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HomeMy WebLinkAbout2022 08-15 CCM JT CC AND FC 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 AUGUST 15, 2022 VIA ZOOM 1. CALL TO ORDER The Brooklyn Center City Council/Financial Commission Joint Work Session was called to order by Mayor Elliott at 6:09 p.m. 2. OVERVIEW/INTRODUCTIONS Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan were present. Also present were Financial Commissioner Chair Teneshia Kragness and Commissioners,Taofeek Ishola, and Emmanuel Kpaleh. Also present were City Manager Reggie Edwards,City Clerk/Interim Assistant City Manager Barb Suciu, Director of Finance and Fiscal Services Angela Holm, Community Development Director Meg 1VIcMahan, City Engineer Mike Albers, and Director of Public Works Elizabeth Heyman. 3. 2023 GENERAL FUND DEPARTMENT BUDGET REQUESTS 3a. PUBLIC WORKS City Manager Reggie Edwards introduced the item and invited Director of Finance and Fiscal Services Angela Holm to continue the StafFpresentation. Ms. Holm stated there will be three preliminary departmental requests along with updates on the general fund. She invited Ms. Heyman to continue the Staff presentation. Director of Public Works Elizabeth Heyman explained Public Works is responsible for the maintenance and operations of the City's infrastructure and facilities in a quality, cost-effective manner. There are six functional divisions including administration/engineering, street maintenance, park maintenance and forestry, public utilities, central garage, and facilities maintenance. Ms. Heyman added there are 34 funded Staff inembers with Public Works. Ms. Heyman explained administration/engineering includes Public Works administration and Budgeting, infrastructure improvement, planning and projects, traffic engineering, mapping/GIS, site plan and subdivision plat reviews, and water resources. Street maintenance and traffic control 8/15/2022 Page 1 include street, sidewalk, and trail maintenance, repair and patching, street sweeping, snow and ice control operations, boulevard tree trimming, streetscape maintenance, and traffic control maintenance. Ms. Heyman stated park facilities and forestry includes maintenance of turf, park buildings, City facilities,picnic shelters,playgrounds,and athletic fields,overseeing winter operations such as ice rinks and snow plowing within park areas,and reforestation and diseased tree inspection. Facilities maintenance maintains all City-owned facilities such as the Community Center, Public Works, Fire Stations, and the Police Department. Ms. Heyman stated there is a planned Park Capital Planning Study in 2023 with a projected cost of $300,000. 2023 also has a project Capital Maintenance building Plan Evaluation Study for about $150,000. There is a ten-year plan for hazardous tree management and reforestation,which would cost around $150,000 per year. Ms. Heyman pointed out there are certain performance objectives with target values, and almost all of the objectives were met last year. There was an issue with one snow plot event near the holidays that increased the response time. Mayor Elliott noted the City is exceeding standards for pothole improvements. Ms. Heyman confirmed the City responds to pothole improvements quickly. Sidewalks, trails, and roads are cleared within 10 hours on average. Councilmember Lawrence-Anderson noted people are very happy with how quickly streets are plowed. Mayor Elliott added he has gotten calls from other cities pointing out how quickly Brooklyn Center clears the streets. Ms. Heyman stated the percent change between 2022 and 2023 is due to inflation for materials and fuel costs. In 2022,road salt was purchased at$72.80 per ton. The City is proposing the purchase of the additional salt because they almost ran out in 2022. The additional salt on top of the inflation would cost$135,392, which is about$40,000 more than the previous year. She added the cost for a replacement snowplow truck in 2018 was $132,000. However, inflation in future years was not accounted for. In 2030,the same truck would cost$211,000. Every year they need to go back and adjust for inflation. Ms. Heyman pointed out there is an additional Maintenance Worker II and Technical Position for 2023. Brooklyn Center is ruru�ing pretty light in comparison to past staffing numbers. In 1980, there was 22 Staff. As it stands, there is only 16 Staff. After moving some things around, the financial impact for the additional Maintenance Worker II would cost the City $50,000. The additional Technical Position would require an additional $40,000. The purpose of the technical role is to take on new initiatives and policy analysis and address strategic priorities set by the Council. Commissioner Kragness asked where the additional money was pulled from for the additional 8/15/2022 Page 2 maintenance worker. Ms. Heyman stated there was some money from the previous funds that had not been spent down and it made sense to move it to assist in affording an additional employee. Dr. Edwards pointed out they were trying to create a more livable wage for the employees. The staff has even done orientation