City of Excelsior 2018 Budget Presentation December 4, 2017 City Council Meeting
What do your property tax dollars pay for? Hennepin County Social Services Public Health Road and Highways Libraries Corrections Services by Taxing Districts Metropolitan City of Excelsior Minnetonka School District Special Taxing Districts Other Special Taxing Districts Roads and Streets K 12 Education Transportation Regional Parks Community Regional Sewer Regional Police and Fire Education Systems Railroads Parks and Recreation Building Safety Mosquito Control (public health) Museums Watershed Management Public Housing Sheriff Environmental Services Approximately 34% 20% 39% 2% 5%
County Approximately 20% of your property tax dollars pay for City services. City School Special Dist. Other Dist.
City of Excelsior Property Taxes City property taxes are determined by the City s Levy. Excelsior s levy consists of a general levy and a debt service levy to pay back the bonds issued for the 2010, 2011, and 2017 street projects.
3.0% Proposed Levy Increase for 2018 1,600,000 Tax Levy: 2009 2018 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 1,201,408 1,291,509 1,317,339 1,217,339 1,217,339 1,222,692 1,213,835 1,212,063 1,195,320 1,114,116 General Tax Levy Debt Service Levy The 3.0% increase is higher than the Consumer Price Index (CPI) decrease from 2015 to 2016 of 1.6%, However, the entire increase in going toward capital projects.
2018 Proposed Levy Increase The City s operating levy increase is proposed to increase 0.53% or $7,646. The increase for future capital projects and related debt is proposed to increase 2.47% or $35,405. This results in a net increase of 3.0%.
2017 vs. 2018 Levy 2018 Levy 3.00% est market value 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 1,500,000 2,000,000 homestead exclusion 28,240 19,240 10,240 1,240 taxable market value 71,760 180,760 289,760 398,760 500,000 600,000 700,000 800,000 900,000 1,000,000 1,500,000 2,000,000 net tax capacity 718 2,000 3,000 4,000 5,000 6,250 7,500 8,750 10,000 11,250 17,500 23,750 tax rate 27.37% 27.37% 27.37% 27.37% 27.37% 27.37% 27.37% 27.37% 27.37% 27.37% 27.37% 27.37% net tax payable 196 547 821 1,095 1,369 1,711 2,053 2,395 2,737 3,079 4,790 6,501 2017 Levy 2.00% est market value 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 1,500,000 2,000,000 homestead exclusion 28,240 19,240 10,240 1,240 taxable market value 71,760 180,760 289,760 398,760 500,000 600,000 700,000 800,000 900,000 1,000,000 1,500,000 2,000,000 net tax capacity 718 2,000 3,000 4,000 5,000 6,250 7,500 8,750 10,000 11,250 17,500 23,750 tax rate 29.03% 29.03% 29.03% 29.03% 29.03% 29.03% 29.03% 29.03% 29.03% 29.03% 29.03% 29.03% net tax payable 208 581 871 1,161 1,451 1,814 2,177 2,540 2,903 3,265 5,079 6,893 2017 vs. 2018 3.0% (12) (33) (50) (66) (83) (103) (124) (145) (165) (186) (289) (392) The City s tax capacity decreased from 2017 to 2018 causing your City property tax to decrease in 2018, even though the City is increasing the levy.
2018 General Fund Revenue by Source 2018 General Fund Revenue 57.69% 11.30% 15.43% 4.40% 3.10% 3.10% 2.12% 1.89% 0.82% 0.14% Property Taxes Licenses and Permits Charges for Services Transfers From Other Funds Franchise Fees Fines and Forfeits Rents Miscellaneous Revenue Interest Earnings Intergovernmental Revenues Property taxes make up roughly 58% of the City s General Fund revenue.
2018 General Fund Revenue by Source Property Taxes $1,296,544 57.69% Licenses and Permits 254,055 11.30% Charges for Services 346,804 15.43% Transfers From Other Funds 99,000 4.41% Franchise Fees 69,750 3.10% Fines and Forfeits 69,575 3.10% Rents 47,680 2.12% Miscellaneous Revenue 42,550 1.89% Interest Earnings 18,500 0.82% Intergovernmental Revenues 3,095 0.14% Total General Fund Revenue $2,247,553 100.00%
What Does the Levy Pay for? 2018 General Fund Budget 26.50% 10.76% 9.91% Public Safety General Government Culture and Recreation Public Works 44.60% 8.23% Transfers to Other Funds
2018 General Fund Expenditures Public Safety $1,002,451 44.60% General Government 595,647 26.50% Culture and Recreation 241,732 10.76% Public Works 222,805 9.91% Transfers to Other Funds 184,918 8.23% Total General Fund Expenditures $2,247,553 100.00% Notes: Public Safety consists of Police, Fire, and Building Inspections. General Government consists of City Council, City Manager/Clerk, Elections, Finance, Planning and Zoning, City Administration (City Hall), and Heritage Preservation. Public Works consists of Engineering and Streets. Culture and Recreation consists of Park Maintenance, Recreation Programs, and Cemetery. Transfers to Other Funds are contributions toward future capital improvements.
