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HomeMy WebLinkAbout2021 10-18 CCM Work Session with Financial CommissionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/FINANCIAL COMMISSION C�7911Y1�1 CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA JOINT WORK SESSION OCTOBER 18, 2021 VIA ZOOM 1. CALL TO ORDER The Brooklyn Center City Council/Financial Commission Joint Work Session was called to order by Mayor Elliott at 6935 p.m. 2. ROLL CALL Mayor Milce Elliott and Councilmembers April Graves, Kris Lawrence -Anderson, and Dan Ryan were present. Councilmember Marquita Butler was absent and excused. Also present were Financial Commission Chair Taneshia Kragness, Taofeek Ishola, Emmanuel Kpaleh (arrived at 6:37 p.m.), and Abate Terefe. Not present were Financial Commissioners David Dwapu, and Dean Van Der Werf. Also present were City Manager Reggie Edwards, Acting Finance Director Andy Splinter, Acting Public Works Director Michael Marsh, City Clerk Barb Suciu, and City Attorney Troy Gilchrist. 3. APPROVAL OF AGENDA There was a motion by Councilmember Ryan and seconded by Mayor Elliott to approve the agenda. Motion passed unanimously. 4. CONSIDERATION ITEMS 4a. ENTERPRISE FUNDS City Manager Reggie Edwards introduced the topic and invited Acting Finance Director Andy Splinter to make the staff presentation. Acting Finance Director Andy Splinter stated an enterprise fund is a governmental fund that one would expect to pay for its expenses and ultimately break even. He noted they hope for a profit from the liquor stores. The hope for utility funds is to make enough to fund future projects and expenses. Mr. Splinter introduced Liquor Operation Manager Tom Agnes to make the staff presentation. 10/18/2021 Page 1 Liquor Operation Manager Tom Agnes stated the mission of the department is to operate two municipal retail liquor stores to provide for the controlled sale and distribution of alcoholic beverages in the community. Profits from the operations are used to fund projects benefitting the community and avoiding the necessity of larger property tax levies for such projects. He noted that they have had to adapt due to COVID4 9 and they received an award recognizing those efforts. Mr. Agnes explained that liquor operations operate within the Fiscal and Support Services Department and they provide spirits, wine, beer, and related items. They operate two locations, one of which is over 18 years old and the other is only a little over one year old. Mr. Agnes stated they typically do special events such as brewery, distillery, and winery trips when it is safe to do so, and they still have the loyalty rewards program in place. Every year they do a food drive to support Community Emergency Assistance Program, a pet drive for the Hennepin Humane Society, and various other events including military supplies and the Fire Department. Mr. Agnes stated there are some changes in the staffing levels. He noted there are two liquor store managers and two assistant liquor store managers. They plan to add a full-time lead position to the new liquor store and another part-time lead position as well as decrease the time of a stocker/clerk position. Mr. Agnes then showed a slide breaking down the financials of the liquor operations. He noted the total amount ends up the same although there has been a decrease in beer sales and an increase in hard alcohol sales. As far as operating expenses, there are two large pieces. The capital outlay will increase from $500,000 to $2.5 million to rebuild Store #2. He explained the plan is to buy land this year and build the store next year. Mr. Agnes stated the key initiatives for 2022 include staff development, upkeep of stores, and responding to customer needs. They will continue the Greet -Understand -Explain -Suggest -Thank model training with employees, and they will continue to get staff trained on Product Information Training. Mr. Agnes stated the Store #2 will begin the replacement process with a land purchase in 2021. As far as responding to customer needs, they will be upgrading the rewards program to include outgoing communication. He explained they will begin collecting text numbers and emails to send out digital coupons on customer birthdays, special occasions, or if they have not visited the store in a while. They are also working on an e-commerce site through Uncorked. Mr. Agnes showed a slide with 2022 Perfor*rrrance Objectives. He stated they try to keep inventory variance levels under $10,000. Mr. Agnes stated it was higher in the last couple of years as Store 12 was looted at $21,000 in 2020 and the major looting at $269,000 earlier in 2021. He noted the bottle locks they added a couple of years ago have been very effective in decreasing inventory variance levels. Mr. Agnes stated they hit 14,000 rewards members last year, which was over their goal of 10,000 members. This year they surpassed their goal again with 27,000 rewards members, and they hope to continue growing it next year. He added they are at a 100% rate