Property tax revenues
Property tax revenue makes up $679.5 million, or 37.4 percent, of the 2015 budgeted revenue. Budgeted property tax revenue for 2015 increased by $15.6 million or 2.4 percent.
Residential values in suburban Hennepin rose 8.9 percent after decreasing for the past three years. The City of Minneapolis saw an increase in value for residential properties of about 8.7 percent, compared to an increase of just 0.6 percent from taxes payable 2014. Residential properties comprise 70.5 percent of all property value in the county.
Suburban properties account for 72.9 percent of Hennepin County’s estimated market value with the remaining 27.1 percent in the City of Minneapolis. Residential property accounts for the majority of the property value in both Minneapolis (64.4 percent) and suburban Hennepin County (72.8 percent).
The 2015 budgeted federal revenue is $171.4 million or 9.4 percent of all county revenues and represents a decrease of 3.5 percent or $6.2 million from the 2014 adjusted budget. Of the $171.4 million in anticipated federal revenue, $147.9 million or 86.3 percent stems from the Human Services program.
The revenues from the State of Minnesota are budgeted at $256.8 million, or 14.1 percent of all county revenues, which excludes health maintenance organization fees from state sources.
In general, state monies are used to fund activities and services for the following:
- Human service programs like community health, financial assistance, along with training and employment programs ($65.8 million)
- Highway construction and maintenance projects ($93.9 million)
- Intergovernmental transfers between the county, Hennepin County Medical Center, and Department of Human Service ($19.4 million)
- Correctional subsidy to assist with correctional services and programs ($18.7 million)
- Partial expense reimbursement in the Public Defender’s Office ($8.5 million)
- Pension subsidy for peace officers ($2.8 million)
Typically, state funding is based on criteria such as caseloads, statewide funding formulas, approved plans, and particular service requirements.
Fees and services revenues
User fees are established charges borne by those individuals that utilize specific government services and activities. This source of revenue provides an equitable, proportional method to fund governmental services without charging the general population.
In 2015, the total revenues generated from fees charged for services are estimated at $316.9 million, represent 17.4 percent of the total county revenue budget.
Hennepin County provides a wide range of services for which fees are charged. The most significant portion of this revenue ($170.8 million, or 53.9 percent of all fees and services) is generated by reimbursement/payment from third party payers and state and federal reimbursement for patient fees and services provided by NorthPoint Health and Wellness Center, Hennepin Health, and Metropolitan Health Plan.
Other significant portions of this revenue come from Human Services program ($45.2 million), the Solid Waste program ($51.5 million) and the Public Safety program ($18.9 million).
Minnesota Statutes 383B.118 authorizes counties to establish a fee or charge for a service, after holding a public hearing, based upon the costs of providing such services.
A wide variety of revenues totaling $166.0 million make up 9.1 percent of total revenue in 2015.
Other revenue includes book fines, building rental, investment income, parking revenue, fines, health and driver licenses, vital records (e.g. birth and death certificates) and local revenue.