Loading...
HomeMy WebLinkAbout2021 10-04 CCM Work Session Joint FinancialMINUTES 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 4, 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 6:30 p.m. 2. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence - Anderson, and Dan Ryan. Also present were Financial Commissioners Chair Taneshia Kragness and Dean Van Der Werf. Not present were Financial Commissioners David Dwapu, Taofeek Ishola, Emmanuel Kpaleh, and Abate Terefe. Also present were City Manager Reggie Edwards, Acting Finance Director Andy Splinter, Community Development Director Meg Beekman, City Clerk Barb Suciu, and City Attorney Troy Gilchrist. 3. APPROVAL OF AGENDA There was a motion by Mayor Elliott and seconded by Councilmember Lawrence -Anderson to approve the agenda. Motion passed unanimously. 4. SPECIAL REVENUE FUNDS, DEBT SERVICE, AND INTERNAL SERVICE FUND BUDGET REVIEW 4a. SPECIAL REVENUE, DEBT SERVICE, AND INTERNAL SERVICE FUND BUDGET REVIEW City Manager Reggie Edwards introduced the topic and added that October 18 and December 6 are future discussions for the next steps on this topic. He invited Mr. Splinter and Ms. Beekman to make the staff presentation. Acting Finance Director Andy Splinter stated the special revenues funds are funds of the City with dedicated expenses and use but don't necessarily benefit from user fees or break even, which is 10/04/2021 Page 1 similar to the enterprise fund. He added some of the special revenue funds may have a dedicated funding source, but they also receive some tax levies. Mr. Splinter stated the first special revenue fund is the Economic Development Authority and Housing and Redevelopment Authority and noted Ms. Beekman would go further into that at a later time. He stated another special revenue fund is the Tax Increment Financing funds for Districts 2, 3, 5, 6, and 7, and added District 4 was decertified last year. Mr. Splinter stated District 3, as they discussed in the general fund, is coming off the rolls next year, but that District will hang out for several years and have some funds left in that District to spend on projects throughout the City that qualify. Mr. Splinter stated the police forfeiture fund is where they receive any Driving Under the Influence forfeitures as they are turned over to the City or the County Attorney's Office, and the Police can use those funds for equipment purchases or things of that nature. They most recently used a large share of their fund to outfit their new SWAT vehicle. Mr. Splinter added in the category of city grants, the Police Department received Auto Theft Prevention, Towards Zero Deaths, Justice Assistance Grant, Violent Offenders Task Force Grant, and Federal Bullet Proof Vest Grant. Mr. Splinter stated the city grants also include grant funds and donation -based funds that Recreation keeps track of, and Luther Soccer League is the biggest one there. Mr. Splinter added the last grant in the city grants category is the Northwest Cable Communication Grant. He stated this is funding related to fees for people to access programming, and added these funds come into the City and they are required to use them for certain purposes related to government communication. Most recently they used these funds when doing the renovation in City Council Chambers about four years ago. Mr. Splinter stated the last special revenue fund, which was previously an enterprise fund, is the Centerbrook Golf Course. Mr. Splinter noted golf has hit a bit of a boon recently due to COVID- 19, so they made a profit last year and were able to pay down a few of their cash deficits. They are hoping for another successful year, and they reduced the general fund a little bit for 2022. Ms. Beekman stated the Housing and Redevelopment Authority and the Economic Development Authority are distinctive in that they have differing missions. Ms. Beekman noted the mission of the Housing and Redevelopment Authority is to utilize its taxing authority to fund the operations of the Brooklyn Center Economic Development Authority. Ms. Beekman stated the mission of the Brooklyn Center Economic Development Authority is to initiate programs and facilitate redevelopment or renovation opportunities that promote public and private investments into commercial, industrial, and residential redevelopment and renovation activities. Ms. Beekman stated the Economic Development Authority primarily serves the strategic priorities of resident and business economic stability and targeted redevelopment. She stated last year when the Council was preparing for their 2021, they identified several budget priorities, and divided the resident and business economic stability priority into two distinct priorities, one focused on reticent economic stability and the other focused on business economic stability. 