and training for an individual who is Spanish-speaking. Staff is trying to plan with the human condition in mind. The upcoming year will focus on health and the impact of services on residents. The goal is to create a unique plan specific to the needs of Brooklyn Center, and it will be unlike any other policy. � Councilmember Lawrence-Anderson asked how they are seeking feedback from the public. Newsletters and surveys are important. The City doesn't have a social media presence, and only some portions of the City services are engaging with the public. There is much to learn in the coming budget cycle, and Staff should reach out to residents in a way they want to be engaged. Councilmember Graves stated having entry-level programs in Public Works would be beneficial for the community. Minneapolis has a similar program. She asked if Brooklyn Center could budget for something similar in the future. Ms. Heyman stated she has been in contact with BrookLynk regarding the program. It was funded through the American Rescue Plan Act. Brooklyn Center hires far fewer folks than Minneapolis but partnering with BrookLynk increases opportunities. As it stands,the City has a very high Staff retention rate. Dr. Edwards noted Staff is doing some work in the area with American Rescue Plan Act funds. They are trying to create pipeline opportunities. There are some issues they have worked through with unions as there are union contract implications. Mayor Elliott noted he would be leaving the meeting at 7:30 p.m. 3b. COMMUNITY DEVELOPMENT Community Development Director Meg McMahan stated the mission of the Community Development Department is to preserve and enhance the quality of life for the residents and businesses of Brooklyn Center by guiding the development of the City with effective measures of planning, design review, construction plan approval, code compliance, housing, and business assistance. She showed a slide of the organizational structure of the Community Development Department. Ms.McMahan explained that Building and Community Standards cover the Building Construction Regulatory Program, Rental Licensing Program, Property Maintenance, and Code Enforcement, Vacant Building Program, and HRA/Housing Programs. Business and Development include Planning and Zoning Services, Long Range Strategic Planning, EDA/Economic Development Programs, Business Retention, and Expansion programs, and Workforce Development. Ms. McMahan noted permitting has been significantly lower, but they expect an increase in permits in 2023. Permitting peaked in 2019. Upcoming construction includes The Crest 2,Value 8/15/2022 Page 3 Foods, Burlington Coat Factory, Phu Bia Produce, Starbucks remodel, Palm Grove, and C-Alan Homes. Endurable Solutions is under review. New businesses in the City include Pops Car Wash, All Furniture, Fraiser School for the Autistic, Marco, Dean's Home Service, and BP Gas Station. Ms. McMahan pointed out there is a Performance-based Rental Licensing Program which includes, process, tracking, and performing rental inspections, a bi-monthly newsletter to Rental Property owners, a City-wide resource packet to all renters, investigation, and resolution of property complaints, investigation of unlicensed rental properties, accepting, processing, and issuing rental licenses, ensuring compliance with all regulations, conducting CPTED inspections, negotiating mitigation plans for Type III and Type IV licenses, resumed inspection of 100% of units, and increased group home and related enforcement. Mayor Elliott asked which units are inspected. Ms. McMahan stated it depends on the rental license type. Four types in Brooklyn Center dictate how long the license lasts without inspection. More problematic properties get more frequent inspections. Councilmember Ryan noted there were issues with inspections due to COVID-19 and Staffing levels. He asked how Staff is doing on inspections. Ms. McMahan confirmed Staff is caught-up with inspections. Councilmember Ryan explained he has received a lot of complaints regarding group homes. He asked if the only authority the City has is through zoning. Ms. McMahan explained group homes are a protected class under State statute, so the City cannot regulate them any differently. She added there is a lack of communication from the State, so the City is doing its best with what it can do. There isn't a lot of oversight from the State to ensure the group homes are staffed and maintained properly. This has created an increased number of group homes in areas with more affordable housing. Brooklyn Center has the highest rate of group homes per capita than any other city in the State because the housing is affordable. Councilmember Ryan requested a work session on group homes. In one neighborhood, there are three group homes on one block. Mayor Elliott asked what the issue is with group homes. Ms. McMahan stated group homes are classified as assisted living. Group homes are essentially commercial businesses in residential property. Staff may find illegal bedrooms or management issues in the facility. Both of which create an unsafe environment for vulnerable folks. Medical