. >> GOOD AFTERNOON. WELCOME TO THE REGULAR MEETING OF THE BOARD OF ESTIMATE AND TAXATION FOR APRIL 23, 2025. MY NAME IS STEVE BRANDT AND I'M PRESIDENT OF THE BOARD. BEFORE WE BEGIN THE MEETING I'D LIKE TO ASK THE
CLERK TO REMIND US OF THE PROTOCOL FOR SPEAKING SO THAT WE CAN ACCOMMODATE OUR CAPTIONERS. >> I WANT TO OFFER A FRIENY REMINDER TO ALL MEMBERS, STAFF AND THE PUBLIC THAT THESE MEETINGS ARE BROADCAST LE TO ENABLE GREATER PUBLIC
PARTICIPATION. THESE BROADCASTS INCLUDE REAL-TIME CAPTIONING AS A FURTHER METHOD TO INCREASE THE ACCESSIBILITY OF OUR PROCEEDINGS TO THE COMMUNITY. THEREFORE, ALL SPEAKERS NEED TO BE MINDFUL OF E RATE OF THEIR SPEECH SO THAT OUR CAPTIONERS CAN FULLY CAPTURE AND TRANSCRIBE ALL COMMENTS FOR
THE BROADCAST. WE ASK ALL SPEAKERS TO MODERATE THE SPEED AND CLARITY OF THEIR COMMENTS. >> OKAY. AT THIS TIME I'LL ASK THE CLERK TO CALL THE ROLL SO THAT WE CAN VERIFY THE PSENCE OF A QUORUM.
>> BOARD MEMBER FREY IS ABSENT. ABENE. >> HERE. >> PAYNE. >> PRESENT. >> CHUGHTAI. >> PRESENT. >> VICE PRESIDENT PROCEED PREE-STINSON. >> PRESENT.
>> THERE ARE FIVE MEMBERS PRESENT. >> ALL RIGHT. WE HAVE A QUORUM WITH US TODAY. AND I WILL NOW OFFER AN ACKNOWLEDGEMENT THAT WE MEET TODAY ON THE LAND OF THE DAKOTA. WE'LL PROCEED NOW TO OUR AGENDA. A COPY OF WHICH WAS POSTED FOR PUBLIC ACCESS IN THE
CITY'S LEGISLATIVE INFORMATION MANAGEMENT SYSTEM, WHICH IS AVAILABLE AT LIMS.MINNEAPOLISMN.GOV. BOARD MEMBERS, THE AGENDAOR TODAY'S MEETING IS BEFORE US. MAY I HAVE
A MOTION TO ADOPT THE AGENDA? >> SO MOVED. >> SECOND. >> IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR SAY AYE. >> AYE. >> OPPOSED. >> OKAY. THE AYES HAVE IT. THE AGENDA IS ACCEPTED. NEXT IS THE
ACCEPTANCE OF THE MINUTES. COULD I HAVE A MOTION TO ACCEPT THE MINUTES. >> SO MOVED. >> SECOND. >> ALL RIGHT. WE HAVE A PROPER MOTION BEFORE US. ANY DISCUSSION? >> T DATE YOU SAID WAS OFF. YOU SAID THE LAST MEETING WAS JANUARY SOMETHING OR OTHER. BUT IT WOULD NOT HAVE BEEN IN
JANUARY. >> YES. THE DATE WOULD HAVE BEEN MARCH 26, 20. >> OKAY. I WOULD HAVE -- I WAS TRYING TO DO THE MATH IN MY HEAD. >> THAT'S OKAY. >> OKAY. MARCH 26TH, 2025. DO WE HAVE A MOTION TO ACCEPT THE
MINUTES AND A SECOND? >> SO MOVED. >> DISCUSSION. ALL THOSE IN FAVOR SAY AYE. >> AYE. >> OPPOSED SAY NAY. ALL RIGHT. THE NEXT IS RECEIVING OF PUBLIC COMMENTS RELATED TO CURRENT BOARD BUSINESS. DO WE HAVE
ANYBODY SIGNED UP? ALL RIGHT. I JUST WANT TO REMIND THE PUBLIC THAT YOU HAVE THE OPPORTUNITY EACH MEETING TO COMMENT ON ANY ITEMS THAT ARE ON THAT MEETING'S AGENDA. THAT'S IN ADDITION TO THE PUBLIC HEARING THAT WE HOLD EACH SEPTEMBER WHEN WE ADOPT A
MAXIMUM LEVY. ALL RIGHT. ITEM NUMBER 5 IS TO RECEIVE THE CITY ASSESSORS ANNUAL ASSESSMENT REPORT. WELCOME TO THE COMMITTEE. TO THE -- EXCUSE ME,
TO THE BOARD. >> GOOD AFTERNOON, PRESIDENT BRANDT AND MEMBERS OF THE BOARD OF ESTIMATE AND TAXATION. GOOD
AFTERNOON. I'M HERE TO PRESENT TO YOU THE 2025 ANNUAL ASSESSMENT REPORT. THIS IS NOT PART TWO. IT IS ACTUALLY A REPEAT OF THE ASSESSMENT REPORT TH WAS PRESENTED TO BUDGET COMMITTEE EARLIER LAST MONTH. I DO HAVE ONE MEMBER OF MY TEAM
ROB WILLIAMSON WITH ME IN CASE THERE'S ANY QUESTIONS THAT YOU HAVE THAT ARE OUTSIDE OF MY SPAN OF KNOEDGE THAT HE CAN ASSIST WITH. SO I'M GOING TOUICKLY MOVE IN. FIRST, A HIGH LEVEL SUMMARY AND REMINDERS ABOUT THE
ASSESSMENT. WE RECENTLY COMPLETEDHE JANUARY 2025 ASSESSMENT OF PRESENTLY 131,000 PROPERTIES ACROSS THE CITY. THIS IS AN ANNUAL PROCESS. VALUE NOTICES WERE MAILED LAST MONTH. IT'S IMPORTANT TO REMIND EVERYONE THAT THE 2025 ESTIMATED
MARKET VALUES ARE USED TO CALCULATE NEXT YEAR'S 2026 TAXES. WE VALUE PROPERTIES IN ONE YEAR THEN THE BUDGET AND LEVY ARE SET. AND TAXES ARE PAYABLE THE FOLLOWING YEAR. WE KNOW THIS CAN BE CONFUSING BECAUSE PROPERTY TAX STATEMENTS
ARE MAILED AT APPROXIMATELY THE SAME TIME AS -- TAX STATEMENTS ARE MAILED AT APPROXIMATELY THE SAME TIME AS VALUE NOTICES. THE PAYABLE NOTIC THAT PROPERTY OWNERS RECEIVE WERE CALCULATED
USING 2024'S ASSESSED VALUE. THE DATA THAT WE USE IS ALSO DICTATED BY THE STATE FOR THE JANUARY 22, 2025, ASSESSMENT, WE ANALYZE MARKET BASE TRANSACTIONS TH OCCUR BETWEEN OCTOBER 2023 AND SEPTEMBER OF 2024. IN
MINNESOTA, PROPERTY TAXES PROVIDE A SIGNIFICANT PORTION OF THE FUNDING FOR LOCAL GOVERNMENTS. PROPERTY TAXES ARE THE MINNEAPOLIS GENERAL FUNDS LARGEST AND MOST FLEXIBLE SOURCE OF INCOME AND SUPPORT MANY OF OUR CORE GOVERNMENTAL FUNCTIONS.