10/04/2021 Page 2 Ms. Beekman stated the primary activities of the Economic Development Authority are primarily around business retention, expansion, and attraction, community marketing activities, promoting development opportunities, economic development initiatives, and programs that support business growth, expansion, and capacity -building within the City with a focus on small and local businesses, and planning initiatives and budgeting associated with the use of Tax Increment Financing. She added they fund the Minnesota Housing and Finance Agency program to provide reduced interest rates for homeowners who are looking to rehabilitate their properties. Ms. Beekman stated in 2020, the Economic Development Authority pivoted their focus, and they responded to the pandemic by taking all of their initiatives and resources and funneling them towards small business resources and technical assistance along with resident support and resources. In 2020 the City received Coronavirus Aid, Relief, and Economic Security Act funding which, combined with their Community Development Block Grant money, funded the Forgivable Loan Program for small businesses. She added they provided $150,000 in forgivable loans in the community. Ms. Beekman stated they provided non-profit community resource grants that were providing services to residents. She stated they provided direct technical assistance to places like Liberian Business Association and Patio Consulting as well as supporting organizations like African Career, Education, and Resource who were providing direct technical assistance as well. Ms. Beekman noted they provided a significant amount of outreach and education, going door-to- door in some cases and reaching out to small businesses to make sure they were aware of the resources that were available to them through the City, county, and state. Ms. Beekman stated the Economic Development Authority addressed food access and worked with the local food shelves to help them stabilize and expand services. She added they partnered with Hennepin County and Community Emergency Assistance Programs to provide rental assistance to renters in the community and utilized the Community Development Block Grant funds to fund a down payment assistance program for first-time homebuyers in the community. Ms. Beekman stated the Coronavirus Aid, Relief, and Economic Security Act funding had ended by the end of 2020, but they continued the work to focus on loan support in 2021. She noted they had a new Economic Development Coordinator start in January of 2021, and he was able to hit the ground running and do an assessment of local business needs. Ms. Beekman stated they developed a business resource webpage with different sections for entrepreneurs looking to start a business as well as existing businesses in the community that is looking to grow. Ms. Beekman added they continued to implement and expand resources and technical assistance. She stated they created a revolving loan fund to support low -interest loans of up to $100,000 to help expanding businesses get the equipment or do capital improvements. Ms. Beekman stated they partnered with the Liberian Business Association to support small entrepreneurs who have had barriers to accessing traditional capital markets, and the micro -loan fund has allowed them to access those capital dollars while also getting one-on-one mentoring on becoming bank -ready. Ms. Beekman stated they partnered with Hennepin County on their Elevate Business program 10/04/2021 Page 3 which provides free technical assistance to small businesses. She noted their Economic Development Coordinator has done a good job of promoting that program and meeting specifically with the technical service providers to make sure they are providing a customized experience for residents. Ms. Beekman added the Economic Development Coordinator has served as an ombudsman and point -of -contact for people in the community that have questions or need assistance. Ms. Beekman stated the City also funded a micro -grant facade program which is currently being implemented. Ms. Beekman stated they also provided a Sewer Availability Charge credit program, which allows the City to collect unused Sewer Availability Charge credits and pool them in a Citywide fund that can then support small businesses with their expansions. She stated they developed a formal Business Retention and Expansion Program to go out and meet with existing businesses in the community, talk to them about where they are at and where they see themselves in five or ten years and ask about their barriers and how the City can support them. They partnered with the Minneapolis City Chamber to track the information they are gathering, so that will ultimately yield full reports. Ms. Beekman added it also helps them to build relationships with those businesses and better understand what their needs are. Ms. Beekman stated the program has already put businesses that were in expansion mode in contact with locations they can relocate to and expand into and help them fund equipment purchases to facilitate the expansion. Ms. Beekman stated they have helped to provide affordable bricks and mortar spaces for businesses. Ms. Beekman stated she knows business stability is a major concern for entrepreneurs in the community and having access to affordable space has been a major priority, so they are focusing on an Entrepreneurial Market Plaza incubator as an initial phase of development. She noted they also have goals around affordable commercial set -asides in new development. Ms. Beekman stated, moving into 2022, they looked at the Council's priorities from 2021 and identified what they had accomplished, what was yet to be done and focused the Economic Development Authority's budget around those particular initiatives and actions. She stated the three key pieces, as earlier mentioned, are targeted redevelopment, resident economic stability, and business economic stability and identified initiatives for each of those. Ms. Beekman noted the Economic Development Authority is not the only source of funding for these programs, and she will note where they have initiatives identified that are funded through other sources, such as Tax Increment Financing funds or the general fund or are excellent candidates for American Rescue Plan Act funds. They will be including such programs in the proposal to the Council for such funds. Ms. Beekman stated those have yet to be determined as the Council