facilities such as sober housing have another set of rules outside of the State. Ms. McMahan stated there are 11,903 housing units in the City, and about 38 percent of those are rental units. In comparison to neighboring cities, Brooklyn Center has a low number of single- family rentals. There are 737 rental licenses. A majority of the rental licenses are two- and three- year licenses. Ms. McMahan noted Property Maintenance and Code Enforcement includes a complaint-based program, proactive code enforcement, code enforcement engagement, and administration of citations and abatements. In 2021,there were 1,734 code enforcement cases. So far in 2022,there 8/15/2022 Page 4 have been 1901 code enforcement cases. On average,there are about 11 hoarding or unsafe living conditions per year in the City. There has been an increase in illegal dumping as well. Ms. McMahan stated the Vacant Building Program registers vacant buildings, and there is a rigorous inspection process required before the buildings can be inhabited. There are currently 37 active vacant properties with 12 vacant building registrations and renewals in 2021. There are a lot of concerns about the Sears property and people trespassing there. The Fire Department is particularly worried about the break-ins. Earle Brown Bowl, Brown College, and Target are also vacant buildings. Mayor Elliott asked what the breakdown is of housing stock in Brooklyn Center. Ms. McMahan stated she could provide a detailed breakdown to the Council. Mayor Elliott left the meeting. Ms. McMahan stated there have been several planning cases in 2021. The most notable one has been the Opportunity Site. There is an ongoing Zoning Code update that will be complete soon. There has been a lot of work done on the Housing Study and the adoption of the Tenant Protection Ordinance. Councilmember Ryan asked if there are any metrics regarding the Tenant Protection Ordinance. Ms. McMahan stated the most helpful data point will be tracking non-renewals. That hasn't been tracked in the past, but the new data point will be very revealing. Councilmember Ryan stated he would like to see protections for all entities. Councilmember Lawrence-Anderson asked if there is an estimated comparison for previous years for non-renewals. Ms. McMahan agreed it would be helpful to collect some information from landlords on the topic. Councilmember Lawrence-Anderson stated any comparison data would be valuable. It is important to collect the data in the long-term, but it is useless without comparison for the first round of collection. Councilmember Graves pointed out they would have to adjust for the period when evictions were under a moratorium. The point of the Tenant Protection Ordinance is to decrease evictions. They could look at eviction numbers from before the pandemic. There might be an increase in evictions after COVID-19 due to the long-term moratorium and financial struggles faced by people. If the change isn't significant,then the Ordinance should be reconsidered. Ms. McMahan noted a strategic priority set by the Council has targeted redevelopment. The Economic Development Department is overseeing the Opportunity Site and its ongoing planning and implementation. The Sears site is also underway. The EDA also acquired three properties over the past year for potential redevelopment. Ms. McMahan added another strategic priority is business economic stability. Staff established and funded a low-interest loan program, a fa�ade improvement program, and a Hennepin BDI grant,and has continued to provide technical support and resources. Most notably,there is a micro revolving loan fund with LIBA where up to 40 businesses have been served. 8/15/2022 Page 5 Ms. McMahan pointed out another strategic priority is resident economic stability. The Economic Development Department supports BrookLynk, has expanded workforce development programs and pathways, coordinated with local human resources to advance local hiring, implemented a local procurement policy for City expenditures and projects receiving a public subsidy, conducted a housing study,increased food security adopted a tenant protection ordinance,connected residents with housing assistance supported the down payment assistance program for first-time homebuyers and managed a housing rehabilitation program. The goal is to stabilize housing and income. Ms. McMahan stated the Department will continue working on the Opportunity Site redevelopment and strategic acquisition and redevelopment of EDA-owned land. The Department will continue to focus on resident economic stability by promoting job pathways, workforce development,job retention and expansion, and housing stability. Ms. McMahan explained the Staff plan to promote homeownership, create a housing coordinator position to design and implement housing policies and programs,implement a NOAH Preservation Program, create a Housing Trust Fund, explore amendments to expand tenant protections, and partner with outside agencies to provide housing assistance to residents. Ms. McMahan noted the Economic Development Department will promote business economic stability by continuing to