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HomeMy WebLinkAbout2021 08-23 CCPCouncil Worksession V I RT UA L meeting being conducted by electronic means in accordance with Minnesota S tatutes, section 13D.021 P ublic portion available for connection via telephone Dial: 1-312-626- 6799 Meeting I D: 86505454202# Passcode: 830981# A ugust 23, 2021 AGE NDA The City C ounc il requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet is available to the public at http://cityofbrooklyncenter.org/. 1.Call to Order - 5:00 p.m. 2.Roll Call 3.P resentations a.Study Results of Phase I of the B rooklyn Center Community, Health, Culture, and Recreation Center E xpansion 4.Next Steps 5.Adjourn to Study Session - 6:15 pm City of Brooklyn Center Comprehensive Community Center Master Plan ―Phase 1 Preliminary Findings Presentation August,23 2021 01 Study Goals 02 Study Process 03 Existing Conditions Overview 04 Public Engagement Progress 05 Economic & Demographic Analysis 06 Market Analysis 07 Phase 1 Conclusions and Recommendations 08 Next Steps 09 Q&A Agenda 2 STUDY GOALS The Community Center Master Plan will define a vision for the development and/or redevelopment of the Center over the next 10 years. This vision should be crafted by the Community and for the Community of Brooklyn Center. STUDY PROCESS Study Process Vision and Data Gathering 1. Discover 2. Define 3. Explore 4. Refine Programming & Prioritization Generate Phasing & Implementation Strategies Finalize and Document 4 Step Approach Study Process Vision and Data Gathering 1. Discover 2. Define 3. Explore 4. Refine Programming & Prioritization Generate Phasing & Implementation Strategies Finalize and Document 4 Step Approach Phase 1 8 9 10 Updated Proposed Schedule Phase 01 Project Indicators 11 1.Is there public support for the renovation, expansion, and renewed investment in the Community Center? 2.Does the community demographics and market analysis reveal favorable indicators to support renewed investment? 3.Do the potential strategic partners have complementary goals and resources that allow them to be viable partners? 4.Does Centennial Park have adequate capacity to accommodate proposed improvements? EXISTING CONDITIONS OVERVIEW Site Capacity Study 13 Brooklyn Center Community Center –Existing Conditions Brooklyn Center Community Center –Existing Conditions PUBLIC ENGAGEMENT PROGRESS We believe diversity drives innovation and inclusion sparks creativity. Our team culture embraces and celebrates all people, regardless of age, culture, ethnicity, gender identity, language, physical ability, race, religion, sexual orientation, size, or socioeconomic status. Inclusion is paramount. Because when people feel included, they feel inspired and empowered. And that leads to innovation. The Public Engagement Process 18 Must be authentic, inclusive, and embrace diversity Is a continuum throughout the entire project duration Is achieved through a variety of methods and formats •Broad Community Engagement •Focus Groups •Strategic Partnership Discussions •Staff Involvement The Engagement Continuum Bidding & Permitting Construction Construction Documents •Accessibility Focus Group •FF&E Focus Group/s •3D Collateral and VR Experiences Permitting Approvals •Site Demolition Milestone Event •Project Fun Facts •The Big Counter Construction •Ground-Breaking •Steel Topping Off •Construction Web Cam •Curated Site Tours •Ribbon Cutting Master plan Facility Design Construction Ongoing Engagement Tools Community Workshops Town Hall Meetings Focus Groups/Strategic Partners Donor Events Community Events Construction Milestones BROAD COMMUNITY ENGAGEMENT SUMMARY Online Engagement Platform 21 Promotions 22 Date Strategy Description Participants June 7, 2021 Online Engagement Site Includes project information, online survey link, comment wall and notice of upcoming events.1,000+ visits June 8, 2021 Flyers Includes project information and QR code to link directly to online engagement site; distributed at community center, pop-ups, community events, and heavily visited activity areas Due to COVID, CEAP (Community Emergency Assistance Programs) requested flyers to pass out in their drive thru food shelf instead of an in-person pop-up 1,000+ distributed June 15, 2021 Posters Posted at community center 3 June 28, and July 26, 2021 Email Blast Text and images sent to project manager to send in an email blast to community center patrons 600+ July 14 and July 26, 2021 Website Update Project information posted to City’s website and link to online engagement site 1,000+ •Online engagement site •City website •Email blasts •Social media •Flyers and posters Promotions 23 Pop-Up Events 24 •Designed to give information and gather input using engaging and interactive activities •Held in places where people are already gathering. •In-person events allow project staff to mingle and talk one-on-one with residents to gather feedback. •Games, comfortable settings and snacks draw community members to talk with staff Date Strategy Location/Event Participants May 8, 2021 Pop-Up City Council Meeting: Policing 50 May 12, 2021 Pop-Up Heal the City event 100 June 29, 2021 Pop-Up Concert in the Park: Socaholix 150 July 29, 2021 Pop-Up Thursday Farmers Market 30 July 31, 2021 Pop-Up Hmong Celebration in the Park 241 July 31, 2021 Pop-Up Kenyan Community Church 30 August 3, 2021 Neighborhood Visits National Night Out neighborhood gatherings 26 City Staff Events 25 Strategy Location/Event Staff Engagement/Flyers Youth Soccer Kick-off Party Staff Engagement/Flyers Swim Lessons and Community Center programs Staff Engagement/Flyers National Night Out-City Staff, Police and Fire Department Heal the City May 12, 2021 Concert in the Park Socaholix June 29, 2021 Additional Pop-Ups Hmong Celebration in the Park July 31, 2021 Thursday Farmer’s Market July 29, 2021 National Night Out August 3, 2021 Online Survey 29 Survey Questions: •Do you currently use/participate in activities at the Brooklyn Center Community Center? •What are the community center’s best features? •Do you feel welcomed at the community center? •What would make the community center more accessible? •What would make you want to come to the community center? •What would you like to see at an improved community center? •Demographics questions Date Strategy Description Participants June 7- August 3, 2021 Online Survey Online survey linked through online engagement site. 200 (as of Aug. 18) June 16, 2021 Survey Translation Hmong and Spanish translations available 1 July 26, 2021 Survey Incentive Promotion of incentive to participate in the online survey (entered in a drawing to receive a $50 gift card) Participation increased 100% after incentive announcement Available in Spanish, English, Hmong Top Recommendations 30 Physical Activity •Basketball courts •Volleyball courts •Indoor track •Obstacle course •Badminton •Rock climbing wall •Trampoline •Expand workout area and new equipment •More Yoga •More class variety (exercise and seniors) Education •Learning Center •Computer center •Kids programs •Tutoring •Afterschool program •Coding classes/gaming •Film making lessons and equipment •Art classes •Chess program Pool •Splash Pad •Indoor/Outdoor waterpark •Kids pool area •Warmer water •Fountains •Different swim programs: aqua aerobics, culture nights •New showers •Better locker rooms with/padlocks •Hot tub Entertainment •Event center for artists, musicians, talent, poetry •Party hall •Art center •Movie room/ vintage or artsy movie nights •Maker Space •Game Room/eSports •All ages game night •Music studio Top Recommendations 31 Culture and Diversity •Diversity center •Dance: different backgrounds •Programs for new immigrants •Highlight traditions •Exhibitions •Multicultural events for teens •Teach languages •Equity training for staff Winter Activities •Free ice-skating lessons •Sledding hill •Family fun activities •Free lending of winter sports gear •Warming house Partnerships •Book sharing •Voter registration •STEM programs •Invite MadDads to recruit kids •Urban Adventures •Intergenerational Buddies •Youth mentoring program •Partnership with faith communities General •More flexible hours •Free/lower fees •Teen center •More family events •Resource center •Services: mental health, addiction, housing support •More furniture •Concession stand •Better access- transportation •Better sports programming Survey Demographics 33Ethnicity Survey Demographics 34Gender Age Survey Results 35 Do you currently participate in activities at the Community Center? Do you feel welcome at the Community Center? Is the Community Center easily accessible? Community Center’s Best Features 36 Event Demographics 37 CATEGORY NUMBER Male 13 Female 30 Brooklyn Center 6 Other City 6 Ages 0-20 15 Ages 21-35 6 Ages 36-49 12 Ages 50-64 5 Ages 65+5 CATEGORY NUMBER African 9 Asian/Pacific Is.2 Asian/Indian 2 Black 10 Hispanic 7 Hmong 10 Middle Eastern 12 Vietnamese 4 White 16 •Wide cross section of ages •All genders and abilities •Varied socio-economic status More personality in the building (light, solar panels, murals/art installations/community art exhibits, etc, signage outside & inside. Female, 34 Brooklyn Park offers painting in the park. I've tried it and it’s super fun! BP also has a great dance program for all ages, I'm a part of it and love it. I think if BC would mirror some of what BP is doing, that would be helpful and would grow our community. Bi-racial Black/White female, 44 Move the entrance and reconfigure the parking lot. I don't feel I could just walk in, unlike the Maple Grove community center. White male, 41 I would come to the community center if there are more activities for adults teaching lifestyle skills (cooking and financial literacy). If there were better facilities. A newer pool. Better outreach of the kids. A better website it’s hard to navigate. Bi-racial-Black/White female-,35 I've enjoyed the aqua aerobics classes in the warm water at the pool --but I wish you'd keep the temperature consistently between 84-86 degrees for us seniors, and those who suffer from arthritis. If you keep the water chilly, you're no different than any other facility. Female, 68 I like that the Zumba class is free. White female, 69 What We’ve Heard I Basketball court or enclosed sport center, programs for teens (extra curricular). Black male, 30 Afrobeat dance class- Black female, 22 Hope to see everyone playing in the community happier and healthier- Middle Eastern/ Asian male, 34 Hope to see some cultural entertainment activities. Hispanic male, 35 I think we need to strengthen the recreational facilities program. Mexican/Asian female, 34 I would like the community center to be more centered around youth and families. Basketball courts would be a high priority. More classes, more variety, more time slots –White female-68 A space for cultural activities. Hmong female, 48 I would like to see afterschool programs and tutoring. Black female, 41 What We’ve Heard FOCUS GROUPS & STRATEGIC PARTNERSHIP DISCUSSIONS Focus Group Meetings 41 Date Format Group Participants April 9, 2021 Focus Group Recreation Staff Brooklyn Center Rec & Maintenance Staff June 1, 2021 Focus Group Community Leaders Jude Nnadi –Paadio Consulting June 2, 2021 Focus Group Community Leaders Simeon Momanyi –Kenyan Community Church June 2, 2021 Focus Group Facility Users Bruce Saline, Huyen Ho June 10, 2021 Focus Group Facility Users Noriko Koto June 15, 2021 Focus Group Facility Users Tanya Preble June 15, 2021 Focus Group Community Leaders Nelima Sitati Munene, Executive Director at ACER July 13, 2021 Focus Group Community Youth Brooklyn Bridge Alliance (Ms. Lyren 7-12th graders) August 2, 2021 Focus Group Facility Users Isa Satu –Family with young children Focus Group Recap 42 •Existing facility is clean and welcoming •50M pool is biggest asset with swim lessons •Exterior splash pad encouraged •Warm water recreation/therapy pool desired •Meeting rooms are under utilized (500 occupants max) •Building needs updated entry, signage, locker rooms, park connection •Informal lounge and gathering spaces desired •Need multi-purpose gym space (basketball, volleyball Hmong) •Programming for teens and seniors •Artist, maker, STEAM, eSports spaces desired •Multi-cultural dance/prayer/wellness rooms •Workforce training and enrichment programs Strategic Partnership Meetings 43 Date Format Group Participants May 26, 2021 Strategic Partnership The Great Wolf Swim Club David Bentz and Jason Smith May 27, 2021 Strategic Partnership YFDS and Inner-City Tennis Melvin Anderson and John Wheaton July 14, 2021 Strategic Partnership Brookdale Library Library Staff July 20, 2021 Strategic Partnership School District Seth Ryan and John Oelfke Full Partner: Capital for construction & operational acumen Funding Partner: Capital for construction no operational expertise Operational Partner: No capital but potential for operations partner Rental Partner 1: Specific facility wants, capital to fund, long term leaser of space Rental Partner 2: Specific facility wants, long term leaser of space Program Provider 1: Facility requests, programmer (contract) Program Provider 2: Facility requests, programmer (employee) Future Member: Individual or group Daily User: Individual or group Facility Advocate: Non-user Partnership Spectrum Strategic Partnership Analysis Full Partner: Capital for construction & operational acumen Funding Partner: Capital for construction no operational expertise Operational Partner: No capital but potential for operations partner Rental Partner 1: Specific facility wants, capital to fund, long term leaser of space Rental Partner 2: Specific facility wants, long term leaser of space Program Provider 1: Facility requests, programmer (contract) Program Provider 2: Facility requests, programmer (employee) Future Member: Individual or group Daily User: Individual or group Facility Advocate: Non-user Partnership Spectrum Strategic Partnership Analysis Great Wolf Swim Club Brookdale Library YFDS/Inner City Tennis School District Great Wolf Swim Club 1.Water temperature in existing pool is a detractor (need 79-80 degrees) 2.If pool was returned to 6-lane pool with cooler water utilization will increase 3.Currently use multiple pools in area/schools for practice and competition 4.Need more hours, particularly after school 4-6pm 5.Revenue opportunity for mini-meets and medium sized meets (6-8/yr.) 6.BCCC is ideally located, 2 miles from headquarters 7.Interested in renting pool time, office space, and dryland training space 8.Interested in expanding diversity of program, through learn to swim 9.Would like to collaborate on program with Park’s Department 10.Has some fundraising capacity 46 Inner City Tennis and Youth and Families Determined to Succeed 47 1.Missions are aligned with youth wellbeing & development 2.Location of BCCC works well 3.14 tennis courts and 400 m track are negotiable 4.Foresee shared spaces with City (meeting, fitness, food areas) 5.Would like small dedicated administrative space 6.ICT can keep courts active during the day 7.Both organizations can bring capital to the project 8.Anticipates reaching broader community, up to 30 min drive 9.Expanded enrichment for youth (academics, career, tutoring) 10.Sports are secondary to youth development mission Program requirements for tournaments: •7 tennis courts for high school •400 m track high school and regional meets •Tournaments held in summer and winter •150-200 spectators matches and meets •200 athletes for track meets Site Capacity Study: Inner Center Tennis and YFDS 48 Brookdale Library 49 1.Library brings community together, often mistaken for BCCC 2.Computer use is high, provide youth & adult homework help 3.Kids come together at the library, visible diversity 4.Kids are welcome, but could be better served elsewhere 5.Meeting rooms accommodate 8-10 and 30-100 people 6.Would like to partner with BCCC on book reading programs 7.Potential book drop-off and/or free library location at BCCC 8.Would like to see maker space for community (teens) at BCCC 9.Brooklyn Park has a recording studio for youth 10.Farmer’s Market at Community Center would do well Brooklyn Center Community Schools 50 1.History of successful City and School partnerships 2.Rec-on-the-go program Utilizes BC city parks 3.After school program and Programs around health, wellness, and art 4.Blue Barn and some shared outdoor field spaces 5.Community use of classrooms, gyms, auditorium but access is limited 6.Cooper H.S. has (5) gyms, (2) are open to community after 6pm 7.Brooklyn Center H.S. has lack of gyms, 4-court outdoor under construction 8.There is excess community demand in the gyms 9.PE used the BCCC pool in the past, transportation is a barrier to use 