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Home My WebLink About2021 08-16 CCM Joint Financial MINUTES OF THE PROCEEDINUS OF THE CI"I�Y COUNCIL/FINANCIAL COMMISSION OF "I'HE CITY O�� BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OI� MINNI;SO"I,A JOINT WORK SESSION Ai1GUST 16, 2021 VIA 'I.00M 1. CALL TO ORDER "The Brooklyiz Center City Council/f�inancial Commission Joint Work Session was called to order by Mayor Elliott at 6:34 p.m. 2. ROLL CALL/INTRODUCTIONS Mayor Mike Elliott and Councilmenlbers Marquita�3utler, �pril Graves, Kris Lawrence-Anderson � and Dan Ryan. Also present were Financial Commissioners David Dwapu, "I,aofeek Ishola, Emmanuel Kpaleh, and Dean Van Der Werf. �, Not present were Financial Commission Chair "I'aneshia Kragness, Commissionerand �bate Terefe. Also present were City Manager Reggie Edwards, Acting ��inance Director Andy Splinter, Intet•im City Engineer Mike Albers, Public Works llirector Mike Marsh, Interim Police Chief Tony Gruenig, and City Clerk Barb Suciu. Councilmember Graves noted that Commission Chair Taneshia Kragness has always been in attendance and asked if staff had reached out to ��inancial Commission Members. City Clerk Barb Suciu confirmed that meeting packets for tonight's meeting had been hand delivered ro Financial Commission Members and Commission Chair Taneshia Kragness had indicated she would not be attending tonight. Ms. Suciu noted three of the tive members are in attendance. Mayor Elliott asked whether the Financial Commissioners had received an e-mailed notice as well, or just the hand delivery of�the packet. Ms. Suciu answered the hand delivery of� the meeting packet. Mayor Elliott asked if it is possible to send an evite to the Financial Commissioner's e-mail, similar to what the City Council Members receive. That way, the meetings would appear on their ' calendars. Ms. Suciu explained the Financial Commission Members receive the same Zoom meeting notification as the City Council. Mayor Elliott thanked Ms. Suciu far the clarification and asked her to follow up with the absent Financial Commission Members to gain a sense of�why they are not in attendance and if something needs to be adjusted. 3. 2022 GF.NERAL FUND llEPARTMENT 13UDGET 12EQUESTS Mayor Elliott reviewed thc topics that will be covcred at toni�ht's Joint Work Session with thc I�inancial Commission. He noted the Mayor City/Council budget discussion will be coming up and he has some proposal fol•it that he will make at the next budget meeting. Mayor L,lliott asked the Council Mcrnbers to let hiin k�1ow if they have ideas for the City Council budget and,if desired, tlley can be discussed tonight. Mayor Elliott invited Dr. Ldwards to make the staff�pi•esentation. City Manager Reggie Edwards stated tonight is the beginning of department presentations with f-our being made tonight and three being made on September 1, 2021. "Chen the final budget will be presented on September 13, 2021 and it will encompass all of the City Council discussions up to that date. At that time, the preli�nii�ary levy will be considered and after that point, it can be lowered but cannot be raised. Dr. 1?dwards explained tonight there will be presentations by iour deparmlents. IIe will present the budgets for the City Council, City Manager, and Administration, which all falls under one function as far as Administration is concerned. Dr. I�dwards stated if there are significant changes to the City Council budget, based on discussions tonight, staff will make space during the next meeting to have those conversations. Those recommendations will be added and presented on September 13, 2021, with the total budget based on the parameters established by the City Council at the last meeting. Dr. Edward stated tonight he will present the City Council/Office of the City Manager/Administration budgets; Interim Finance Director Andy Splinter will present the Fiscal and Support Services budget; Interim Public Works Director Mike Marsh will present the Public Works budget; and, Community Development Director Meg Beekman will present the Community Development budget. He noted that other support staff members may also participate in thc prescntation. Dr. Edwards explained that as each department budget is presented, it will include a description of� the department, core functionalities, highlights, and proposed budget on a high level as it relates to the totality of the budget. Staff will not be presenting the entire budget line item by line iteln or the budget as a whole. "1'he agenda was reordercd to frst consider Item 3c. 3c. AllMINISTRATION City Council I3udget Presentation Dr. Edwards stated the mission of the City Council is to 1•epresent cominunity values, provide visionary leadership to the organization, and oversee the proper operation of the City government through the City Manager. 'rhe functions of the City Council, as the elected governing body of� the City, is responsibility for the governance through establishment of ordinances, policies, and c�Liasi judicial administration. The City Council adopts the budget, serves as the F_,conomic 08/16/2021 Page 2 , � I Development Authority (EDA), and Hous�n� Redevelopment Author�ty (HRA). 