has not decided how those funds will be allocated, but they are working on developing a proposal for the Council to consider at a later date. Ms. Beekman stated targeted development is primarily focused on the Opportunity Site and redevelopment work they will see with that once they get a project out of the ground. Ms. Beekman stated strategic redevelopment of existing Economic Development Authority -owned properties and considers strategic acquisitions the Economic Development Authority makes throughout the year as opportunities become available. She stated the former owner of the Sear's site is looking to redevelop that site, so part of the Economic Development Authority's initiative involves working with them to find a land use that is feasible from a market perspective and also meets the 10/04/2021 Page 4 former owner's goals. Ms. Beekman noted there are not necessarily dollars attached to these items as it is the day-to-day work of the staff, but she wanted to include it as they are areas they want to focus on. Ms. Beekman stated the resident economic stability priority has four key initiatives. Ms. Beekman stated they plan to do workforce development and focus on creating pathways for residents to obtain training and, ultimately, higher -paying jobs. Ms. Beekman stated the initiative of resident wealth creation focuses on ownership as well as financial literacy. She noted food security is a new area of focus in 2021 and one that they have begun to pour into. Ms. Beekman stated the job retention and expansion are tied with targeted redevelopment with the focus on the need for livable wage jobs and expansion of those opportunities. Ms. Beekman stated the business economic stability priority focuses on assessing local needs, identifying resources for local businesses, and creating stability for local businesses so that they can thrive. Ms. Beekman stated all of the initiatives associated with targeted redevelopment would be allocated to the District 3 Tax Increment Financing pooling that they have available, so those initiatives are not included in the Economic Development Authority budget. Ms. Beekman noted she would first be focusing on resident economic stability. Ms. Beekman stated the first initiative of resident wealth creation focuses on promoting homeownership and wealth building programs among historically low wealth communities, and they have several actions they are focused on within that area. Ms. Beekman stated for the housing assistance and related resources initiative, they continually work they have been doing with Hennepin County as they are bringing rental assistance and mortgage assistance programs to the community. Ms. Beekman stated the Economic Development Authority also wants to continue to promote homeownership, and they have a program that is funded through Community Development Block Grant money. Ms. Beekman stated they are looking to expand programs related to financial literacy. She noted one example of this is the work with Powderhorn Residents Group. Ms. Beekman stated that the program is available for folks who currently live or work in the community or whose children attend a school in the community, and it provides up to $10,000 of down payment assistance to buy a home in Brooklyn Center. Ms. Beekman noted they realize some people may not be ready for homeownership, so the partnership with Powderhorn Residents Group provides one-on-one financial readiness and assistance to get folks ready to buy a home. Ms. Beekman stated people can enter into the program, work with the Powderhorn Residents Group for any amount of time that makes sense, and then, upon completion of the program, have access to those funds. Ms. Beekman stated they are also working on a City-wide housing study which is being funded by the District 3 Tax Increment Financing Housing Fund. She noted the outcome from the study will be recommendations to form a Housing Policy Action Plan. Ms. Beekman stated they intend to have that deliverable within the first quarter of 2022, and the work will begin in moving forward with that action plan. Ms. Beekman stated tenant protection has been a major issue. She stated she provided an update to the Council last week on where they are at with that, and it should be coming to the Council 10/04/2021 Page 5 relatively quickly. Ms. Beekman stated they focused on legal fees and preparing ordinances. Ms. Beekman stated they are working with advocates to get the ordinance language just right. Ms. Beekman noted this work is currently budgeted in the general fund. Ms. Beekman stated food security is a new area of focus and is really about facilitating food security for residents. Ms. Beekman noted they have three actions they are working on to promote food security. She stated an action item for this initiative is to partner with local food shelf providers to identify barriers and invest in sustainable food production and distribution. Ms. Beekman stated they are in partnership with CAPI and the Community Emergency Assistance Program to have a conversation about a proposal that they are putting together to provide a mobile food truck type of model that would allow for the food shelves to do better distribution and provide food access by meeting people in the community. Ms. Beekman noted the proposal is for the use of American Rescue Plan Act funds. Ms. Beekman stated they have been working on a deep winter greenhouse which relates to the effort of supporting the Brooklyn Center Community Food Collective. She noted this was budgeted for in last year's Economic Development Authority budget, but it was not expended. Ms. Beekman stated they did