10.BCCC suggestions-gyms, roller rink, warm water pool, track, dome turf field 630 pop-up events participants 200 survey responses 600+ email touch-points 1050 online engagement visits 2500+ social media interactions 20+ Focus Group participants 12+ Strategic Partnership participants and growing… Brooklyn Center is engaged! Top Recommendations 52 Physical Activity •Basketball courts •Volleyball courts •Indoor track •Obstacle course •Badminton •Rock climbing wall •Trampoline •Expand workout area and new equipment •More Yoga •More class variety (exercise and seniors) •Roller Rink Education •Learning Center •Computer center •Kids programs •Tutoring •Afterschool program •Coding classes/gaming •Film making lessons and equipment •Art classes •Chess program Pool •Splash Pad •Indoor/Outdoor waterpark •Kids pool area •Warmer water •Fountains •Different swim programs: aqua aerobics, culture nights •New showers •Better locker rooms with/padlocks •Hot tub Entertainment •Event center for artists, musicians, talent, poetry •Party hall •Art center •Movie room/ vintage or artsy movie nights •Maker Space •Game Room/eSports •All ages game night •Music studio Top Recommendations 53 Culture and Diversity •Diversity center •Dance: different backgrounds •Programs for new immigrants •Highlight traditions •Exhibitions •Multicultural events for teens •Teach languages •Equity training for staff Winter Activities •Free ice-skating lessons •Sledding hill •Family fun activities •Free lending of winter sports gear •Warming house Partnerships •Book sharing •Voter registration •STEM programs •Invite MadDads to recruit kids •Urban Adventures •Intergenerational Buddies •Youth mentoring program •Partnership with faith communities General •More flexible hours •Free/lower fees •Teen center •More family events •Resource center •Services: mental health, addiction, housing support •More furniture •Concession stand •Better access- transportation •Better sports programming We must Co-Create the Vision with the Brooklyn Center Community ECONOMIC & DEMOGRAPHIC ANALYSIS Drive Time Demographics •Understanding the drive-time demographics from Brooklyn Center helps identify major population hubs and the types of people that may travel to use the community center for recreational use. •Within an hour drive from Brooklyn Center the population is approximately 3,715,052 people. •The community center is expected to cater to the local area. However, in order to create a critical mass of users to the facility, it’s important to understand populations within an hour drive-time radius. •Understanding the walk-time demographics from the community center helps identify major population hubs and the types of people that may travel to use the community center for recreational use. •Within a 30-minute walk time from Brooklyn Center the population is more 15,000 people. •The community center engages with and caters to those who are within its proximate area. Therefore, statistics from ESRI help provide an understanding of those who would be within a walkable distance to the community center. Walk Time Demographics In a diverse community like Brooklyn Center, understanding the ethnic backgrounds of those living in the community can be factored into the community center offerings for it’s community. The table above shows that the population of African-Americans and other ethnicities make up more than 50% of the proximate population to the community center and therefore, it is crucial that there be an emphasis of programs for such groups in the community center. Walk Time Demographics (Cont’d) In addition to ethnicity, age demographic information statistics from ESRI indicate that the median age for those living within Brooklyn Center is between the age groups of 25-34. This can help understand age-specific demand factors that would drive offerings at the Community Center. Walk Time Demographics (Cont’d) Minnesota itself is seeing par average growth over (8.1% growth rate), but those who are moving to the state are are choosing the Minneapolis MSA (10.3%) –Hennepin County (10.3%) area. The population of Brooklyn Center has grown by nearly 12% in the last 20 years which is above the national average. Population •Brooklyn Center is characterized as an incredibly diverse young population. As seen, compared to overall Hennepin County and Minnesota as a whole, Brooklyn Center has a much larger distribution of those under the age of 15 years old. Understanding the age profile of the community is critical in programming the facility to meet the needs of these groups. •Moreover, Brooklyn Center is one of the few cities where its total population consists of a majority of people of color. Source: US Census Bureau, ESRI Age & Ethnicity In order to program the community center to the community needs, it’s important to note the median household income in the area relative to the rest of the county and state. While Brooklyn Center has a lower median household income relative to Hennepin County, this presents an opportunity for the community center to provide low-cost programs for the surrounding area. Income & Spending •A standout point from this graph shows a higher unemployment rate in Brooklyn Center versus other regions. •This can be curbed by having spaces at the community center to develop the workforce development in Brooklyn Center through the career-counseling, pathways, and other educative programming. •A space within the Community Center could support the City’s ongoing initiatives to push out career development services. Unemployment •HSP performed a tapestry segmentation analysis which classifies neighborhoods using 67 unique segments based not only on demographics, but also socioeconomic characteristics. •The five largest segments for Brooklyn Center, Minnesota market are Parks and Rec, Front Porches, Metro Fusion, Retirement Communities, and Urban Villages. The top three segments are profiled in more detail on the following slides. •Understanding the segmentation profile of the immediate surrounding area helps to determine the potential developments that would be most attractive to these demographic groups. Tapestry Segmentation •Parks and Rec make up 36.6% of the Brooklyn Center community. •This group is comprised of suburbanite couples with two income streams nearing retirement. •More than half of the Parks and Rec population is college educated. The median net worth of this group is $125,500. •The Parks and Rec group is more likely to buy SUVs than compact cars. These people take advantage of the public parks system and regularly jog or swim. Tapestry Segmentation (cont’d) •Front Porches make up 31.9 percent of Brooklyn Center’s population. •This group is composed of a blue-collar workforce with a strong labor force participation rate. •This people in this group are not adventurous shoppers, as they have limited incomes. •53.4 percent of this demographic rent their homes. •The median net worth of this demographic is $24,800. Tapestry Segmentation (cont’d) •Metro Fusion makes up 17.2 percent of the Brooklyn Center community. •These groups live in neighborhoods where 60 percent of the structures contain multiple units and most people rent. •The median net worth of this demographic is $12,200 and the median age is 29.3 years old. •Many households have young children and are single-parent families Tapestry Segmentation (cont’d) The following implications were drawn from the economic and demographic analysis of Brooklyn Center and the surrounding area: •The Brooklyn Center community is ethnically diverse and contains a significant number of people of color within close walking distance to the site. •The City of Brooklyn Center has a comparatively larger distribution of youth, specifically those under 10 years of age. •Unemployment in Brooklyn Center is above the national, state, metro area and country averages. This highlights the need for more employment counselling and job placement services. •Catering to the local demographics and thoroughly understanding the local targeted groups is important in formulating •The Community Engagement input to date is aligned with Brooklyn’s Center demographics with the majority of respondents being people of color within the ages of 26-35. Economic & Demographic Implications MARKET ANALYSIS Brooklyn Center SWOT Analysis •HSP analyzed data from Placer.ai to better understand the visitation that the Brooklyn Center Community Center generates in a normal year. •The center is highly localized with 80% of its total visits coming from within 10 miles. The center has a strong repeat customer base with average total visits per customer reaching over 4.5 visits. •From the visitation data, it is surprising the minimal impact the 50-meter pool is having on attracting visitors from further distances. Redevelopment of the space can be expected to create a larger impact for the City of Brooklyn Center by attracting not only more locals but those from the surrounding areas. Brooklyn Center Visitation •The COVID-19 pandemic drastically impacted the community center and recreational facility industry. With many facility closures, reductions in capacities and slow reopening’s, community centers have begun to reassess their needs and spatial programing capabilities. •Despite the pandemic, community center development has continued and been a trend witnessed across the country, where the outdated recreation centers of the late 1990’s and early 2000’s have begun to go through renovations, expansions and upgrades. Increasingly these facilities have begun focusing on robust programing, strategic design to accommodate the needs of all users and unique build-out of spaces for trending activities such as e-sports. •Brooklyn Center has the potential to create a dynamic inclusive community space that will differentiate itself from others in the Greater Minneapolis area. Community Center Industry Trends The following details the items that make community centers successful and are commonalities among those that are the top performing recreational facilities across the nation. •Dynamic Flexible Spaces •Targeted Programming & Marketing •Differentiation in Terms of Space & Amenities •Optionality for All Demographic Groups & Activity Levels •Seamless Rental vs. Member Usage •Leveraging Location & Access •Event Planning & Community Involvement •Excellent Staff & Management What Makes a Community Center Successful •The supply of community centers in the Greater Minneapolis metropolitan area is robust. However, many facilities in the area do not contain all of the amenities that Brooklyn Center has to offer. •The facilities that are directly competitive with Brooklyn Center are highlighted in grey. These facilities provide comparable, if not more, offerings to Brooklyn Center but are able to grab higher visitation within and outside of the metro area. Local Community Center Supply •The local supply of indoor athletic facilities is saturate within Minneapolis metro area. Other facilities are scattered around the Minneapolis -St. Paul metro area. •Facilities that are most compelling and drive high ratings and reviews are those with all three major amenities that are of quality. Local Community Center Supply •The following table details the facilities within Brooklyn Center that would compete directly with the community center. These are options that the local residents have to choose from if not for the community center. Understanding these options is important to identifying gaps in the supply of facilities in the City of Brooklyn Center that the community center redevelopment can fill. Brooklyn Center Competitive Facilities •The adjacent table details the relevant aquatic facilities in the surrounding area which includes their size and features. The highlighted rows show those facilities that contain 50-meter pools. •With only two 50-meter pools in the area and one proposed to be completed in 2025, there is a strong opportunity for the facility not only fully accommodate local needs but also larger regional meets and aquatic events. Local Aquatic Supply The above table depicts the rates of some of the most competitive facilities to the Brooklyn Center Community Center. Rate structures vary significantly but typically are broken down by residents and non-residents and may have varying levels of accessibility. Some community centers offer free access to most of the facilities and then a rental fee of specific spaces while others provide access to all spaces for a flat monthly or annual rate. Rate structures are highly dependent upon the strategic goals of the facility, spending power of the residents, rentable facilities available and spatial orientation of the center. Competitive Community Center Rates Location:Brooklyn Park, MN Opened:TBD Owner/Operator:City of Brooklyn Center Rate Structure: Free walking track, rental rate by usage Sports Features: •2 ice rinks •Walking track & Fitness rooms •Racquetball & Wallyball •Fishing pond •Meeting rooms & banquet rooms Additional Amenities: Seasonal Concessions, Skate Rental, multi-cultural event amenities Brooklyn Park Community Activity Center •The Brooklyn Park Community Center operates on a flat daily or monthly pass for the fitness center and then based on usage for racquetball and wallyball. The walking track and skate rink (only during open skate) are open to the public. Skates can be purchased through the skate rental located in the center. •There is seasonality in the fee structure of racquetball and wallyball due to there being high demand during the winter months for indoor space. Brooklyn Park Community Activity Center Rates •HSP analyzed data from Placer.ai to better understand the visitation that the community center generated in a normal year and the impact ice sheets play on the visitation trends. •As seen in the percentage breakdown of total visits, many more visitors are coming from the greater metro area and beyond 20 miles. This is largely due to the facility having 2 ice sheets. •Differentiating factors such as ice sheets, pools, court spaces, or indoor turf fields attract tournaments and club operators to a facility where in part drives economic impact to the city in which the center is located. Brooklyn Park Community Activity Center Rates Location:Shoreview, MN Opened:1990, multiple renovations Owner/Operator:City of Shoreview Rate Structure:Monthly/Annual membership fees Sports Features: •Fitness center + studios •Open gymnasium with basketball/volleyball court: convertible to 4 pickleball courts •4 lane lap-swimming pool and indoor + outdoor leisure pool Additional Amenities:Playground, 7,000 water-theme park, meetings and events spaces, indoor playground Shoreview Community Center •The Shoreview membership rates are broken up by age, resident or non- resident and accessibility. The fees are a flat annual structure with the option of breaking the fee into even monthly payments. Shoreview Community Center •HSP analyzed data from Placer.ai to better understand the visitation that the Shoreview Community Center had generated in 2019. •Approximately 80% of visitation to the community center originates from within the Minneapolis-St. Paul MSA. Within the MSA, majority of the visitation clusters include, Brooklyn Park, New Brighton and Brooklyn Center. Shoreview Community Center Rates Location:Plymouth, MN Opened:2021 Cost:$48.7 million Owner:City of Plymouth Designer: HGA Notes: •Renovation of existing building and 80,000SF expansion •Three wings •Event Wing –Ballroom & Meeting Rooms •Education Wing –Active adults, youth, arts, music & STEM rooms •Active Wing –Indoor walking track, 2 courts, gym, fitness rooms, & indoor playground •Phase I: Active Wing & East Parking Lot, September 2020 –Fall 2021 •Phase II: Renovation of existing & Education Wing, October 2021 –Fall 2022 Plymouth Community Center Plymouth Community Center Renderings •HSP analyzed data from Placer.ai to better understand the visitation that the current Plymouth Community Center experiences in a normal year. •The top graphic shows that the center receives predominately only local visitator from the northwest suburbs of Minneapolis. •Approximately 76% of visitation to the center comes from within 10 miles, while only 9% comes from beyond 20 miles. •It can be expected that the expansion of the Center’s gymnasium space will boost visitation by those from further distances. Plymouth Community Center Rates CASE STUDY Location:Bridgeport, WV Opened:2021 Cost:$50 million Owner:City of Bridgeport Operator:SFM Network Sports Features: •3,000 square foot fitness center •6 hardwood courts •Indoor turf field •2 indoor pools Additional Amenities:Clip and Climb Children’s Playroom, Concessions The Bridges