1 hose bud�cts � will be presented at a later time. Dr. Edwards stated the City Council also constitutes the Board � of Appeals and Fqualization and serves as the Canvassing Board for municipal elections. He noted ', that in 2022, two elections are budgeted tor. The City Council also assesses the performance and ' provides oversight of the City Manager. �� Dr. L,dwards stated the City Council budget highlights are to provide funding for City Council ��, travel, training, and development. He noted the travel and conference budgets went down � significantly given COVID. Each Council Member is allotted a certain amount of dollars in this � budget. During COVID approximately $2,600 to $3,500 was spent and in previous years, roughly $6,000 was spent so there are funds in that area that have not been expended. Dr. Edwards stated other highlights in this budget are membcrship in municipal policy organizations like the League of Minnesota Cities; Metropolitan Counties; salaries and beneiits �� throughout the organization and nine unionized staff,which is at 3%increase as it relates to salaries and benefits; and, additional funding proposed for contractual services in support of City Council policy review and analysis. Dr. Edwards noted this past weekend, the City Council held a retreat and did some development work that was budgeted for; however, during COVID and civil unrest, it was not possible to do as many departments so there will be several items during tonight's department presentations that were intended but put on hold for a while due to COVID and civil unrest. Dr. Edwards stated there � are resources within the budget in order to do that. Administration llepartment Budget Yresentation , Dr. Edwards stated the mission of the Adininistration Department is to provide Citywide support '� and leadership to internal and external customers, which ranges from residents to Council to staf£ The functions of the Administration Department include the offices of the City Manager, City j Clerk, and Equity and Anti-Racism Practices, which is the Oftice of Inclusion and Inequity to ��i focus on antiracism practices. The Adininistration Department's functions also include the ', Uivisions of Community and F.,ngagement, I Iuman Resources, and Information and Technology. ��I Dr. Edwards displayed a chart listing the full-time positions within the Administration Department, �,, noting they propose no significant changes. With the Deputy City Manager position, in the coming I year he anticipates the Communications and Community Engagement Manager and City Clerk to �'� serve as the Assistant City Manager so they will pick up additional duties that he handled when ' the Deputy City Manager. "I'hey will also maintain supervision and management over their own divisions. This will allow some capacity to add an additional Communication Engagement ' Specialist through savings on the Deputy City Manager position. '�i Dr. Edwards stated they plan to hold the line and maintain some capacity to move forward on the � many projects throughout the organization, both internally and externally, and increase some capacity to do more communication and engagement. I Dr. Edwards noted the Deputy City Manager position, is zeroed out for 2022 and while the City �� will maintain the position, no lunds will be allocated in 2022 to that position. Instead, those funds OS/16/2021 ', Page 3 �I � will bc redistr-ibuted to other ositions in the de artment in order to create ca acit . � P p Y Dr. Edwards read through the positions within Administration, noting the Hu�nan Resources/ Equity Officer and Trainer position was established in 2022. In 2020, the Graphic Designer position was moved to full time and they plan to add an additional Communication Specialist that will be paid for through savi»gs in not funding a Deputy City Manager position. � Dr. L�,dwards stated with the four Neighborhood Engagement Liaisons, the intention is to hire residents to help with engagement in neighborhoods and that strategy will continue. The wages have been increased to $16.60, which is a livable wage. In 2022, they will focus on getting two of t11e positions hii•ed and working 20 hours a week. Dr. Edwards stated the Administration � Department had a complement of 15.2 staff in 2020, that increased to 16.75 in 2021, and is proposed at 16 for 2022. I Dr. F,dwards stated a cou le Administration bud et hi �hli hts include establishin r the Of�tice of P � b � b Equity and Anti-Racism Practices, developing the equity score card enterprise wide; expansion of communications and community engagement efforts; dcvelopment of innovation capacity; and implementation oi�transparency protocols and practices including automated reporting system. �Ie noted in the past few weeks, staff presented a framework for engagement and they will be doing the same thing with equity to create a scorecard and framework. I-�e noted this will vary from department to department with the intent that all actions taken, in all department, there is a lens as it relates to equity and engagement. ��e noted these things need to be done in community and with the organization to tnove the City forward. They anticipate creating the structure and then the ractice and detei-mine how to do that oin r forward. P � b Dr. Edwards stated they will continue to develop innovation capacity and that particularly showed during the City's COVID response and civil unrest. The primary focus of innovation in COVID and dealing with civil unrest is how we engage and invest in community and bring innovations throu Th communit and with communit bein a communit -centered Cit . "I'hat has been the � y , Y � Y Y focus of innovation during this past year and they will continue to do that. � With irnplementing transparency protocols and practices, they keep measures as it relates to departnlents and strategic priorities set by the City Council. They anticipate t�hey will be able to put that information on the City's website in the coming year so movement in those areas is reported to