compliance checks passed, and they plan to keep that record up. Mr. Agnes stated they surpassed their goal related to a Facebook presence, and their goal is for 10/18/2021 Page 2 )00 likes in 2022 and to upgrade the account to a business account. They did not meet their Twitter followers goal, but they have since designated a specific person to run that account and expect that to increase followers. Mr. Agnes stated they did not push the Instagram account very hard last year, but they hope it continues to increase as the staff puts more focus on social media. He noted they are also working on their LinkedIn profile to help with the staffing shortages. Mr. Agnes stated they hope to have a full year of being open in 2022 and can then contribute to the City's Capital Improvement Fund, Councilmember Ryan asked if the liquor stores scan the back of drivers' licenses during the checkout process. Mr. Agnes confirmed that is how they check identification at their stores. He noted there are a few situations where the barcode doesn't work, but the staff can input the information by hand. Councilmember Ryan asked if the barcode identifies if a customer is not allowed to purchase alcohol due to a previous criminal conviction. Mr. Agnes stated there are instances where there is a note on the back of the ID, but that information is not pulled into the system. Mr. Splinter stated the next presentation would be on the Earle Brown Heritage Center and introduced Earle Brown Heritage Center General Manager Bruce Ballanger to begin the presentation. Earle Brown Heritage Center General Manager Bruce Ballanger stated the center has had a tough year with COVID49, but the recent months have begun to look more like the time before COVID- 19. The mission of the Heritage Center is to deliver a high -quality customer experience by providing exceptional customer service and extraordinary food service in an uncommon setting. Mr. Ballanger stated there are four divisions within the Heritage Center: the convention center, administrative services, catering services, and commercial office rentals. He noted that one of their tenant's leases will be ending this year and the management agreement with Flik International For the food and beverage portion of the operation has been renewed and is in place through 2026. Mr. Ballanger stated they budget for 25 staff, but they are currently operating with only 13 staff, 11 of which are full-time and six part-time staff. They plan to slowly bring people back as the revenue returns, but they do not anticipate being fully staffed until the end of 2022. Mr. Ballanger explained the key initiatives include customer intimacy, community image, inclusive community engagement, and financial stability. Their goal is to increase the current level of 90% repeat corporate clients by reviewing feedback from event evaluations and growing their creative team. He noted they have been in business for 32 years, and they are proud of the business they bring to the City. As for inclusive community engagement, they hope to host a community experience in 2023 or 2024 once funding becomes available. In 2022, they already have $2 million booked, which is higher than the $1.7 million figure they have reached in the last two years. Mr. Ballanger noted they are hoping to transfer $150,000-$200,000 to the Capital Improvements Fund in 2022. Mr. Ballanger stated they have a marketing firm assisting them in their marketing efforts, and they 10/18/2021 Page 3 hope to add a minimum of 20 new corporate clients in 2022. Another annual goal is to build interpersonal relationships with clients and showcase food and beverage services. Mr. Ballanger stated they aim to be responsible for the enviromnent by reducing resource use and food waste. They are working on reducing their electrical consumption by upgrading light figures, and they are a part of the Trim Trax program for food waste reduction. Mr. Ballanger showed a slide on annual operating goal performance measures and noted they hope to increase revenue, number of corporate clients, miscellaneous catering sales, and customer satisfaction rating. He then showed a slide on capital outlay. They have a planned budget transfer of $0 as they do not have the funds to do so, and the 2021 projects have been adjusted to 2022- 2024. Mr. Ballanger explained their 2022 projects include the Carriage Hall roof and a camera security system server. Mr. Ballanger noted some highlights of 2021 include being a COVID vaccine clinic for the State of Minnesota, Hennepin County, and several community groups. In October and November, they returned to pre-COVID rentals, and they received a Minnesota Convention Center Relief Grant fiom MN DEED for $300,000. He stated the 2022 budget includes moving a name change to an American Rescue Plan funding request, repairing the Inn flat roof, purchasing a small man -lift, and doing general maintenance for coffee machines. Mr. Ballanger stated they will continue to recognize residents by offering a discount for Brooklyn