Minneapolis Park & Recreation Board

Resolution
2016-262
Amendment Adopted
Sep 7, 2016 5:00 PM

Resolution Requesting the Board of Estimate and Taxation Set the Maximum Property Tax Levy for the 2017 Budget at an Estimated Amount of $61,374,450, an Increase of 13.0 Percent, to be Allocated to the Park and Recreation Levy in the Amount of $59,642,450 and the Tree Preservation and Reforestation Levy in the Amount of $1,732,000

Information

Department:FinanceSponsors:
Category:Budget

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Item Discussion

Whereas, The Minneapolis Park and Recreation Board (MPRB) funds the majority of its operations in the General Fund with an annual property tax levy;

 

Whereas, The Board of Estimate and Taxation sets the maximum amount of the MRPB property tax levy;

 

Whereas, The MPRB may adopt its annual property tax levy at an amount equal to or less than the maximum amount set by the Board of Estimate and Taxation;

 

Whereas, The MPRB shall maintain a Park and Recreation Levy for the general fund operations of the MPRB;

 

Whereas, The MPRB shall maintain a Tree Preservation and Reforestation Levy to preserve and protect the urban tree canopy which will include the removal and replacement of ash trees and replanting of trees lost during storms; and

 

Whereas, This resolution is supported by the MPRB 2007-2020 Comprehensive Plan, which envisions “Dynamic parks shape city character and meet diverse community needs;” and

 

RESOLVED, That the Minneapolis Park and Recreation Board of Commissioners request the Board of Estimate and Taxation to set the maximum property tax levy for the 2017 budget at an estimated amount of $61,374,450, an increase of 13.0 percent to be allocated to the Park and Recreation Levy in the amount of $59,642,450 and the Tree Preservation and Reforestation Levy in the amount of $1,732,000; and

 

RESOLVED, That the President of the Board and Secretary to the Board are authorized to take all necessary administrative actions to implement this resolution.

 

Body

BACKGROUND

 

Through this action, the Minneapolis Park and Recreation Board (MPRB) requests the Board of Estimate and Taxation (BOE) to set the 2017 maximum property tax levy for the MPRB at $59,745,000 a 10.0 percent increase from the 2016 certified tax levy.

 

As required by State Law, the BOE sets the maximum tax levy for the City of Minneapolis, Minneapolis Park and Recreation Board, Municipal Building Commission and the Public Housing Authority on an annual basis.  The BOE is scheduled to set these maximum property tax levies on September 28, 2016.  By this resolution the BOE will be provided direction regarding the setting of the maximum property tax levy for the MPRB. 

 

 

2016

2016

% Inc

Park and Recreation Levy

$52,583,000

$55,013,000

4.62%

Park and Recreation Levy NPP20

 

3,000,000

 

Tree Preservation and Reforestation Levy

1,732,000

1,732,000

0.00%

Park Board Certified Tax Levy

$54,315,000

$59,745,000

10.0%

 

The Board has directed the Superintendent to present a balanced 2017 budget based on a 4.6 percent property tax levy increase for general fund operations.  A 4.6 percent property tax increase would still leave a budget gap of $300,000 to be filled through expense reductions and/or revenue increases.  The Board has also directed the Superintendent to include an additional $3 million in the general fund tax levy for the first year of the 20 year plan to provide funding for the maintenance of neighborhood parks throughout the city as stipulated in the concurrent 20 Year Neighborhood Park Plan (NPP20) ordinances adopted by the City of Minneapolis and the MPRB.  The Board has also directed the Superintendent to continue the eight year plan to respond to the significant loss of tree canopy within the urban forest of the City of Minneapolis, which does not require a property tax increase in 2017. 

The Superintendent will present the Superintendent’s Recommended 2017 Budget on October 19, 2016.  The Board will consider the Superintendent’s Recommended 2017 Budget, and adopt the 2017 tax levy and 2017 Budget on December 7, 2016.

 

NPP20

On April 29, 2016 the Minneapolis City Council approved an Ordinance and 20 year financial plan to provide funding for neighborhood parks.  The Minneapolis Park and Recreation Board passed a concurrent ordinance specific to neighborhood park funding on May 18, 2016.  As a part of these ordinances the City and Park Board agreed that the Park and Recreation Tax Levy would be increased by $3 million in 2017, and it is expected that the City and MPRB members on the BOE would vote affirmatively for this increase. It is the intent of the City and Park Board that this increase, which equates to approximately 1% of all City tax levies for 2016, will remain in effect for the duration of the plan and shall be used to increase funding for general maintenance operations of the Neighborhood Park System and not to supplant other maintenance operations funding for the Neighborhood Park System.