Sports Complex The Bridges Sports Complex HSP interviewed representatives of Bridge Sports Complex in Bridgeport, WV to understand the dynamic of their facility, the demand for space, and their regional draw for indoor tournaments. This interview indicated the following: •The facility opened in 2021 with six full-sized basketball/volleyball courts and a 3,500 square foot indoor turf field. •Mon-Thurs the facility is mainly a community resource. Friday-Sat it is used for its sports tourism &creating economic impact •Management estimated 60% of visitors are within a 90-mile radius and 40% of people come from long-distance for tournaments. The farthest distance a team travelled for this tournament was five hours which the management described as an outlier. During the first tournament the concessions had $5,000 in revenue. •The facility’s membership goal for year one was 190 members but surpassed it with 1300 members in July 2021. •Basketball prime-time rental rates are $50 an hour and turf field is $300 an hour during peak January/early Spring. •The swimming pool is a loss-maker for the facility, but overall fills a gap in the market for recreational swimming space. •Staffing the pool is a current operational challenge the facility. •They plan to start their own swim club in the coming years, as there is a gap in the market. •If they were to change anything about the facility, they would: •make the hardwood courts 10 feet wider to be able to have a 2:1 volleyball to basketball ratio. •make the turf field larger and taller (currently is solely a practice facility with low ceilings). Interview: The Bridges Sports Complex PHASE 01 CONCLUSIONS & RECOMMENDATIONS Overview 93 Our team analyzed the local community center market to understand where any potential gaps exist for the expansion of the Brooklyn Center Community Center. The following implications were drawn: •Key Assets: The 50-meter Olympic-sized pool is a major differentiating factor, but is underutilized. Centennial Park is also a key asset that should be better connected to the facility. •Growth Opportunity: Multi-purpose activity spaces (gyms, courts, tracks, turf space, a larger aquatic) may induce visitation from more regional visitors. These visitors can drive impact to the community through shopping, dining, hotels and entertainment. •Value-Based Services: The introduction of multi-purpose court space will significantly expand community-based rec programming, alleviate pressure from the schools, introduce club or private rental for games and tournaments. Informal lounges and multi-purpose rooms will allow cultural, enrichment, and community-based programs to flourish. Phase 01 Project Indicators 94 1.Is there public support for the renovation, expansion, and renewed investment in the Community Center? Yes, the Brooklyn Center Community Center is widely perceived as a community asset with potential to serve the broader needs of the community with strategic improvements. 2.Does the community demographics and market analysis reveal favorable indicators to support renewed investment? While Brooklyn Center has a lower median household income relative to Hennepin County, this presents an opportunity for the community center to provide low-cost programs for the surrounding area. 3.Do the potential strategic partners have complementary goals and resources that allow them to be viable partners? YFDS and Inner City Tennis present the most viable partnership for capital and operational partnership. The terms of this partnership should be explored further in Phase 02. 4.Does Centennial Park have adequate capacity to accommodate proposed improvements? Yes, but a shared parking approach and strategic for overflow parking will be required if YFDS/Inner City tennis are part of the preferred planning strategy. Recommendations 95 Based on the Phase 01 Study public engagement progress, the market and industry trends the following is recommended for inclusion in Phase 02 Programming and Planning Strategies. •Continued Community Engagement •Explore the following planning strategies 1.Renovation/Expansion of Existing Facility (Comm Rec) 2.Renovation/Expansion of Existing Facility (Comm Rec/YFDS/ICT) 3.New Construction Facility with/without City Hall onsite •The following program recommendations should be considered •Warm water pool addition •50M Pool Programming •2 Multi-Purpose Gyms/Courts minimum •Elevated Walking Track •Teen/Youth Program Space •Career development, Academic Enrichment Programs •Multi-cultural and multi-generational programs •Maker space •Informal gathering & lounge space to promote culture and community gathering •Updated lobby, lockers rooms, meeting rooms •Enhanced indoor/outdoor connections to Centennial Park Q&A Council Study Session V I RT UA L meeting being conducted by electronic means in accordance with Minnesota S tatutes, section 13D.021 P ublic portion available for connection via telephone Dial: 1-312-626- 6799 Meeting I D: 86505454202# Passcode: 830981## A ugust 23, 2021 AGE NDA 1.City Council Discussion of Agenda Items and Questions - 6:15 p.m. 2.M iscellaneous a.Community P ublic S afety Resolution Update 3.Discussion of Work S ession Agenda Item as T ime P ermits 4.Adjourn C IT Y C O UNC IL M E E T I NG V I RT UA L meeting being conducted by electronic means in accordance with Minnesota S tatutes, section 13D.021 P ublic portion available for connection via telephone Dial: 1-312-626- 6799 Meeting I D: 86505454202# Passcode: 830981## A ugust 23, 2021 AGE NDA 1.Informal Open Forum with City Council - 6:45 p.m. Provides an opportunity for the public to address the C ounc il on items which are not on the agenda. Open Forum will be limited to 15 minutes, it is not televised, and it may not be used to make personal attacks, to air personality grievances, to make political endorsements, or for political campaign purposes. Council Members will not enter into a dialogue with presenter. Questions from the C ounc il will be for c larific ation only. Open Forum will not be used as a time for problem solving or reacting to the c omments made but, rather, for hearing the presenter for informational purposes only. I will first c all on those who notified the Clerk that they would like to speak during open forum, and then I will ask if any one else c onnected to this meeting would like to speak. W hen I do, please indicate y our name and then proc eed when I call on you. Please be sure to state your name and address before speaking. 2.Invocation - E lliott - 7 p.m. 3.Call to Order Regular Business M eeting This meeting is being conduc ted electronic ally under Minnesota Statutes, section 13D .021 due to the pandemic. For those who are connec ted to this meeting, please keep your microphone muted. I f there is an opportunity for public c omment, y ou may unmute and speak when called upon. Please do not talk over others and any one being disruptive may to ejec ted from the meeting. The packet for this meeting is on the City's website, whic h is linked on the calendar or can be found on "City Council" page. 4.Roll Call 5.P ledge of Allegiance 6.Approval of Agenda and Consent Agenda The following items are c onsidered to be routine by the C ity Council and will be enac ted by one motion. There will be no separate discussion of these items unless a Councilmember so requests, in which event the item will be removed from the c onsent agenda and considered at the end of Council Consideration I tems. a.Approval of Minutes - Approve minutes from: August 2, 2021 - Joi nt City Counci l and Fi nanci al Commissi on August 9, 2021 - Study Session August 9, 2021 - Regul ar Session August 9, 2021 - Work Session b.Approval of L icenses - Motion to approve the licenses as presented. c.Extension of Audit S ervice P rofessional Contract - Direct Staff to extend Audit Service Contract with Malloy, Montague, Karnowski, Radosevich & Co. (MMKR) for 2021 Audit. d.Resolution A pproving Change Orders 1 and 2 and A ccepting Work Performed and Authorizing Final P ayment, I mprovement Project No. 2020-08, L ift Station 6 Rehabilitation - Moti on to approve a resoluti on Approving Change Orders 1 and 2 and Accepting Work Performed and Authori zing Final Payment, Improvement Project No. 2020-08, Lift Station 6 Rehabilitation. e.Resolution Calling for a Public Hearing on P roposed S pecial A ssessments for Delinquent Public Utility A ccounts - Motion to approve a resolution call ing a publ ic hearing for Monday, September 27, 2021 on proposed special assessments for delinquent public utility service accounts. 7.P resentations/Proclamations/Recognitions/Donations a.Resolution Recognizing the City Clerk for the Work During C O V I D-19 8.P ublic Hearings The public hearing on this matter is now open. I will first call on those who notified the Clerk that they would like to speak to this matter, then I will ask if anyone else on this meeting would like to speak during this hearing. W hen I do, please indic ate your name and then proceed when I call on you. Please be sure to state your name and address before speaking. a.Resolution Vacating Certain E asements W ithin L ot 1, B lock 1 Evangelical Church of the Master 2nd Addition, Hennepin County, Minnesota - Moti on to open the Public Hearing, take publ ic i nput, close the Public Hearing and consider approval of a resoluti on vacati ng certai n easements that are associated with the 69th Avenue North Addition. 9.P lanning Commission Items 10.Council Consideration Items a.Resolution Awarding the S ale of $8,950,000 General Obligation I mprovement and Utility Revenue Bonds, Series 2021A Fixing Their F orm and Specifications; Directing Their Execution and Delivery; and Providing for Their Payment - Motion to approve a resolution awarding the sale of $8,950,000 General Obligation Improvement and Utility Revenue Bonds, Series 2021A fixing their form and specifications; directing their execution and delivery; and providing for their payment. b.Resolution A ppointing Representatives and Alternates to Participate in the J oint A irport Zoning B oard (J A Z B) - Appoint two individuals to the Metropolitan Airports Commission Joint Airport Zoning Board (J AZB) and identify up to two individuals as alternate members. c.Appoint a Project Manager for Community Safety & Violence P revention I mplementation Committee d.Resolution Establishing T he P osition of P olicy A ide to P rovide High L evel Administrative Support to the Mayor - Approve Resolution Establishing The Position of Policy Aide to Provide High Level Administrative Support to the Mayor 11.Council Report 12.Adjournment C ouncil R egular M eeng DAT E:8/23/2021 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :N/A BY:Barb S uciu, C ity C lerk S U B J E C T:A pproval of Minutes Requested Council A con: - A pprove minutes from: August 2, 2021 - J oint City Council and Financial Commission August 9, 2021 - Study Session August 9, 2021 - Regular Session August 9, 2021 - Work Session B ackground: I n accordance with M N S tatute 15.17 and M N S tatute 412.151, subd.1, a5ached for your approval are the minutes from the study s ession, regular ses s ion and work ses s ion. B udget I ssues: None I nclusive C ommunity Engagement: ------ A nracist/Equity Policy Effect: ------- S trategic Priories and Values: Customer I n8macy , O pera8onal Excellence AT TA C H M E N TS : D escrip8on U pload D ate Type 8.2.2021 J T C C & F C 8/16/2021 Backup M aterial 8.9.2021 S tudy S ession 8/19/2021 Backup M aterial 8.9.2021 Regular S es s ion 8/19/2021 Backup M aterial 8.9.2021 Work S ession 8/19/2021 Backup M aterial 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 2, 2021 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. ROLL CALL/INTRODUCTIONS Mayor Mike Elliott and Councilmembers April Graves, Kris Lawrence-Anderson, and Dan Ryan. Councilmember Marquita Butler was excused. Also present were Financial Commission Chair Taneshia Kragness and Commissioners David Dwapu, Taofeek Ishola, Emmanuel Kpaleh, and Dean Van Der Werf. Not present were Financial Commissioner Abate Terefe Also present were City Manager Reggie Edwards, and Acting Finance Director Andy Splinter. 2. WORK SESSION OBJECTIVES Mayor Elliott reviewed the topics that will be covered at tonight’s Work Session with the Financial Commission. 2a. OPERATING BUDGET/REVENUE POLICIES City Manager Reggie Edwards introduced the item and explained this meeting will not get into the depth of budgets by departments. Instead, it is a simple table setting and will provide direction to staff as they go back and work with the departments to develop a budget. That will come back to the City Council in September with the preliminary levy. The City Council will also discuss how they feel about property tax levy increases. Dr. Edwards stated staff will start with core policies in place to help provide a framework for how to do the budget and policies the Council established to maintain some sense of focus and form parameters around the budget. He invited Mr. Splinter to make the presentation. Acting Finance Director Andy Splinter reviewed the topics he will be presenting tonight. He stated the City Council will adopt a balanced budget when we are finished. Current revenues will pay for current expenses with a contingency of about 5% of the budget for expenditures, adequate funding will be provided for capital replacements, and maintenance through the Central Garage charges. The budget describes goals, services, and programs. There is a targeted unassigned general fund balance of 50% to 52% of next year’s general fund budget. When the City goes over 08/02/2021 Page 2 that amount, it is transferred to capital funds to reduce future bonding. Mr. Splinter presented revenues, noting they are kept as diverse as possible and staff looks for other revenue sources, with the tax levy being the last resort. Annual revenue estimates are completed through an objective, conservative, analytical process with staff looking at revenue sources from the years before, the current situation, and the current budget. He noted it is more difficult, with COVID, to forecast what 2022 will look like based on what 2020 looked like and so, for this year, staff has been conservative with revenue estimates on user fees. Mr. Splinter stated user fees are reviewed on an annual basis. Fees with user charges for enterprise funds should fully support the direct and indirect costs of the enterprise fund. The staff tries to assure that water-related expenditures are coded for the water fund to make sure the water fees are enough to pay for those uses and they are not being supplemented by the tax levy. User fees for city services will generally be established at a level that will recover the full cost of providing the services. So, if something new is done, the staff wants to assure if it only benefits certain users, the fee is at a level where it is not being paid for on the back of the property taxes. 2b. CITY VISION, VALUES, PRIORITIES & OUTCOMES Dr. Edwards shared the direction and vision that Brooklyn Center is a thriving, diverse community with a full range of housing, business, cultural and recreational offerings. It is a safe and inclusive place that people of all ages love to call home, and visitors enjoy due to its convenient location and commitment to a healthy environment. Dr. Edwards stated that is the City’s aspiration. As it relates to what the City is in the business of doing daily, the mission is to ensure the City of Brooklyn Center is an attractive, clean, safe, and inclusive community that enhances the quality of life for all people and preserves the public trust. Dr. Edward stated this is important because it sets the table for going through the budget and not only looking at the numbers, but what we are trying to do, what we are in the business of doing, and how do we use the budget and dollars to help us achieve this. Dr. Edwards stated there are a couple of strategic priorities that the City Council has set and been in place for several years and this year is when the City would typically look at its strategic priorities again. This will carry over and the City will look to do that in the coming year. As of this point, what guides all staff and departments is the focus on six core areas. Strategic priorities are to enhance community image; resident economic stability; inclusive community engagement; targeted redevelopment; safe, secure, stable community; and, key transportation investments. For new Commissioners, there are details for review in each of these areas but again, whatever work is being done in the organization and presented to the City Council are framed within the context of these six core areas. Dr. Edwards noted that not everything we do falls into these six areas but they are the primary big focus areas. Dr. Edwards explained that resident economic stability is essential to vibrant neighborhoods and retail, restaurant, and business growth and the City will lead by supporting collaborative efforts of education, business, and government sectors to improve income opportunities for residents. This may be job creation or employment opportunities for residents throughout our community. 