Property tax revenue
Property tax revenue makes up $663.8 million, or 37.3 percent, of the 2014 budgeted revenue. Property taxes for 2014 increased by approximately $7.6 million or 1.2 percent.
For the third year in a row, suburban Hennepin County saw a decline in value for residential and commercial / industrial properties, whereas Minneapolis saw an increase in value for residential properties for the first time in three years. City of Minneapolis and suburban Hennepin County residential and commercial / industrial property represents 92.0 percent of all property in the county.
If you are looking for information regarding your own personal property or property taxes, please see our property information search page.
The 2014 expected federal revenue is $176.2 million, or 9.9 percent of all county revenues. This is an increase of 9.0 percent ($14.5 million) from the 2013 adjusted budget.
The majority of the increase falls within the capital improvements program. The Franklin Avenue bridge over the Mississippi River and to improve the safety and capacity of Shady Oak Road (County State-Aid Highway 61).
The revenues from the State of Minnesota are budgeted at $216.6 million, or 12.2 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, financial assistance along with training and employment programs ($61.9 million)
- Highway construction and maintenance projects ($61.8 million)
- Health service programs and intergovernmental transfers between the county, Hennepin County Medical Center, and Department of Human Service ($18.6 million)
- Correctional subsidy to assist with correctional services and programs ($18.6 million)
- Partial expense reimbursement in the Public Defender's Office ($8.4 million)
- Pension subsidy for peace officers ($2.5 million)
Typically, state funding is based on criteria such as caseloads, statewide funding formulas, approved plans, and particular service requirements.
Fees and services revenue
Total revenues generated from fees charged for services are estimated at $378.8 million, or 21.0 percent of all county 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.
Hennepin County provides a wide range of services for which fees are charged. The most significant portion of this revenue ($244.1 million, or 65.3 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 Hennepin Health, NorthPoint Health and Wellness Center, and Metropolitan Health Plan.
Other significant portions of this revenue come from the human services program ($42.7 million), the solid waste program ($50.7 million), and the public safety program ($18.3 million).
Minnesota Statute 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 other revenues totaling $348.7 million make up 19.6 percent of total revenue in 2014.
Other revenue includes miscellaneous taxes, intergovernmental (i.e., participation of municipalities in county road and bridge projects), interest income, bond proceeds, building rental, fines, driver's licenses, vital records (e.g., birth and death certificates), and local revenue.