EVERY PROPERTY'S SHARE OF TAXES IS BASED ON ITS MARKET VALUE, PROPERTY USE AND LOCAL GOVERNMENT BUDGETS WHICH BECOME A TAX RIGHT. YOU CAN SEE THE IMAGE AT THE BOTTOM OF THE SCREEN. SO MARKET VALUE IS THE
PRICE A PROPERTY WOULD SELL FOR ASSESSOR'S ROLE IS TO SET FAIR AND ACCURATE MARKET VALUES AND SETTING TRENDS. DIFFERENT USES OF PROPERTY, EVEN IF THEY HAVE
THE SAME VALUE, PAY DIFFERENT TAXES BECAUSE OF THE CLASS RATES SET BY THE STATE LEGISLATURE. WE WILLROVIDE AN EXAMPLE OF THAT FOR YOU IN A MOMENT. AND THE TAX RATE IS DETERMINED USING THE
BUDGETS OF LOCAL GOVERNMENT. THE INTERMEDIARY STEP IN CONVERTING VALUES TO TAXES IS CALLED T TAX CAPACITY. THIS SLIDE ILLUSTRATES HOW THIS WORKS FOR SOME COMMON TYPES OF PROPERTIES IN THE CITY. THE CALCULATION FOR TAX CAPACITY IS THE MARKET
VALUE, WHICH IS IN THE SECOND COLUMN MULTIPLIED BY THE CLASS RATE, WHICH IS IN THE THIRD COLUMN. AS YOU CAN SEE HERE, A RESIDENTIAL PROPERTY AND COMMERCIAL PROPERTY ON THE BOTTOM LINE, IF THEY ARE BOTH ASSESSED AT $300,000, THEY WILL
PA DIFFERENT TAXES. AND THAT IS BECAUSE THE CLASS RATE FOR RESIDENTIAL PROPERTY IS , AND THE CLASS RATE FOR COMMERCIAL PROPERTY IS 2%. AS A RESULT, RESIDENTIAL PROPERTY WILL PAY APPROXIMATELY HALF THE PROPERTY TAXES OF A COMMERCIAL PROPERTY. I MUST NOTE THOUGH THAT THIS IS
A VERY SIMPLISTIC MODEL ILLUSTRATING TAX CALCULATION. IT EXCLUDES COMPLEX FACTORS LIKE SPECIAL PROGRAMS LIKE HOMES HOMEST HOMESTEADING, FISCAL DISPARITIES. THIS SLIDE IS A
HISTORICAL VIEW OF THE MARKET VALUE. THE OVERALL ESTIMATED MARKET VALUE FOR THE CIT DECREASED TO $64.8 BILLION THIS YEAR. THIS DOES NOT INCLUDE UTILITIES AND RAILROAD WHICH ARE ASSESSED BY THE STATE BECAUSE THOSE VALUES DON'T BECOME
AVAILABLE UNTIL THE SUMMER. THIS DOES INCLUDE NEW CONSTRUCTION ADDED FOR PERMITTED WORK TOTALING APPROXIMATELY $700 MILLION THIS YEAR. THIS SLIDE IS A VISUALIZATION OF THE
BREAKDOWN OF THREE CATEGORIES BY THEIR 2025 TAL MARKET VALUE. ON THE LEFT. AND THEN THEIR TAX CAPACITY IS THE BAR ON THE RIGHT. BECAUSE OF THE CALCULATION OF VALUED TAX DISCUSSED ON THE PREVIOUS SLIDE, THERE'S A CHANGE IN THE DISTRIBUTION BETWEEN THE THREE CATEGORIES WHEN WE MOVE FROM
MARKET VALUE ON THE LEFT TO TAX CAPACITY ON THE RIGHT. YOU CAN SEE HERE THAT RESIDENTIAL VALUES IN GREEN COMPRISE OR 62% OF THE TOTAL CITY MARKET VALUE. HOWEVER, WHEN THE CLASS RATES A PORTION OF TAX CAPACITY IS JUST
OVER 53%. YOU CAN ALSO SEE THAT THE CMERCIAL VALUE IN BLUE COMPRISES JUST OVER 16% OF THE TOTAL MARKET VALUE THE CITY COMPRISES ALMOST 27% OF THE TAX CAPACITY AFTER THE RATES HAVE
BEEN APPLIED. THIS HISTORICAL VIEW OF THE TAX CAPACITY AS A PERCENTAGE OF THE TOTAL TAX CAPACITY BY PROPERTY TYPE. SO IF WE COMPARE 2024 TO 2025, THE TWO BARS ON YOUR FURTHEST RIGHT, YOU CANEE THE YEAR-TO-YEAR SHIFT BETWEEN COMMERCIAL, APARTMENT,
AND RESIDENTIAL PROPERTIES. IT'S JUST OVER 1% FROM COMMERCIAL TO SIDENTIAL WITH APARTMENT REMAINING CONSTANT. HOWEVER, THIS MEANS THAT RESIDENTIAL PROPERTI WILL BEAR A GREATER BURDEN OF THE TAXES PAYABLE IN 2025 THAN THEY DID I2024. THIS
SLIDE ILLUSTRATES THE CHANGE IN TOTAL MARKET VALUE BY WARD. EACH WARD IS REPRESENTED BY A BAR AND THEN THE PERCENT OF INCREASE OR DECREASE IS LABELED AT THE END OF EACH BAR. WARD 7 SAW A
DECREASE OF JUST OVER 8%. AND THREOTHER WARDS SAW A DECREASE AS WELL. THE REST SAW INEASES. THIS IS TOTAL EMV OF ALL PROPERTY TYPES, NOT JUST RESIDENTIAL. THIS IS A HIS
HISTORICAL LOOK. MARKET VALUE INCREASED BY 2.6%. LAST YEAR MARKED THE FIRST TIME IN MANY YEARS THAT WE'VE SEEN A DECREASE IN OVERALL RESIDENTIAL VALUE. AND WE HAVE SEEN A SMALL REBOUND SINCE THEN. WHILE THE PREVIOUS
SLIDE ILLUSTRATES AN OVERALL VALUE INCASE FOR RESIDENTIAL PROPERTIES, THIS SLIDE FURTHER BREAKS DOWN THE DATANTO THREE MAJOR PROPERTY TYPES. COOMINIUM TOWN HOME, DUPLEX, TRIPLEX, AND SINGLE FAMILY CATEGORY INCREASES IN EACH OF
THESE THREE SUBMARKETS. AND $118 MILLION ADDEDN NEW CONSTRUCTION. ON TO COMPLIANCE. OUR ASSESSMENT IS CLOSELY SCRUTINIZED BY THE STATE TO ENSURE ACCURACY AND EQUITY. WE FOLLOW REQUIRENTS MANDATED BY
THE STATE WHICH ARE BASED ON THE INTERNATIONAL ASSOCIATION OF ASSESSING OFFICERS STANDARDS ON SALES RATIOS, AND STANDARDS ON MASS APPRAISAL. THE ANALYSIS IS PROPERTIES THATAVE SOLD SO THAT WE CAN COMPARE OUR ASSESSED
VALUES TO WHAT THEY ARE SELLING EQUITABLE THE VALUES ARE IN COMPARISON TO SALE PRICES. THE FIRST ASSESSMENT I WILL REVIEW IS THE SALES RATIO, WHICH IS THE THIRD COLUMN. IT IS A COMPARISON OF THE MARKET VALUE TO THE SALE
PRE OF PROPERTIES. SIMPLY STATED, IT'S THE SALE PRICE DIVIDED BY THE MARKET VALUE. AND WE USE THE MEDIAN RATIO AS THE MEASURE OF CENAL TENDENCY IN OUR WORK. SO LOOKING AT THE BOTTOM ROW OF THE 3,645 SALES,
WE HAD A MEDIAN RATIO OF 95.4%. WE ALL TYPICALLY LOOK FOR MEDIAN OF AROUND 95%. WE DON'T WANT TO BE AT A SIGNIFICANTLY DIFFERENT ASSESSMENT LEL THAN OTHER
JURISDICTIONS BECAUSE THAT CAN PRESENTOME TAX INEQUITIES. MOVING ON THEN TO THE SECOND MEASURE IS THE COEFFICIENT OF DISPERSION OR THE COD. IT
MEURES THE UNIFORMITY OF THE ASSESSMENT. HOW FAR AWAY ALL THE RATIOS OR THE SALES ARE FROM THAT 95.4%. WE DEFINITELY MEET THIS REQUIREMENT. AND THE LAST MEASURE WE'RE GOING TO LOOK AT
IS THE PRICE RELATED DIFFERENTIAL, THE PRD. IT IS CRITICALLY IMPORTANT TO OUR WORK BECAUSE IT MEASURES THE VERTICAL EQUITY OF OUR ASSESSMENT. SO WH VALUED AT A GREATER PERCENTAGE OF MARKET VALUE THAN HIGH VALUED
PROPERTIES, OUR ASSESSMENT WOULD BE CONSIDERED AGGRESSIVE. -- THE ASSESSMENT WOULD BE CONSIDERED PROGRESSIVE. BUT FOR TAX PURPOSES, WE DON'T WANT IT TO BE
REGRESSIVE OR PROGRESSIVE. SO WE MAKE SURE IT IS IN AN ACCEPTABLE RANGE, AND IT IS. THIS IS A HISTORICAL LOOK AT THE REQRED STATISTICAL MEASUREMENTS THAT OUR ASSESSMENT IS JUDGED ON FOR ACCURACY AND EQUITY. IT'S
IMPORTANT TO POINT OUT THAT WE HAVE SEEN A DRASTIC DECREASE IN SALES VOLUMES SINCE THE PEAK IN 2022. THE SALES IS ACTUALLY A DECREASE OF 45%. WE HAVE A LITTLE LESS DATA TO RELY ON TO RESET THE ASSSMENT. IT WAS NOT