Center businesses and couples. Councilmember Ryan asked if the Minnesota Convention Center Relief Grant from MN DEED had any constraints on the use of its funds. Mr. Ballanger stated they had to use the money for labor, building repair, and door accessibility. Councilmember Ryan asked if there are still other needs that have gone unmet because of the loss of cash flow. Mr. Ballanger stated that it has mostly affected the Capital Improvement Plan as they had a 20-year plan, and they have had to push that. Mr. Ballenger stated the roof on the Inn is leaking, and they have been doing whatever they canto maintain the building. The original budget for fixing that was $300,000, but since the cost of rubber has gone up, it will take closer to $425,000 for the entire project. Councilmember Ryan stated he hopes that the Inn repairs can happen sooner than later to prevent any further damage. Mayor Elliott asked when Mr. Ballanger anticipates having additional information on the name change. Mr. Ballanger stated they are getting a survey together and plan on having a community meeting in November or December. He explained they are starting with three Doing Business As names as they are attempting to balance the corporate market and wedding market. Mr. Ballanger stated as they get feedback, they will present the options to the City Council/Financial Commission. 4b. UTILITY FUNDS Mr. Splinter introduced the topic and invited Acting Public Worlcs Director Michael Marsh to make the staff presentation. Acting Public Works Director Michael Marsh stated the mission of the Public Works Department 10/18/2021 Page 4 is to responsibly provide for the maintenance and operations of the City's infrastructure and facilities in a quality, cost-effective manner. Mr. Marsh showed a slide detailing the numbers of various public works items they oversee. He then showed a slide about the strategic function of public utilities including water, sanitary sewer, storm drainage, and street light utility. Mr. Marsh said the staffing levels have remained constant with one supervisor, one engineering technician, nine maintenance positions, and part-time/summer temporary employees that total to two full-time positions for a total of thirteen employees. Mr. Marsh stated the annual goals and strategies include meeting or exceeding the safe drinking water standards of the State of Minnesota and managing stormwater runoff in an efficient and environmentally sensitive manner. They manage and enforce the City's Wellhead Protection Plan goals and implement Best Management Practices that support the City's and Watershed's impaired waters Total Maximum Daily Load plans. Mr. Marsh added another annual goal and strategy is to initiate improved, streamlined management strategies and techniques by the use of refund methods and technologies. They plan to update process flow charging for the utility department and emergency management and automate the monthly well pumping records and reporting to the Minnesota Department of Health. Mr. Marsh showed a slide detailing utility performance measures. They have a goal to have greater than 60% of millable engineering project staff time and overtime, complete four Citywide rounds of street sweeping and ten rounds of targeted secondary areas, to have one -fifth of the City's sanitary sewer televised, cleaned, root -sawed, lined, and newly piped, have zero private sanitary sewer backups and have no violations of drinking water. Over the past year, they met or exceeded each of the goals. Mr. Marsh showed a slide listing the key initiatives for the Public Worlcs Department which included a list of projects they plan to complete in 2022. These projects include woodbine area improvements, Well 7 rehabilitation, Lift Station 4 rehabilitation, I-94, and Dupont 244nch steel water main replacement, water treatment plant redundant water main connection, freeway, and highway utility crossing replacements, stormwater pond rehabilitation, storm pickup plow addition, Public Works facility needs survey and a forklift purchase. Mr. Splinter showed a slide competing utility rates of various cities based on a quarterly billing cycle of 18,000 gallons usage, which is standard for a residential home. In 2021, a Brooklyn Center resident would receive a bill of $178.93. He explained the quarterly bill for 2022 would be $190,32, which is approximately $12.00 more per quarter due to a 9% increase in the water fund, a 5% increase in the sewer fund, and a 7% increase in the storm fund. He then showed a slide with a bar graph to compare cities and pointed out Brooklyn Center's rates are lower than all comparable cities except for White Bear Lake. He noted that Brooklyn Center has lower rates because they chose to build a water treatment facility rather than contract with Minneapolis for water. Mr. Splinter stated they have anticipated debt issues on water, sanitary sewer, and storm sewer in several of the next upcoming years. They assumed a 3%annual increase in personal services and a 2% annual