08/02/2021 Page 3 Dr. Edwards explained that targeted redevelopment involves redeveloping properties to the highest value and best use to accomplish our goals regarding housing, job creation, and growth of the City’s tax base. This reverts to the notion of resident economic stability. Dr. Edwards stated inclusive community engagement is a two-way street and not simply about the City pushing out but about engaging the community and residents at various levels. To provide effective and appropriate services, the City must clearly understand and respond to community needs. The City will consistently seek input from a broad range of stakeholders from the general public, non-profit, and for-profit sectors. Dr. Edwards stated enhanced community image, our ability to attract and retain residents and businesses, is directly influenced by the perception of the City. This is something we always address, not only from the inside but also how the rest of the world views us. We pay attention to that and while it is not the end-all, be-all, it is one of our driving forces and we want to make sure we put out a positive message. Also, that the residents and businesses of the City feel good about the place in which they live and work and the place they call home. Dr. Edwards stated we want a safe, secure, and stable community, which can range from a variety of services from community development to housing to public safety to the Fire Department, policing, etc. It is fairly broad when you speak of safe, secure, and stable. This does not mean law enforcement. It pertains to the well-being and safety of all residents. For residents and visitors to fully appreciate and enjoy a great quality of life, all neighborhoods must be safe, secure, and stable. We are committed to assuring compliance with neighborhood conditions and building safety standards, providing proactive and responsive public safety protection, wise stewardship of City resources and policies that promote safety, security, and a lasting stable environment. Dr. Edwards stated key transportation investments, again, are provided collectively, and by maintaining an efficient and effective infrastructure we will meet the high level of community expectations. We will plan and do this over the long term to invest in critical infrastructure improvements that enhance safety, improve life quality, and support opportunities for redevelopment while sustaining the natural environment. Dr. Edwards stated these are the strategic priorities and staff will review, as we go along, the 13 priorities the City Council established in 2020-2021 that guided some of the initial work of the departments. Staff will hone in and prioritize the focus of the City Council and Commissioners, noting much of those efforts focused on 2020 and 2021 were interrupted by COVID and civil unrest so there is still much work to be done moving forward. Councilmember Graves stated in the past she had asked about having a budgetary breakdown by strategic goal area. She stated that may be difficult as there may be overlap between departments but it would be a good way to assess how much money is being assessed to each of the different priorities. This would be helpful in the budget process. She noted if not too tedious, maybe the staff could provide a range of the current budget being presented. Dr. Edwards stated staff will put something together and as departments present, they will try to 08/02/2021 Page 4 give some type of estimate of what would be expended in those areas. 2c. LOCAL GOVERNMENT AID Mr. Splinter displayed a chart showing the last 20 years of Local Government Aid (LGA), which is funding received from the State. The City currently uses about half of it in the general fund and the other half in the capital fund to reduce bonding. For 2022, there would be an increase to the general fund of about $44,000. He noted as you look back, there were several years where the State froze the amount down at $411,000 and there were fears, at that time, this program would be completed eliminated, which is always a possibility going forward so the City does not want to count on the money too heavily long term. Mr. Splinter displayed a chart showing LGA as a percentage of general fund operations, noting in 2001 that the same value was 15% of the City’s general fund expenditures. During the low years from 2010 to 2013, it got down into the 2% range and now it is back up to 5% of the general fund being funded by LGA. Councilmember Graves asked even though the amount swung back up, why is a lower percentage being used now. Mr. Splinter stated in 2002, the $2.2. million would be worth close to $3.5 at this point, so that’s a large part of it. Councilmember Graves stated she understood it was inflation. 2d. DEBT SERVICE LEVY Mr. Splinter displayed a chart showing debt service paid from property taxes. He stated the City has been issuing bonds to pay for a large part of construction projects. This was discussed during the CIP meeting about a month ago when the City was looking at potentially involving franchise fees to help reduce this burden on the tax levy. He noted it is going up in 2021, 2022, 2023 and the City is not currently considering issuing a bond in 2023 so there would be a dip in 2024. He stated there will be a large bond in 2024 for Highway 252 so it would go up significantly in 2025. City Manager Edwards asked what is anticipated for afterward. Mr. Splinter stated staff has this projected further but a lot of times the CIP for years further out tends to get larger as it gets closer. So, staff stops this at 2025 to temper expectations on this going down too much in the long term and having questions about it going up as it gets closer. 2e. MARKET VALUE & TRENDS Mr. Splinter presented a summary of taxable market value compared to the prior year, noting commercial properties in the City went down about 5.5% from 2020 to 2021, industrial properties were up 3.6%, residential saw a significant increase of over 17%, and apartments were at 11.5%. Overall, the City is looking at an 11.8% increase in taxable market value for 2022. Mr. Splinter explained that converts into tax capacity and commercial go down about the same percentage as they did in value. Industrial went up about the same percent and residential only goes up 8.6% as opposed to 17% because a lot is eaten up by the market value exclusion and as those properties become worth more, it is not all directly converted into tax capacity. Apartment 08/02/2021 Page 5 buildings went up 9% and the property listed as ‘other’ is the American Legion property. Mr. Splinter referenced the adjustments shown at the bottom of the chart, which relates to Tax Increment Financing (TIF) District #3 coming back onto the rolls. The payable 2021 column ends up with -$200,000 for adjustments. He explained that fiscal disparities are a calculation of all the metro cities and give a credit of about $8.5 million. That is then reduced by the tax increment in the different TIF Districts and contribution back to fiscal disparities. He stated those netted out to zero for 2021 but for next year when TIF District #3 comes back on the general levy, the City gets to add that tax capacity back in, which will bring in about $4.5 million in tax capacity, and put the City at a 19% increase in tax capacity on the 11% increase in value. Mr. Splinter stated TIF District #3 was collecting about $4.5 million to $5 million in tax increment revenues each year and 2021 is the last year the City will receive that. When that goes away, it makes the ‘pie’ larger in the general fund that we have to tax. Dr. Edwards asked if there are questions about TIF Districts or increment. Councilmember Lawrence-Anderson asked where is TIF District #3, or if it scattered. Mr. Splinter stated it was scattered and comprised of a lot of the commercial properties and larger properties throughout the City. He explained the value is frozen when a TIF District starts, the properties are approved in the District, and for any increase in the value of those properties, the City collects all the tax dollars rather than spreading it between the School District and County for the increase because it is a project the City wants to do that increases the property value. Then, when the District ends, it all comes back onto the regular tax rolls and the City will only get our share of that increase. Commissioner Ryan stated the City has been looking forward to the decertification of TIF District #3 for some time. It is the ‘100-pound gorilla,’ the FBI building and Top Golf are in that District, and all that value was no longer used by the City to pay down bonds and borrowing through the TIF District, which greatly increased our tax capacity and especially now that the residents have demanded of the City Council do more. He stated that is encouraging and he appreciates staff providing figures on that. Councilmember Lawrence-Anderson asked what does the City expects to receive in property tax revenue from Top Golf and the FBI building, both large entities. Mr. Splinter stated he will look up that information and report back. Councilmember Lawrence Anderson stated if she understands correctly, the City will receive property tax revenue from them. Mr. Splinter stated that is correct, the City receives it through the TIF District. Councilmember Ryan stated what has been referred to in our project briefings is ‘excess increment’ so once the TIF District generates enough tax capacity above what is required to service the TIF District debt, some of those funds are netted to the City and can be used in the general fund. Mr. Splinter stated that is correct and some of that was flowing into the general fund. 08/02/2021 Page 6 Councilmember Lawrence-Anderson noted now the City will get the full amount. Councilmember Ryan stated it will help with Brooklyn Center Independent School District’s tax base too because they cannot glean any of that value until the TIF District ends, which is a disadvantage and should be addressed by the Legislature. Dr. Edwards explained that if you have a piece of property that is undeveloped, that ‘but for’ TIF it would not be developable, so it provides incentives and benefit to develop. It is not collected over that period and when it is fully developed, then it pays in. Commissioner Dwapu noted the residential taxes are more than industrial. He asked if that is not too much on residential people. Mr. Splinter stated the chart on display is the capacity based on the value of the property. He referenced the previous slide that shows closer to the values, noting there are $360 million of commercial properties in the City and $1.8 billion of residential property. Dr. Edwards noted an upcoming chart will provide a breakdown of taxes by classification. He explained residential property does pay a different rate and amount than industrial, which goes to the makeup of the tax base in Brooklyn Center. He stated it is important to diversify the tax base because some deliver more in revenue than others. Mr. Splinter displayed a pie chart depicting tax capacity estimates for 2022 and 2021, noting the residential portion shifted from 50.7% of the total liability to 52.6%. The commercial has dropped by 2.5%, industrial stayed flat, and apartments went up by .6%. The commercial portion of the City has shrunk slightly and that has been taken up by residential and apartment values. Financial Commissioner Chair Kragness asked if that was a result of dropping property values for commercial or the loss of actual commercial properties. Mr. Splinter stated it would be a combination of both. 2f. PRELIMINARY PROPERTY TAX IMPLICATIONS Mr. Splinter displayed a bar chart of median home values back to 2008, which was the previous peak of these values. He noted during the recession the low- to median-home value was $114,200. For 2022, it has gone up from $207,000 to $223,0000. Mr. Splinter reviewed a table of preliminary estimates for property values taking the median value home from last year, rolling it forward to the value it would be at this year, and then looking if the City levied the same taxes, what would happen to that property’s taxes. He noted that $188,390 was the median market value last year after the property tax exclusion. That went up to $205,830, or about 9.3%. Last year, that property would have paid $1,276. This year if the levy is not changed, that property would pay $1,193, a reduction of $84, or 6.6%. If the City went with a 1% increase in the total levy, it would increase taxes on that property to $1,203, up from $1,193, a difference of $10. This is largely due to the decertification of TIF District #3 and the increase in value of the overall City and tax capacity. Mr. Splinter stated for an average apartment building of $2.2 million, given the percentage 08/02/2021 Page 7 changes, it would probably go up to $2.4 million, an increase of $250,000. If the same amount is levied, that apartment property would have a reduction in taxes of $538. Each 1% levy would add $154 to their tax bill. Mr. Splinter stated with commercial, their property probably decreased in value slightly and would have a $3,942 reduction in property taxes. Each 1% increase would cost them $158. For industrial property, they would have a reduction of $2,400 and each 1% would cost them $194. Mr. Splinter presented a chart showing the incremental impact for every 1% of levy increase. Each 1% increase would provide $184,000 into the general fund and cost a median-valued home $10, apartment $154, commercial $158, and industrial $194. He noted an 8% levy increase would add $80 to the residential taxpayer and just about bring the tax level to what they paid last year. He noted this shows the impact of TIF District #3 coming back on. Financial Commissioner Chair Kragness stated it will be nice to have more breathing room. Dr. Edwards noted if the levy is increased by 8%, properties would not see an increase in taxes except for apartments properties. Residential, commercial, and industrial would not see an increase in taxes paid because of the impact of TIF District #3. Financial Commissioner Chair Kragness noted because that tax capacity will be coming back online, the City can increase the levy at a larger rate than done in the past without having an impact on residential property taxes. Mr. Splinter stated that is correct. Councilmember Ryan pointed out if we can satisfy the City Council’s priorities at a lesser levy increase, there could be a net reduction in homestead property taxes, which would be a good thing because we want to come to a resolution on our priorities and what we need to accomplish. He stated this will come out when we seek comparisons of peer group cities. Councilmember Ryan stated if he remembers correctly, we are about in the middle of taxes paid relative to evaluations and that is a good comparison because of the age of the City’s housing stock. Councilmember Ryan noted it is important to realize it is still a heavy burden on some of our homeowners, especially with those just able to make ends meet and are hard-pressed to come up with an extensive amount of cash to do home improvements. He stated he realized that this year when he had to reside a couple of walls and learned the cost of the original cedar siding has gone through the stratosphere. Two boxes to cover 100 square feet were over $325. He stated we need to be mindful of what we can do to give our homestead property taxpayers a bit of a break, especially in this fiscal economy. Commissioner Dwapu noted for the apartment owners, raise the prices every year for the people who are renting. He asked if this was based on the tax (inaudible). Mr. Splinter stated the average apartment building is paying $18,000 a year in City taxes. He does not know how it would work out on a per unit basis or the size of the average apartment building but does not imagine that is a huge portion of their expenses that would dictate them raising rents. But if it changed significantly, they would have to adjust their rates. Mr. Splinter stated if looking at several hundred dollar changes for a property of that size, he does not think it would be something that would trickle