not get to the point of constructing the greenhouse, but they have moved forward quite a bit on that work. Ms. Beekman stated those funds are, in a sense, rolling forward to be available for that program when it is ready. Ms. Beekman stated another action item to promote and facilitate food security is to support local farmers' markets. Ms. Beekman noted they have had conversations with local farmer's market providers in Brooklyn Center, and the Economic Development Authority is looking to grow and develop their work. She added they have partnered with and hired some local organizations to help with that, and they have requested funds to help pay for a farmer's market coordinator who can come in and help them think through a plan to expand, develop communications and outreach plan, and stabilize the farmers' market. The local farmer's markets have requested a three-year commitment of $12,000 to support that work. Ms. Beekman stated there will be a formal proposal at a later date, but the intention here is to put it into the budget should the proposal and program move forward. Ms. Beekman stated job retention and expansion are focused on increasing the number of high - quality jobs in the community. She stated this is work they do as a part of their day-to-day, but the focus on local hiring practices is something they want to expand into. Ms. Beekman stated this is ultimately to identify redevelopment opportunities and advance the creation of livable wages and skilled jobs while emphasizing and encouraging local hiring practices. Ms. Beekman stated they would like to emphasize the relationships between new businesses coming in and local hiring. Ms. Beekman stated job pathways and workforce development is related to job retention and expansion. Ms. Beekman stated workforce development has been an initiative for the City since 2018 when the Economic Development Coordinator position was created. She noted an area that they struggled to figure out was what the City's role is in providing the necessary training and workforce development that their residents need. Ms. Beekman stated they landed that it is about collaboration and partnerships and leveraging the work that others are doing while expanding upon that work. Ms. Beekman stated they have been in conversations with the city of Brooklyn Park 10/04/2021 Page 6 about expanding workforce development collectively and recognizing that this is something that goes beyond individual city borders. Ms. Beekman stated the focus is where the City can make a significant difference. Ms. Beekman noted they have some amazing educational institutions, organizations, and employers looking to hire in the community, and the gap is in the pathways between those spaces - from high school into higher education and training and then into employment. Ms. Beekman stated they are working on an initiative to address that, and they are proposing the use of American Rescue Plan Act funds on that. Ms. Beekman stated they are also looking to connect residents to jobs within the City, and they are doing that in partnership with the Administration Department of the City. Ms. Beekman stated they want to further support the BrookLynk Program that the City already does support. She stated the City allocates about $50,000 each year to that program, and that program can leverage six times that in state grants that go back into the community to fuel that work. Ms. Beekman stated the success that the program has had in obtaining state dollars has been eye-opening for the Economic Development Authority in understanding what the county is looking for in terms of funding. Ms. Beekman stated this year they funded training programs with the Organization of Liberians in Minnesota. Ms. Beekman stated they had partnered with several Certified Nurse Practitioner Training and Certification programs and then directly worked with residents to connect them to those training programs, help them through the programs, and move them into employment. She added this has been a successful approach, and they are looking to continue that work and hopefully utilizing American Rescue Plan Act funds. Ms. Beekman stated, moving into business economic stability, is focused on supporting local businesses. Ms. Beekman stated they are working on an assessment that will identify where there are service gaps for local entrepreneurs and then what are resources for them to access. They anticipate having a report to the Council by the end of the year that culminates the work of 2021. Ms. Beekman started focusing on resources for local businesses is about implementing and expanding resources and technical assistance to local businesses, with an emphasis on disadvantaged businesses. She added they have programs that will continue to monitor and evaluate current programs into 2022 to ensure that those programs are effective and evolving going forward. Ms. Beekman stated another initiative is the Business Resource Center which would be a place for local entrepreneurs could go and access resources. Ms. Beekman noted they have identified $50,000 in the Economic Development Authority budget to help support that work, and they hope to continue to do that as it is a much -needed and valuable resource in the community. Ms. Beekman noted they plan to strengthen partnerships to connect local businesses to existing resources. Ms. Beekman stated they want to expand and formalize the Business Retention and Expansion Program. 