2020 Brooklyn Financial Transparency Platform (Updated June 2020)

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FINANCIAL TRANSPARENCY PLATFORM

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The City of Brooklyn

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Want to know what the City of Brooklyn does with your tax dollars?

This platform was designed to give you a better understanding.

However, we'll need your honest feedback to improve this information.

Please take the 1 minute survey at the end and let us know your thoughts.

FINANCIAL TRANSPARENCY

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Katie Gallagher

Mayor of Brooklyn

MAYOR'S MESSAGE

"On a daily basis, the question I receive most often is -

what does the City of Brooklyn do with my tax dollars?

This presentation provides an answer to that question."

"Hello, this is Katie Gallagher - mayor of Brooklyn. On a daily basis, the question I receive most often is - what does this city of Brooklyn do with my tax dollars? This presentation is created to provide an answer to that question. Your feedback in the survey at the end of the presentation will help drive improvements to update this report to respond to your input. We thank you for your time reviewing and responding to this presentation. And as always, it's a pleasure to serve as your Mayor." - Katie Gallagher

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THE STEPS TO TRANSPARENCY

Financial Overview | Brooklyn's revenues and expenses

Capital Projects | A look at capital projects improving our City

City Profile | A closer look at the community of Brooklyn

Leadership | A word from Brooklyn's proud elected officials

Transparency | Transparency achieved. Share your thoughts!

FINANCIAL OVERVIEW

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THE CITY OF BROOKLYN - FINANCE TEAM

Brought to you by

Finance Director

Tom Raguz

Accounts Receivable

JoAnn Haig

Accounts Payable

Payroll

Celeste Westfall

Cindy Simko

"Hi, this is Tom Raguz and this my Finance Team at the City of Brooklyn: JoAnn Haig, Cindy Simko and Celeste Westfall." - Tom Raguz

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AUDITOR OF STATE AWARD WITH DISTINCTION

The Brooklyn Finance Department received the

“This award acknowledges the hard work local government officials put into keeping accurate financial records. Proper financial record keeping allows our audits to be more efficient and effective, which saves time and ultimately saves the taxpayers money." - Keith Faber, Ohio Auditor of State

WHERE THE MONEY COMES FROM

2019 Revenue by Type

(in Millions)

Source: 2019 Comprehensive Annual Financial Report, Modified Accrual Basis

*Does not include Other Financing Sources and Uses. See slide 14 "Learn More" for detail.

See next 2 slides

for more info on Income Taxes

Total Revenues

(All Governmental Funds)

$24.78 Million*

"Income tax is the largest source of revenue for the City. This revenue helps to fund our major services such as Police, Fire and Parks & Recreational Activities, in addition to our Capital Projects." - Tom Raguz

Net income tax receipts for fiscal year 2019 were $16.76 million.

These receipts increased approximately 19.9% from 2018 to 2019.

The City of Brooklyn assigns a 2.5% income tax on earned income within the city.

The City of Brooklyn gives residents full credit (up to 2.5%) for taxes paid to other cities.

Approximately 94% of income taxes collected are from businesses within Brooklyn.

LARGEST SOURCE OF REVENUE

Income Tax Collections

The percentage of income taxes collected from businesses within Brooklyn

"The City's income tax base has over 250 businesses contributing. The top 25 businesses in Brooklyn make up approximately 60% of the City's annual income tax." - Tom Raguz

Source: 2019 Comprehensive Annual Financial Report, Accrual Basis

Income Tax Revenue (in millions)

LARGEST SOURCE OF REVENUE

Annual Income Tax Revenues

A fundamental difference between the City of Brooklyn and the Brooklyn School District is the main funding source used by each entity for operating purposes.

Recipients of Brooklyn Property Taxes

Brooklyn Schools

64.0%

County/Polaris

26.5%

Brooklyn City

6.9%

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Library

2.6%

"I'm very proud to point out that the City of Brooklyn has not raised Property Taxes since 2005 and also levies under 50% of allowable tax levies, per our charter." - Tom Raguz,

See next slide for

an explanation of

Property Tax

BROOKLYN PROPERTY TAXES

$184 City of Brooklyn (6.9%)

$2,670

$100,000

2.67%

Total Annual Property Taxes

$1,709 Brooklyn Schools (64.0%)

$69 Library (2.6%)

$708 Cuyahoga County; Metroparks; CCC; Polaris; Port Authority (26.5%)

Distribution

Property Tax

To view your property tax bill, please visit the Cuyahoga County Fiscal Officer's website: https://fiscalofficer.cuyahogacounty.us

"A resident of Brooklyn pays about $2,670 dollars in property taxes for each $100,000 market value of their home. 64% of these payments goes to the Brooklyn Schools. Another 26.5% goes to The County and JVS. The City of Brooklyn receives 6.9% of these payments, which equates to approximately 1.6 million dollars annually. These funds are then used to fund various services throughout the City." - Tom Raguz

for a House in

Brooklyn

Income Tax Collections

PROPERTY TAX DISTRIBUTION

Using $100,000 Home Market Value as an Example

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Brooklyn property taxes are lower than neighboring cities.