down that far. 08/02/2021 Page 8 Councilmember Graves noted the property owner may say that and use it as an excuse. Councilmember Ryan noted as Councilmember Graves had mentioned, it is relative to the total evaluation of the property but especially relative to the cash flow of the property, what they are generating. So, of course, the biggest issue is supply and demand, and the cost of new construction continues to go up to the stratosphere. As long as there is a limited supply in the market, like any other necessity, the prices will go up. In the past, like in the 1970s and 1980s, large multi-family apartment buildings were overbuilt, which had a good effect on renters because there was more product and rents were dropping. He stated property taxes still contribute as an expense so if in a city with little or low industrial and most apartments and single-family, a big boost in the levy would have an impact on rents. Councilmember Graves asked if they escrow property taxes and insurance for commercial properties. Mr. Splinter stated he is not sure. Dr. Edwards noted there are cities with single-family homes almost exclusively, outstate especially. Councilmember Ryan agreed, noting it would be tough on them. He stated the Legislature has done some property tax circuit breaker assistance because that is tough and average wages in the outstate are lower than in the metro area. Dr. Edwards stated when thinking about diversification of the tax base, and in particular, as it relates to when there is an increase in market value and perceived lowering of taxation in the 1990s, there were cities that increased diversification of their tax base and businesses in their city, resulting in a significant windfall due to that increased market value. The message to the public was that the city was holding the taxes down. Their taxes went up, the levy went up significantly, but people didn’t experience it so it was misrepresentation and that was the beginning of Truth in Taxation. Dr. Edwards stated even if the taxation does go down, what everyone is paying, it is still important, to tell the truth about levies going up. 3. NEXT STEPS Mr. Splinter outlined the next steps as follows: August 16, 2021, General fund budget requests (Public Works, Community Development, Finance, Administration) September 1, 2021, General fund budget requests (Fire, Police, Recreation) September 13, 2021, City Manager’s recommended preliminary levy Mr. Splinter clarified that once the preliminary levy is approved, it can go down but cannot be increased. 4. CITY COUNCIL / FINANCIAL COMMISSION – INTERACTIVE ACTIVITY 08/02/2021 Page 9 Dr. Edwards asked if there were questions around an increase in the tax levy or any of the budgetary information presented by Mr. Splinter. Mayor Elliott asked about the classification of non-homestead single-family homes that are rental properties. He also asked if they get counted in the apartment classification. Mr. Splinter stated they have to be multi-family for an apartment classification. Mayor Elliott asked if they are taxed at the same rate. Mr. Splinter stated they are not homesteaded and that is where the exclusion comes into play. Councilmember Ryan stated he closed on his house in November of 1991 and they had not owned a home before. They had not planned to buy a house until January because they had remodeling done and could live somewhere else while that work was being done. Because of the closing and rules that applied, they could not get a homestead on the property for one year and their taxes on their house were substantially higher. He stated that gets to classification and one thing that is daunting in explaining to the public about how the City gets their money and uses it is that our property tax system in Minnesota is very complicated. As shown in the pie chart, the total valuation of different classifications is where tax capacity comes from. That is the advantage of having a lot of commercial and industrial and apartments because it takes some of the load away from property taxes on single-family homesteads. Councilmember Ryan stated he did a comparison on a property in Maple Grove and while a different housing style and type, a free-standing townhome had an estimated market value almost exactly twice what his house was and it was in the same school district. He stated Hennepin County and school district taxes are almost twice as much as his but the City portion of the property taxes was less than $300 more because of Maple Grove’s major commercial Arbor Lakes plus more homes have a higher evaluation so Maple Grove has a much richer tax base. He stated it tells a great deal about building a tax base and that it is in the universal interest of residents because then they don’t have to pay as much for the services they get when compared to what they own with their property. Councilmember Graves stated there was an earlier conversation about the coming on line of TIF District #3 and our responsibility to still be fiscally responsible and conscious of the tax burden not only because people are struggling but because in Brooklyn Center, relative to our kind of city versus Maple Grove, we pay more than people would expect in taxes. Councilmember Ryan stated there has also been a commercial shift and perhaps it had some measurable impact on the industrial tax base. He worked for TCR Corporation, an industrial company here in Brooklyn Center, for 19 years. They had about 150-180 employees at the peak of their operation and closed in the spring of this year. He noticed at the Board of Equalization this last April that one of the commercial properties appealing their evaluation was TCR because the building is mostly vacant with only 10% of the building being occupied. He noted that would take a good slice out of the tax base. At one time, before Luther built out all their dealerships, TCR was the 8th or 9th largest property taxpayer in the City. He stated this will happen and is not the City’s fault because there are all kinds of shifts in the international market for precision machine tools products and large competition. It happens that companies fail and the city will lose businesses. 08/02/2021 Page 10 Dr. Edwards stated this also speaks to the value of diversifying the tax base, not only as it relates to spreading taxes out so they are not particularly low on any one type of taxpayer but also speaks to the sustainability of the economy and it allows the economy to have elasticity because it is not a one-economic focus industry. He stated when you have a housing bubble and a large portion of the city’s tax base is residential, then they are heavily impacted. Or, during COVID, States that were tourist-based and visits are restricted, then the economy tanks. He noted every economy and, in every place, it is always cyclical and, as Councilmember Ryan said, there will always be something so Brooklyn Center wants to build a diversified tax base and economy so it can weather storms, ones that can be predicted and ones that cannot be predicted. Councilmember Graves commented on the agricultural property. Ms. Splinter stated the less than 1% of agricultural property that was in the City is no longer there, which was Malmborg’s Nursery. Presentation and Discussion of Focus Areas Dr. Edwards stated with the steps between 2020 and 2021, there are 13 focus areas, which he will summarize and then ask the City Council and Commissioners to identify three that may be a focus. He stated clearly, as we go through the year, staff will attempt to address the priorities, but as staff formulates the budget if they need to sharpen the pencil, they will. This allows staff to be focused on where they need to make particular impacts. Dr. Edwards first addressed accountability of policing, noting we live in a time of civil unrest and public concern is given the history and general role of police in local communities. There are specific strategies and actions taken in this area so when departments present, they will speak to the things they did do. At this time, he is speaking to more of the 30,000-foot level than thinking about direction. Dr. Edwards stated with beautification and cleanliness, the staff is putting together an effective new program to approach and address litter, cleanliness, and promote unity throughout the City including public art initiatives. With economic stability for businesses, expansion of existing programs to support the growth and development of local businesses, particularly small and immigrant-owned and micro businesses. This is about helping intrapreneurs and getting them started and involves issues that come before the Council relating to the use and leasing of space, providing grants, and microloans. Dr. Edwards stated for economic stability for residents, the City will promote and support collaborative efforts to provide economic stability, eliminate racial disparities, help individuals and residents who want to potentially start a business, buy resources where they can do that, grow assets of residents, and also hire when there is opportunity to hire residents and create opportunities. Dr. Edwards stated with emergency response for the current pandemic, we are in a different phase of the pandemic but never the less, this was a focus at the beginning of the pandemic and responding to the CARES funding and beyond COVID innovation projects. The City does have ARP funding and is still dealing with COVID, again wearing masks as the Delta variant and COVID is still alive. Staff will continue to focus on that. 08/02/2021 Page 11 Dr. Edwards stated there continues to be an effort with engagement. Three years ago, the City created a Communication and Engagement Division within the Administration with the intent of engaging and communicating with residents. This involves inclusive engagement and the City Council just heard a presentation around types of engagement that is informative, collaborating, and co-creating. The City wants to ensure that our diverse and multi-faceted communities are consistently engaged as appropriate for the development of all City programs and policies. Dr. Edwards stated with equitable City spending enterprise, the City spends tens of millions of public dollars to meet various City goals so this is about the equitable opportunity from contractors to not only bid but also win some of those contracts and provide services. This relates to access to City services as well as contracting that is equitable and accessible to all. Dr. Edwards stated equitable operations are how we conduct our business and how all residents, customers, and employees are treated with dignity and respect, provided knowledge and skills necessary for the needs of residents and customers, and also about accessing services. When we think about recreation services and the cost of them and of being able to access services. Those are some of the things staff thinks about as it relates to equitable operations in how the City equitably provides services. Councilmember Lawrence-Anderson noted some of the information is in multiple languages and asked if the website offers links to receive information in multiple languages. She also asked about the City’s newsletter is in multiple languages. Dr. Edwards stated the new website has the ability for some translation in the top multiple languages that are spoken in Brooklyn Center. He stated we do have that capacity and he can provide the City Council with specifics on how that works. Dr. Edwards stated with innovation and enterprise, staff responds to challenges in a way that is most effective and learns to use creative and innovative approaches. He noted when COVID and civil unrest were experienced, staff had to do things they had never done before to address those issues. Staff needed to be enabled to think in a way that may be different than previously because COVID dictated staff do so. He stated having that capacity and ability to innovate, create, and respond to challenges in the most effective way. Dr. Edwards stated public health was another and the City established a new division in the Recreation Department that can start us on the path of public health and looking at the organization. Without health and wellness, individuals and communities are unable to grow and thrive so it is known that health impacts all areas whether economic, road construction, public safety, and how we think about the health of individuals and quality of life for residents. Public health involves emotional, mental, and physical health, not simply physical health. He explained that beautification and public art may be one mechanism to do that. Dr. Edwards stated we were going to focus on the leadership role as a City Council. The City Council worked with Common Sense to do some work around being a team and operating as a team. A retreat has been scheduled on August 14 so that may be something the City Council will consider doing along with those efforts and initiatives as a priority. 08/02/2021 Page 12 Mayor Elliott stated in terms of appointing, if the Council Members have ideas about its function, please make those known so we can reimagine what those look like, noting there may be a need we have not identified at this point. Councilmember Ryan stated he thinks there will be a more robust discussion on August 14th on that matter because it may necessitate being a little more lengthy than we have tonight. He stated we will be meeting for the retreat from 8:30 a.m. to noon at the Heritage Center. Dr. Edwards stated that is correct. Councilmember Ryan stated as a passing comment, having a very long history with the City and observing the City government as a citizen outsider and an insider on the City Council, the City shifted significantly away from the post-World War II suburban bedroom community with great shopping and good tax base into other functions. He stated he voted for a budget he thought he would never see but necessity is the mother of invention. He thought we tried to do the greatest good for the greatest number within our means. Of course, we had a lot of outside support too through CARES funding. He stated the point is that he thinks we have to send a message to the public that we are always, first and foremost, concerned about the cost of government. At the local level, being closest to people, a number of these health and wellness functions are wonderful, and we have a minimum staff. In the future, he thinks we should transition to where those closest to the people, local government, assist the County to identify needs. Then it is up to the County to provide those. That is the division of labor, if you will, under our governmental system. He stated we can continue to do a lot of these things that are just great if we get enough support. Or now, of course, TIF District #3 may put a different cast on it. But, at all times, the City must communicate to the public they are good stewards of their limited resources. He noted even though the City has seen this windfall, the resources are still limited. Mayor Elliott stated it is incredibly important that in many ways we are entering uncharted territory and the need we are seeing in the community for municipalities to provide support in ways they did not provide support before or even imagine. He stated it is interesting that after the 1918 flu everything changed in so many ways and we are seeing that as well in this pandemic and so much is evolving and changing. He shares Councilmember Ryan’s sentiments and idea we should be fiscally prudent and minimize the impact on taxpayers always, even as we are looking at more ways to step in and help support the community. Dr. Edwards stated transparency is essential in building trust and trust in government is important in a democracy and shared responsibility. We want to promote and provide opportunities to share public information. He noted the new City website is under work and part of the thought of sharing and transparency. We also, at some point, will have performance measures as it relates to broad strategic priorities. The staff has been working, for the last three years, on strategic priorities and putting that into an electronic system that would allow reporting and articulates what staff is doing in those particular areas. That will be something staff can put out to the public on priorities, the movement being made, engagement, and community image, pubic safety, etc. He stated it is the intent to develop matrix indicators that can be put on the website including newsletters and other communications. He explained there will be annual impacts and long-term systemic impacts over time. 08/02/2021 Page 13 Councilmember