increase in operating expenses. He showed a slide reflecting the water utility rate and cash for 2020-2025. They hope to maintain a cash balance amount similar to what it was at the 10/18/2021 Page 5 end of 2020, which was $3.1 million, and they project a cash balance of $2.5 million at the end of 2025. Mr. Splinter then showed a water utility cash flow bar chart through 2031 and noted they want to have enough set aside for capital outlay. Mr. Splinter showed a slide of a bar chat t comparing the water utility rate to nearby cities. He pointed out that in 2022, Brooklyn Center would surpass Fridley in the water utility rate category. The proposed debt issuance for water is $3.8 million for infrastructure improvements as identified in the Capital Improvement Plan. He noted there are annual payments of approximately $400,000 beginning in 2023 and the proposed bond issue for water would allow the City to smooth rate increases over a period of time. Mr. Splinter showed a chart detailing the sanitary sewer utility rate and cash flow from 2020 and projected through 2025. He noted the projected cash balance at the end of 2025 would be just under $3 million. Mr. Splinter then showed a slide with a bar chart reflecting the sanitary sewer utility cash flow through 2031 and noted they have some larger projects in 2029-2031 that might require bonding. He explained the proposed debt issue for sewer is for $1.6 million of infrastructure improvements identified in the Capital Improvement Plan. The annual payments would be approximately $170,000 beginning in 2022 which would allow the City to smooth rate increases over a period of time. Mr. Splinter showed a slide comparing the sanity sewer utility rates to nearby cities and noted Brooklyn Center is more in the middle of the pack for this category. Mr. Splinter showed a chant detailing the storrnwater utility rate and cash flow from 2020 and projected through 2025. He added the projected cash balance at the end of 2025 would be about $1.8 million. Mr. Splinter then showed a slide with a bar chart reflecting the sanitary sewer utility cash flow through 2031 and noted the cash balance will dip down a bit in 2023. He stated they are proposing debt issuance of $940,000 of infrastructure improvements as identified in the Capital Improvement Plan which equates to annual payments of around $100,000. While displaying a bar chart comparing the stormwater utility rate to nearby cities, he mentioned Brooklyn Center is in the lower end. Dr. Edwards clarified that the comparison charts include the City's proposed 2022 numbers and neighboring cities' 2021 numbers. Mr. Splinter showed a slide depicting a chart with street light utility rate and cash flow through 2025 and explained they do not have a bond issuance projected. He noted it is higher in 2021 and 2022 because of phase two of the Brooklyn Boulevard project. They are working on decreasing the cash balance of the fund because there is not as much capital outlay, but the projections follow the minimum targeted balances. Mr. Splinter stated they are not proposing a rate change in 2022. Mr. Splinter showed a slide with details on the recycling utility rate and cash flow through 2025. He noted there is not much change there since the city of Crystal handles their pickup. They have a current balance of about $200,000 and will potentially use the extra cash to have a community - wide cleanup day. Councilmember Ryan asked when the next scheduled curbside pickup is. Dr. Edwards stated that 10/18/2021 Page 6 staff would follow up with that information. Councilmember Ryan stated he has heard that initiative has widespread support from the community. Dr. Edwards stated staff will look at the budget further and noted they hope to have an amlual curbside pickup. Mayor Elliott mentioned some residents put items on their curb for other community members to take and salvage. He stated they should educate the community on this issue. Councilmember Ryan stated he sees items on the curb that are usable and marked as "flee" which is fine. Councilmember Ryan noted the ordinance enforcement personnel are still facing issues so the City should further educate the community. Commissioner Kpaleh stated he regularly sees only one of the metal streetlights lining Brooklyn Boulevard and asked why that is. Dr. Edwards stated the City Engineer is not on the call, but he will get an answer for Commissioner Kpaleh. Mr. Marsh added those should be working, so he will also follow up with the City Engineer. 5. FUTURE BUDGET DISCUSSIONS Sa. DECEMBER 6, 2021—PUBLIC HEARING AND BUDGET PRESENTATION Noted. 6. ADJOURN There was a motion by Mayor Elliott and seconded by Councilmember Ryan to adjourn the meeting. Motion passed unanimously. The Brooklyn Center City Council/Financial Commission adjourned at 7:45 p.m. STATE OF MINNESOTA) COiJNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of a Joint Work Session with Financial Commission the City of Brooklyn Center held on October 18, 2021. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its November 8, 2021, Regular Session. City Clerk 10/18/2021 Page 7 Mayor MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/FINANCIAL COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA JOINT WORK SESSION OCTOBER 18, 2021 VIA ZOOM 1. CALL TO ORDER The Brooklyn Center City Council/Financial Commission Joint Work Session was called to order by Mayor Elliott at 6035 p.m. 2. ROLL CALL Mayor Mike Elliott and Councilmembers April Graves, Kris Lawrence -Anderson, and Dan Ryan were present. Councilmember Marquita Butler was absent and excused. Also present were Financial Commission Chair Taneshia Kragness, Taofeek Ishola, Emmanuel Kpaleh (arrived at 6:37 p.m.), and Abate Terefe. Not present were Financial Commissioners David Dwapu, and Dean Van Der Werf. Also present were City Manager Reggie Edwards, Acting Finance Director Andy Splinter, Acting Public Works Director Michael Marsh, City Clerk Barb Suciu, and City Attorney Troy Gilchrist, 3. APPROVAL OF AGENDA There was a motion by Councilmember Ryan and seconded by Mayor Elliott to approve the agenda. Motion passed unanimously. 4. CONSIDERATION ITEMS 4a. ENTERPRISE FUNDS City Manager Reggie Edwards introduced the topic and invited Acting Finance Director Andy Splinter to make the staff presentation. Acting Finance Director Andy Splinter stated an enterprise fund is a governmental fund that one would expect to pay for its expenses and ultimately break even. He noted they hope for a profit from the liquor stores. The hope for utility funds is to make enough to fund future projects and expenses. Mr. Splinter introduced Liquor Operation Manager Tom Agnes to make the staff presentation. 10/18/2021 Page 1 Liquor Operation Manager Tom Agnes stated the mission of the department is to operate two municipal retail liquor stores to provide for the controlled sale and distribution of alcoholic beverages in the community. Profits from the operations are used to fund projects benefitting the community and avoiding the necessity of larger property tax levies for such projects. He noted that they have had to adapt due to COVID4 9 and they received an award recognizing those efforts. Mr. Agnes explained that liquor operations operate within the Fiscal and Support Services Department and they provide spirits, wine, beer, and related items. They operate two locations, one of which is over 18 years old and the other is only a little over one year old. Mr. Agnes stated they typically do special events such as brewery, distillery, and winery trips when it is safe to do so, and they still have the loyalty rewards program in place. Every year they do a food drive to support Community Emergency Assistance Program, a pet drive for the Hennepin Humane Society, and various other events including military supplies and the Fire Department. Mr. Agnes stated there are some changes in the staffing levels. He noted there are two liquor store managers and two assistant liquor store managers. They plan to add a full-time lead position to the new liquor store and another part-time lead position as well as decrease the time of a stocker/clerk position. Mr. Agnes then showed a slide breaking down the financials of the liquor operations. He noted the total amount ends up the same although there has been a decrease in beer sales and an increase in hard alcohol sales. As far as operating expenses, there are two large pieces. The capital outlay will increase from $500,000 to $2.5 million to rebuild Store #2. He explained the plan is to buy land this year and build the store next year. Mr. Agnes stated the key initiatives for 2022 include staff development, upkeep of stores, and responding to customer needs. They will continue the Greet -Understand -Explain -Suggest -Thank model training with employees, and they will continue to get staff trained on Product Information Training. Mr. Agnes stated the Store #2 will begin the replacement process with a land purchase in 2021. As far as responding to customer needs, they will be upgrading the rewards program to include outgoing communication. He explained they will begin collecting text numbers and emails to send out digital coupons on customer birthdays, special occasions, or if they have not visited the store in a while. They are also working on an e-commerce site through Uncorked. Mr. Agnes showed a slide with 2022 Performance Objectives. He stated they try to keep inventory variance levels under $10,000. Mr. Agnes stated it was higher in the last couple of years as Store 12 was looted at $21,000 in 2020 and the major looting at $269,000 earlier in 2021. He noted the bottle locks they added a couple of years ago have been very effective in decreasing inventory variance levels. Mr. Agnes stated they hit 14,000 rewards members last year, which was over their goal of 10,000 members. This year they surpassed their goal again with 27,000 rewards members, and they hope to continue growing it next year. He added they are at a 100% rate compliance checks passed, and they plan to keep that