Hennepin County Board approves 2007 budget, tax levy
The Hennepin County Board today (Tuesday) adopted a 2007 county budget aimed at maintaining the county’s financial health as the demand for services continues to rise.
The board approved a budget of nearly $1.5 billion, with a net property tax levy of $565.2 million, an increase of 5.5 percent from the 2006 levy.
The vote was six to one, with Commissioners Mike Opat, Mark Stenglein, Gail Dorfman, Peter McLaughlin, Randy Johnson and Linda Koblick voting in favor of the budget, and Commissioner Penny Steele voting no.
In addition to adopting the budget for county government, the board approved a 2007 budget of $505.7 million for Hennepin County Medical Center. The HCMC budget is separate from the county budget because of a change in governance at the hospital, effective Jan. 1, 2007.
On that date, the board of Hennepin Healthcare System, Inc. — a new public subsidiary corporation — assumes primary responsibility for the day-to-day operations of HCMC and its four clinics. Despite the change in governance, HCMC will remain a public hospital, with the County Board retaining final policy control, including approval of the budget and oversight of HCMC’s mission of providing care to those most in need.
“Next year’s county budget represents good work that puts us on course to maintain our financial health,” said County Board Chair Randy Johnson. “As stewards
of the public’s assets, the county government is striving to bring down the cost of doing business — without losing quality and the ability to serve our customers — at a time when the demand for almost every one of our services is increasing.”
Increased service demands, federal and state funding reductions, and the rising costs of energy and health care are major factors driving the 2007 budget. Human services and public safety programs continue to consume the bulk of new property taxes, as has been the case in recent years.
Some specifics of the 2007 budget:
n Additional funding to areas needing more resources, especially the Sheriff’s Office, human services and corrections, following significant state reductions in recent years.
n Continued funding of the bituminous-overlay and concrete-repair programs for much-needed maintenance on county roads and highways.
n Implementation of a new 10-year library plan that includes cutting-edge facilities and operations.
n Investing in new technology.
“A primary goal of the budget is reforming and transforming services,” said County Administrator Sandra L. Vargas. “Departments are employing new tactics, partnerships and technologies to respond to challenges and improve service coordination and efficiency for county residents.”
The county, for example, is now placing a geographic emphasis on service delivery, such as the planning taking place at NorthPoint Health and Wellness Center to relocate and restructure health and human services for the North Minneapolis community. Based on estimates, the county government’s portion of 2007 property taxes on a median-valued home in Minneapolis will increase by $62, or 11 percent, from 2006, and taxes on a median-valued home in the suburbs will increase by $18, or 2 percent. In addition to the increase in the property tax levy, factors having an impact on homeowners’ taxes are a shift in tax burden from commercial and industrial properties to residential properties, the phase-out of limited market value on properties and increased property values for many homeowners.
Due to the fiscal disparities program, Hennepin County must share 40 percent of the growth in value of its commercial and industrial property with communities across the Twin Cities metro area. This results in Hennepin taxpayers contributing $29.4 million to pay for services in Anoka, Carver, Ramsey, Scott and Washington counties.
County government funding sources include the federal and state governments, property taxes, licenses, fees, reimbursements for medical care and other revenue.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
This is a press release that I received from Hennepin County concerning their 2007 budget. Our city budget for 2007 comes before the City Council for final approval at the Council’s December 19 meeting, which is the Council’s final regular meeting of the year. We’re looking at a general budget increase of 6.2% in 2007. Our tax levy is projected to increase 7.6%. Our tax rate is projected to decrease from 28.557% to 27.842%. The tax impact on our median residential taxpayer is projected to be an increase in taxes payable of 3.52%. This final stat is really where the “rubber meets the road” when it comes to property taxation. This is what the median residential taxpayer will pay in increased property taxes due to the City’s taxing & spending decisions. All in all, not too bad.