Lawrence-Anderson asked Councilmember Graves if that is what she was asking about before as far as transparency and enterprise and wanting to know how much of the budget was allocated to various goals, which the software program will allow us to do. Councilmember Graves indicated in the affirmative. Dr. Edwards explained it is not a direct budget it is more about indicators of effort and work and output. But, it does allow some ability to align where we are spending dollars. He stated we can do major efforts but not ‘pens and pencils’ at this point. Councilmember Graves stated she thought he was speaking more to specific outcomes with Visio so basically with every one of the goals, how much did we spend, and what were the specific outcomes of that spending. That is what she is looking for to see if we gave enough money to make a significant impact or did we give too much money for too little impact. That is why she asked that question. Dr. Edwards stated there are conversations about how to include some of those outcome and performance measures in our budget and how our budget process may assist us in being able to assess outcomes and also pay attention to a fiscal analysis. That will be forthcoming. Dr. Edwards stated the last focus area is preservation and protection of the natural environment, relating to stewardship responsibilities as a community and the obligation to preserve the environment for productive use of future generations. He noted when the City did its branding several years ago, one of the assets focused on by the public and community that they are most proud of is our green and natural spaces. It is an asset of the City, and particularly on a per capita basis, we have quite a bit of foliage throughout the City. He stated our green spaces and trails and parks are significant for a City of our size. City Council and Financial Commission Discussion of Focus Areas Dr. Edwards stated that this is a high-level review of the 13 focus areas. He asked the Council Members and Commissioners if there is anything they have heard with the vision statement, mission, 6 strategic priorities, and 13 focus areas that they would view as being no longer beneficial or valuable to the City for the coming year. Dr. Edwards asked given what is happening now and as the City Council and Commission sees in 2022, is there something they should let go of because it is not applicable, valued, or needed. Councilmember Graves stated she thinks this question is setting staff up for the same answer every time because saying something is not beneficial or valuable is a pretty strong statement in and of itself, so maybe it should be more gentle wording. Dr. Edwards suggested ‘no longer applicable’ because there could be things in the time that change that. Councilmember Graves stated her initial reaction is that all of this stuff is important, beneficial, and important in some way. She stated several of the budget goal focus areas definitely could fall under some strategic priorities already so she is thinking of them as not necessarily goals but how they fall under the goals we already have as some are almost the same, such as community engagement, but is the extra focus for the budget. She was thinking about how to move some of 08/02/2021 Page 14 those budget focus areas to be more specific under our strategic priority so this is where more funding needs to go, which was the decision last year under that specific strategic priority. She thinks some go together beyond going under a specific strategic priority and some within the goals/focus areas from the budget of last year that kind of go together as well. She stated we talked about transparency and accountability but those two go hand-in-hand because you can’t hold people accountable if you don’t have some transparency to know what they are doing in the first place. For her, those focus areas go together. Councilmember Graves stated she feels similar, due to her experience in public health, in talking about the social determinants of health in public health that have to do with things like economics and environment. She thinks economic stability of residents and economic stability of our businesses directly impacts our residents through tax capacity and/or providing a job to make money, kind of is connected to public/community health and so is preservation and protection of our natural environment which is connected to beautification and cleanliness. She stated if she picks one, it is picking three at one time. Dr. Edwards stated he will be giving Council Members and Commissioners dots that they can then place on priorities they find to be important. Councilmember Ryan stated all are worthy but it gets back to the most appropriate focus where we can get the greatest bang for the buck and being appropriate to operate at the local level. He stated as much as he has a broad spectrum of environmental goals if we go off on a potentially expensive program to repair our fleet but if Crystal, Robbinsdale, Brooklyn Park, Minneapolis, don’t do the same thing, it is not going to have a significant impact because we are talking about issues on a world scale. However, our groundwater, preservation of our green spaces, and those things that are local, the local environment, as engaged citizens we address those issues at the local level and only support leaders that are willing to go to the international level and pursue climate change issues because if China and the rest of the federation and Brazil do not get on board, climate pollution will continue and not be abated. So, those are difficult things and he only uses them to illustrate. Councilmember Ryan stated the other thing we can do, which he finds interesting and challenging, is how to balance equitable contracting. He noted that sometimes, under well-defined circumstances, it may favor businesses of color but at the same time we need to ensure the highest and best value and most competitive pricing and terms for goods and services purchased by the City. He stated if we just buy green cleaning products from a local distributor, that is a good example of supporting a local small business but if a major purchase for the City and an impact on the taxpayer, we have to apply the time-honored lowest qualified bidder. He stated it is a matter of focus. Mayor Elliott noted that sometimes, even if it costs a little bit more, putting the dollars into a local business you might find the numbers are that those dollars circulate seven times in the local economy. So upfront, it might cost more for a higher ticket item but economically the impact could be the dollars circulate locally more than paying for the same product with a company that is Kentucky or somewhere and those dollars leave. The overall economic impact might be different if the money is spent outside. He stated it will not always work out that way and what 08/02/2021 Page 15 Councilmember Ryan raises is important as well because that is an investment of an economic outlay. All of those factors must be considered. Councilmember Ryan stated it is very difficult to make that kind of measurement economically. He wanted to put that issue out there and this is something that has to be addressed by the administration given there is consensus that we have a concern. Mayor Elliott added one of these objectives should be enhanced community health and wellbeing. He stated especially now with the health pandemic, issues faced, and different health indicators, it is important to have a goal around the overall health and well-being of residents. In terms of how we articulate that and how that translates into a priority, can be discussed. Councilmember Graves stated she does not necessarily disagree but does not think we need to add a new strategic goal. She is not interested in having that conversation right now and just wants to try to move forward with the City Manager’s agenda the best she can and have that conversation at a later date. Councilmember Ryan stated his only concern is that perhaps the City Council has too many goals and we may try to roll up several issues into fewer goals. His ongoing concern, while it is somewhat checked by the lingering Delta variant and pandemic that does not seem to want to go away because people are not getting vaccinated, but a lot of the functionality belongs with the County. Otherwise, we may use City resources in duplication of effort and it should be a constant effort by citizens and, at a minimum staff needed, to direct the County to needs and ask why more is not being done. That could also be part of a logging effort by the City with the assistance of groups like Metro Cities and the League with other cities like us in the metro going to the State and saying we have these unmet needs and there should be support from the State government and counties should administer those things. Mayor Elliott stated he shares the idea that we need to minimize the impact to our residents on the tax base, noting he has often called for zero increases in taxes. Councilmember Ryan noted that is not always practical if we are continuing to demand more resources and functions. Mayor Elliott stated his point is that it can be set as a goal and then go after getting resources from the County, State, and federal governments, even if in combinations, to help us achieve our priorities. Councilmember Ryan stated again, it gets to functionality and organization, and the County has the expertise and focuses on that. He asked why should the City duplicate what they are doing when they should be doing it. He noted through CARS and healthy living, that is something he wants to look at more carefully but it is probably practical, doable, and within our reach to provide resources for individuals and families and have good facilities so they can be active and programs/videos/information for healthy activity. That could be done at a reasonable cost but to pursue some other health and human services are things done by the County and he respects that division of labor. 08/02/2021 Page 16 Dr. Edwards stated #10, health and community, is more attended around wellbeing and the County traditionally delivers public health. He stated staff can look at the verbiage and being clear about what it means, which is around wellbeing and not replicating County services. Councilmember Graves stated we can get rid of emergency response, not because she thinks it does not need to be a focus still but, in her opinion, it does not sound like a huge budgetary expense, and delegating it to appropriate staff would be a way to remove it from the focus area. Councilmember Lawrence-Anderson stated due to the pandemic, the Fire Chief and others have stepped up their game and to Councilmember Graves’ point, it is now an administrative function, been dealt with, and no longer something the Council needs to focus on. Those resources and staffing have already been allocated to handle emergency response. Dr. Edwards stated as we go forward, staff will talk about where we will allocate resources. Now, the staff knows a couple of key areas and there is still work to be done as COVID remains. Mayor Elliott stated he thinks the City Council needs to keep emergency response because the staff is focusing on it. He stated he read the emergency response plan and it needs work. Councilmember Graves stated all of these items could be kept but Dr. Edwards is asking what is the highest priority. Councilmember Lawrence-Anderson stated it is a City goal but the City Council does not need to focus on it as the staff has been directed to stay on it. Mayor Elliott suggested making that distinction. Councilmember Graves stated the other one she would remove is the leadership role, which does not need to be a budgetary focus. She thinks we have sufficient funding and are effective in our duties. Councilmember Lawrence-Anderson agreed and stated using common sense we’ll utilize them as needed. Councilmember Graves stated if the need arises and we need to hire a consultant for team building, there is enough in the contingency fund to cover that. Or, if someone wants to take one additional trip, the City Council can consider it. City Council and Financial Commission Discussion of Priorities Dr. Edwards moved the discussion to one of prioritization and asked, given the context of the coming year, what is happening in the world, given the City’s tax capacity and financial condition, what are the top three strategic priorities where the City should target its resources. He asked the City Council Members and Commissioners to place the four green dots provided on the strategic priorities they find to be the most important. 08/02/2021 Page 17 The City Council Members and Financial Commissioners spent several minutes talking about the priorities and placing their dots indicating which they found to be a priority. Dr. Edwards stated he appreciated the conversation, which builds shared understanding that allows staff to be more accurate in executing the City Council’s direction. Councilmember Lawrence-Anderson noted that even transparency, other than its oversight, could be removed as the City Council has already tasked staff to take care of it. Mayor Elliott stated transparency could go under accountability. Councilmembers Graves and Lawrence-Anderson agreed. Councilmember Ryan stated transparency, accountability, and innovation could be combined, noting that for many years the staff has done that, in part because the City Council has demanded more services every year. Mayor Elliott stated he did not see how you got to accountability or engagement without transparency and innovation. Councilmember Graves agreed and stated you don’t. Mayor Elliott noted essentially, we are innovating our way through all of this stuff and creating new things that didn’t exist before. Councilmember Lawrence-Anderson referenced goal 2, beautification, cleanliness, community image, noting it relates to code enforcement and community standard. Councilmember Ryan stated that is why he had placed one of his green dots there. He stated it is his experience from years before, during a major upswing in crime when Brooklyn Center and Brooklyn Park partnered with a public safety study done by a world premiere research organization on policing and public safety. Professional Law Enforcement Federation concluded part of what contributed to improved public safety in Brooklyn Center envisioned policing practices and staffing would be to improve the appearance of the community because it demonstrated that in larger and smaller cities when neighborhoods went into a physical decline, there was the correlation between that and crime. So, cleanliness, community image, can be in support of improved public safety. Councilmember Ryan stated we have seen an uptick in gun violence, which is a national trend and just about every night there is a shooting incident in Brooklyn Park, and every three days we get a note through the City e-mail and that has to be addressed through the police. He stated he thinks we can do police reporting and get the needed resources and staffing level for the Police Department because they have to deal with that. He stated there is a correlation between the increase in violence, increase in shooting incidents, carjacking, properties, and we’re doing police reform at the same time. Several comments were made at the same time, overlapping and inaudible. Councilmember Ryan stated to have confidence in public safety, we have to be clear about focusing on the right resources. And, we want the whole community to have confidence in our police officers, that they are going about it in the right way. He stated that needs to be a clear message and not be politicized. Councilmember Ryan stated he will not support a budget that defunds the police. Dr. Edwards stated the next question relates to the vision of the City, where the City is trying to 08/02/2021 Page 18 go, and the mission that the City Council has developed and designed. He stated given the financial landscape of the City, here is what our capacity is. He noted there are several focus areas of the City but if we had to narrow it down to a couple of impact areas to pay attention to in 2022, it is accountability on policing, economic stability for our businesses, equitable City spending in how we utilize our resources, community health and well-being and public health, and infrastructure. Those are the key areas of focus including engagement and transparency. City Council and Financial Commission Discussion of Levy Increase Dr. Edwards stated if we want to impact those areas, based upon the landscape described, the question is what is acceptable as it relates to levy increase. He asked the City Council to think about increasing the levy to address any of the issues identified as a priority given the financial landscape and knowing that 8% adds zero increase in taxes but there are things, such as cost of living and other things, that will come along and be more costly than last year. Dr. Edwards asked, given those factors, what is the City Council Member’s and Commissioner’s threshold and thoughts about an acceptable increase in the property tax levy. He noted it can change and by the time it is presented in September, it will be fine-tuned so this is not the end-all or only chance to speak to the levy. Rather, this provides a framework and staff will come back in September when the City Council will hear from the departments about the way to deliver on current operations in addition to these items assigned within the parameters set by the City Council from a levy and budget perspective. Dr. Edwards asked the City Council Member’s and Commissioner’s to place additional dots on the levy increase they are comfortable considering given the City’s financial landscape, direction to the City, and areas identified that the City should continue to work on. Mayor Elliott stated this is difficult because he would like to see what a 0%, 2%, 3%, 5% levy increase would buy you. He stated if a 3% increase would buy the City a really good value and accomplish this, this, and this, then he might be more willing to ‘bite that bullet.’ Councilmember Ryan noted at a certain levy, it pushes impacts relative to few in the City, such as water properties, that will take a pretty good bite while the medium value, at a certain levy rate, gets a modest increase. He stated property along with the River and Twin Lake pay almost a different class rate so there will be tax reduction at a 3% to 5% levy increase and a lesser tax reduction still at a 6% to 9% levy increase. Councilmember Graves stated that is what she wondered if people remembered from that conversation. Councilmember Ryan stated we may need an increase in certain department budgets if for no other reason than to keep up with inflation, noting there will be a 2% to 3% net increase on salaries, which is 75% of the City’s budget because it is a service organization. Councilmember Graves stated you can expect, at a 0% to 2% increase, nothing super innovative. Mr. Splinter noted there are also issues of revenue loss in other areas, such as building permits, 08/02/2021 Page 19 lodging tax, community center revenues, and recreation programs. Dr. Edwards agreed and noted a 0% increase would translate into some reduction in goods and services. Mr. Splinter agreed. Councilmember Graves stated a 0%-2% levy increase would be great if it could happen. Councilmember Ryan stated it is incumbent upon us to set the levy a bit higher and offer only a modest small reduction to the median value home property taxes. He noted by that date certain, it cannot be raised but the City Manager can come back with a lower levy recommendation. Mayor Elliott noted, however, that once it comes back, the City Council never lowers it. Councilmember Ryan stated the City Council has lowered it and that speaks volumes about good staffing. Councilmember Graves agreed it had been lowered, but not significantly. Dr. Edwards stated the levy has gone down every time from where it was originally set. Dr. Edwards referenced some of the fiscal plans and policies, stating he is fairly fiscally conservative so they do ‘sharpen their pencils’ but the departments operate fairly frugal as it is so there is not a lot to cut. He stated his appreciation for the feedback provided. Mayor Elliott stated for him, and not faulting staff, but the missing piece in this exercise is that this is like trying to put a dart on aboard. If he knew what an increase would buy him in terms of improvement in services, then he would be more likely to support a 3% to 5% levy increase. But starting off and not knowing what an increase buys him, it is hard to consider. Mr. Splinter explained it is more likely we are looking at somewhere like 8% to maintain the services we provided last year as opposed to adding additional services and features. Staff is just trying to maintain City services and that is what department heads try to do when they bring him those numbers and then they cut it from there. Mayor Elliott asked why an increase of 8% is needed. Mr. Splinter explained it is because of loss of revenue, things get more expensive every year, and beyond the cost of building adjustment, health insurance costs are up more than 2% and more likely 5% if split with employees. Otherwise, it is 11% to 12% in total. Beyond that, there are things like fuel, repairs to aging buildings, maintenance costs, a large fleet of vehicles, police cars that get into accidents, and fire trucks that need to be replaced very soon. Mayor Elliott stated that is due to the increase in the cost of goods and increases related to health insurance. Mr. Splinter stated that is correct as well as a decrease in revenues outside of the tax levy such as building permits, lodging taxes which is a huge revenue source and has been decimated by COVID. Councilmember Graves stated she hears what Mayor Elliott is saying and that is part of the reason 08/02/2021 Page 20 why, early on, she said she’d like to have, later in the budget process, a cost breakdown by strategic priority and specifics on outcomes that came out of that funding and within that strategic priority. This would help the City Council see where funding has been and working and where it has not been working. To her, she is thinking as Dr. Edwards said, a 1% to 2% increase in levy may mean firing or laying off employees or reducing City services. A 3% to 9% levy increase is probably in the area of maintaining staffing levels and service levels and addressing some of the focus areas of last year, which have now been prioritized budgetary-wise moving into the next fiscal year. Councilmember Graves noted this information gives us some idea about what you get for the percentage and where we would like to see some of that money be focused based on priorities. Mayor Elliott stated that context is helpful and to Councilmember Graves’ earlier comment, we can cut some stuff but the City Council has not necessarily talked about that yet. This brings him to ask about the process some cities use with zero-based budgeting that considers what is needed to maintain what the City is doing but we take everything off the spreadsheet and then start putting things back on one by one by answering the question mentioned earlier such as: has this been effective or not; do we want to take off; or, do we want to put it back on. Mayor Elliott stated he would be better informed in thinking about arriving at a point that these are the things we want, they will cost an additional 3% to 5%, and we are committed to that. He does not feel like the City Council has enough context or information to choose how much we are going to tax. Councilmember Graves stated she does not disagree with Mayor Elliott but thinks we can do that when the departments bring their budgets before the City Council, noting it is the role of the City Council to approve the final budget but staff will implement based on that budget. She thinks there needs to be some autonomy and agency in deciding what their budgets should be like and then bring it to the City Council and get feedback on whether this is an effective use of funding within their budget. If the City Council does not think so, then asking questions and indicating why they do not think so. Councilmember Ryan stated he thinks what Councilmember Graves is getting at, essentially, what we have done, even if not a formal declarative evaluation, because we are always pushing our department heads to deliver more without increasing their budgets. In the past staff has said they have accomplished a lot of this. He noted it is especially difficult for the Police and Fire Departments because they purchase very large and expensive pieces of equipment that have to be replaced. He stated we have a Fire Department that has gotten 30 years of use out of 20-year equipment and done a lot to save on that by emphasizing fire prevention. He noted what we hear from our department heads, and if we make good decisions, it will get us there. Dr. Edwards stated the information is appreciated and gives direction and perspective. He explained when staff comes back, the City Council will hear from department heads and in September they will consider a levy that is justifiable. Dr. Edwards noted the City Council may not agree and have an opportunity to change and adjust, but he will bring what he thinks is in the best interest of the City based upon the direction in which the City Council set. Mayor Elliott stated he does have some thoughts about the City Council’s budget and will be making proposals on that portion of the budget. He stated if the City Council has any thoughts on the Council’s budget, he may include that in what he will be proposing. 08/02/2021 Page 21 Mr. Splinter mentioned that Top Golf’s total tax bill is $808,000 and the FBI’s total tax bill is almost $1 million. He estimated the City’s portion is about one-third of that total. Councilmember Ryan stated approval of the FBI building passed by a 3/2 vote. Mayor Elliott stated, for the record, that Councilmember Butler has indicated she was on her way but not doing well and would not make it to tonight’s meeting. 5. ADJOURN There was a motion by Councilmember Ryan and seconded by Councilmember Graves to adjourn the meeting. The motion passed. The Brooklyn Center City Council/Financial Commission adjourned at 8:31 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 the City Council from the City of Brooklyn Center Joint Work Session with Financial Commission held on August 2, 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 August 23, 2021, Regular Session. City Clerk Mayor 08/09/21 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION AUGUST 9, 2021 VIA ZOOM CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Mike Elliott at 6:03 p.m. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, City Manager Reggie Edwards, City Attorney Troy Gilchrist, and City Clerk Barb Suciu. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Mayor Elliott referenced the August 9, 2021, City Council/EDA Work Session agenda and added Item 1, Project Coordinator for Implementation Committee, and to then reorder the remaining two agenda items. He explained investments are coming in from non-profits so internal capacity is needed to accommodate that work. Mayor Elliott stated he would like City Council/EDA direction related to that item before the follow-up meeting on August 10, 2021. Mayor Elliott referenced August 9, 2021, City Council Regular Session agenda and requested to add Item 10a., Resolution Extending the Period of a Mayor-Declared Local Emergency and Emergency Ordinance Requiring the use of Face Coverings in Public Buildings within the City. There being no objection, August 9, 2021, City Council Regular Session and City Council/EDA Work Session agendas were amended as indicated above. City Manager Reggie Edwards announced that Phase 1 of the Community Center expansion study is now complete. This phase identified needs, economic conditions, cost, etc. He asked if the City Council would be open to scheduling a Work Session to receive a presentation on that study and discuss that item on August 23, 2021, at 5 p.m., before that night’s Study Session. Following discussion, it was the consensus of the City Council to direct staff to schedule a Work Session on August 23, 2021, at 5 p.m., to hear a presentation on the Phase 1 Community Center expansion study and discuss that item. MISCELLANEOUS None. 08/09/21 -2- DRAFT DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS PROJECT COORDINATOR FOR IMPLEMENTATION COMMITTEE Mayor Elliott explained the Implementation Committee’s work is moving forward and they have been meeting with several organizations that have expressed interest in working with Brooklyn Center to implement the resolution. One of the organizations is Fuse who has come to the table and offered to provide two full-time positions to help with implementation. One of the positions will focus on data and the other on engagement around the implementation work. Mayor Elliott stated to take advantage of those positions, there needs to be an internal project coordinator. The City Council is being asked to consider adding an internal project coordinator position to help make sure the work of the Implementation Committee and all the pieces are moving together in unison, help provide critical capabilities that we need in project coordinating, and assuring timelines and goals are met around implementing the resolution. The position will work directly with Mayor Elliott and the Implementation Committee to assure we are working with the City’s resources and partners. Councilmember Ryan stated he is listening carefully and believes the Mayor did not specifically mention what resolution he was talking about. He asked if it is the Violence Prevention and Public Safety Resolution. Mayor Elliott answered in the affirmative. Dr. Edwards explained that for the Implementation Committee to do some work in addition to the external entities that have pledged support and providing assistance, there needs to be coordination if anything in the resolution is to move forward. Currently, staff cannot serve as a coordinator so for that work to substantially move forward, some type of coordination is needed. Dr. Edwards stated staff submitted several grants they think are promising and anticipate coming forward, which could help provide funding for such a coordinator position. But, that funding is not in hand at this time so should the City Council determine to move forward with this position and direct staff to develop a coordinator description, it would have to be funded via contingencies as it is not budgeted. Dr. Edwards stated he discussed with Mayor Elliott and City Attorney Gilchrist as it relates to someone working directly with the Mayor and it would be appropriate, with this position working with the Implementation Committee, not execution and operations but on the policy, recommendation, development, and implementation side. That person would report to the Implementation Committee Chair, which is Mayor Elliott, as established by City Council resolution. So, this person would report to Mayor Elliott in providing coordination as it relates to the Implementation Committee. Dr. Edwards stated to pave the way where it does not in any way do harm or jeopardize the integrity of the City Council/Manager form of government as it relates to operations, this position would operate on the legislative political side and not be involved in the operation. To ensure that is the 08/09/21 -3- DRAFT case and to protect and maintain the integrity of the City Council/Manager form of government with the City Manager being the principal director of operations for the City and single employee of the City Council, a Memorandum of Understanding (MOU) has been created to articulate and provide clarity around roles and duties. Dr. Edward stated with this MOU, he does not believe any issues would compromise the integrity of the City Council/Manager form of government. He explained that should the City Council move the position forward, some coordination would be needed per the resolution passed and that work would take place under the auspices of the Implementation Committee Chair. Dr. Edwards stated if approved, he would work with Mayor Elliott, this staff person, and the Implementation Committee; however, there would be no staff on that Committee at this time. Councilmember Butler asked if there is an anticipated cost for this position. Dr. Edwards stated based on the direction of the City Council, staff will pull that information together but he imagines it will be in the range of $75,000 including benefits if a permanent position. If a temporary position is without benefits, it will be in the range of $50,000. Councilmember Ryan noted Dr. Edwards had mentioned that initially, no City staff would be included in the Implementation Committee. Dr. Edwards stated that is correct and as composed and passed in the City Council resolution, staff cannot serve on that Committee. Councilmember Ryan stated he has reservations about having discussions without any input from the Police Department, especially in a time where there are very legitimate public safety concerns. The other issue he has is that the City Council should have at