THE STRONG SELLERS MARKET THAT WE HAVE SEEN IN THE PAST. THIS ILLUSTRATES THE COMPARISON OF THE MEDIAN SALE PRICE IN BLUE TO THE MEDIAN MARKET VALUE IN
ORANGE. THESE LINES SHOULD BE C SAME DIRECTION. AND YOU CAN SEE HERE THAT THIS MEASURE IS WITHIN STANDARDS AND IS ACCEPTABLE AS WELL. OUR MEDIAN MARKET VALUE DID INCREASE BY 3.2%. WHEN WE BREAK DOWN THE CHANGES FOR
RESIDENTIAL PROPERTIES AS FAR AS HOW MUCH BY PERCENTAGE THEIR VALUES ARE GOING TO INCREASE OR DECREASE, IF YOU LOOK AT THE ORANGE BAR NEARLY 45% OF THE PROPERTIES, RESIDENTIAL PROPERTIES IN THE CITY ARE GOING TO SEE AN INCREASE FROM ZERO TO
5%. THIS IS AAP OF OUR SINGLE FAMILY PROPERTIES WITH THE CODING TO INDICATE HOW MUCH CHANGES THERE WAS FOR EACH. IT'S JUST A VISUAL DEMONSTRATION OF THE DATA THAT WE LOOKED AT PREVIOUSLY. THIS IS A WARD
COMPARISON OF THE RESENTIAL VALUES, AND THE SAME STISTICAL MEASURES THAT WE DISCUSSED EARLIER. THE COLUMNS TO THE LEFT ARE THE 2024 AND 2025 TOTAL MARKET VALUES. THE AMOUNT OF NEW CONSTRUCTION AND T NET CHANGE IN THE TOTAL VALUE. MOVING
ACROSS THE CHART IS ALSO THE MEDIAN MARKET VALUE, NUMBER OF SALES, MEDN SALE PRICE AS WELL AS THE COD. WHAT I WANT TO MENTN HERE IS THE RANGE OF SALES RATIOS ON THE FAR SECOND TO THE FAR RIGHT COLUMN IS THAT
WE RANGE FROM 9 TO 95.9. IT INDICATES THE LEVEL OF ASSESSMENT ACROSS THE CITY IS QUITE CONSISTENT FROM WARD TO WARD. PIVOTING TO THE COMMERCIAL
MARKET. IF WE SEPARATE THE COERCIAL FROM THE INDUSTRIAL, YOU CAN SEE AN OVERALL DECREASE OF 3.5%. IN THE COMMERCIAL MARKET, 8.6% IN THE COMMERCIAL MARKET. SORR AND THEN 2.1%
INCREASE FOR THE INDUSTRIAL MARKET WITH AN OVERALL DECREASE OF 5.5%. THIS IS A HISTORICAL LOOK AT THE COMMERCIAL INDUSTRIAL MARKET VALUES. YOU CAN SEE HERE THE DECREASE THAT
WE SAW DOWN TO $11.5 BILLION PUTTING US MORE IN LINE WITH VALUES IN 2019. TO TELL A MORE COLETE STORY, THOUGH, WE HAVE
BROKEN DOWN THE MARKETS IN THE GEOGRAPHICAL SUBMARKETS. THIS SLIDE SEPARATES DOWNTOWN ON THE FAR LEFT FROM UPTOWN. THE NEXT BAR OVER, THE COMMERCIAL MARKET OUTSIDE OF DOWNTOWN AND UPTOWN. AND THEN THE INDUSTRIAL MARKET OVERALL. SO YOU CAN SEE HERE WE
ARE STILL SEEING OVERALL DECREASES IN THE DOWNTOWN MARKET, AND A SLIGHT DECREASE IN UPTOWN COMMERCIAL MARKET. REVIEWING THE STATISTICS, WE ARE ALL WITHIN THE ACCEPTABLE RANGES
FOR ALL OF THESE MEASUREMENTS. AND WE'RE GOING TO GO TO THE APARTMENT MARKET. APARTMENT SAW A NET DECREASE OF 3.4%. THERE
WAS STILL $479 MILLION ADDED IN NEW CONSTRUCTION. AND OUR STATISTICS ARE WELL WITHIN THE ACCEPTABLE RANGE HERE. MOVING ON TO NOTICES. NOTICES WERE MAILED MARCH 14TH. SO THEY HAVE BEEN IN THE MAILBOXES FOR QUITE SOME TIME. THEY ARE HIGHLIGHTED IN
GOLD THIS YEAR. SO TAX STATEMENTS FOR NEXT YEAR THAT ALIGN WITH THIS YEAR'S VALUE WILL BE COLOR CODED IN GOLD. ANYTHING ELSE I WANTED TO SHARE WITH YOU HERE, I DON'T BELIEVE SO. THESE ARE SOME OF THE TOOLS THAT WE MAKE AVAILABLE TO
PROPERTY OWNERS, AND CITY LEADERSHIP. PEOPLE CAN LOOK UP SALES WITHIN THEIR NEIGHBORHOODS. THEY CAN LOOK AT WHAT'S HAPPENING OVERALL WITHIN TRENDS. IN OUR MARKET VALUES. AND THEN WE CREATE THE LEVY IMPACT ESTIMATOR ALONG IN
PARTNERSHIP WITH FINANCE. AND SO WE WILL BE WORKING ON THAT FOR BOTH THE MAYOR'S USE, LEGISLIVE USE, AND BOARD OF ESTIMATE AND TAXATION'S USES WELL THIS YEAR. JUST SOME DATES.
VALUE NOTICES THROUGHOUT THE LOCAL BOARD CONVENED LAST YEAR. SO ALL THE PROPERTY THAT QUALIFIED FOR THE LOCAL BOARD ALSO QUALIFY TO GO TO THE HENNEPIN BOARD OF APPEAL IN JUNE. OUR STAFF WILL CONTINUE TO WORK ON THOSE APPEALS AS THEY
NEED TO BE HEARD. PRESIDENT BRANDT, WITH THAT, THAT CONCLUDES MY PSENTATION FOR YOU THIS EVENING. >> ALL RIGHT. COMMISSIONER PAYNE. >> THANK YOU, PRESIDENT BRANDT.
I JUST SPOKE WITH A CONSTITUENT EARLIER THIS WEEK AND THEY RECENTLY MOVED TO THE CITY, AND I THINK THEY'VE ONLY HAD ABOUT THREE ASSESSMENTS SINCE THEY'VE LIVED IN MY WARD. THEY SAID EACH TIME THEY FELT IT WAS OVER VALUED, THEY APPEALED AND THEY WON THAT APPEAL AND GOT THEIR
ASSESSMENT LOWERED. AND I WAS CURIOUS IF, YOU KNOW, THIS IS JUST ANECDOTAL OR AS WE'RE LOOKING AT THE PRD IF THERE'S ANY OTHER MAYBE WARD SPECIFIC, GEOGRAPHIC SPECIFIC ELEMENTS THAT MIGHT BE HAPPENING. THEY
HAPPEN TO LIVE IN THE STINSON TRIANGLE WHICH SEEMS LIKE A UNIQUE CORNERF MY WARD. I'M CURIOUS IF THERE'S ANY INSIGHTS THERE OR PURELY ANECDOTA >> PRESIDENT BRANDT, MEMBER
PAYNE, VERY GOOD QUESTION. WE ANECDOTALLY HEAR THE SAME THING. WHAT HAPPENS WHEN PEOPLE CALL AND TALK TO US ABOUT THE MARKET VALUE, IT'S THE FIRST STEP IN THE APPEALS PROCESS. THE APPRAISAL THAT'S SPECIFICALLY RESPONSIBLE FOR THEIR PROPERTY
SO THEY HAVE A ONE ON ONE CONTACT TO TALK TO SPECIFICALLY ABOUT THEIR PROPERTY. THEY WILL GO OUT AND INSPECT IT AS THEY NEED TO. THEY'LL DO THEIR MARKET ANALYSIS. IF THEY DETERMINE THAT IT SHOULD BE DECREASED, IF OUR MODEL IS NOT WORKING FO ARE THAT PROPERTY, THEY HAVE THE
OPPORTUNITY TO MAKE THAT ADJUSTMENT. THAT'S WHY WE HAVE THE REVIEW PERIOD AND THE APPEALS PERIOD. WHAT WE DON'T REPORT ON A LOT IS ABOUT THE APPEALS THAT ARE ADDRESSED BY STAFF IN THE BEGINNI VERSUS THE APPEALS THAT HAVE TO MAKE IT ALL THE WAY THROUGH THE APPEALS
PROCESS. MOST OF THE CASES ARE RESOLVED AT THE STAFF LEVEL. BUT I WILL TELL YOU THAT OUR RESIDENTIAL MODEL THAT'S BUILT FOR THE 90,000 PARCELS, RESIDENTIAL PARCELS IN THE CITY IT CAN'T BE CORRECT FOR ALL OF THEM. THERE ARE OBVUSLY GOING
TO BE POCKETS IN THE CITY THERE ARE GOING TO BE UNIQUE. PROPERTIES THAT HAVE UNIQUE IDENTIFIERS SUCH AS BEING HISTORICAL OR THINGS LIKE THAT WHERE OUR MODEL CAN'T NAIL EVERY PROPERTY CORRECTLYT 100% EVERY TIME. SO IT IS TRUE THAT WE MAY
HAVE PROPERTIES THAT WE HAVE MAY SEEN SOME ISSUES IN THEIR VALUATION AND THEY BRING IT TO OUR ATTENTION AND WE MAKE THE CORRECTION. WE TRY TO IMPLEMENT THAT INTO OUR MODEL GOING FORWARD SO THAT IT CAN BE ADJUSTED AND TAKEN CARE OF IN THE FUTURE. >> THAT'S REALLY HELPFUL. THANK YOU. >> YOU'RE WELCOME.