the City Council as well as the community. They will then be able to have an interchange and exchange of�ideas in understanding of how the City is progressing. Dr. l?dwards stated additional highlights for the City Council budget is the replacement of City Council iPads and laptops, which is needed in order to do hybrid at a cost of about $10,000 and is within the budget. He noted there not elections every year so the costs are up and down but they are anticipated and as we go forward, he hopes to stabilize the $80,000 cost every other year to instead fund one-half, or $40,000, every year so it does not artificially the levy. Dr. I?dwards explained that due to high staff turnover in 2021, the Human Resources Department will be hiring four director positions including the Human Resources Director position. The search for director positions has been outsourced with search firms but all other statf hiring is handled 08/16/2021 Pagc 4 intcrnally. Dr. Edwards stated the City will provide resources into the neighborhoods. He stated when the City had tried to initiate the neighbarhood engagement groups and build on tl�e Neighborhood � Watch captains, they learned that residents �vould be willing to engage in neighborhood activities but could not afford to keep feeding everyone in their neighborhood, or have resources to keep continuously engaging. That means providing some resources, $1,500, for an icc cream social, National Night Out, or maybe an event related to the neighborhood. Dr. };dwards provided an overview of�a chart dcpicting department budgets by program and object code from 2019 to 2022 showing an 1 l.76% increase in total administration for 2022. He noted that for the most part with the City Council budget, the inerease relates to technology. The � decrease in the City Manager cost is due to not replacing a Deputy City Manager but that is picked up in Community and Engagement; the inerease in elections is required and was anticipated; and, the Human Resources increase relates to hiring due to the transition of directors. llr. Edwards stated for the most part, this budget does not change except in those four areas, elections, transition of directors, stretching the dollars for the Deputy City Manager to increase capacity, and, communication and engagement. The increases are in areas that are required, I basically, because of elections, transitions of directors, and to have hybrid meetings with the City Council. Dr. Edwards completed an overview of department budgets by program and object code. Dr. Edwards stated this is where we are now but not necessarily whcre we will be on September 13, 2021 after considering the parameters of the City Council. Dr. Edwards stated the City Council may have ideas about their budget and things they want to do differently or add but that has to came from the City Council as a collective body. I�e displayed a chart of the City Council budget showing line items, noting on September 1, 2021, they will come back to this and entertain the City Council's thoughts as a body, and what they have consensus on and want changed. He stated with the final budget to be presented on September 13, 2021, some of the items may be part of it but some may not. On September 13, 2021, he will present what he believes is in the best interest in the City given the parameters the City Council have identified and his and staft's best perspective. But the final decision is the City Council's. He noted the budget timeline is extremely tight and staff�will do all they can to assure everything comes together by September l 3, 2021. Mayor Elliott stated the City Council needs to think about the priorities they have laid out and what it will take to implement them. More than in previous years, the City Council might have to dig into the budget and, as Dr. Edwards said, the City Council may have to cut here or add there to make sure they are matching the priorities set out, with Dr. Edwards' advise of course. Mayor Elliott asked if any City Council Members or Financial Commissioners had questions. Hearing nonc, he moved to the next budget presentation. 3b. FISCAL & SUYI'ORT SERVICES 08/16/2021 Page 5 �cting Finance Director Andy Splinter stated the Finance Department's mission is to provide accurate and timely inf�ormation to administrative and profcssional support in �inancial matters to all departments and divisions of t11e City. He listcd the many areas that I;inance manages and gave a br•ief description of each including accounting; accounts payable; accounts reccivable; assessing with Hennepin County; banking and investment functions; budget and financial planning; debt management; tinancial reporting; utility billing; and, safety/risk management. Mr. Splinter reviewed stafting levels, noting the same level as previous years is pt-oposed at 5.5 employees. IIe stated the part-time utility billing technician has been vacant for a little over a year and they will be intervicwing for that position this week. "I�he Financial Director position is also vacant and that inay involve an executive searcll at some point in 2022. Mr. Splinter summarired their budget request, noting in 2022 the City Council is at 3%but the rest of staff is at an increase of 2% in wages and 5% in the caf-eteria plan that covers health insurance. I Ic presented 2020 performance objectives, noted the City has received the Government Finance Officers Association (UFOA) Certificate of Achievement for Financial Reporting ior at least 20 years. He pointed out the rate of investment return has decreased in 2020 and probably again in 2021 because the rate oi� return on