Agenda - Council Work Session - 02/23/2016

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FISCAL IMPACTS This section provides a look at how Council impacts the residents of the region through fees for services and property tax levies. FEES AND FARES FOR SERVICES The Council's Operating Budget includes $349 million in fees charged directly to those using our services. WASTEWATER FEES The Environmental Services Division collects $205 million in municipal and industry -specific wastewater charges paid by the homes and businesses that are connected to the regional sewer system. These revenues are used for operations, debt service, and capital project costs. In addition, the Environmental Services budget includes the use of $36 million of sewer availability charges (SAC) that was collected from developers when they applied for building permits. SAC may only be used to pay for debt service and its own administrative costs. TRANSPORTATION FARES Passenger fares, contracts and special event revenues, paid by transit riders, provides $108 million to the Transportation Division's operating budget. There are a number of programs and discounts available based on individual circumstances. Standard fares for adults are: Downtown Zone fares are for short rides that begin and end in either the Minneapolis or St. Paul zones. Additional information about transit fares can be found at www.metrotransit.org. PROPERTY TAX LEVIES The Council's Operating Budget includes $80 million in regional property tax levies. An explanation of the individual levies that make up the $80 million can be found in the "Financial Overview" section. 2015 Property Tax Levies: $80.4 Million Parks Debt Service $6.4 General Purposes $14.5 Transit Debt Service $43.2 For 2015, the General Purposes, Livable Communities Demonstration Account and Parks Debt Service Levies total $32 million. Each piece of property in the metropolitan area pays a part of the levy based on how much the property is worth. The metropolitan area is defined in state law as the seven metro counties except for the cities of Northfield, Hanover, Rockford, and New Prague. (Minnesota Statutes, Section 473.121). The $43 million Transit Debt Service levy is paid by a slightly smaller area called the Transit Taxing Communities. It includes all of the cities in the Transit Taxing District as defined in state law, plus any cities that voluntarily join. (Minn. Stat., Sec. 473.446) To date, the cities of Columbus, Forest Lake, Lakeville, Maple Plain and Ramsey have joined. The final levy - the Tax Base Revitalization - Fiscal Disparities - is $5 million. The Council receives this from the Fiscal Disparities Program. The Fiscal Disparities Program is a tax -base sharing program within the metropolitan area and is funded by commercial and industrial property. 32 Non -Rush Rush Hour Bus & Light Rail 1.75 2.25 Express Bus 2.25 3.00 Downtown Zone 0.50 0.50 Metro Mobility 3.00 4.00 NorthStar fares are $3-6.00 based on distance Downtown Zone fares are for short rides that begin and end in either the Minneapolis or St. Paul zones. Additional information about transit fares can be found at www.metrotransit.org. PROPERTY TAX LEVIES The Council's Operating Budget includes $80 million in regional property tax levies. An explanation of the individual levies that make up the $80 million can be found in the "Financial Overview" section. 2015 Property Tax Levies: $80.4 Million Parks Debt Service $6.4 General Purposes $14.5 Transit Debt Service $43.2 For 2015, the General Purposes, Livable Communities Demonstration Account and Parks Debt Service Levies total $32 million. Each piece of property in the metropolitan area pays a part of the levy based on how much the property is worth. The metropolitan area is defined in state law as the seven metro counties except for the cities of Northfield, Hanover, Rockford, and New Prague. (Minnesota Statutes, Section 473.121). The $43 million Transit Debt Service levy is paid by a slightly smaller area called the Transit Taxing Communities. It includes all of the cities in the Transit Taxing District as defined in state law, plus any cities that voluntarily join. (Minn. Stat., Sec. 473.446) To date, the cities of Columbus, Forest Lake, Lakeville, Maple Plain and Ramsey have joined. The final levy - the Tax Base Revitalization - Fiscal Disparities - is $5 million. The Council receives this from the Fiscal Disparities Program. The Fiscal Disparities Program is a tax -base sharing program within the metropolitan area and is funded by commercial and industrial property. 32