>> COMMISSIONER ABENE. >> THANK YOU, PRESIDENT BRANDT. I THINK ONE OR TWO SLIDES BACK YO MENTIONED THERE WAS SOME KIND OF A TOOL THERE. THAT WAS USEFUL FOR THE PUBLIC OR IS THIS USEFUL INTERNALLY? AND COULD YOU DESCRIBE WHAT THAT IS, BUT ALSO, HOW DOES YOUR OFFICE WORK THEN
WITH THE FINANCE DEPARTMENT TO MAKE SURE THAT YOUR METRICS -- BECAUSE OBVIOUSLY YOU DON'T JUS TAKE WHAT YOU GET FROM THE PRIOR WHAT WAS APPROVED, AND THEN RUN YOUR LCULATIONS. YOU MUST BE ALSO WORKING WITH THE FINANCE OFFICE TO SAY THIS WOULD HAVE -- WE'D HAVE A PROBLEM HERE WITH
THIS MEASUREMENT OR METRIC. SO -- >> PRESIDENT BRANDT AND MEMBER, AS FAR AS WORKING WITH FINANCE, WE WORK WITH FINANCE IN ADVANCE TO ADDRESS CONCERNS THAT WERE SEEN IN THE MARKET. FOR EXAMPLE,
LAST YEAR WE KNEW THAT WE WERE GOING TO START SEEING SOME SHIFTS AND DECREASES. SO WE PREPARED FINANCE FOR THAT SO THEY CAN START TO THINK ABOUT THAT WHEN THEY'RE DOING THEIR BUDGET WORK AS WELL.O YES, WE DO HAVE A CLOSE PARTNERSHIP WITH
EITHER DUSHANI OR HER STAFF, LOOKING AT FOR THE CURRENT ASSESSMENT. AND THEN THE TOOLS, WE HAVE OPERTY INFO LOCATE ON THE WEBSITE WHERE PEOPLE CAN PUT IN THEIR PROPERTY ADDRESS. WE STORE ALL THE PROPERTY DATA HERE
AT THE CITY OF MINNEALIS. BUT ALSO IT PULLS LICENSING INFORMATION AND CPED. IT'S A ONE-STOP AREA FOR PEOPLE TO FIND OUT EVERYTHING ABOUT THEIR PROPERTY THAT THE CITY DOES. WHEN THEY WANT TO GO TO THE TAX SIDE, THEY HAVE TO GO TO THE COUNTY BECAUSE THE COUNTY SENDS
STATEMENTS AND COLLECTS TAXES. ON THE TOP OF THIS CHART, IT IS MORE OF AN INTERNAL FACING TOOL THAT WE USE IN THE SUMMER MONTHS. BUT WE DO MAKE IT EXTERNALLY FOCUSED. THE LEVY ESTIMATOR, SO THAT PROPERTY OWNERS CAN GO IN AND SEE IF THE
LEVY IS ADJUSD BY THIS MUCH, HOW WILL IT AFFECT PROPERTY TAXES IN THE CITY. ON THE BOTTOM LEFT, WE HELP RESIDENTS FIND COMPARABLE SALES. IF THEY COME TO THE BOARD REALLY PREPARED WITH COMPARABLE SALES AND INFORMATION ABOUT THE MARKET, IT
REALLY HELPS THE APPRAISER OR THE BOARD MAKE A DECISION MORE EFFICIENTLY AND EFFECTIVELY. THE BOTTOM RIGHT HAND SIDE IS MORE OVERALL DATA THAT W -- BOTTOM RIGHT HAND SIDE I THINK IS WHAT I SAID, WHERE WE PVIDE MORE HIGH LEVEL INFORMATION ABOUT EACH NEIGHBORHOOD WITHIN THE
CITY. THANK YOU. >> ARE THERE OTHER QUESTIONS? OKAY. I WOULD LIKE TO START WITH JUST AN OBSERVATION. WE ALL KNOW THIS IS HAPPENING. BUT THE NUMBERS LAY IT OUT AND THAT IS
WE'VE GONE FROM A THIRD OF OUR TAX CAPACITY BEING BORN BY COMMERCIAL AND INDUSTRIAL PROPERTY TO JUST OVER A QUARTER. THAT'S WHY THE HOMEOWNERS OUT THERE ARE FEELING THE PAIN THEY'RE FEELING DESPITE MODEST INCREASES IN THEIR HE VALUES.
THIS IS -- IF YOU LOOK BACK OVER FIVE YEARS, THIS IS THE FIRST TIME I CAN REMEMBER APARTMENT, COMMERCIAL, INDUSTRIAL, AND HOME, NEW CONSTRUCTION BEING AT
THIS POINT. I KEEP TRACK BY YEAR. THESE ARE BY FAR LOWER THAN IN PREVIOUS YEARS FOR NEW CONSTRUCTION. DO YOU ATTRIBUTE THAT PRIMARILY TO STUBBORN INTEREST RATES? I KNO THAT LAST
YEAR WAS ONE OF THE FACTORS. >> PRESIDENT BRANDT, THAT IS ONE OF THE FACTORS, DEFINITELY THAT IS GOING INTO IT. BUT THERE ARE PLENTY OF OTHER FACTORS THAT GO INTO WHY DEVELOPMENT IS OCCURRING OR NOT OCCURRING ACROSS THE CITY, ASOU KNOW.