bonds and treasury notes as reduced to zcro for the near iimeframe because of the economy. Mr. Splintet- completed review of the 2022 non-department budget that falls under Finance's oversight including legal, convention and tourism, insurance, central supplies and support, vacancy/turnover savings, contingency, reimbursements ii•om other funds, transfers out, and joint powers payments. He reviewed the budgets iot• the Brooklyn Bridge Alliance, BrookLynk Youth Internship Program, Community Mediation and Restorative Services, CornerStone, and Northern Star Diversion. Mr. Slinter displayed a chart showin� 2022 general fund revenues as they sit right now. with no changes to the property taxes or levy change. ��e noted that overall,the total general fund revenues in 2022 will be down 2.28% outside of the levy so about $500,000 needs to be made up. Dr. Edwards stated with the recreation decrease in revenue, as Mr. Splinter mentioned, rates were reduced in an cffort to make programs more accessible, which is part of the 11% drop in revenue. Mayor Elliott stated he wants to see the contingency fund increased more than it is now, noting it has been as high as $230,000 in the past and he would like to see it at that level because we don't know what will happen in 2022. He noted as seen in the past two years, there are contingencies that can put a strain on our ability to spend on unforeseen circumstances, noting even this year, the City probably spent more than $300,000 in responding to the uprising. Mayor Elliott asked if any City Council Members or Financial Cominissioners had questions. I�inancial Commissioner Ishola stated he was surprised this was a Zoom meeting. He stated he got this booklet to review very late but he wanted to ask questions. He does not know how the budget was determined because as the Financial Commission, they have to read it but sometimes it is coniusing so they need to set an in-person meeting so we all can go through these things together 08/16/2021 Page 6 and be able to have a broad idea and come up with concrete questions. He stated it becomes very �� difticult. ' Mayor l�,lliott stated the concerns ai-e that Financial Commissioner Ishola received this meeting � packet too late to review it and he would like a ti�ne set aside to actually go through the packet as a Financial Commission and broadly understand the budget before having to make a decision on it. He stated the City can work with the Financial Commission Chair to schedule time for a '� separate meeting to review the budget and line items to understand it better. I "I,here being no additional c�uestions ot• comme�lts, the meeting moved to thc next presentation. ��, 3a. PUBLIC WORKS Dr. Edwards invited Interim Public Works Director Marsh to prescilt� the Public Works budget. Interim Public Works Director Mike Marsh stated the mission of the Public Works Department is to provide for the maintenance and operations of the City's infrastructure and facilities in a quality, cost-effective manner. He noted the City has 105 miles of streets, 5,100 traftic signs, 520 acres of parks and natural areas, 62 miles of trails and sidewalks, 6 municipal-owned buildings and grounds, 88 miles of storm drains, 40 treatment facilities, and water and sewer operations. Mr. Marsh explained the functional divisions of the Public Works Department include administration/engineering; street inaintenance including storm sewer, traftic control, street lighting;park mainteilance and forestty;public utilities including water and sanitary sewer; central garage; and, facilities maintenance, which used to be under the CARS division. Mr. Marsh presented a chart of stafting levels from 2020 to 2022, noting it has been pretty consistent. They are asking, in the 2022 budget, for an extra seasonal employee for the facilities division. "l�hat is not an additional of�funds but, rather, shifting fimds from hiring the contractor to do that function in house. Mr. Marsh reviewed the strategic functions f�or administration/engineering, street maintenance and traffic control; parks facility maintenance and forestry; and facilities maintenance. He then presented transportation key initiatives including the F3rooklyn Boulevard Phase 2 and Trunk 1 Iighway 252 and Capital Improvement Plan(CIP) funding projects. He noted that atter next year, all of the streets will have curb and gutter and at least one construction project Citywide so after that, it will be mostly mill and overlay projects. Mr. Marsh displayed a list of�key initiatives, provided an overview of each, and then displayed a chart of performance objectives for Public Works projects and resident calls for service. Mr. Marsh stated the Public Works budget highlights for 2022 include a 5.2% increase on their $4.2 million budget. Some of the notable purchases include a grapple attachment at $20,500 for I�orestry, a zero-turn mower of $15,000 for government buildings, and a truck at $28,000 for engineering. He explained the truck purchase would replace a holdover truck that has been used for several years by an engineering tech. 08/16/2021 Page 7 Mayor Elliott thanked Mr. Marsh for the presentation and stepping in, ior the second time, as Interim Public Works Director. He stated with regard to the budget presentation,he wanted to ask about thc Brooklyn I3oulevard project and strect reconstruction. He asked wllether there are active plans to include bike paths along the corridor. City Engineer Mike Albers answered tllere will be an o1�f=strcet bituminous trail constructed as part of the Brooklyn Boulevard project. It will be 10-15-feet wide, constructed