10/04/2021 Page 7 Ms. Beekman described the Local Procurement Program initiative, staffs conversations with consultants, including the Brooklyn Park consultant, and the preparation of several proposals. This program would scan the community's business climate to provide procurement services and also look at the City's decentralized local procurement process. It would focus on private investment so consideration was given to drafting a business subsidy policy that requires when a City subsidy is received, that the business must comply with a local procurement program. This item was budgeted at $150,000, to put the program into place the right way. Ms. Beekman stated they have earmarked another $50,000 for a micro -grant program. She stated they funded a $50,000 micro -grant program which was successful, and the work is out being completed currently. Ms. Beekman stated the goal of business economic stability looks like being able to promote a stable environment for local businesses to thrive by providing bricks and mortar opportunities. She stated first action item is the Entrepreneurial Market Plaza business incubator as part of the Opportunity Site which will be funded by the District 3 Tax Increment Financing funds. Ms. Beekman noted they want to utilize the Economic Development Authority -owned shell retail space to serve local entrepreneurs and small business needs and explore the creation of additional affordable commercial spaces as the Economic Development Authority -owned properties develop. She added they also want to create a program that would provide access to capital to promote real estate acquisition and ownership for small businesses, which is the proposed use of American Rescue Plan Act funding. Ms. Beekman stated they are not proposing any staffing changes for 2022. She noted as the department has grown over the years, the Economic Development Authority has absorbed a greater proportion of wages versus the general fund, and they have been able to do that because District Three Tax Increment Financing has historically funded economic development initiatives that would have otherwise been funded by the Economic Development Authority. With District Three Tax Increment Financing being decertified this year, they know that the ongoing initiatives will now need to be funded by the Economic Development Authority, so they are proposing to begin to move some wages to the general fund to make room for Economic Development Authority initiatives that would have been funded by District Three Tax Increment Financing. For 2022, they are looking at a reduction in full-time equivalent time for staff down to 2.25 full-time equivalent in 2022 then hold at 1.25 full-time equivalent in 2023. Ms. Beekman stated the Economic Development Authority anticipates revenues of $693,654 and expenditures anticipated at $885,097, part of which are programs they did not complete in 2021. Ms. Beekman noted they do have a strong Economic Development Authority reserve, so they believe this is an acceptable use of those reserves. Ms. Beekman showed a slide on the Tax Increment Financing Districts. Ms. Beekman explained the Tax Increment Financing funds have the authority to collect tax increment which is then used for various redevelopment projects within the City and for debt service payments of bonds that were issued for redevelopment purposes. The state dictates how those funds can be used. She added they currently have four active Tax Increment Financing Districts in the City, but they track seven budgets because they have a few Districts that have been decertified but still have funds. 10/04/2021 Page 8 Ms. Beekman stated District Two Tax Increment Financing was decertified in 2011 and was primarily used to finance the redevelopment of Earle Brown Terrace and Earle Brown Commons, and the current district goals are to provide the Economic Development Authority with options for maximizing redevelopment opportunities and benefits, to repay District Five Tax Increment Financing inter -fund loan, and to support the development of the Opportunity Site. She noted the current balance of the District Two Tax Increment Financing fund is about one million dollars with revenue of about $100,000 and the only ear -marked expenditure is $100,000 stormwater improvements for the Heritage Center. Ms. Beekman stated one of the potential uses of the other funds is opportunity seed for the Entrepreneurial Market Plaza. Ms. Beekman stated District Three Tax Increment Financing covers three designated areas: Brooklyn Boulevard/69th, Brookdale area, and Willow/Highway 252 and decertifies in 2021. 15% of District Three Tax Increment Financing revenues are dedicated to the housing fund. She noted the District's goals are primarily for debt service, to develop options for the use of out -of -district pooled funds, redevelopment of 57th/Logan, the Opportunity Site, and the former Sears site, and the Brooklyn Boulevard Corridor Land Use Plan. The projected balance at the beginning of 2022 will be about $7.4 million, the projected revenue is $29,100, and the planned activity is $2.7 million. Ms. Beekman noted the planned activity primarily covers debt service at $2.3 million for 2022. She added there would be some administration reimbursements budgeted at $150,000, an upcoming Brooklyn Center project at $50,000, the Opportunity Site planning will cost $300,000, and property maintenance requires $125,650. Ms. Beekman stated there are some opportunities for pooled funds such as a District Seven Tax Increment Financing inter -fund loan to assist with the redevelopment of the Opportunity Site, strategic land acquisition, and other eligible expenses. Because District Seven Tax Increment Financing is so new, it doesn't have upfront costs covered, and District Three Tax Increment Financing can step in to