2019 Budget Adoption Hearing An Overview of the Mayors Recommended - - PowerPoint PPT Presentation

2019 Budget Adoption Hearing

An Overview of the Mayor’s Recommended 2019 Budget as amended by the Budget Committee on November 30, 2018

November 28, 2018

Major Highlights

• Structurally Balanced in 2019
• $140M, or roughly 10%, greater

than 2018 adopted budget of $1.41B

• Includes general fund, water,

sewer, and storm sewer utilities plus convention center, and other special revenue funds

800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 2018 Adopted 2019 Recommended

City Budget in $000s

Ongoing One-Time One-Time Affordable Housing Capital New PSB

2019 City Budget, excluding independent boards, is $1.55 Billion

Major Changes – City Only

• Affordable Housing Investment of $40M (local sources only)

➢ Renter Supports Enhanced

• Interdisciplinary Approach to Public Safety

➢ Violence Prevention Fund Established; Other Investments Made Ongoing

• Economic Inclusion

➢ Collaborative Enforcement Increased & Made Ongoing

• Improved City Operations

➢ Race Equity Staffing Increased

Selected Changes made by the Budget Committee

Five-Year Capital Investments

Proposed Monthly Utility Rates

2018 2019 Sanitary* $28.58 $31.06 Storm $12.71 $13.09 Water** $29.56 $30.41 Solid Waste $28.99 $29.53 Total $99.84 $104.09 * Sanitary average monthly cost = rate x 6 units ** Water average monthly cost = rate x 7 units

Increase on a typical home of about $51 per year, or 4.3%

2019 Recommended Levies

Levy 2018 2019 Change

General Fund 189,452,884 201,345,000 6.28% Minneapolis Park Board* 62,201,719 65,640,000 5.53% Bond Redemption 39,350,000 41,510,000 5.49% Pensions 22,310,000 23,310,000 4.48% Municipal Building Commission 5,102,929 5,256,000 3.00% Board of Estimate and Taxation 190,000 210,000 10.53% Teacher's Retirement Assoc’n 2,300,000 2,300,000 0.00% Library Referendum 10,300,000 10,300,000 0.00% Total Property Taxes 331,207,532 349,871,000 5.63%

77% 19% 0% 1% 3%

Levies by Entity

City* Park Board BET TRA Library Referrendum *City includes General Fund, Bond Redemption, Pensions, and MBC

*Maximum MPRB Levy set $100k higher than the Mayor’s Recommendation

What Each Property Tax Dollar Buys

2018 2019 Median Value 225,000 249,000 Tax 1,300 1,387 775 875 975 1,075 1,175 1,275 1,375 1,475 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000

Taxes Payable Home Value

Change in Median Value & Taxes Payable

Tax Impacts

Estimated Market Value

• Increase: $24,000
• Percent increase: 10.7%

Property Taxes

• Increase: $92
• Percent increase: 6.7%

Changes in Citywide Residential Homestead Values & Taxes

Property Tax Refund Program

• Support for Renters and Homeowners
• Income Phase Outs

www.revenue.state.mn.us/individuals/prop_tax_refund/

City of Minneapolis

Thank You