>> MM-HMM. ALL RIGHT. AND THEN THIS IS THE FIRST YEAR IN THE YEARS I'VE BEEN KEEPING TRACK THAT COMMERCIAL OUTSIDE OF DOWNTOWN AND UPTOWN HAS GONE DOWN. IT'S VERY MARGINAL. BUT DO YOU HAVE A SENSE OF WHAT'S
HAPPENING THERE? ARE THOSE HAVING A DRAG EFFECT ON T REST OF THE CITY? THOSE SUBMARKETS. >> PRESIDENT BRANDT, THE CBD DOES OPERATE SOMETIMES LIKE ITS OWN ENTITY. HOWEVER, IT DOES, I
EFFECTS TO THE SURROUNDING NEIGHBORHOODS. OKAY. >> SO WE ARE NOT SURPRISED TO SEE THAT SOME OF THOSE NUMBERS TOOK ADECREASE, A SMALL DECREASE AS WELL. >> OKAY. I NOTICED THAT THE 4TH WARD HAD ONE OF THE LARGER INCREASES IN RESIDENTIAL NEW
CONSTRUCTION. AND I HAVEN'T PROBABLY KEPT UP AS MH ON A LOCALIZED LEVEL. BUT IS THERE A NEW DEVELOPMENT THEREF SOME KIND THAT IS STIMULATING THAT? >> PRESIDENT BRANDT, WE ARE STILL SEEING INCREASES IN THE AREAS OF THE CITY THAT ARE STILL
AAPPRECIATING IN VALUE. SO WHEN PROPERTY VALUE SIDE DECREASES BACK TO EITHER RECESSION OR THE HOUSING CRISIS THAT WE HAVEN'T COME ALL T WAY BACK FROM THOSE NUMBERS. AND SO WHERE THERE'S
STILL AFFORDABLE, WE'RE STILL SEEING INCREASES IN THOSE VALUES FOR SURE. >> OKAY. COMMISSIONER ABENE HAS A QUESTION. >> YEAH. SORRY ABOUT THAT. JUST A QUESTION JUST OCCURRED TO ME THAT I DON'T THINK WE'VE ASKED HERE SINCE I'VE BEEN SITTING UP
HERE WHEN WE HAVE YOUR PRESENTATION, WHICH IS INTERESTING, BY THE WAY. A YOU SEEING SIMILAR PROBLEMS WITH THE COMMERCIAL INDUSTRIAL PROPERTY VALUATIONS IN SOME OF THE COMMUNITIES THAT SURROUND MINNEAPOLIS THAT AREN'T BEDROOM
COMMUNITIES? I'M THINKING OF MAYBE BLOOMINGTON. PLYMOUTH MIGHT HAVE ME. CITIES THAT HAVE FAIRLY RUST COMMERCIAL INDUSTRIAL BASE. ARE THEY ALSO SEEING DECLINES? >> PRESIDENT BRANDT AND MEMBER, THE SUBURBAN MARKETS AND THE
DOWNTOWN MARKETS DO NOT MOVE AT THE SAME PACE IN THE SAME DIRECTION ALL THE TIME. AND IT'S NOT UNUSUAL FOR US TO BE MOVING IN ONE DIRECTION AND THE SUBURBS TO BE MOVING IN ANOTHER. OR AT E SLOWER PACE, FOR EXAMPLE. I
BELIEVE IF MEMORY SERVES THOUGH THAT THE LARGER -- THE SUBURBS WITH THE LARGER COMMERCIAL BASE ALSO SAW SOME DECREASES. I'D HAVE TO VERIFY THAT FOR YOU. >> AT SOME POINT, AND MAYBE I NEEDO REQUEST THAT MAYBE WHEN
WE HAVE A PERSON THAT SUPPORTS. BUT I'D REALLY LIKE TO UNDERSTAND COMPARABLES. I FEEL THAT IT'S MY IMPRESSION WE HAVE A FAIRLY SMALL INDUSTRIAL BASE IN MIEAPOLIS, AND ULTIMATELY, A PRETTY SMALL COMMERCIAL BASE IN SOME WAYS. OBVIOUSLY, THERE'S DOWNTOWN. BUT CONSIDERING THE
REST OF THE CITY, IT WOULD BE GOOD FOR ME TO UNDERSTAND SOME OF THOSE THINGS AND HOW WE STACK UP AGAINST SIMILARLY SIZED CITIES AROUND THE COTRY. BECAUSE I THINK THIS IS A PRETTY RESIDENTIAL CITY IN MANY WAYS. AND IHINK THIS IS THE NATURAL,
YOU KNOW, THIS IS THE NATURAL COURSE OF EVENTS WHEN YOU START TO LOSE YOUR COMMERCIAL BASE. ANDHEN ALSO, JUST THE WAY IN WHICH SOME OF THE COMMERCIAL BAS DISTRIBUTED THROUGH THE CITY. WE'VE GOT OUR DOWNTOWN. U GUYS HAVE BEEN TRACKING
UPTOWN FOR A WHILE. BUT THERE ARE OTHER PARTS OF THE CITY THAT EMERGE MORE ROBUSTLY. MAYBE NORTHEAST. I'M NOT SURE. IT WOULD BE GOOD TO SORT OF HAVE MORE VISUAL ON SOME PLACES WHERE THE CITY MIGHT BE GROWING COMMERCIALLY, NOT JUST DECLINING. SORT OF RAMBLING, BUT THERE YOU GO.
>> PRESIDENT BRANDT AND MEMBERS, WE ARE ABLE TO DO MORE ANALYSIS IF YOU DID WISH FOR US TO LOOK AT OUR COMMERCIAL INDUSTRIAL TAX BASE AS COMPARED TO THE SUBURBAN CITIES. HAPPY TO DO THAT. WE DO LOOK AT IT. IT'S JUST NOT SOMETHING I PRESENT TO YOU. I
KIND OF FOCUS ON MINNEAPOLIS HERE. BUT ALSO WOULD BE HAPPY TO HAVE ANOTHER CONVERSATION ABOUT MORE SPECIFICS ABOUT THE COMMERCIAL OR INDUSTRIAL MARKET WITHINHE CITY ITSELF AS WELL. >> IT WOULD GIVE SOME INSIGHT ON WHETHER OR NOT PEOPLE ARE CHOOSING MINNEAPOLIS OR CHOOSING ANOTHER LOCATION IN HENNEPIN
COUNTY OR NEAR MINNEAPOLIS I THINK FOR BUSINESS INVESTMENT AND SO ON. THANKS. >> COMMISSIONER CHUGHTAI. >> THANK YOU, MR. PRESIDENT. I REALLY APPRECIATE THIS PRESENTATION. I RECALL WHEN YOU
PRESENTED TO THE BUDGET COMMITTEE I BELIEVE YOU WERE ASKED A QUESTION POTENTIALLY BY COUNL MEMBER RAINVILLE JUST AROUND, YOU KNOW, WHAT DOES THE FUTURE LOOK LIKE AND WHEN CAN YOU ESTIMATE WHEN WE'LL SEE A REBOUND IN THAT COMMERCIAL
INDUSTRIAL SECTOR. WHICH OF COURSE IS AN IMPOSSIBLE QUESTION FOR ANYONE TO ANSWER REALLY. BUT IEMEMBER AT THAT TIME YOU TOLD US A LITTLE BIT OF -- YOU SHARED SOME INSIGHT FROM A CONFERENCE YOU HAD ATTENDED RECENTLY WITH PROFESSIONALS IN YOUR INDUSTRY.
AND I WONDER IF YOU MIGHT RECALL AND BE ABLE TO SHARE THAT WITH THE BOARD AS WELL. >> YES. PRESIDENT AND MEMBERS, I DID MENTION SOMETHING THAT I HAD SEEN IN A PRESENTATION AND IT
WAS A PRESENTATION ABOUT METRO CITIES ACROSS THE UNITED STATES AND WHERE THEY ARE REACH INDEPENDENTLY AT ITHE MARKET CYCLE. AND WHERE THEY -- HOW THEY RELATE TO EACH OTHER. AND SO THE PRESENTATION THAT IAW EARLIER THIS YEAR, SO IT WOULD
HAVE BEEN JANUARY OR FEBRUARY, I BELIEVE, WAS THAT MINNEAPOLIS WAS LIKE AT THE POINT WHERE WE'RE STARTING TO BUILD AGAIN. AND SO THAT'S WHERE THIS SPECIFIC PERSON THAT'S A LOCAL EXPERT, I WOULD SAY, THAT WAS
HIS ANALYSIS IS THAT BASED ON THE MART INDICATORS THEY WERE LOOKING AT, THAT'S WHERE MINNEAPOLIS IS AT IN THE CYCLE. >> OKAY. COMMISSIONER PREE-STINSON. >> I AM CURIOUS AND SPEAKING
ABOUT DATA AND THINGS WE MIGHT WANT TO LOOK AT. THE PERCENTAGE OF RESIDENTIAL THAT IS NON-HOMESTEAD. AS WE KNOW THAT RENT GOES UP FOR RENTERS.O I'M CURIOUS. I WOULD LIKE TO START HUMANIZING OUR RENTERS TO START
LOOKING AT HOW MUCH OF THOSE TAXES ACTUALLY DO COME FROM RENTERS. I'D BE CURIOUS ABOUT THAT INFORMATION. I THINK IT'S IMPORTANT AND RELEVANT TO THIS BOARD AS WE START THINKING ABOUT WHAT THE MAXIMUM TAX LEVY IS. THOSE ARE SOME OF THE TYPES OF THINGS THAT WE SHOULD START
THINKING ABOUT BECAUSE THAT IS ALSO THE IMPACT. I WAS GOING TO SAY ON THE INDUSTRIAL FRONT OF THINGS, WHILE NOBODY CAN PREDICT IT, I WOULD SAY THAT THERE HAS BEEN A LOT OF MOMENTUM, BUT MORE SO RECENTLY ABOUT LIKE WHO THIS CITY IS AND WHAT THEY WANT. AND
SO THE FOURTH WARD AND PART OF THE FIFTH, NORTH MINNEAPOLIS, HAS LONG SUFFERED HISTORICAL HARM FROM INDUSTRIAL AND SOME COMMERCIAL BUSINESSES. AND SO I WOULD BE, FOR EXAMPLE, NORTHERN MEADOWS. WE KNOW THAT FIGHT FOR A LONG TIME. AND FOLKS FROM
COMMUNITY ARE ACTUALLY ACTELY WORKING TO PURCHASE THAT. THERE ARE CHANGES HAPPENING WHERE OUR COMMUNITY MEMBERS, THE AIVIST COMMUNITY, IF YOU WILL, ARE MAKING SOME GAINS IN THAT AREA. AND SO IT WILL BE INTERESTING TO SEE WHAT THOSE TYPES OF THINGS CONVERT TO AND WHAT THE IMPACT IS ON THAT. WE CAN'T SAY YET.