help cover the initial costs and will be paid back over time. Ms. Beekman explained that District Three Tax Increment Financing also has a housing fund with a projected balance of $2.2 million at the beginning of 2022, no projected revenue, and $248,981 of planned activity for debt service. The opportunities for housing funds include implementing the outcomes of the housing study perhaps by supporting the preservation or expansion of affordable housing. Ms. Beekman stated District Five Tax Increment Financing is a renewal and renovation district established in 2011 for the Shingle Creek Crossing Planned Unit Development that decertifies in 2029. Most of the increment goes to debt service on the bonds related to the redevelopment, and 5% of the increment is pooled to cover administrative costs. She noted the projected balance of the fund will be $565,852 and they anticipate about $500,000 of revenue coming in through the District with expenditures being about the same. Those funds could be used to reposition and market vacant properties or provide infrastructure improvements to facilitate redevelopment and build -out. Ms. Beekman showed a slide depicting when they can expect expenditures with District Five Tax Increment Financing and noted the revenues and expenditures are fairly stable over the life of the District. She noted the debt service for District Five Tax Increment Financing will come to an end in 2024, and they will see quite a bit of cash balance growing from there. 10/04/2021 Page 9 Ms. Beekman stated District Six Tax Increment Financing primarily was created to assist with the redevelopment of the sanctuary and decertifies in 2043; its revenue derives from a Pay As You Go note. Ms. Beekman stated the balance of the fund is about $83,000 and the revenue and expenditures are about equal. Ms. Beekman stated District Seven Tax Increment Financing is the Opportunity Site and the Kohl's/Bank of America site. She noted the activity in the district must commence by 2023 or they will lose the District. Any expenditures related to the Opportunity Site are currently being billed to District Three Tax Increment Financing, but they did set up an inter -fund loan agreement to allow District Seven Tax Increment Financing to pay back District Three Tax Increment Financing for Opportunity Site expenditures at a later date. Ms. Beekman stated the primary goal of the District is to develop funding strategies that promote the redevelopment of the Opportunity Site. The current balance in that fund is about $242,000, and they do not have any expenditures planned for the District. Ms. Beekman explained District Eight Tax Increment Financing was created to facilitate the SonderPlace development. She noted it has not been certified yet, but it should be happening shortly. Mr. Splinter stated the police forfeitures funds account for forfeitures related to drug and alcohol - related crimes. The alcohol forfeitures are restricted for alcohol -related crime expenses and have a glance of $3,452, and the drug forfeitures are restricted for law enforcement expenses that currently have $34,303. He explained the funds were previously used for the Incident Command Vehicle and the purchase of body -worn cameras, but there is no current planned use for the fund for 2022. Mr. Splinter stated the city grants fund which includes the Northwest Cable Communications Grant, recreation grants, and police grants. He noted the Northwest Cable Communications Grant had a glance of $149,432 at the end of September, and they have $40,000 budgeted for grant revenue in 2022. Mr. Splinter explained the recreation grants account for donations, fees, and revenues designated for the support of a specific community and recreational activities. The activities identified include Safety Camp for $1,000, Luther Soccer League for $10,000, and Community Center epochal events such as a Halloween Party or Holly Sunday part for $14,000. Mr. Splinter stated the police grants account for local, state, or federal grants for police activities. He noted the Auto Theft Prevention Grant was recently renewed for $34,200 to be used for some equipment purchases. They also received a separate grant to fund an investigator. Mr. Splinter stated the Byrne Grant Fund pays for a portion of one of their caseworkers, and the Violent Offenders Task Force is a grant for officers that take part in that task force. He added the Towards Zero Deaths grant allows for officers to take up extra shifts if they can on major holidays, and they usually receive a small number of federal funds for bulletproof vest replacement. Mr. Splinter stated the internal service funds are primarily just the Central Garage which accounts for the operation of centralized management of fuel, preventative maintenance, and repair and replacement of city -owned motorized equipment and fleet. There will be no changes to staffing for 2022. Mr. Splinter noted 2021 was the first year they moved the Deputy Public Works Director directly to this fund. The changes for the Central Garage budget include an increase in general charges by about $250,000, a small increase for the cost -of -living adjustment, a decrease of 10/04/2021 Page 10 equipment purchases by $267,000, and very little change in the administrative services. Mr. Splinter explained the Central Garage is projecting fuel sales of $345,000 for City vehicles and school district busses. He noted the equipment replacement charges are at $1.3 million, the overhead charges cost about $260,000, and a budget for repair and maintenance of $400,000. On the operating expense side, personal services cost about $638,000, the cost