Bloomington to see property tax revenues change in 2022 | Bloomington
Fluctuations in the market value of residential and commercial properties in Bloomington will be reflected in the city’s 2022 budget and property tax.
Mayor Tim Busse discussed the city’s shift in revenue, budget priorities and future challenges during an online budget presentation on October 20.
“A greater portion of the overall amount of property tax in 2022 will shift from commercial to residential,” Busse said.
The city’s property tax will increase by 2.75% in 2022, based on the preliminary budget and tax approved in September. Bloomington City Council can reduce the tax levy before its final certification in December, but cannot increase it.
The city’s tax levy continues to account for about a third of the total Bloomington homeowners’ tax bill. Using his property tax bill for 2021, Busse noted that about $ 1,500 of his $ 4,800 property tax bill goes to the city, which is 31% of the total bill. The remaining 69% of its property taxes go to Bloomington Public Schools, Hennepin County and other tax jurisdictions.
The coronavirus pandemic has negatively affected commercial properties, as declining revenues for hotels and many retail establishments have resulted in negative property valuations. This drop, combined with the robust housing market in 2021 – which has seen many homes sell out quickly, and some above asking prices – will shift property tax revenues, Busse explained.
The city’s proposed 2.75% tax levy will result in an increase of about $ 1.8 million in tax revenue for the city next year, he noted. And it compares favorably to 15 metropolitan cities, he noted. Comparing Bloomington’s proposed tax levy to Minneapolis, St. Paul and 13 suburbs, the average for those cities was 5.84%, he said.
The majority of property taxes fund public safety, public works services, and parks and recreation, according to Busse.
The Police Department has over 120 officers, as well as 33 full-time civilian positions, including 14 people who work in its dispatch center. The department receives more than 167,000 emergency and non-urgent calls per year and provides a variety of services beyond regular patrols and emergency response. The department has a bomb squad, a SWAT team, an animal control division and an investigation unit, Busse noted.
Community engagement, training and the well-being of officers receive special attention within the ministry, he added.
The fire department has more than 100 paid on-call firefighters who live within 4 minutes of one of the city’s six fire stations. The department has eight full-time employees and three battalion commanders will be funded for next year through federal funding. With more than 3,100 service calls in 2020, the ministry’s response time was less than 10 minutes 90% of the time. The goal is 7 minutes 30 seconds, said Busse.
The city’s public works department has 182 full-time and additional seasonal employees, who are responsible for the city’s public services, street maintenance and park maintenance.
The Parks and Recreation Department has 24 full-time and 270 seasonal employees who oversee the city’s parks and amenities, such as the Creekside Community Center, and the programs the city runs throughout the year, such as the Farmers Market, Busse explained.
The city’s community development division has over 60 full-time staff responsible for assessment, planning, inspections and environmental health. The community services division oversees the city’s public health, communications, and community outreach and engagement efforts, Busse said, noting that the city is “a leader in equity and inclusion.”
The city also has administrative, legal, financial and IT departments that interact with residents, but largely support staff providing municipal services, he added.
The median home value in Bloomington is $ 307,000. Based on the preliminary tax levy for 2022, a mid-value homeowner would pay around $ 100 per month for city services, Busse noted.
Accommodation and admission taxes, which fund part of the city’s annual budget, continue to lag behind what they were before the pandemic, but revenues have increased from 2020, but will leave the city about $ 3 million less than what was collected. in 2019, according to Busse.
Beyond the fiscal challenges presented by the pandemic, the city will need a more sustainable model for its fire department, Busse said.
Recruitment and retention has been difficult, and it’s a challenge similar fire departments in Minnesota face. The city is licensed for 175 firefighters and aims to maintain a list of 155 firefighters. The city currently has 105 firefighters, with 12 recruits expected to join the roster, Busse said. “This is obviously a problem,” he said.
Busse did not discuss any options or alternatives the city might consider, but noted that the budget includes an additional $ 1 million for service crews, who staff the city’s fire stations during times when firefighters care is generally less available.
The board will review its budget proposal at its Nov. 22 meeting, hold a tax truth hearing at its Dec. 6 meeting, and certify its budget and levies by Dec. 31, Busse said.
The video of the presentation is available online at tr.im/budget22.
Follow Bloomington Community Editor Mike Hanks on Twitter at @suncurrent and on Facebook at suncurrentcentral.
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