BUT AS THOSE CONVERSIONS START TO HAPPEN INTO DIFFERENT TYPES OF SPACES, I'M CURIOUS WHAT THEY GET CLASSIFIED AS AND THE IMPACT IT WILL HA. SO JUST SOME FUTURE. THANK YOU. >> ALL RIGHT. SEEING NO FURTHER -- ONE MORE QUESTION. >> I'M SORRY. THANK YOU, PRESIDENT BRANDT. JUST TO
CLARIFY THOUGH THAT I BELIEVE THE INDUSTRIAL CATEGORY DOESN'T JUST MEAN HEAVY INDUSTRY OR DIRTY INDUSTRY. IT ALSO MEANS LIGHT INDUSTRIAL AND YEAH. OKAY. THANK YOU. >> ALL RIGHT. THANK YOU. >> THANK YOU SO MUCH FOR THE OPRTUNITY. >> OKAY. SEEING NO FURTHER
DISCUSSION, WE'LL MOVE ON TO THE NEXT ITEM WHERE WE'LL RECEIVE AND FILE OUR PREVIOUS REPORT. ITEM 6 ON THE AGENDA IS A DISCUSSION OF THE CITY CONTROLLER'S REPORT AND PRESENTATION ON QUARTER FOUR OF
2024. THAT WILL BE LED BY GEORGE HARGROVE FROM THE CONTROLLER'S OFCE. WELCOME.
>> THANKS, PRESIDENT BRANDT.
>> OKAY. THANKS AGAIN, PRESIDENT BRANDT AND THE BOARD OF ESTIMATE AND TAXATION. GOOD TO SEE YOU ALL TODA THANKS FOR INVITING ME IN TO GIVE THE PRESENTATION ON THE CITY'S FOURTH QUARTER AND FINAL REPORT FOR 2024. TO START
OFF WITH, JUST A COUPLE OF POINTERS ABOUT THE REPORT HERE. THE INFORMATION IS ON AUDIT. WE HAVE OUR AUDIT ONGOING RIGHT NOW BY THE OFFICE OF THE STATE
AUDITOR. IT IS A POINT IN TIME AS OF DECEMBER 31ST. WE HAD MOST OF THE -- ALMOST ALL OF WHAT WE CALL PERIOD 12 TRANSACTIONS IN OUR SYSTEM. BUT WE DON'T HAVE ANY FINAL AUDIT ADJUSTMENTS OR ANYTHING. BUT MOSTEVER THE
OPERATIONAL DATA THAT I PRESENT TODAY SHOULD BE FINAL. AS I SAID JUST A LITTLE DISCLAIMER AT THE END T RECOMMEND THAT WE CONSULT
WITH, IF WE COULD, WITH THE DEPARTMENTS AND EVERYTHIN IF THE REPORT IS GOING TO BE USED FOR TRANSFERS OR THINGS LIKE THAT OR SPENDING DECISIONS. MOVING ON. IN TERMS OF THE
HIGHLIGHTS FOR 2024, WE HAVE I THINK ONE OF THE MOST IMPORTANT THINGS THAT HAPPENED THIS LAST YEAR WAS ALL THREE MAJOR CREDIT AGENCIES GAVE US A AAA BOND
RATING. THAT INCLUDES MOODS THAT SOLD LAST YEAR. IT REFLECTS WELL ON THE CITY OF MINNEAPOLIS. ANOTHER HIGHLIGHT IS OUR PARKING AREA. THE REVENUES HAVE REBOUNDED FROM THE DEPTHS OF THE
PANDEMIC. UP ABOUT $5.3 MILLION FROM 2023. PROPERTY TAXES WERE UNDER BUDGET BY ABOUT $23 MILLION OR SO FOR 2024. DUE TO A HIGHER UNCOLLECTIBLE AMOUNT. HOWEVER, CONRSELY FOR
OUR LOCAL SALES TAXES USED TO FUND THE DOWNTOWN ASSETS, THE TARGET CENTER, THE CONVENTION CENTER. THEY'VE BEEN UP ALMOST $9 MILLION, $10 MILLION SINCE 2023. OUR ARPA SPENDING, WHICH IS AMERICAN RESCUE PLAN ACT, WE
CLOSED THAT OUT IN NOVEMBER O 2024. YOU'LL SEE THA IN OUR RESULTS. SOME OF THE CASH SPENDING AND BLAUNSS WENT DOWN AS WE TRANSFERRED THAT TO OUR GENERAL FUND AT THE END OF LAST
YEAR. MOVING ON. WE HAVE IN TERMS OF OUR INVESTMENT PORTFOLIO, WE HAVE A VALUE OF ABOUT 1.2 MILLION OR SO AS OF DECEMBER 31, 2024. A SLIGHT
DECREASE FROM LT YEAR OR DECEMBER 31, 2023, AT THIS TIME. THIS IS THE CASH THAT BACKS UP OUR CASH BALANCES IN ALL OF OUR FUNDS. IN ADDITION TO THAT, THE CITY IS MEETING ITS FUND BALANCE
FOR ALMOST ALL OF OUR FUNDS. THERE'S JUST A FEW THAT I WANTED TO MENTION THAT ARE A LITTLE BIT BELOW OUR TARGETED AMOUNTS. THE FIRST ONE IS SELF INSURANCE. $48 MILLION OR SO IN TERMS OF OUR NET POSITION BELOW THE BREAK
EVEN POINT THAT WE LIKE TO SEE. A LOT OF THAT IS DUE TO LIABILITIES THAT HAVE INCREASED. HOWEVER, THE CASH BALANCE HAS GONE UP QUITE A BIT. IT'S UP TO ABOUT $275 MILLION NOW. SO ABOUT $10 MILLION MORE FROM THE LAST QUARTER. IT'S KIND OF WE ARE
LOOKING AT THE LIABITIES NOW AND EXPECT TO MAKE FINAL ADJUSTMENTS FOR024 SHORTLY. ANOTHER FUND THAT I MENTIONED IS THE FLEET SERVICES EQUIPMENT FUND. THIS IS ABOVE THE TARGET RIGHT NOW. BUT OUR PROJECTIONS
SHOW IT MAY GO BELOW IT. IT'S ONE WE'RE WATCHING AND WORKING WITH FLEET SERVICES ON. IN TERMS OF THE PARKING FUND, THAT IS BELOW THE CASH BALANCE TARGET THAT WE HAVE IN OUR FINANCIAL
POLICIES. HOWEVER, IT HAS GONE 2023. BUT STILL HAS A WAYS TO GO TO MEET TARGET. BASED ON THE LATEST PROJECTIONS, WE SHOULD REACH THAT A SOME POINT POSSIBLY THIS YEAR OR NEXT YEAR
AT SOME POINT IF OUR PROJECTIONS PAN OUT. AS OUR PARKING REVENUE HAS REBOUNDED, ESPECIALLY THE OFF STREET PARKING RAMPS. AND THEN FINALLY PROPERTY SERVICES ABOUT $900,000 BELOW THEIR CASH
RESERVE TARGET ABOUT $3.9 MILLION. MOVING ON TO OUR BIGGEST FUND. THIS IS OUR GENERAL FUND. THIS KEEPS TRACK OF ALL OF OUR RESOURCES EXCEPT ONES THAT ARE REQUIRED TO BE IN ITS OWN FUND AND THOSE ARE GENERALLY INTERNAL SERVICE OR
ENTERPRISE OR SPECIAL REVENUE FUNDS THAT HAVE RESTRICTIONS ON IT. YOU CAN SEE OUR CASH HAS GONE UP A LITTLE BIT FROM THE END OF 2023 BY ABOUT $3 MILLION OR $4 MILLION OR SO. I THI THE NEXT BULLET POINT HERE IS KIND OF ONE I SAY TELLS THE PICTURE
OR SUMMARY OF HOW THE CITY IS DOING. YOU CAN SEE OUR FUND BANCE AT THE END OF 2023 WAS ABOUT $210 MILLION. NOW IT'S ABOUT $209 MILLION. SO IT'S BASICALLY WE'VE MAINTAINED THE STATUS QUO. IT'S BEEN VERY STABLE. FOR THE LAST YEAR, WE
HAVEN'T GOTTEN A LOT -- WE HAVEN'T HAD A LOT OF INCREASES OR DECREASES. AGAIN,T REFLECTS THE STABILITY OF THE LAST YEAR. IT DOES EXCEED OUR 17% OF THE NEXT YEAR'S BUDGET. SO THAT COMES TO ABOUT $112.7 MILLION.