on the west side of� Brooklyn Boulevard, and extend from 49`�' Avenue to Interstate 94 as part of Phases I and II. Mayor Elliott asked if that means converting the sidewalk or will it be separate from the roadway. Mr. Albers stated it will be a 10-foot bituminous trail that is ofi=set 10 feet from the curb and gutter. It will be an off-street facility to allow for pedestrians to use bikes or rolling activity. Councilmember Gt•aves stated it will be a contimiation of an extra-wide black asphalt sidewalk across the street fram her house and in front of the sanctuaiy. Mr. Marsh stated that is correct. Mayor F,lliott stated last winter, there was an e-mail chain about a resident in a wheelchair at the sanetuary who was having a difficult time getting around and got stuck in the snow. ��e asked if� this will allow for better plowing and navigation by those in wheelchairs. Mr. Albers stated this trail facility will be similar to any other trail within the community and he does not know aboiit the e-mail chain bcing referenced but will look into it. Mayor F:lliott asked if any City Council Members or Financial Commissioners had c�uestions. Councilmember Graves statcd from her•own experiencc having black asphalt, the snow does mclt better than if on concrete so she thinks this will be an improveme�lt. Mayor I;lliott agrecd this will be an improvement. Financial Commissioner Ishola asked whether this budget of $4.2 million also includes the I lighway 252 budget suspended for 2024. Mr. Albers answered it does not as that project is part of the CIP budget, not the general fund operating budget. Councilmember Lawrence-Anderson thanked Mr. Marsh for his presentation and again stepping in as Interim Finance Director. She asked about the forestry budget increase of almost 32%, from $140,000 to $185,000, and what is that increase attributed to. Mr. Marsh answered the majority of the increase is for the purchase of a grapple attachment in the amount of $20,500. 1�his equipment will greatly assist with moving big portions of trees. He acknowledged it is a significant purchase but with taking down 1,200 trees in the next few years, proper equipment is essential. Councilmember Lawrence-Anderson agreed and stated if staff needs an increase in capacity, then we have io supply the resources with which to do so. She noted with the December 23-24 snowplowing event, Mr. Marsh indicated the streets had to be plowed twice and asked if that was due to the volume of snow. Mr. Marsh explained he can't remember if staff plowed back-to-back days. Councilmember Lawrence-Anderson stated she was just curious and appreciates the presentation by Mr. Marsh and his time. 08/16/2021 Page 8 Mayor Elliott stated he had a r•esident forward infarmation about a boot for snowplows that prevents snow from piling into driveways. I Ic asked if� this would be helpful in saving many cumulative hours for residents from re-shoveling their driveway after the plow goes by. Mr. Marsh � stated lle has i�ot seen that equipment and will reach out to the Street Supervisor to find out if hc is awarc of that option. I�inancial Commissioner Ishola stated he is curious about the increase in the traffic control budget of 15%. He asked what that increase includes as that is a higher increase than previous years. Mr. ', Albers stated he is unsure and will have to look into it before providing an answer. Mayor I'lliott stated that is a good queslion and asked staff to send that answer to both the City Council and Financial Commission as a follow up to this meeting. ' Dr. Edwards stated if the City Council and/or Financial Commission has questions, staff will make �� sure to provide a follow up with answers before the next meeting�. � Relating to the internal groundskeeping increase in equipment, Dr. Edwards explained there is a �� local provider for that service but staff�thinks they can do it more efficiently. That local provider has indicated the City's account was not significant and if done internally, it will allow them to I operate in other areas. He stated if the City is contracting with a local company and considering whether to privatize or use something else, they assess the impact to that local business before making a decision. Councilmember Butler asked about the Highway 252 project and if there is any cost involved for the next fiscal year or just the year after depending on the decisions made. She also asked how staff is preparing for that budget impact. Dr. Edwards noted as mentioned earlier by Mr. Albers, that project is part of the City's CIP so they do anticipate cost impacts over future years. Mr. Marsh stated the Highway 252 project is included in the CIP and identified as a 2026-year project. Now there is a placeholder in the CIP with an estimate of$5.5 million as the City's share for improving I�lighway 252. As the Environmental Impact Statement(EIS) process is completed, staff will retine that cost based on Mn/DOT's cost participation policy. Mr. Marsh explained that the CIP accounts for all of the capital costs associated with the project. There have already been some expenditures for Highway 252 as part of the operating budget and with the engagement projects, which are included in the operating budget under the diff�erent categories. Mayor Elliott stated to that point, the figures in the CIP do not ret7ect the entire cost to the City for Highway 252 since other costs are covered in different parts of the budget. Mr. Marsh agreed this is a unique project, noting engagement costs are not qualitied for capitalization where with most projects, everything is capitalized. Mayor Elliott