record up. Mr. Agnes stated they surpassed their goal related to a Facebook presence, and their goal is for 10/18/2021 Page 2 900 likes m 2022 and to upgrade the account to a business account. They did not meet their Twitter followers goal, but they have since designated a specific person to run that account and expect that to increase followers. Mr. Agnes stated they did not push the Instagram account very hard last year, but they hope it continues to increase as the staff puts more focus on social media. He noted they are also working on their LinkedIn profile to help with the staffing shortages. Mr. Agnes stated they hope to have a full year of being open in 2022 and can then contribute to the City's Capital Improvement Fund. Councilmember Ryan asked if the liquor stores scan the back of drivers' licenses during the checkout process. Mr. Agnes confirmed that is how they check identification at their stores. He noted there are a few situations where the barcode doesn't work, but the staff can input the information by hand. Councilmember Ryan asked if the barcode identifies if a customer is not allowed to purchase alcohol due to a previous criminal conviction. Mr. Agnes stated there are instances where there is a note on the back of the ID, but that information is not pulled into the system. Mr. Splinter stated the next presentation would be on the Earle Brown Heritage Center and introduced Earle Brown Heritage Center General Manager Bruce Ballanger to begin the presentation. Earle Brown Heritage Center General Manager Bruce Ballanger stated the center has had a tough year with COVID4 9, but the recent months have begun to look more like the time before COVID- 19. The mission of the Heritage Center is to deliver a high -quality customer experience by providing exceptional customer service and extraordinary food service in an uncommon setting. Mr. Ballanger stated there are four divisions within the Heritage Center: the convention center, administrative services, catering services, and commercial office rentals. He noted that one of their tenant's leases will be ending this year and the management agreement with Flik International for the food and beverage portion of the operation has been renewed and is in place through 2026. Mr. Ballanger stated they budget for 25 staff, but they are currently operating with only 13 staff, 11 of which are full-time and six part-time staff. They plan to slowly bring people back as the revenue returns, but they do not anticipate being fully staffed until the end of 2022. Mr. Ballanger explained the key initiatives include customer intimacy, community image, inclusive community engagement, and financial stability. Their goal is to increase the current level A 90% repeat corporate clients by reviewing feedback from event evaluations and growing their creative team. He noted they have been in business for 32 years, and they are proud of the business they bring to the City. As for inclusive community engagement, they hope to host a community experience in 2023 or 2024 once funding becomes available. In 2022, they already have $2 million booked, which is higher than the $1.7 million figure they have reached in the last two years. Mr. Ballanger noted they are hoping to transfer $150,000-$200,000 to the Capital Improvements Fund in 2022. Mr. Ballanger stated they have a marketing firm assisting them in their marketing efforts, and they 10/18/2021 Page 3 hope to add a minimum of 20 new corporate clients in 2022. Another annual goal is to build interpersonal relationships with clients and showcase food and beverage services. Mr. Ballanger stated they aim to be responsible for the enviromnent by reducing resource use and food waste. They are working on reducing their electrical consumption by upgrading light figures, and they are a part of the Trim Trax program for food waste reduction. Mr. Ballanger showed a slide on annual operating goal performance measures and noted they hope to increase revenue, number of corporate clients, miscellaneous catering sales, and customer satisfaction rating. He then showed a slide on capital outlay. They have a planned budget transfer of $0 as they do not have the funds to do so, and the 2021 projects have been adjusted to 2022- 2024. Mr. Ballanger explained their 2022 projects include the Carriage Hall roof and a camera security system server. Mr. Ballanger noted some highlights of 2021 include being a COVID vaccine clinic for the State of Minnesota, Hennepin County, and several community groups. In October and November, they returned to pre-COVID rentals, and they received a Minnesota Convention Center Relief Grant from MN DEED for $300,000. He stated the 2022 budget includes moving a name change to an American Rescue Plan funding request, repairing the Inn flat roof, purchasing a small man -lift, and doing general maintenance for coffee machines. Mr. Ballanger stated they will continue to recognize residents by offering a discount for Brooklyn Center businesses and couples. Councilmember Ryan asked