offer technical assistance and resources, access to capital,and affordable bricks-and-mortar space. More information on those efforts will be provided during the EDA budget presentation at a later date. Ms.McMahan added the Department also seeks to enhance community image and promote a safe, secure, and stable community. There is an ongoing Zoning Code Update, code enforcement is focused to develop relationships with property owners and managers, and Staff is exploring programs to incentivize businesses to invest in beautification. Ms. McMahan stated the requested Staffing changes for 2023 are the addition of a Housing Coordinator position and moving an Associate Planner to half EDA and half General Fund to be fully focused on the General Fund. T� Increment Financing (TIF) Number 3 has been a workhorse for the City and helped fund a lot of redevelopment. The EDA would usually do more of that funding, but EDA has been funding more Staffing. The goal is to move the Staffing away from the EDA because TIF 3 has been decertified. Councilmember Lawrence-Anderson asked what the current hourly wage is for an entry-level employee. Dr. Edwards stated the lowest rate paid by Brooklyn Center is $16.16 hourly. Councilmember Lawrence-Anderson asked if there is a standard Cost of Living Adjustment (COLA) for all positions each year. Dr. Edwards stated there are union negotiations, but all non- � unionized employees are budgeted for a three percent COLA increase for 2023. Councilmember Lawrence-Anderson asked how similar cities compare. Dr. Edwards stated similar cities are also looking at a three percent COLA increase. Councilmember Lawrence- Anderson asked how Brooklyn Center compares to other cities in terms of livable wages. 8/15/2022 Page 6 Dr. Edwards stated Brooklyn Center was one of the first to work towards a living wage, but they are now the middle to bottom of the pack in comparison to other cities because it has been a while since a market study has been done. As it stands, Brooklyn Center is not competitive as it needs to be. Councilmember Graves asked if there could be a discussion about Airbnbs at a future Work Session. Ms. McMahan stated Staff has been looking at ordinances in other cities regarding Airbnbs, and it will be brought back to the Council once the report is complete. Councilmember Graves asked if there is an attempt to connect families with resources when there are dilapidated residences or other Code Enforcement issues addressed by Staff. That would be particularly important if certain residences are consistently being contacted by Staff. Ms. McMahan stated the dilapidated properties take up a lot of Staff time, and they do tend to connect residents with relevant resources. Oftentimes, there are several entities involved in the process such as Hennepin County Social Services,Hennepin County Community Health,local law enforcement, and more. Councilmember Graves noted she is excited about the Housing Coordinator position and how it will positively impact the community. 3c. FINANCE Director of Finance and Fiscal Services Angela Holm explained the mission of the Finance Division is to provide accurate and timely information to administrative and professional support in financial matters to all Departments and Divisions of the City. Its efforts include accounting, accounts payable, accounts receivable, assessing, banking and investments, budget and financial planning, debt management, financial reporting, utility billing, and safety and risk management through insurance renewals. The liquor stores also operate under the Finance Division umbrella, but reports on its operations will be provided at another time. Ms. Holm stated there are currently 5.5 Staff in the Finance Division. There is one occupancy. In 2023,it is requested for a total of a two percent increase in both finance and assessing. It is slightly higher than the three percent COLA increase,but there was a new Deputy Director brought on that required more funding. There is also a need for supplies throughout the office. Commissioner Kragness pointed out an adding error in the budget chart. Ms. Holm stated she will look into the numbers and address the issue in future documents. Ms. Holm showed a slide with the 2021 performance objectives in comparison to 2019 and 2020. In each of the years listed, Brooklyn Center received a Certificate of Achievement for financial reporting. The availability of monthly financial data to all users was 25 days in 2021, which was an improvement from 2020. However, the target value is 21 days. The date of audit opinion was on time each year, and the City bond credit rating has consistently been AA. Also, the rate of investment return on all cash and investments is getting closer to the target value each year. Staff 8/15/2022 Page 7 is hopeful the City will meet the one percent target value in 2022. Ms. Holm showed a slide with a table depicting the 2023 Non-Departmental Budget. Mayor Pro Tem Butler asked about the reasoning for the $60,000 increase in legal funds. Ms. Holm stated there were contractual increases. For example, more legal counsel will be needed to address the