Corporate Report to the community FISCAL YEAR ENDING DEC. 31, 2009 • BUDGET YEAR 2010
Inside
Page 2
• Buying Quality Services • Tax Rate Comparison • Dividing Your Dollar • Finance Awards
Page 3 • Operating Revenue Sources • Expenditures by Fund • The General Fund
Page 4 • Capital Improvements • Community Development
Truth in Taxation Hearing Dec. 16
The Truth in Taxation for the 2011 budget is scheduled for Thursday, Dec. 16 at 7:30 p.m. in the Blaine City Hall Council Chambers.
View Financial Reports Online
City of Blaine financial information is posted online. The 2010 Annual Budget, 2009 Comprehensive Annual Financial Report and an electronic copy of this Corporate Report to the Community are available at www.ci.blaine.mn.us by searching keyword finance . Budget information for 2011 will be posted online as it becomes available.
Weathering the Storm Mayor Tom Ryan
W
elcome to the City of Blaine 2010 Corporate Report to the Community. This financial report is intended to demonstrate to Blaine residents how the city efficiently turns tax dollars into quality city services. For the third time in a popular report to the community, the City of Blaine is showing taxpayers the inner workings of the tax levy – taxpayer money at work. Inside this report, you will see how your tax dollar is divided in order to provide quality city services. You will also learn that Blaine’s property tax rate ranks well compared to other Anoka County cities. Importantly, you will also learn that Blaine is in good hands financially, as evidenced by recurring achievements of excellence in financial reporting. In the end, we hope this report offers you – a customer of the City of Blaine – a clearer understanding of your tax dollars at work. During the past two years, the nation’s financial crisis has caused record numbers of foreclosures and mortgage defaults, resulting in unprecedented declines in property values and a shrinking tax base. The struggle of governing bodies to budget amid plummeting tax revenues has been felt at each level of government. Blaine was initially impacted most seriously at a budget level by the state’s decision in 2008 to cut payments of the Market Value Homestead Credit. The difficulty of accounting for that major loss of revenue was compounded by a loss of tax base when both home and commercial/industrial market values began falling in 2008. In response, the city cut its budget $1.2 million from 2009 to 2010 and will cut another $150,000 from 2010 to 2011. As a governmental unit, the city has been diligent in cutting expenditures while adhering to its primary goal of maintaining existing service levels during these difficult times. Indeed, as the monthly cost of city services for the average Blaine homeowner dropped from $49.75 in 2008 to $41.07 in 2010 (with a continued decline in 2011), service levels remained steady. Going into 2011, full-time city staff is down 5%, but residents will again suffer no loss of city services and see no increase in utility rates. The city’s belt remains tight heading into the new year. In spite of the economy and the resulting reduced budget, the City of Blaine still has reinvested in the community. Again this year, $2 million was spent improving the city sewer system, which came with no additional tax assessment. The city also added two beautiful new parks using park dedication fees, monies collected during the development process and earmarked for parks and open space. Staff has begun the process of implementing a new Pavement Management Program to fulfill the commitment of providing roadways suitable for safe, functional and efficient travel. Roadways in Blaine also have benefitted from a strong partnership with Anoka County that has led to improvements like the current project on Radisson Road and future projects on Main Street and Lexington Avenue. These are all significant strategic investments important for the long-term future of the community. Although the city has suffered alongside residents and businesses during this financial crisis, we have thus far weathered the storm and maintained city service levels by budgeting responsibly and facing tough financial decisions head on. Looking forward, we are likely in store for another troublesome budget year in 2012. For the city’s budget outlook to improve, property values must begin to stabilize and the private sector must begin to recover. Until that time, the City Council and I will work closely with staff to ensure your tax dollars continue to be efficiently turned into quality city services. These trying economic times may continue to test us in the short term, but I believe our sustained reinvestment in the community and responsible budget practices will serve to strengthen us in the long term. We look forward to continuing to serve you in 2011.