asked, other than engagement, are there other budget areas where costs exist related to the Highway 252 project. Or, is it just capital and engagement costs. Mr. Albers stated as of 08/16/2021 Page 9 � now, what is within the CIY re�lects the City Council's desire to do an interchange at 66`�' Avenue ' and that was the cstimated cost for design and constructio�l for that interchange on Highway 252. As the project continues with our project partners, that number will be refined based on the preferred alternative from the I;IS process. That issue will have to be revisited in the futurc. Mr. Marsh stated there are various costs upfront and, obviously, engineering has put a lot of time and ef�fort into the project as well. It is kind of a crossover point and once it is determined that a project is definitely going to happen and costs become capitalired, then the costs are picked up. Prior to that, the are more of an o eratin� t e of cost. Y P � YP Mayor Elliott referenced the forestry bud�et and reportcd that community membet-s }iave 1•cached , out expressing concerns with the City cutting down a significant number of trees in their neigllborhood park duc to the Emerald Ash Borers. Those residents caine up with a proposal to raise money themselves to treat and preserve the trees. I Ie asked if staff has looked at policies for removing trees or considered a preservation strategy. Mr. Albers stated they have looked at that but uniortunately, it is extremely expensive to save Elm trees so it is not cost effective for the City to spend funds in that attempt. l�Ie stated if there was a private group willing to iund the costs, there is a way that can be done. Mayor Elliott stated one can assume the private �roup raising funds to save trees in their neighborhood are those who are better off financially. However, other parts of the City where trees are being cut down could also benefit from saving trees. I-Ic suggested that topic be visited to determine the types of�investments the City is willing to make to that end and address equity to assure people in different paris of the City can still have trees regardless of�economic level. Mayor Elliott asked when trees are removed, is there a one-for-one replacement strategy. Mr. Albers stated it is a one-for-one replacen�ent and there are a handfu] of different tree species staff selects fi-om. He stated he lived through losing all the �;lm trees to disease and agrees about the importance of treescapes to neighborhoods. I le assured the City Council that staff takes this seriously and looks at everything that can be done that is fiscally sound. Councilmember Lawrence-Anderson asked whether, with Emerald Ash Borers,experts in the field can indicate the success rate that can be anticipated with treating Elm trees. She stated ii� 90% successiul, it may make sense to save the trees. However, if the reverse is true and results in the potential for infecting other Elm trees in the entire City, that would be a concern for her. She stated there are two I?lm trees in her yard that are healthy at the mament. Councilmember Lawrence-Anderson stated she heard there are well over 1,000 Elm trees in the City and if the treatment is unsuccessful and all of the Elm trees are lost, she would like to know what the treescape would look like ten years from now. Mr. Albers stated staff has these numbers including the success rate. He explained the one thing to consider is that treating Elm trees is expensive, not guaranteed, and has to be done every year. I-Ie stated staff will provide the City Council and Pinancial Commission with those numbers. Councilmember Lawrence-�nderson stated she will appreciate receiving those number whenever staii�is able to provide that information. Mayor Elliott noted there may be a transitional period where new trees are being planted while Elm trees are being preserved. I Ie commented that Public Works is one of his favorite departments 08/16/2021 � Page 10 i and he hear-s the samc comments from residents and those driving through I3rooklyn Center. "['here being no additional questions or comments, Mayor Elliott moved to the next agenda item. 3b. FISCAL & SUPPORT SERVICFS 3c. ADMINISTRATION "I'hese items were considered prior to Item 3a. 3d. COMMUNITY DEVF,LOPMENT � Community Development Director Meg �3eekman stated tlle mission o1� the Community �I Development Department is to preserve and enhance the quality of life f-or the residents and I businesses of Brooklyn Center by guiding development of the City with effective measures of� �� planning, design review, construction plan approval, code cornpliance, housing, and business assistance. Ms. Beekman displayed and described the Community Development organizational chart, then ', provided an overview of services related to building and community standards. Ms. Beekman '�i stated to-date with construction activity, they track building permit project valuations because this � is an estimator of permitting work occurring in the City. She noted the peak in 2019 of nearly $80 million in new investment came to the community. T11en there was a fairly significant drop in � 2020, which is not entirely suiprising given the pandemic, and there was another fairly significant I drop in 2021. Again, not unexpected given construction lags from six months to a year behind the I economy so projects in the pipeline for 2020 continued but now there had been a real drop off of I projects pipelined. Part of that is due to the inability to get construction materials,the skyrocketing '�� cost of building materials, and unavailability of steel and labor. Ms. Beekman stated