedication fees from new development.

    Value for Taxes


    24-Hour Police and Fire Protection Emergency medical treatment and management services Well Maintained Streets, Trails, and Sidewalks Elections Boulevard Tree and Forestry Program 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 Beautiful Parks and Open Space

    Questions?
    Finance Director, Christine Harkess. Phone number is 952-548-6330 e-mail address is [email protected].

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