WE'RE ABOUT $96 MILLION ABOVE OUR FUND BANCE TARGET. PLANNED USE OF FUND BALANCE OF ABOUT $24 MILLION, $25 MILLION IN 2025. WE ALSO RECEIVED APPROVAL FROM THE CITY COUNCIL LAST WEE TO ROLL OVER ABOUT LESS THAN
$24 MILLION. THAT WILL COME OUT OF THE FUND BALANCE. BOTH THOSE THINGS. WE ALSO HAVE ABOUT ANOTHER $15 MILLION OR SO OF PUBLIC SAFETY AID WHICH IS RESTRICTED. SO THAT'S ALSO IN THERE. SO ROUGHLY WE HAVE ABOUT
21% OF OUR PROPOSED 2025 BUDGET. AND IF YOUACTOR IN ALL THE RESTRICTIONS AND THE MONEY WE HAVE TO SAVE TO MEET THE USE OF THE FUND BALANCE AND THE ROLLOVERS, WE GOT ABOUT $27 MILLION LEFT BEFORE WE WOULD REACH THE TARGET AMOUNT OR THE
MINIMUM AMOUNT. I CAN ILLUSTRATE THAT A LITTL BIT MORE ON THIS SLIDE HERE. YOU CAN SEE WE START WITH OUR $209 MIION IN FUND BALANCE THAT WE HAD AT THE END OF 2024. AND THEN WE HAVE OUR PLANNED USE OF FUND BALANCE BOTH
FOR PUBLIC SAFETY AID AND NON-PUBLIC SAFETY AID. SO THAT'S ABOUT $24 MILLION OR SO. AND THEN WE HAVE ROLLOVERS AS WELL, ABOUT $10 MILLION IN PUBLIC SAFETY AID, AND ABOUT $32 MILLION IN NON-PUBLIC SAFETY AID. IN ADDITION, WHAT'S NOT IN
THE BUDGET IS THE NORTH COMMONS PARK. BUT THAT IS BEING RESERVED. THAT WAS FORMERLY ARPA FUNDS. IF YOU DO THE MATH, WE HAVEBOUT $140 MILLION OR SO UNRESTRICTED. AND WE NEED TO
HAVE AT LEAST $112 MILLION, $113 MILLION OR SO. LOTS O UNKNOWNS. WE ALL FOLLOWED THE NEWS LATELY, FUNDS ARE AN ISSUE I'LL SPEND SE TIME ON. WE MAY USE MORE OF THE FUND BALANCE
POSSIBLY IN OUR NEXT YEAR'S BUDGET IN '26. SELF-INSURANCE. THAT'S STILL BELOW TARGET. ALSO THERE'S BEEN QUITE A BIT OF MARKET ECONOMIC SWINGS LATELY. WE DO WORRY ABOUT THE POTENTIAL OF TARIFFS INCREASING COSTS OR
OTHER INFLATIONARY THINGS THAT MAY RESULT INUR BUDGET NOT GOING QUITE AS FAR. SO JUST LOOKING AT A LITTLE BIT OF OUR SPENDING IN A LITTLE BIT MOR DETAIL ON REVENUES. YOU COULD SEE WE FINISHED ABOUT
$40 MILLION UNDER BUDGET IN OUR REVENUES. MOST OF THATAS IN PROPERTY TAX, AS WELL AS STATE AID. THE STATE AID REALLY THE BIG CONCERN BECAUSE THAT WAS MONEY WE THOUGHT WE WERE ORIGINALLY BUDGETED TO GET. BUT
WE ACTUALLY GOT IT IN DECEMBER OF '23. THAT'S WHYHAT WAS UNDERSTAND. OTHERWISE, MOST OF THE CATEGORIES, FRANCHISE FEES, LICENSES, OTHER REVENUE, ARE VERY CLOSE TO BUDGET FOR THE YEAR. THEN IN TERMS OF THE RATE
OF OUR SPENDING, LIKE I SAID, WE FINISHED UNDER BUDGET BYBOUT $40 MILLION. YOU COULD SEE THAT IT WASN'T SOMETHING THATUST OCCURRED IN ONE QUARTER. WE WERE A LITTLE SHORT EACH QUARTER AND IT GREW JUST A LITTLE BIT EACH YEAR -- EACH QUARTER, I SHOULD
SAY. SO WE GOT ABOUT 94% OF THE BUDGET. NORMALLY WE WOULD HAVE 102% OF THE BUDGET. IN TERMS OF OUR EXPENDITURES, THIS ONE KIND OF CATEGORIZES OUR SPENDING AMONG THE VARIOUS AREASEVER THE
CITY. YOU COULD SEE WE -- PROVIDED FUNDING FOR THIS YEAR'S BUDGET. YOU COULD SEE MOST OF OUR SPENDING OF COURSE IS IN PU MOST OF THE UNDER SPENDING WAS IN THE CPED, OUR DEVELOPMENT
AREA. AS WELL AS INTERNAL SERVICES. THE MAIN REASON WHY INTERNAL SERVICES WAS UNDER BUDGETN SPENDING WAS BECAUSE WE HAD MONEY FOR PUBLIC SAFETY AID IN NORTH COMMONS PARK BUDGETED THERE AS A HOLDING AREA
FOR THE CITY UNTIL THE COUNCIL REAPPROPRIATED THAT IN OTHER AREAS. WE'RE STILL GOING IN 2025. IN TERMS OF THE RATE OF OUR EXPENDITURES, YOU COULD SEE WE WERE UNDER BUDGET BY ABOUT
10-11%. WE SPENT ABOUT 89% OF OUR BUDGET. YOU COULD SEE JUST LIKE REVENUE KIND OF OCCURRED FAIRLY EVENLY. ESPECIALLY FROM AFTER THE FIRST QUARTER ON. AND SO WE'LL BE WATCHING THAT AS WE MOVE INTO THE SECOND QUARTER HERE IN 2025. NORMALLY, WE WOULD
HAVE SPENT ABOUT 94% OF OUR BUDGET. MOVING ON TO OTHER FUNDS THAT ARE OUTSIDE OF THE GENERAL FUND. THESE ARE SPECIAL REVENUE FUNDS. AGAIN, THESE FUNDS HAVE TO BE -- THEY HAVE RESTRICTIONS ON THEM. SO REQUIRED BY THE
ACCOUNTING RULES TO KEEP THEM IN THEIR OWN AREA IN OUR ACCOUNTING SYSTEM. GENERALLY, THAT'S THE CONVENTION CENTER, TGET CENTER, SOME THINGS IN REGULATORY SERVICES, AND OF COURSE GRANTS, AND CPED HAS QUITE A BIT OF SPECIAL REVENUE AS WELL TOO. SO FOR THAT AREA,
YOU CAN SEE THEY DECREASED THE FUND BALANCE BY ABOUT $33 MILLION. THE CAS BALANCE DECREASED BY ABOUT $95 MILLION COMPARED TO 2023. THE CITY MADE THE PUSH TO SPEND THE ARPA FUNDS THAT WE ORIGINALLY GOT IN
2021-22 THAT WAS ABOUT $271 MILLION. CERTAINLY A MAJOR EFFORT BY THE CITY TO SPEND THAT DOWNWHATEVER WAS LEFT WAS TRANSFERRED BACK TO THE GENERAL FUND IN NOVEMBER OF LAST YEAR. SO AGAIN, THESE ARE SPECIAL REVENUES. YH, WE EXPECT THESE
TO BE FAIRLY STABLE. ALTHOUGH SOME OF THEM ARE CERTAINLY SUBJECT TO THE ECONOMY, ESPECIALLY ONES THAT INVOLVE SALES TAXES. AND THEN JUST TO TAKE A LITTLE QUICK LOOK HERE AT SOME O THE NUMBERS HERE. YOU COULD SEE THE CONVENTION CENTER
WAS DOWN A LITTLE BIT ON THEIR CASH AND FUND BALANCE. OTHER AREAS, YOU COULD SEE THE DOWNTOWN ASSETS FUND. CONVERSELY IT'S GONE UP AS SALES TAX COLLECTION HAS IMPROVED. THE
GRO GRANT FUNDS HAVE GONE DOWN. YOU CAN SEE THAT NEAR THE BOTTOM OF THE SLIDE HERE. IT HAS DROPPED FROM 2023. THEN WE MOVE ON TO THE NEXT PART OFHE FAMILY OF FUNDS HERE. THIS IS OUR INTERNAL
SERVICE FUNDS. THEY'RE FUNDS -- THESE FUNDS DEPARTMENTS THAT NORMALLY PROVIDE SERVICES WITHIN THE CITY. SO THAT INCLUDES THINGS LIKE OUR EQUIPMENT OR FLEET SERVICES, PROPERTY SERVICES WHICH PROVIDES OUR FACITIES AND BUILDINGS. OUR STORES THAT PROVIDE, YOU KNOW,
PARTS THAT ARENEEDED. HIGHLY USED PARTS THAT ARE NEEDED ON HAND. OUR SELF-INSURANCE FUND. OF COURSE THAT COVERS OUR MEDICAL, DENTAL, LIABILITY, WORKER'S COMP, THINGS LIKE THAT. YOU CAN SEE INENERAL THEY HAVE