some projects under construction and moving forward, though there have ', been some delays due to the pandemic, include the GAllen Homes, which is a triplex , development; Raptor Carwash; Masjid Al-Ansar Mosque; and, Dean's }Iome Service, tenant I build-out of 6701 Parkway Circle). � Ms. Beekman stated staff is currently reviewing several projects, one being "I�he Crest to remodel ��, and add 43 new affordable units. That permit application has not quite been submitted but it is I expected to be received soon. Another is the Frasier Center, which is an autism center, has ' submitted an application for a tenant buildout of an existing building and will be considered for a �� Special Use Permit (SUP). BP on Brooklyn Boulevard has submitted for a fairly extensive ' remodel. Ms. Beekman listed and provided an overview of projects that have recently opened and ' the status of each, noting there has been an uptick of tenants coming into existing light industrial �� and office areas. Ms. Beekman reported staff has seen a fairly steep drop off� in the number of permits and � inspections in 2021 and she expects that trend to continue into the early part of 2022 and then as �� the economy recovers and the six- to twelve-month lag moves, she expects an uptick by the end 08/16/2021 I� Page 11 '� of 2022. Ms. Beekman provided an overview of� stai�f's activitics related to the City's rental licensing program and procedural changes due to the pandemic. She noted there was a temporary hold on all inspections at the peak of the pandemic and a three-month extension was given to renewing licenses. As a result, there are a number of rental licenses that have expired. She explained that when inspections were resumed, they were reduced from 100% to 25% of units for multi-family properties. 1'hat was done to limit contact between the City's inspectors and residents and limit the number of times inspectors and property maintcnance stafl� were entei•ing people's units. lnspections are now back up to 100% of units. Ms. Beekman presented the City's rental program, noting there are approximately 11,903 total housing units with 4,570 rental units, or 38% being rental. About one half are three-year rental liccnses, one-third are two-year licenses, l0% are one-year licenses, and 2% are six-month provisional licenses. Ms. Beekman explaincd that the City's property maintenance a code enforcement is fairly robust and a complaint-based program but there is also proactive enforcement. She described the City's code enforcement engagement program called Knock and Talk, which has been very successful and resulted in compliance about 65% of the time with no correction order is needed. She noted they also administer citations and abatements. Ms. Beekman reported that during the pandemic, staff adjusted its approach to codc enforcement as there has been an uptick in enforcement actions because of the significant increase in number of complaints, perhaps because people were at home more and observed thcir neighbors. Those violations iiicluded hoarding, unsafc living conditions, and illegal dumping including oi� I;llA-owned land. Ms. Beekman stated staff has taken a lighter approach to enforcement in general and pulled back significantly on proactive enforcement and signage citations in the business community. As a result, there has been an uptick of cases and duration of cases between the complaint and compliance. With the vacant building program, Ms. Beekman reported the downward trend continued. In this case, staff takes a heavy-handed approach to vacant properties but seen fewer over time. She felt the trend was handling the larger and more complex vacant properties, noting the Sears site continues to be the number one problem property with almost daily staff�visits for inspections and on-going issues with break ins, arson, illegal dumping, and vai�dalism. Ms. Beekman presented planning activities, noting again, there has been a drop in the number of� cases in 2021 due to the pandemic. In 2020 the City had 9 planning cases compared to 17 in 2019. In 2021, there has been a reduction to 3 planning cases to date. Other noteworthy planning work relates to the Opportunity Site Master Plan Infrastructure I�ramework that was adopted by the City Council in June; work on a Zoning Code update; Wangstad Commons; the F3rooklyn I3oulevard Land Use Study; Housing Study; Tenant Protection Ordinance; and, concept plan reviews for thc 694 Business Center (former Earle Brown Bowl) and the former Sears site. Ms. Beekman explained she would do a quick review oCthe econo��ic development focus priorities 08/16/2021 Page 12 since that topic will be back before the City Council and Financial Commission when considering the special revenue funds. She noted the Housing and Redevelopment Authority (HRA) fund and "I'ax Increment District("I'IF)#3 primarily fund redevelopment activities and initiatives as opposed to the general fund so there is not much point in reviewing in great detail because the Community Dcvelopment budget does not address these particular items. She stated they do a significant amount of economic development work and over the last 18 months, have iocused those priorities around pandemic response in two ways: focusing on small business resources and technical assistance (business economic stability); and, resident support and resources (resident economic stability). Ms. F3eekman stated in 2020 they worked with C�1RES Act fiinds and Community Development Block Grant (CDBG) funding on the number of programs and issued approximately $150,000 in , forgivable loans and grants to small