($2,670 per $100,000 of Home Market Value)

"As you can see by this chart, Brooklyn property taxes are lower than many of our neighboring cities. - Tom Raguz

COMPARATIVE PROPERTY TAX RATES

Shown as Percentage of Home Market Values

Source: 2019 Comprehensive Annual Financial Report, Modified Accrual Basis

"Security of Persons & Property includes Police, Fire, and Ambulance Service. These services are by far the largest operating expense of the City. " - Tom Raguz

Total Expenditures

(All Governmental Funds)

$22.81 Million

WHERE THE MONEY IS USED

2019 Expenditures

(in Millions)

Source: 2019 Comprehensive Annual Financial Report, Modified Accrual Basis

2017

2016

2015

2019

Revenues

Expenditures

2018

LEARN MORE

"Over many of the last several years, revenues have outperformed expenditures, in spite of a loss of American Greetings. This is a direct result of the Mayor, City Council, and Administration making significant operational changes within the organization." - Tom Raguz

ALL GOVERNMENTAL FUNDS - HISTORICAL PERFORMANCE

Revenues and Expenditures

(in Millions)

2019

Source: 2019 Comprehensive Annual Financial Report

YEAR END GENERAL FUND BALANCE/RESERVES

Available Fund Balance as % of General Fund Expenses

84%

2015

2016

2017

2018

"Financial health and financial planning are important aspects of any municipality. The best measure in determining the financial health of a municipality is the available money in the City’s General Fund. The General Fund is the main operating fund of the City and pays for the services that we all enjoy, such as, our public safety forces, our recreational and senior center activities and refuse collection. The Government Finance Officer’s Association recognizes that, at a minimum, municipalities have 16% of money available as a percentage of annual expenses in the General Fund. As you can see by this chart, the City of Brooklyn has consistently exceeded this recommended percentage. As the City is in the process of completing a Master Plan and implementing a Five Year Capital Improvement Plan, this balance will be important and relied upon to help fund potential future land use decisions and substantial capital projects and construction." - Tom Raguz

136%

152%

144%

147%

Source: 2019 Comprehensive Annual Financial Report

Additionally, the City has $2,520,000 in short-term debt.

"Like most municipalities, Brooklyn has borrowed money to fund various Capital Projects. We have one long-term outstanding, as show on this graph. This bond was used to fund the construction of the Fire Station. Capital Projects are necessary to protect the infrastructure of the City. One of the strengths of the City's debt profile is the overall low debt burden, as compared to other other municipalities, which is a direct result of having a dedicated revenue source to fund many of our capital projects, such as street improvements.- Tom Raguz

See next slide to view Brooklyn's

Credit Rating

DEBT PROFILE

Long-Term Debt Principal Paydown

(in Millions)

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Moody's is a Credit Rating Agency which analyzes the finances of commercial and government organizations and evaluates their creditworthiness.

"The credit position for the City of Brooklyn is excellent. "

" Brooklyn's Aa2 rating is slightly higher than the median rating of Aa3 for cities nationwide."

" Key credit factors include a robust financial position, a manageable debt burden with an inflated pension liability, and a modestly sized tax base with a moderate wealth and income profile "

What Moody's says about

Brooklyn...

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INVESTORS SERVICE

CAPITAL PROJECTS

"As previously mentioned, a major part of our Capital Program is dedicated to our Road Program. Notable projects included in our 2019 Road Program include, Ansonia Avenue, Hurricane Alley, West Biddulph Road, Sommer Lane, Clinton Road, Kennedy Drive and American Road." - Tom Raguz

CAPITAL PROJECTS

Brooklyn Road Improvement Projects

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Ansonia Ave.

Hurricane Alley

West Biddulph Rd.

$2.8 Million was spent to improve Brooklyn roads in 2018-2019.

(City portion Only)

CAPITAL PROJECTS

Brooklyn Road Improvement Projects

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Summer Ln.

Clinton Rd.

Kennedy Dr.

$2.8 Million was spent to improve Brooklyn roads in 2018-2019.

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ECONOMIC DEVELOPMENT ACTIVITY

Companies Newly Locating in or Expanding in Brooklyn

$57M payroll

$20M payroll

$5M payroll

$5.8M payroll

$3M payroll

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CITY LEADERSHIP

BROOKLYN ELECTED OFFICIALS

ELECTED OFFICIALS

Katie Gallagher

Mayor

Ron Van Kirk

Council President

Andy Celcherts

Council Pro-Tem

Mary Balbier

Council Member

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216-635-4221

216-965-5737

216-548-7644

216-351-3776

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"This is Council President Van Kirk. Every dollar the city spends has to pass the lithmus test: Does it benefit or help protect the health, safety and welfare of the citizens of Brooklyn.

Kathleen Pucci

Council Member

Meg Ryan Shockey

Council Member

Kevin Tanski

Council Member

216-459-1195

440-391-4832

216-661-1830

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ELECTED OFFICIALS

Sue Grodek

Council Member

216-398-8170

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CITY PROFILE

BROOKLYN DEMOGRAPHICS

2010 census 2011 - 2015 Amercian Community Survey 5-Year Estimates

CITY PROFILE

Brooklyn Demographics

Population

10,936

5,226

5,710

Male

Female

Median Age: 43.5

0 - 9

10 - 19

20 - 29

30 - 39

40 - 49

50 - 59

60 - 69