Opportunity Site. Councilmember Ryan noted a previous discussion revealed that a significant portion of the City's obligation to civil suits would be from the contingency line item. He asked what the budgetary ' implications would be to handle that payment and replenish the fund. Ms. Holm stated the lawsuit was anticipated to be paid out of the capital contingency fund and to also take municipal State aid to replenish the fund. Councilmember Ryan asked if there is more than one contingency fund. Ms. Holm stated the capital fund is considered similarly but not completely the same. There was a significant balance in the capital fund that served the unprecedented situation. Ms. Holm noted the joint powers payments handle the community relationships held by the City such as BrookLynk, domestic violence resources, mediation services, and the like. Councilmember Graves asked if there is ever a time that the Brooklyn Bridge Alliance would be self-sustaining. Ms. Holm stated both grants and budgetary items fund the Brooklyn Bridge Alliance. Dr. Edwards stated the creation of the Brooklyn Bridge Alliance Board would have to go seek more money from other members of the consortium. Brooklyn Center helped to create the Brooklyn Bridge Alliance, so there is an obligation for funding. Councilmember Graves pointed out Minneapolis has a different system for a similar effort. Dr. Edwards noted the vacancy line item has historically been a generous estimate, and that was refined and decreased by $200,000 to be more conservative. There is a hope to bring people on and promote consistency. 3d. GENERAL FUND REVENUE Ms. Holm showed a slide with estimated 2023 revenues for the General Fund. She explained they don't know the levy yet as that hasn't been decided by the Council. In the meantime,they use the previous year's levy for estimates. Ms. Holm noted an increase in lod in t�es and a decrease in licensin and ermits. Those g g g P numbers will continue to be monitored. The State money consists of local government aid that aids the Police and Fire Departments among other expenditures. There is an increase in general government revenue and a decrease in public safety. Dr. Edwards pointed out that the City is no longer contracting with venues such as Wal-Mart and Top Golf, so there is a decrease in revenue for public safety. 8/15/2022 Page 8 Ms. Holm explained there is a prediction for recreational revenue to decrease due to year-to-date measures currently available. There is then a slight estimated increase in Community Center revenue. In anticipation of rebounding after the pandemic, there will likely be increases in investment earnings and miscellaneous revenues. There is an estimated decrease in special assessments. Ms. Holm stated the overall General Fund revenue will likely see a four percent decrease. It is anticipated that the total change in revenue will become positive once the 2023 levy is set by the Council. Councilmember Lawrence-Anderson stated she would like to see grant income for the City. There are lots of grants received by Brooklyn Center, and she would like to know the total financial impact of those monies. Councilmember Ryan noted his agreement with Councilmember Lawrence-Anderson. He added he would also like to see the terms and conditions of the grants. Councilmember Lawrence-Anderson added she would like a Work Session to cover the topic of grants. Also, the Council should decide on a monetary amount in which the grant would require their involvement to review the parameters of the grant. Councilmember Lawrence-Anderson asked if the revenue from public safety was decreased due to Staffing issues. Dr. Edwards stated the focus of the Police Department was on civil unrest, and there were also Staffing issues. 4. 2023 BUDGET OVERVIEW—FOLLOW-UP 4a. AUGUST 29,2022—2023 GENERAL FUND DEPARTMENT BUDGET REQUESTS 4b. SEPTEMBER 12,2022—RECOMMEND PRELIMINARY LEVY AND BUDGET 4c. SEPTEMBER 26,2022—ADOPTION OF PRELIMINARY LEVY AND BUDGET 5. FUTURE GENERAL FUND BUDGET DISCUSSIONS Dr. Edwards summarized the upcoming meetings and deadlines related to the budget. He noted there will be input received from some folks regarding the budget on September 10, 2022. Councilmember Lawrence-Anderson asked how the people were selected for the discussions and what the context for the dialogue is. Dr. Edwards stated anyone is welcome to join the conversation, and the meeting will be promoted across the City through various communication avenues. Before the input portion begins, there will be an educational portion to explain the budget. 8/15/2022 Page 9 6. ADJOURN There was a motion by Mayor Pro Tem Butler and seconded by Councilmember Ryan to adjourn the meeting. Motion passed unanimously. The Brooklyn Center City CounciUFinancial Commission adjourned at 7:57 p.m. STATE OF MINNESOTA) COiTNTY 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 the City Council from the City of Brooklyn Center Joint Work Session with Financial Commission held on August 15, 2022. 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 September 26, 2022, Regular Session. ���°��t�p������'� City Clerk -Mayor 8/15/2022 Page 10