if the Minnesota Convention Center Relief Grant from MN DEED had any constraints on the use of its funds. Mr. Ballanger stated they had to use the money for labor, building repair, and door accessibility. Councilmember Ryan asked if there are still other needs that have gone unmet because of the loss of cash flow. Mr. Ballanger stated that it has mostly affected the Capital Improvement Plan as they had a 20-year plan, and they have had to push that. Mr. Ballenger stated the roof on the Inn is leaking, and they have been doing whatever they canto maintain the building. The original budget for fixing that was $300,000, but since the cost of rubber has gone up, it will take closer to $425,000 for the entire project. Councilmember Ryan stated he hopes that the Inn repairs can happen sooner than later to prevent any further damage. Mayor Elliott asked when Mr. Ballanger anticipates having additional information on the name change. Mr. Ballanger stated they are getting a survey together and plan on having a community meeting in November or December. He explained they are starting with three Doing Business As names as they are attempting to balance the corporate market and wedding market. Mr. Ballanger stated as they get feedback, they will present the options to the City Council/Financial Commission, 4b. UTILITY FUNDS Mr. Splinter introduced the topic and invited Acting Public Works Director Michael Marsh to make the staff presentation. Acting Public Works Director Michael Marsh stated the mission of the Public Works Department 10/18/2021 Page 4 is to responsibly provide for the maintenance and operations of the City's infrastructure and facilities in a quality, cost-effective manner. Mr. Marsh showed a slide detailing the numbers of various public works items they oversee. He then showed a slide about the strategic function of public utilities including water, sanitary sewer, storm drainage, and street light utility. Mr. Marsh said the staffing levels have remained constant with one supervisor, one engineering technician, nine maintenance positions, and part-time/summer temporary employees that total to two full-time positions for a total of thirteen employees. Mr. Marsh stated the annual goals and strategies include meeting or exceeding the safe drinking water standards of the State of Minnesota and managing stormwater runoff in an efficient and environmentally sensitive manner. They manage and enforce the City's Wellhead Protection Plan goals and implement Best Management Practices that support the City's and Watershed's impaired waters Total Maximum Daily Load plans. Mr. Marsh added another annual goal and strategy is to initiate improved, streamlined management strategies and techniques by the use of refund methods and technologies. They plan to update process flow charging for the utility department and emergency management and automate the monthly well pumping records and reporting to the Minnesota Department of Health. Mr. Marsh showed a slide detailing utility performance measures. They have a goal to have greater than 60% of millable engineering project staff time and overtime, complete four Citywide rounds of street sweeping and ten rounds of targeted secondary areas, to have one -fifth of the City's sanitary sewer televised, cleaned, root -sawed, lined, and newly piped, have zero private sanitary sewer backups and have no violations of drinking water. Over the past year, they met or exceeded each of the goals. Mr. Marsh showed a slide listing the key initiatives for the Public Worlcs Department which included a list of projects they plan to complete in 2022. These projects include woodbine area improvements, Well 7 rehabilitation, Lift Station 4 rehabilitation, I.94, and Dupont 24411ch steel water main replacement, water treatment plant redundant water main connection, freeway, and highway utility crossing replacements, stormwater pond rehabilitation, storm pickup plow addition, Public Works facility needs survey and a forklift purchase. Mr. Splinter showed a slide competing utility rates of various cities based on a quarterly billing cycle of 18,000 gallons usage, which is standard for a residential home. In 2021, a Brooklyn Center resident would receive a bill of $178.93. He explained the quarterly bill for 2022 would be $190.32, which is approximately $12.00 more per quarter due to a 9% increase in the water fund, a 5% increase in the sewer fund, and a 7% increase in the storm fund. He then showed a slide with a bar graph to compare cities and pointed out Brooklyn Center's rates are lower than all comparable cities except for White Bear Lake. He noted that Brooklyn Center has lower rates because they chose to build a water treatment facility rather than contract with Minneapolis for water. Mr. Splinter stated they have anticipated debt issues on water, sanitary sewer, and storm sewer in several of the next upcoming years. They assumed a 3%annual increase in personal services and a 2% annual increase in operating expenses. He showed a slide reflecting