Minneapolis City Budget FY2015 & FY2016

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mattaudio
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Re: Minneapolis City Budget FY2015

Postby mattaudio » December 2nd, 2014, 1:41 pm

Is there any hope at educating the public that an increase in property tax levy and an increase in property tax rate are not the same thing?

MNdible
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Re: Minneapolis City Budget FY2015

Postby MNdible » December 2nd, 2014, 2:15 pm

I feel like every single article about property taxes should have a mandatory paragraph that explains this, probably with a hotlink to a webpage that really explains it well. I would wager that less than 5% of people actually understand this.

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Re: Minneapolis City Budget FY2015

Postby twincitizen » December 2nd, 2014, 3:46 pm

From the Strib article, I got the impression that both of the new "equity" positions were saved from cuts, also on a close 7-6 vote, though some other money for an equity study and some money for counseling first-time homebuyers was successfully cut. I'm really perplexed about the energy partnership thing though...it seems a really odd target for cuts, like its politically motivated or something.

EDIT: Here's the news some of us were waiting for - the $700k for protected bike lanes made it through without anyone proposing to cut or reduce it, despite earlier comments from Council President Johnson. It seems that cycling advocacy might be reaching "critical mass", where it is actually political suicide (in Minneapolis) to oppose funding.

However, what in the hell Palmisano?? "Council Member Lisa Palmisano on Monday aborted her proposed amendment to strip ongoing funding for pedestrian safety work by $250,000 of the $350,000 it gets." Gee, she must have already forgotten about the girl who was killed at W Lake St & Market Plaza (West Calhoun) last year, when she was pretty fired up about making serious ped improvements.

Anyways, I'm glad both the bike and ped funding made it through.

http://www.startribune.com/local/blogs/284510991.html

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mattaudio
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Re: Minneapolis City Budget FY2015

Postby mattaudio » December 4th, 2014, 1:19 pm

Minneapolis levy debate reveals fault lines among council members
http://www.minnpost.com/politics-policy ... il-members

I can personally think of one electoral difference that would have resulted in a Council President Glidden... :ugeek:

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Re: Minneapolis City Budget FY2015

Postby twincitizen » December 5th, 2014, 11:31 am

I must've missed this one: http://www.startribune.com/local/blogs/284815741.html

Debate over neighborhood funding kind of got buried under the news about the recently passed cuts to clean energy, equity study, etc.

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Re: Minneapolis City Budget FY2015

Postby David Greene » December 5th, 2014, 12:04 pm

I must've missed this one: http://www.startribune.com/local/blogs/284815741.html

Debate over neighborhood funding kind of got buried under the news about the recently passed cuts to clean energy, equity study, etc.
It hasn't flown under the radar of the people I know. They are very well aware of what's been done. People have blasted Blong Yang for it on social media. It's all related to equity.

I respect Blong's opinion on this but I and others are disturbed that he sees this as a zero-sum game, having to take from equity studies, clean energy and neighborhoods to give to affordable housing rather that taking from, for example, increased inspectors for southwest Minneapolis. It's analogous to the Park Board's action to defund parks in East Harriet and Lyndale claiming there is no money while half a million sits on the table for tilting at SWLRT windmills.

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Re: Minneapolis City Budget FY2015

Postby EOst » December 12th, 2014, 3:12 pm

http://www.tcdailyplanet.net/news/2014/ ... elevy-vote

I guess they rescinded the #lattelevy cuts.

This rather interesting exchange occurred too:
Warsame, who previously voted in favor of the cuts to One Minneapolis Fund and the Clean Energy Program, called the recent criticism toward him “insulting” and “unacceptable.”

"In the heat of the moment it is easy to point fingers, to blame and to label people as being against equity, to being against myself,” Warsame said to the crowd. “It's insulting that you say you are more black than I am, that you care more about black lives than I do.”

Hisses and yells echoed from the crowd in response.

“You turned your back on us!” one man yelled from the back of the room.
I don't know what Warsame saw as the upside to his comments, honestly.

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FISHMANPET
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Re: Minneapolis City Budget FY2015

Postby FISHMANPET » December 12th, 2014, 3:34 pm

Not really proud to have Warsame as my CM (not that I voted for him anyway in the first place...).

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Minneapolis City Budget FY2016

Postby twincitizen » August 13th, 2015, 8:37 am

I don't want to start a new thread, so here we go again: http://www.minnpost.com/politics-policy ... y-increase
She called for an increase in the city’s property tax levy of 3.4 percent. That means that while the current levy is raising $287 million, Hodges wants council approval of a total levy amount of $297.5 million next year. Because of the complexity of the property tax system, however, an increase doesn’t mean every property owner will pay more. Hodges said that three-quarters of taxpayers in the city can expect to pay less.