 

Tree Preservation & Reforestation Levy History

This eight (8) year plan was formulated in 2013 in response to the increase in the number and intensity of storms and the infestation of Emerald Ash Borer.  2017 is the fourth year of the eight year plan to remove and replace ash trees and replant trees lost during storms.  The Board would continue to utilize the Tree Preservation and Reforestation Tax Levy that was reinstated in 2014 to restrict these property tax proceeds to this specific purpose.

  

Storms have increased in number and intensity; since 2011, the City of Minneapolis has lost almost 10,000 public trees due to storms. Federal disaster relief has been awarded for the clean-up of major storm events during this time period.  Federal relief does not fully cover clean-up costs and does not cover any of the replacement costs of downed trees.

 

Emerald Ash Borer (EAB) is an invasive beetle that kills ash trees.  City of Minneapolis ash trees were found to be infected by EAB in 2010.  With the spread of EAB, all ash trees in the City of Minneapolis will become infested with EAB and eventually die. There are 40,000 ash trees on City of Minneapolis boulevards and within Minneapolis parks, The boulevard ash trees account for approximately 20% of all boulevard trees.  The loss of ash trees will dramatically change the tree canopy of the urban forest in Minneapolis.  This accelerated replacement approach will allow the MPRB Forestry Department to proactively replace the urban forest canopy with a diverse mix of tree types.  Waiting to remove ash trees until they become infested is not an option because the trees will die in such large numbers that it will not be possible to keep up with removal and replacement within the Park Board’s general operating budget. Proactively removing trees before they die, reduces the risk of damage and injury caused by trees and tree limbs falling from dead and dying ash trees.

 

 

RECOMMENDATION

 

The Superintendent recommends that the Board of Commissioners approve the request to the Board of Estimate and Taxation to set the maximum property tax levy for the 2017 budget at an estimated amount of $59,745,000, an increase of 10.0 percent to be allocated to the Park and Recreation Levy in the amount of $58,013,000 and the Tree Preservation and Reforestation Levy in the amount of $1,732,000.

 

This action is supported by the following vision and goal statements in the MPRB 2007-2020 Comprehensive Plan.

 

Vision Theme 3:     Dynamic parks that shape city character and meet diverse community needs.

 

Goal:              Financially independent and sustainable parks prosper.

 

 

 

 

 

 

Meeting History

Aug 17, 2016 5:20 PM  Administration & Finance Committee Committee Meeting
RESULT:ADOPTED [UNANIMOUS]
MOVER:Liz Wielinski, Vice Chair, Commissioner District 1
AYES:Scott Vreeland, Liz Wielinski, Steffanie Musich, Annie Young
ABSENT:Jon Olson
Sep 7, 2016 5:00 PM  Minneapolis Park and Recreation Board Regular Meeting

Approved as amended

RESULT:ADOPTED [UNANIMOUS]
MOVER:Scott Vreeland, Commissioner District 3
SECONDER:Liz Wielinski, Commissioner District 1
AYES:Anita Tabb, Brad Bourn, Meg Forney, Steffanie Musich, Jon Olson, Scott Vreeland, Liz Wielinski, Annie Young
ABSENT:John Erwin
Sep 7, 2016 5:00 PM  Minneapolis Park and Recreation Board Regular Meeting

Resolution Requesting the Board of Estimate and Taxation Set the Maximum Property Tax Levy for the 2017 Budget at an Estimated Amount of (Remove: $59,745,000) (Insert: $61,374,450), an Increase of (Remove: 10.0) (Insert: 13.0) Percent, to be Allocated to the Park and Recreation Levy in the Amount of $59,642,450 and the Tree Preservation and Reforestation Levy in the Amount of $1,732,000

RESULT:AMENDMENT ADOPTED [UNANIMOUS]
MOVER:Jon Olson, Commissioner District 2
SECONDER:Brad Bourn, Commissioner District 6
AYES:Anita Tabb, Brad Bourn, Meg Forney, Steffanie Musich, Jon Olson, Scott Vreeland, Liz Wielinski, Annie Young
ABSENT:John Erwin