City of Excelsior 2018 General Fund Revenue & Expense Budget Summary $ Chg vs 2017 Budget % Chg vs 2017 Budget 2015 Actual 2016 Actual 2017 Budget 2018 Budget GENERAL FUND Revenues Property Taxes* 1,290,413 1,289,227 1,331,695 1,296,544 (35,151) -2.64% Franchise Fees 70,070 70,196 69,750 69,750-0.00% Licenses and Permits 267,432 260,570 243,180 254,055 10,875 4.47% Intergovernmental Revenues 13,095 6,821 3,095 3,095-0.00% Charges for Services 77,507 229,357 76,200 81,804 5,604 7.35% Parking Kiosks 62,782-138,850 265,000 126,150 90.85% Fines and Forfeits 69,038 68,635 67,550 69,575 2,025 3.00% Rents 38,494 37,193 46,454 47,680 1,226 2.64% Interest Earnings 19,965 16,579 18,500 18,500-0.00% Miscellaneous Revenue 35,473 28,606 25,800 42,550 16,750 64.92% Transfers From Other Funds 110,400 106,600 102,800 99,000 (3,800) -3.70% 2,054,670 2,113,783 2,123,874 2,247,553 123,679 5.82% Expenditures Council 20,087 21,172 23,235 22,135 (1,100) -4.73% City Manager/Clerk 104,291 102,596 107,087 108,639 1,552 1.45% Elections 1,176 5,568 800 7,800 7,000 875.00% Finance 55,888 40,814 37,520 39,340 1,820 4.85% Planning and Zoning 93,139 101,491 99,233 97,878 (1,355) -1.37% City Administration 220,649 271,335 284,676 286,570 1,894 0.67% Parking Kiosks - - 13,229 32,200 18,971 143.40% Heritage Preservation 10,984 11,288 1,085 1,085-0.00% Police 702,788 736,594 732,436 763,770 31,334 4.28% Fire Contract 178,642 189,522 197,341 208,681 11,340 5.75% Building Inspection 51,234 29,823 30,000 30,000-0.00% Engineering 9,774 12,815 12,000 12,500 500 4.17% Streets 197,832 195,762 202,623 210,305 7,682 3.79% Park Maintenance 157,000 159,988 186,470 185,522 (948) -0.51% Recreation Programs 34,709 31,069 35,200 34,200 (1,000) -2.84% Cemetery 17,885 19,608 21,719 22,010 291 1.34% Transfers To Other Funds 190,060 94,363 229,195 184,918 (44,277) -19.32% 2,046,138 2,023,808 2,213,849 2,247,553 33,704 1.52% Net Income (Loss) 8,532 89,975 (89,975) (0)
2018 Property Values Property values for taxes payable 2018 have increased significantly once again. Values have now risen to $40 million over the values of 2017.
Market Value Growth/Decline by Property Type Market Value Growth/Decline by Property Type Property Type 2010 2011 2012 2013 2014 2015 2016 2017 Residential Lakeshore 6.30% 0.60% 2.00% 3.50% 15.00% 8.40% 2.20% 2.10% Residential Off Lake 6.20% 4.20% 5.40% 0.40% 23.00% 8.10% 4.90% 15.00% Apartment 11.50% 3.00% 0.00% 3.30% 1.30% 10.40% 8.20% 8.50% Commercial & Industrial 14.80% 0.00% 4.80% 0.08% 5.70% 6.90% 5.30% 6.00% Condominium 8.50% 1.70% 15.90% 2.30% 12.70% 16.40% 3.10% 3.30% Market values are increasing for all property classifications. The overall market value for the City increased over $40 million from $437,429,129 to $478,103,828.