But property taxes are controversial. Hodges’ request last year for a 2.4 percent increase was cut back to 2.1 percent on a 7-6 council vote, after a contentious debate over some cuts to equity and environmental programs.
I bet the City Council makes some cuts, even if minor. They'll look like heroes if they can bring the levy increase down to 3.2 or whatever.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby MNdible » August 13th, 2015, 9:11 am

I think last year's issue was only partially with the increase itself, and partially with some of the mushy things that were in the budget. It was some probably necessary squabbling and jostling for lots of new faces to stake out their positions.

This year's budget increases seem to be predicated on things that are more concrete, and less likely to cause unease.

Also, given inflation, the growth in population and the accompanying demand for service, and the growth in the tax base, this number seems reasonable.

All of that said, the city went through a brutal period in the last decade where property taxes essentially doubled to atone for the sins of the past (and some LGA shenanigans at the capital), so any additional increases needs to keep in mind that we're starting from an already raised bar.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby MNdible » August 13th, 2015, 1:25 pm

Also interesting that only 9 of the 13 CMs could be bothered to show up for this.

On to the numbers, from the Strib write-up:
The city’s total tax capacity — the property value that is subject to taxation — grew by about 9.8 percent between 2014 and 2015, though slightly less than the previous year. Most of that growth is attributable to the booming apartment market, which is alleviating the burden of the levy on houses.

Those houses are still expected to comprise 50.6 percent of the tax capacity in 2016, but the apartment share of the pie has risen nearly 4 percent since 2014’s taxes.

Tax Capacity
2014* 2015* % change
Residential $228 million $244 million 6.9%
Apartment $56 million $72 million 28.7%
Commercial $128 million $146 million 14.2%
Industrial $26 million $19 million -25.8%
Presumably the numbers above do not reflect the different classification rates that apply to the categories above[PDF], so the actual tax payments by SFH's will be less than 50%.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby kirby96 » August 13th, 2015, 1:49 pm

My quick and dirty estimate jives with Hodges statement that most residential homeowners will see a reduction, although I'm guessing it will be a pretty small one (putting aside the unique idiosyncracies of mkt value changes on individual properties).

Using the class rates in that link conservatively (assuming all commercial is 1.5% class and all apartments are mkt rate @ 1.25%), it appears that last year SFH bore about 42% of the burden (paid 41.6 cents of every dollar collected), this year they will bear 40% of the burden, which is 3.4% higher, so every 41.6 cents paid last year is a bit under 41.5 cents this year (and of course slightly lower than that due to the conservatism I used).

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Re: Minneapolis City Budget FY2015 & FY2016

Postby kirby96 » November 14th, 2015, 2:48 pm

Well I was wrong about the property taxes. Mine are up 8% (although that's not totally surprising given recent sale and corresponding value re-set), and my girlfriend's went up 12%.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby twinkess » November 16th, 2015, 4:46 pm

Just got the letter from Hennepin County. My property taxes are down 4.9%, estimated market value of my place hasn't changed.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby VAStationDude » November 16th, 2015, 5:00 pm

Taxes up 12.5% estimated market value up 11.5% for me.

kirby96
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Re: Minneapolis City Budget FY2015 & FY2016

Postby kirby96 » November 16th, 2015, 9:16 pm

I understand my increase (and by the way, city of Minneapolis was up about same % as Hennepin County) as my market value probably rose higher than avg due to improvement and recent sale, but generally the rising tide shouldn't itself raise taxes. It's still tax to collect divided by total mkt value (ignoring differences in property type etc.), right? That's why my friends increase was a bit of a head scratcher as is the 11% mkt value and 12% tax increase referenced above. Those are hefty hikes. Are there areas of the city that still aren't seeing value increases that would explain it?

It would be interesting to see maps of % change, and a breakout by property type. I guess I figured with all the construction in the past couple years the peanut butter would get spread a little thinner (even with a levy hike)
as the total taxable value in the city must be up non-trivially. I guess it just speaks to the size of the in place tax base that even a construction boom doesn't really move the needle.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby LakeCharles » November 17th, 2015, 7:04 am

My case:
Market value up 5%
City taxes down 1%
County taxes up 2%

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Re: Minneapolis City Budget FY2015 & FY2016

Postby mplsjaromir » November 17th, 2015, 8:56 am

I would not call what Minneapolis is experiencing a building boom. It has been less than a 2% increase annually in total housing units over the past five years. Decent, but not enough to make the city more affordable.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby winterfan » November 17th, 2015, 2:05 pm

Market value up 15%
Taxes up 9.5%

That's a lot. We've not done any improvements either. I'm surprised I haven't seen more coverage regarding the hikes. Maybe we're unusual.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby EOst » November 17th, 2015, 2:19 pm

Market value up 15%
Taxes up 9.5%

That's a lot. We've not done any improvements either. I'm surprised I haven't seen more coverage regarding the hikes. Maybe we're unusual.
If you don't mind me asking, what neighborhood are you in?


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