the water utility rate and cash for 2020-2025. They hope to maintain a cash balance amount similar to what it was at the 10/18/2021 Page 5 and of 2020, which was $3.1 million, and they project a cash balance of $2.5 million at the end of 2025. Mr. Splinter then showed a water utility cash flow bar chart through 2031 and noted they want to have enough set aside for capital outlay. Mr. Splinter showed a slide of a bar chart comparing the water utility rate to nearby cities. He pointed out that in 2022, Brooklyn Center would surpass Fridley in the water utility rate category. The proposed debt issuance for water is $3.8 million for infrastructure improvements as identified in the Capital Improvement Plan. He noted there are annual payments of approximately $400,000 beginning in 2023 and the proposed bond issue for water would allow the City to smooth rate increases over a period of time. Mr. Splinter showed a chart detailing the sanitary sewer utility rate and cash flow from 2020 and projected through 2025. He noted the projected cash balance at the end of 2025 would be just under $3 million. Mr. Splinter then showed a slide with a bar chart reflecting the sanitary sewer utility cash flow through 2031 and noted they have some larger projects in 2029-2031 that might require bonding. He explained the proposed debt issue for sewer is for $1.6 million of infiastructure improvements identified in the Capital Improvement Plan. The annual payments would be approximately $170,000 beginning in 2022 which would allow the City to smooth rate increases over a period of time. Mr. Splinter showed a slide comparing the sanity sewer utility rates to nearby cities and noted Brooklyn Center is more in the middle of the pack for this category. Mr. Splinter showed a chas-t detailing the stonmwater utility rate and cash flow from 2020 and projected through 2025. He added the projected cash balance at the end of 2025 would be about $1.8 million. Mr. Splinter then showed a slide with a bar chart reflecting the sanitary sewer utility cash flow through 2031 and noted the cash balance will dip down a bit in 2023. He stated they are proposing debt issuance of $940,000 of infrastructure improvements as identified in the Capital Improvement Plan which equates to annual payments of around $100,000. While displaying a bar chart comparing the stormwater utility rate to nearby cities, he mentioned Brooklyn Center is in the lower end. Dr. Edwards clarified that the comparison charts include the City's proposed 2022 numbers and neighboring ces' 2021 numbers. Mr. Splinter showed a slide depicting a chart with street light utility rate and cash flow through 2025 and explained they do not have a bond issuance projected. He noted it is higher in 2021 and 2022 because of phase two of the Brooklyn Boulevard project. They are working on decreasing the cash balance of the fund because there is not as much capital outlay, but the projections follow the minimum targeted balances. Mr. Splinter stated they are not proposing a rate change in 2022. Mr. Splinter showed a slide with details on the recycling utility rate and cash flow through 2025. He noted there is not much change there since the city of Crystal handles their pickup. They have a current balance of about $200,000 and will potentially use the extra cash to have a community - wide cleanup day. Councilmember Ryan asked when the next scheduled curbside pickup is. Dr. Edwards stated that 10/18/2021 Page 6 staff would follow up with that information. Councilmember Ryan stated he has heard that initiative has widespread support from the community. Dr. Edwards stated staff will look at the budget further and noted they hope to have an amlual curbside pickup. Mayor Elliott mentioned some residents put items on their curb for other community members to take and salvage. He stated they should educate the community on this issue. Councilmember Ryan stated he sees items on the curb that are usable and marked as "free" which is fine. Councilmember Ryan noted the ordinance enforcement personnel are still facing issues so the City should further educate the community. Commissioner. Kpaleh stated he regularly sees only one of the metal streetlights lining Brooklyn Boulevard and asked why that is. Dr. Edwards stated the City Engineer is not on the call, but he will get an answer for Commissioner Kpaleh. Mr. Marsh added those should be working, so he will also follow up with the City Engineer. 5. FUTURE BUDGET DISCUSSIONS Sa. DECEMBER 6, 2021—PUBLIC HEARING AND BUDGET PRESENTATION Noted. 6. ADJOURN There was a motion by Mayor Elliott and seconded by Councilmember Ryan to adjourn the meeting. Motion passed unanimously. The Brooklyn Center City Council/Financial Commission adjourned at 7:45 p.m. STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of a Joint Work Session with Financial Commission the City of Brooklyn Center held on October 18, 2021. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its November 8, 2021 a City Clerk 10/18/2021 Page 7 esson. Si