Excelsior Value Changes Compared to Other Cities MUNICIPALITY PAY 2016 FINAL EST MKT VALUE PAY 2017 EST MKT VALUE PAY 2018 FINAL EST MKT VALUE $ CHANGE IN MARKET VALUE % CHANGE MKT VAL CHANGE IN TAX CAPACITY % CHANGE TAX CAP WOODLAND 284,556,000 298,960,000 307,724,000 8,764,000 2.93% 107,982 3.08% EDEN PRAIRIE 9,546,125,900 9,779,418,200 10,150,985,700 371,567,500 3.80% 4,284,904 3.58% MOUND 1,078,295,400 1,175,358,600 1,225,075,100 49,716,500 4.23% 574,651 4.80% MINNETONKA 8,419,635,700 8,688,605,500 9,095,064,800 406,459,300 4.68% 4,842,268 4.54% DEEPHAVEN 1,146,202,500 1,196,455,300 1,252,570,900 56,115,600 4.69% 688,397 5.10% ST. LOUIS PARK 5,841,548,800 6,306,324,900 6,642,340,500 336,015,600 5.33% 4,086,518 5.28% ORONO 2,547,306,700 2,745,486,600 2,892,832,900 147,346,300 5.37% 1,798,524 5.77% MEDINA 1,484,779,300 1,574,358,900 1,662,160,200 87,801,300 5.58% 1,075,157 5.99% GREENWOOD 298,947,000 327,604,000 346,494,100 18,890,100 5.77% 233,867 6.17% SHOREWOOD 1,532,655,200 1,595,444,800 1,689,311,700 93,866,900 5.88% 1,098,275 6.29% TONKA BAY 522,457,900 547,275,800 579,761,300 32,485,500 5.94% 398,398 6.42% SPRING PARK 229,679,100 261,569,600 277,247,100 15,677,500 5.99% 189,997 6.15% BLOOMINGTON 11,390,431,500 12,004,487,900 12,731,064,700 726,576,800 6.05% 9,230,527 5.73% EDINA 10,393,218,800 10,873,997,200 11,632,056,400 758,059,200 6.97% 9,870,852 7.50% MINNETRISTA 1,330,686,500 1,470,250,900 1,581,057,400 110,806,500 7.54% 1,232,645 7.93% ST. BONIFACIUS 190,065,800 201,713,000 217,549,200 15,836,200 7.85% 177,707 8.60% CORCORAN 729,619,700 761,689,800 822,031,800 60,342,000 7.92% 683,619 8.97% MINNETONKA BEACH 292,889,300 315,941,100 341,087,100 25,146,000 7.96% 315,802 8.53% MINNEAPOLIS 39,881,277,200 43,591,679,200 47,567,013,400 3,975,334,200 9.12% (46,947,191) 7.33% EXCELSIOR 412,616,500 440,167,700 480,318,700 40,151,000 9.12% 516,917 9.37% BROOKLYN CENTER 1,758,565,800 1,848,110,900 2,030,795,900 182,685,000 9.88% 2,202,213 10.34% WAYZATA 1,650,309,800 1,799,348,000 1,977,731,700 178,383,700 9.91% 2,366,453 10.12% BROOKLYN PARK 5,811,963,300 6,210,190,500 6,860,738,500 650,548,000 10.48% 8,096,827 11.43% COUNTY 142,805,059,700 152,369,918,300 163,184,987,400 10,815,069,100 7.10% 137,164,224 7.44%
Taxable Tax Capacity by Property Type Taxes Payable 2018 Tax Capacity Residential 3,516,020 58.29% Commercial 1,935,275 32.09% Apartment 553,548 9.18% Industrial 19,064 0.32% Other 7,695 0.13% Total 6,031,602 100.00%
An Increase in Property Values = An Increase in Tax Dollars for the City, Right?
WRONG! The City sets the levy which is the amount of tax dollars that the City will receive, regardless of what property values are. What does change is the City s tax rate, which sets the percentage rate a property owner pays in taxes for each dollar of tax capacity.
Will Your Taxes Increase?
Residential Example Property A 2017 Market Value $711,000 Homestead Exclusion $0 Taxable Market Value $711,000 Property A 2018 Market Value $724,000 (1.8%) Homestead Exclusion $0 Taxable Market Value $724,000 Total City Property Tax $2,199.89 Total City Property Tax $2,115.51 Property A will have a decrease of $84.38 or 3.8% in the City portion of their property taxes in 2018
Residential Example Property B 2017 Property B 2018 Market Value $1,615,000 Homestead Exclusion $0 Taxable Market Value $1,615,000 Market Value $1,654,000 (2.4%) Homestead Exclusion $0 Taxable Market Value $1,654,000 Total City Property Tax $5,454.51 Total City Property Tax $5,268.44 Property B will have a decrease of $186.07 or 3.4% in the City portion of their property taxes in 2018
Commercial Example Property C 2017 Property C 2018 Market Value $844,000 Homestead Exclusion $0 Taxable Market Value $844,000 Market Value $904,000 (7.1%) Homestead Exclusion $0 Taxable Market Value $904,000 Total City Property Tax $3,233.30 Total City Property Tax $3091.90 Property C will have a decrease of $141.40 or 4.4% in the City portion of their property taxes in 2018
Property Tax Relief Programs Homestead Market Value Exclusion Values up to $413,800 Property Tax Refund Targeting Property Tax Refund (aka Special Property Tax Refund) Property Tax Increase of over 12% and $100 Disabled Veteran Homestead Value Exclusion Senior Citizens Property Tax Deferral Program
2018 Utility Rates The 2018 proposed utility rates include the increases/decreases shown below. Water 5% Sewer Surface Water Trash Recycling No Change No Change No Change No Change Street Lighting 3% Yard Waste Spring Clean Up No Change No Change
The complete 2018 budget will be available on the City s website. http://www.excelsiormn.org Hard copies may be obtained at City Hall during regular business hours. Excelsior City Hall 339 Third Street Excelsior, MN 55331
Any questions or comments? Contact Info: Teah Malecha, Finance Officer tmalecha@excelsiormn.org (952) 653 3677 (direct)