INCREASED A LITTLE BIT. OUR NET POSITION IS UP ABOUT $4 MILLION UP FROM2023. OUR CASH IS UP $25 MILLION OR SO. AJEN THE CASH BALANCES ARE RESERVED FOR CERTAINLY EMEENCIES THAT COME
IN, AS WELL AS INVESTMENTS AND PROJECTS THAT THEY NEED TO INVEST IN TO PROVIDE SUPPORT TO THE CITY. AND JUST TAKE A LITTLE LOOK AT OUR CHART HERE THAT HAS ALL THE INTERNAL SERVICE FUNDS. YOU COULD SEE OUR FLEET IS GOING
DOWN. I MENTIONED THAT EARLIER. BOTH IN TERMS OF CASH AND NET POSITION. IN ADDITION OUR SELF-INSURANCE HAS KINDA GONE THE OTHER WAY WHERE OUR CASH IS GOING UP AND OUR NET POSITION IS
GETTING BETTER TOO. AND SO WE'LL HAVE -- WHEN WE ISSUE THE 2024 FINANCIALS, WE'LL HAVE A BETTER IDEA OF THEIABILITIES THERE. AND CERTAINLY, WHEN I COME BACK IN A FEW MONTHS, HOPEFULLY THE SECOND QUARTER, WE'LL TAKE ANOTHER LOOK AT THOSE
LIABILITS. AGAIN, MODEST INCREASES IN BOTH CASH AND NET POSITION. FINALLY, OUR LAST FUNDS ARE ENTERPRISE FUNDS. THESE RUN LIKE REGULAR COMMERCIAL BUSINESSES. THEY PROVIDE SERVICES TO OUR EXTERNAL
CUSTOMERS OUTSIDE OF THE CITY GOVERNMENT. GENERALLY, THEY'RE PUBLIC WORKS AREAS SUCH AS SEWER, STORM WATER, SOLID WASTE, PARKING, WHICH ALSO INCLUDES OUR IMPOUND LOT. THEN ALSO CPED HAS A RELATIVEL SMALL ENTERPRISE FUND AS WELL TOO. SO THE NET
POSITION THERE INCREASED BY ABOUT $16 MILLION, $17 MILLION FROM 2023. THE CASH DECREASED BY ABOUT $8 MILLION. AGAIN, THESE ARE FAIRLY STABLE GENERALLY PROVIDE SERVICES THAT ARE NEEDED AND ARE PRETTY RESISTANT TO
DECREASES IN DEMAND AND THE LIKE AND LASTLY, JUST TAK A LITTLE LOOK AT SOME OF THE NUMBERS THEMSELVES. WE COULD SEE VARIOUS SMALL CHANGES. SEWER IS UP A LITTLE BIT. STORM WATER IS
DOWN UNDER CASH AND FUND BALANCE. OTHERWISE, YOU COULD SEE THE PARKING HAS GOTTEN BETTER. I JUST WANT TO CALL YOUR ATTENTION TO THE MIDDLE PART OF THE SCREEN THERE. SAY THE CASH GOING UP BY A FEW COUPLE MILLION
DOLLARS FOR PARKING. AS WELL AS THE NET POSITION AS WELL TOO. SO ANYWAY, FAIRLY STABLE THERE. SLIGHT DECREASES IN CASH OVERALL. BUT INCREASES IN OUR FUND BALANCE. SO THAT CONCLUDES PRESENTATION TODAY. PLEASE
LET ME KNOW IF I COULD ANSWER ANY QUESTIONS. THANK YOU. >> ALL RIG. ARE THERE ANY QUESTIONS FOR MR. HARGROVE? OKAY. I WANTED TO DELVE INTO ONE
OR TWO AREAS. FIRST ONE HAS TO DO WITH WE'RE LOOKING AT A PAINFUL INCREASE IN THE PROPERTY LEVY AND THE FIVE-YEAR FINANCIAL DIRECTION FOR 2026, AND IT WILL BE MORE PAINFUL BECAUSE OF THE
SHIFT IN PROPERTY VALUE BURDEN. I NOTED A COUPLE OF AREAS IN HERE WHERE IT SEEMS LIKE THERE MIGHT BE A POTENTIAL BONUS TO O IF THESE ARE AVAILABLE OR IF
THEY ARE ALREADY SPOKEN FOR. FOR EXAMPLE, I BELIEVE THIS IS THE LAST YEAR WE'LL BE MAKING THE $6.7 MILLION PAYMENT ON THE DEBT SERVICE FOR THE CONVENTION CENTER. DOES THAT THEN BECOME A
SOURCE OF POTENTIAL CASH THAT CAN BE APPLIED TO OTHER AREAS OF THE BUDT SUCH AS REDUCING THE INCREASE IN THE PROPERTY TAX? >> PRESIDENT BRANDT, LET ME --
IF I COULD GET BACK TO YOU ON THAT. IO WANT TO TALK TO OUR INVESTMENT DIRECTOR, AS WELL AS JANE DISCENZA. I'M NOT UP TO DATE ON THE BUDGE OR WHAT'S
OCCURRING IN THERE. IF I COULD GET BACK TO YOU, I APPRECIATE IT. >> MY SENSE IS THAT WAS FUNDED OUT OF THE SALT TAXES OR THE DOWNTOWN ASSETS FUND. SO SALT TAXES ARE RUNNING $6.5 MILLION
OVER BUDGET FOR 2024. SO I'M HOPING THERE IS SOME CUSHION AVAILABLE THERE. THERE'S ALSO QUITE AN INCREASE IN THE DOWNTOWN ASSETS FUND BALANCE. FOR THE SELF-INSUNCE AREA. AND
I WONDERED IF IT'S POSSIBLE FOR YOU TO FORWARD TO US THE TORT LIABILITY ACTUARIAL VALUATION. I'VE SEEN IT CITED BUT NOT THE
ACTUAL DOCUMENT. UNLESS THERE'S BEEN SOME UPDATE TO IT. IN THAT CASE, MAYBE THE UPDATE WOULD BE APPROPRIATE. >> PRESIDENT BRANDT, YES, NO, I CAN SEND THAT TO YOU. I DO HAVE THE ONE FOR '23 THAT JUST BREAKS
DOWN OUR LIABILITIES. I THOUGHT IF IT WAS THE CITY COUNCIL OR YOURLVES. BUT WE ARE UPDATING IT TOO. WE CERTAINLY WILL HAVE IT UPDATED BY THE END OF MAY. THAT'S OUR GOAL FOR GETTING THE
FINANCIALS READY FOR FINAL REVIEW. >> WHY DON'T YOU SEND ME WHAT YOU HAVE NOW, AND IF YOU WOULD, AND THEN I WILL LK FORWARD TO AN UPDATE WHEN THAT'S READY. >> OKAY. >> ANY FURTHER QUESTIONS? OKAY. WE THANK YOU FOR YOUR PRESENTATION. WHICH THE CLERK
WILL RECEIVE AND FILE, PLEASE. WE NEXT HAVE ANNOUNCEMENTS OR UPDATES ON OUR AGENDA. AND EXCUSE ME. W DO HAVE THE BOND
TRANSMITTAL. THANK YOU. BOND TRANSMITTAL MEMO WHICH REQUESTS THE BOARD TO ISSUE TAX EXEMPT GENERAL OBLIGATION BONDS AT A FUTURE MEETING FOR PROJECTS OF NECESSITY FOR THE CITY. DO MY
COLLEAGUES HAVE ANY QUESTIONS OR COMMENTS? I'M NOT SURE WE HAVE YBODY HERE TO TAKE THEM. BUT WE CAN ALWAYS FOLLOW UP. I THINK THIS IS A FAIRLY ROUTINE ITEM. SO CLERK WILL RECEIVE AND FILE THAT REPORT. THANK YOU, COMMISSIONER ABENE. AND NOW WE MOVE ON TO ANNOUNCEMENTS. AND
THE ONLY ANNOUNCEMENT I HAVE IS AN UPDATE ON THE HIRING PROCESS. BOTH OF THE FINALISTS HAVE GONE THROUGH TWO ROUNDS OF INTERVIEWS. AND THERE WAS CONSENSUS AMONG THE SEARCH COMMITTEE MEMBERS FOR ONE OF THE
CANDIDATES. AND SO THE HR PEOPL ARE CHECKING, DOING A BACKGROUND CHECK. AND IOPE THAT AT OUR NEXT MEETING, WE'LL HAVE A NAME TO BRING FORWARD TO YOU. ALL RIGHT. AND THEN WE SHOULD PROBABLY RENEW OUR DISCUSSION OF
WHAT WE WANT THAT PERSON TO DO. SO WE'VE COMPLETED ALL -- ANY OTHER UPDATES, I SHOULD ASK? WE'VE COMPLETED ALL THE BUSINESS TO COME BEFORE US, AND WITHOUT OBJECTION, WE STAND ADJOURNED.