for supplies is just over $522,000, general services and charges take up $278,183, and the capital outlay is the largest piece at $1,050,000 approximately. Mr. Splinter showed a slide reflecting the cash flow projection over the next several years, and noted they try to keep a targeted cash balance of around $3 million. He stated as they purchase more fire trucks, the cash balance will be dipping down around 2023. Mr. Splinter stated the debt service funds keep track of all of their bonds related to governmental activities. They have issued improvement bonds in many of the recent years to pay for neighborhood infrastructure improvements which are repaid with special assessments and property tax revenues. He noted the tax increment bonds used to be more popular, but now it is more of a pay-as-you-go obligation. Mr. Splinter stated they have some utility revenue bonds that are used to finance water, sewer, and storm drainage that are paid from utility user fees and are not included as a debt service fund. Mr. Splinter stated they do have a proposed debt issuance for 2022. The street reconstruction tax levy, water, sewer, and storm drainage are included in the bond with an estimated new debt service levy of $200,000 to fund those $ 8.25 million reconstructions over ten years. Mayor Elliott asked Council if they had any objections to comments and questions from the public. Councilmember Lawrence -Anderson asked if the public comments were related to items on the budget and stated if they wanted to deviate from the agenda, then they should vote on that. Councilmember Ryan stated he can appreciate public questions, but if some of the budget questions do not pertain directly to this portion of the budget perhaps the Clerk can take questions and staff would get to them with more information. Councilmember Ryan stated his concern is that the staff remains in the meeting no later than they need to even though he does respect the public questions. Councilmember Graves added they could have a set amount of time for public comments. Mayor Elliott stated there is no way of knowing how many people will be on the call, but he would like to commit to adjourning the meeting by 8:00 PM. A resident asked if can get copies of the slides. Mayor Elliott stated the City Clerk could collect email addresses of interested residents and will email them the slides. Lori B. stated her concerns are primarily about the previous budget presentation. She stated as a 10/04/2021 Page 11 19-year resident of Brooklyn Center, affordable housing, safe drinking water, outreach, employment opportunities, and the health and safety of her family are her biggest concerns. She added living in a safe environment ensures the health and wellness of its inhabitants and allows for residents to hold governmental leadership accountable. Lori B. stated she was there to ask for the Daunte Wright and Kobe Dimock-Heisler Safety Act to be fully funded the way it was created. She stated it took a lot of research in its creation, and, if fully implemented, will help to create a better environment from a community -based approach. She noted they are not looking to defund the police. Lori B. stated, if anything, the police are defunding the residents. Lori B. stated the residents should be the ones deciding how tax dollars are spent, especially since the Police Department receives 4 1. 1 % of the budget. She explained she is a tax -payer, and she should have some say about how her taxes are spent. Lori B. stated she lives in Brooklyn Center, but police are from areas like Anoka or South Dakota. Lori B. noted police are leaving them because they have no vested interest in making the City a better place to live. Lori B. asked who is reviewing the budget line -by-line and looking for areas where the area can be better spent. She noted one discrepancy she can see is the funding for 49 officers when they currently have 32 officers and two are on their way out. She stated police react to crime; they don't prevent it. She stated the City should take preventative measures and invest in the community. She stated other areas of reallocation include a $1,000 per month spent on a media consultant and $150,000 meant for community engagement which is a sore spot for a lot of the community. There are several areas they could be better at spending money and also consider community members like herself that volunteer their time and show up not for payment or political gain, but they show up because they care and value people and their neighborhood. Ken D. stated given the fact that crime is up across the nation, he is not in favor of reducing the police force at all. He noted police should be included in discussions when discussing policing and any kind of changes that have to occur. Financial Commissioner Dean Van Der Werf stated he does not want the meeting to be about funding or defunding the police. He wants the City to spend money rightly for the taxpayers whether black or white, and he thinks they need to focus on making Brooklyn Center a safe place. 5. FUTURE BUDGET DISCUSSIONS 5a. OCTOBER 18, 2021— WORKSESSION — ENTERPRISE/UTILITIES FUNDS 5b. DECEMBER 6, 2021— PUBLIC HEARING & BUDGET ADOPTION 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 7:50 p.m. 10/04/2021 Page 12 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: That attached hereto is a full, true, and complete transcript of the minutes of the City Council from the City of Brooklyn Center Joint Work Session with Financial Commission held on October 4, 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 October 11, 2021, Regular Session. City Clerk 10/04/2021 Page 13 Mayor