businesses,which was administered tllrough ACER and LIB�. , "I'hey also issued non-profit community resource grants to non-profits and religious organizations I directly supporting residents to build tlleir capacity to do that work. Community Developinent � also provided technical assistance, outreach and education, i�ood access, rental assistance, and I down payment assistance. I Ms. Beekman stated the 2021 business economic stability programs and initiatives will be � presented when they focus on the economic stability pieces. She completed review of other ongoing Community Development projects including the implementation of a new permit �� software, updated department website, tenant protection ordinance, commercial clean-up and � beautification, f:ood truck provisions, and use of American Rescue Plan Act (ARPA) funds. � Ms. Beekman presented the Community Departinent stalfing requests, noting there are no li additional or new full-time staff being requested; however, they are looking at a request around reallocation of department staffing. She explained that as this department has grown over the past several years, the EDA has absorbed a greater proportion of the wages versus the general fund. In addition, TIF District#3 has historically funded many of the TDA initiatives that otherwise would I have been funded by the EDA. Because TIF District #3 is decertifying at the end of 2021, all of the economic development work currently underway and on-going and new initiatives will need I to be funded by the EDA. �i Ms. Beekman stated the request will be t�o move the wages out of the ED� and to the general fund. ! This will make room for those development initiatives that have historically been funded by TIF District #3. 'I,his is a recommendation she made to the City Manager and would have an impact I on the Community Development budget but it is not included in the budget numbers this evening � and would be an additional ask. � Ms. Beekman displayed the Community Development 2019-2021 budget, noting it has remained I fairly flat with a slight decrease of l% because they largely have retained the programing they I currently have with no new positions or initiatives being proposed. She presented and described �, 2022 initiatives for Building and Community Standards, Planning and Zoning, and Economic Development. Mayor Elliott asked if any City Council Members or Financial Commissioners had questions. �� 08/16/2021 �� Page 13 Councilmembcr Lawrence-Anderson tl�anked Ms. I3eekinan for a thorough presentation and hcr efforts, noting she can't imagine how challenging it has been. She stated she was not aware of the Knock and Talk program for code enlorcement, which she thinks is a grcat idea and hopes it is utilized as much as possible followiilg the pandemic. Mayor Elliott referenced the line for interpretive services for EDA activity and asked if there is a general budget for that for all of the departments. llr. Edwards explained there is funding for some interpretive translation services that applies to the City's website and general communications but it is fairly limited. He noted that every department will have projects that are not anticipated ar beyond the scope of what we generally budget for up front. Dr. Edwards stated, as Ms. Beekman had indicated, she made a request related to transition of funding for staft�from the CDA to the general fund because the EDA fund is drying up and the TII� District #3 resource will no longer be available. I�e stated he will deliberate on that request and determine how to move forward, maybe in stages, noting it may be $240,000 or about a 2.6% increase in lcvy. "1'here being no additional questions or comments, Mayor Elliott inoved to the next agenda item. 4. 2022 BUDGET OVERVIEW— FOLLOW-UP Dr. Edwards stated at this meeting staff will not review the previous bud�;et meeting as a follow up but will do that on September 1, 2021 after the department presentation. At the time the preliminary levy is presented on September 27, 2021, staff will articulate the summary from the previous budget meetings and explain how the budget aligns with those priorities the City Council set in the last meeting. 5. FUTURE BUDGET DISCUSSIONS Sa. SEPTEMBER 1, 2021 —GENERAL FUND BUDGET REQUF,ST CONTINUED • I2ecreation • Police • Fire & Emergency Management Noted. Sb. SEPTEMBER 13, 2021 — RECOMMENllED PRELIMINARY LEVY & BUDGET Dr. Edwards noted there were two things that staff asked the City Council to deliberate on, prioritized strategies and established a comfort level related to levy increase. Both of�those items will impact the presentation made on September 13, 2021, and will be reviewed at that particular time. Sc. SEPTI:MBER 27, 2021 —ADOPTION OF PRELIMINARY LF,VY 08/16/2021 Page 14 Noted. G. ADJOURN "There was a motion by Councilmember Lawrence-Anderson and seconded by Councilmember Ryan to adjourn the meeting. The motion passed. 'I'he Brooklyn Center City CotiilciU��inancial Commission adjourncd at 8:49 p.m. STATL OF MINNI?SO"I'A) COLJN"1'Y OF HENNEPIN) ss. Certiiication of Minutes CITY OF BROOKLYN CENTER) The undersigned,being the duly c�ualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. '1'hat attached hereto is a full,true, and complete transcript of the minutes of a Joint Council and Financial Commission Session of the City Council of the City of Brooklyn Center held on August 16, 2021. 2. "I,hat said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. "1'hat the City Council adopted said minutes at its September 13 2021, Regular Session. / J � � F3arbara SuciLi, City Clerk Mike �lliott, Mayor 08/16/2021 Page 15 ,