least a Work Session during which they can have the opportunity to ask questions of an interview for candidates of this position. He felt this would be appropriate because of how important this is, to learn more about the expertise brought by the person so appointed, and to find out their expectations for what they would like to see done through this effort. Councilmember Ryan stated he would appreciate hearing from other members of the City Council. Councilmember Lawrence-Anderson stated she is not certain she understands, noting the City Council is in Work Session but received no information about everything been discussed as far as duties, responsibilities, and what City Attorney Gilchrist will weigh in on. She asked if the City Council will be voting on this issue tonight. She noted the City Council is in the time for budget sessions for next year and there is not a contingency, per Dr. Edwards, financially for this position. She stated she needs some clarity as far as what this discussion is about and the action to be taken this evening. Mayor Elliott stated this is talking about a position to support the work of implementing the Public Safety Resolution. This position will assist with project coordinating the work of the Implementation Committee, noting there are a lot of elements to the Public Safety Resolution. For the City to take advantage of the resources offered of two positions, which is the equivalent of $300,000, an internal project coordinator is needed. Tonight, the City Council is being asked to fund this position for the remainder of the year, essentially two months. Using Dr. Edward’s estimates, he thinks that is the equivalent of about $10,000 to $12,000 for the remainder of this year. 08/09/21 -4- DRAFT Councilmember Lawrence-Anderson asked what organizations are the $300,000 coming from and has the Implementation Committee has been established, noting members of the public safety community should have input as one objective is to be transparent. In that effort, we need all different voices at the table when talking about implementing something as important as improving upon our public safety role within our community. She asked where is the $300,000 and who is on the Implementation Committee. Councilmember Lawrence-Anderson stated the purpose of a Work Session is to discuss items that are then put on an agenda for a vote. Councilmember Butler stated sometimes we start going down ‘rabbit holes’ and spend a lot of time on issues that are not in front of the City Council right now. She stated the point of the discussion is about having a project manager. The topic at hand is providing direction to staff in terms of having a project manager. Councilmember Butler noted the City Council has already adopted a resolution and wants it to be implemented. Staff is saying they can’t do it so we then need to have someone in place to lead this. Councilmember Butler stated the City Council has been receiving weekly updates on the applications for the Committee so it has been actively recruiting. Those applications are still being received. She stated bringing up involving our Police Department is not what we are talking about right now. Of course, we want them to be involved in the changes that are being made but that is not what we are talking about now. We are talking about whether we, as a City Council, want to pay for somebody to lead this initiative. Staff is telling us they don’t have the capacity so if we don’t do it, how are we going to get this work done. Councilmember Butler noted we have organizations giving money and people to help do this work so she thinks we should consider that and make sure we are focusing on the question at hand and not get too far ahead of ourselves. She thinks the things that are being brought up are valid to the long-term plan but now we need to focus on the question at hand: do we want a project manager. Councilmember Butler stated we don’t have the exact figures but noted that for some of the stuff we have spent money on, we have spent less time discussing. For instance, the RFP initiative to pay someone $60,000 to $70,000 to research art in Brooklyn Center. She stated she is not saying we shouldn’t have spent the money on it but thinks we shouldn’t get too hung up on numbers when in the grand scheme of things, it is not a lot of money. She stated she wanted to offer her perspective before we got too far. Councilmember Lawrence-Anderson stated she appreciates Councilmember Butler’s comments but she believes it is necessary, from her side of it, and the questions are relevant to ask and get the answers. She stated Councilmember Butler may be right that this is not the time but she thinks it is a valid question. Councilmember Ryan stated this is an example of something brought up to the City Council without any information to which to consider and prepare for this discussion. That was one aspect of the actual Violence Prevention and Public Safety Resolution process that he was, frankly, very disappointed in. It felt like it was forced without being vetted by staff. Councilmember Ryan 08/09/21 -5- DRAFT stated in this case yes, we should look at getting a project coordinator/director and he appreciates the offer of outside funds to support the effort. But he would like to know more about who is being considered for the position, have a chance to look that over, and consider a couple of candidates rather than just saying we are going to go ahead and do this and move on it right away. Councilmember Ryan noted that due process yields good results. City Attorney Gilchrist stated his understanding this is a discussion amongst the City Council at a Work Session tonight and not a request to vote on anything. He advised there is an MOU, which he would be happy to review for the City Council, but consistent within that MOU is the idea that the position is created by the resolution. That resolution is not before the City Council right now. It is just to seek consensus to develop the resolution and prepare the documents for the next City Council meeting when it will call for a vote during the Regular Session. Dr. Edwards stated that is consistent with his understanding as well. City Attorney Gilchrist stated it appeared there were thoughts that a vote would be called for tonight and that is not the case. Mayor Elliott agreed that is not the case and this is a Work Session item tonight. Councilmember Graves stated she has been listening to all the Councilmember’s comments and tended to agree with all of them on at least a few things. She did see what the few applicants are so far for the Implementation Committee and thinks there needs to be some type of project management to move forward on items within that implementation that would have to be developed to execute on the different promises made within that resolution. Councilmember Graves stated one thing she is unsure about is the focus of this particular position. She stated Councilmember Butler referred to it as project management, but that is not exactly what was being described to her. She would like a better understanding of what this position, specifically, will be doing and especially if they are not working within operations at all and only with policy. She does not know how that would be connected with implementation or project management unless it is to be a facilitator of specific policies the Implementation Committee wants to present. But, that is not specific to changing operations, per se. She is not clear on the description of the position nor whether she thinks, personally, this is exactly what we need to move forward on some of the different specifics within the resolution. Councilmember Graves stated as a City Council and staff, it would be nice to sit down and have a more specific conversation around implementation and feasibility, and sustainability of different aspects within the resolution. She was hoping the City Council would get a chance to do that either at a Work Session or at the Council retreat. Mayor Elliott stated we are planning to do that at the upcoming meeting. He clarified that there is a lot of work to do even before we get on the staff side to do the hiring for the departments. The work of the Implementation Committee is a heavy lift and we have two interested organizations, Fuse and Leap. Mayor Elliott stated during the testimony of the Public Safety Resolution, one of the testifiers was 08/09/21 -6- DRAFT the former chief and his organization has come forward saying they want to work with us. He stated this is talking about helping from the local perspective and making sure the facilitation process of the Implementation Committee is doing work in alignment with our values. The project coordinator role is critical as it will help us make sure all of the components are working in tandem. Also, it is a requirement for the two positions from Fuse, one focused on data we have on public safety and the other position specifically focused on community engagement around the implementation process. Mayor Elliott explained that to take advantage of those resources, we are asking for $10,000 to $12,000 for this year to support those positions. Councilmember Graves stated she appreciates the additional information but still feels a little out of the loop on what is happening. She stated what the Mayor has explained is giving her a little bit and asked if there is a proposal or graph that shows how these different things are connected and the way this position will work. Councilmember Graves stated she is not opposed to talking about it further and drafting a resolution but wants to be more clear about how Mayor Elliott sees the specific different components and what exactly they will be doing. She asked what are the specific outcomes and tasks that will happen. She explained she gets frustrated because she feels like she is out of the loop and does not know what conversations are happening. Also, as Councilmember Ryan mentioned, the City Council has nothing to look at or read; it is just a conversation about conversations that Mayor Elliott has had with people the City Council does not know. Councilmember Graves stated after the meeting she can look up the two organizations Mayor Elliott mentioned and do some background research but she did not know that before right now. Mayor Elliott stated he gets it and he communicated with the City Clerk about this before the meeting, that the intention was to schedule another time when we can give that whole update on the implementation process. He again stated he gets it, that the City Council was not in on these conversations and does not know what is going on. He stated the update is coming and there will be more information about the work done so far with the Implementation Committee. Mayor Elliott stated he hopes he has given enough high-level information tonight about the need to have an over project coordinator, noting Councilmember Graves has said she does see the need but wants more specifics and understanding on this position and overall, how the implementation process will work. Councilmember Graves stated that is correct. Councilmember Ryan stated he understands what a Work Session is to be and that the City Council will not be voting. But he mentioned the process for the passing of the resolution where it was backward. The City Council did not have material that was properly vetted that they could look at and review before the opportunity to consider what we are doing. He stated he took the leap of faith with that police reform. Councilmember Ryan noted that Councilmember Graves brought up a very good point about needing more specifics as to who and what the position will be and what it will mean. He stated he is not opposed to having a coordinator in some form but would like to have more information 08/09/21 -7- DRAFT about the process and an idea to vet the organizations that the candidates come from. Then the City Council can talk about coming to a consensus about hiring said director/coordinator. Councilmember Ryan stated this is about being left out of the loop and he feels like he has been left out of the loop. Mayor Elliott stated he understands that and will take that to heart and continue, from his end. He offered to meet with Councilmember Ryan, to sit down, and talk. He stated he is happy to do that at any time and will also schedule a time to have the City Council be presented on the full implementation process. He noted this item is timely and he will be having a follow-up conversation tomorrow so he wanted to get a sense from the City Council about supporting this position. Mayor Elliott stated this position will serve as coordinator overall on the implementation process and staff will go back, draft the position description, and flush out the details of what that role looks like. Tonight, he is asking for the City Council to speak about the need for this supporting coordinator position. Councilmember Butler stated she wanted to piggyback on comments made about feeling left out of the loop. She stated she had reached out to Dr. Edwards a couple of weeks ago because she felt the same way, noting Council Members are often asked what is happening and she wants to be able to better speak to it. That is why the City Council started getting Friday updates. Councilmember Butler supported continuing to get the Friday updates with the last page focusing on whatever meetings Mayor Elliott is having so that information can be shared. Or, that could occur bi-monthly if weekly is too frequently. She stated meetings are good but all have busy schedules and not all will be able to meet outside of the City Council meeting schedule so the Friday update may be the best medium to keep the City Council abreast. Councilmember Butler stated in terms of this position, she thinks the City will need someone who will coordinate the work since the staff has said they do not have the capacity. She supports the position. She thinks $10,000 for this year is a small and insignificant amount compared to the City’s overall budget, noting the City Council has found money for other things and can find $10,000 to support this position. She hoped that within the next week or two, the City Council will have more information on the cost for moving forward so that can be considered as the budget is discussed to assure funds are allocated for it. Councilmember Butler stated the more information and clarity that Mayor Elliott can give towards the process of this position will be helpful by the time the resolution comes before the City Council. Mayor Elliott polled the City Council for direction on whether they support establishing this position. Councilmember Lawrence-Anderson stated this will most likely be something that is necessary but since she does not know when any of the meetings have taken place, she also feels out of the loop, does not know where $300,000 is coming from, who has been meeting, or the job description for this position. She stated this needs to be discussed more before she can commit tax dollars to a position that she knows nothing about since it has been very vague. 08/09/21 -8- DRAFT Councilmember Lawrence-Anderson stated she is more than happy to discuss this at a future Work Session and then it could be an immediate Regular Session agenda item so it can be voted upon. She stated right now, she has more questions than she has answered so she is not moving forward at this time. Councilmember Ryan stated in the interest of time, he follows the same remarks as Councilmember Lawrence-Anderson. That is where he is at now too. Councilmember Graves stated she definitely can sympathize with what Councilmembers Ryan and Lawrence-Anderson have said. She does not think the position is being voted on right now and she has voiced her concerns about the focus specifically on policy and what that looks like. She is unclear about specifically what the person will do if they are creating a new policy, working with the Implementation Committee to create policy, and what is the position doing beyond coordination and policy. She stated she is not opposed to the position but does not necessarily think that is the right role of the position we need. She wants to discuss and get more clarity on what that specifically is. She is not opposed to a small amount of money being spent on the position for the rest of the year but wants to be clear on what the position is. Councilmember Graves asked if this position is a facilitator, a director, or a coordinator of policy. Mayor Elliott stated no, they are helping us. The Implementation Committee wants to establish some subcommittees to focus on different areas of the work. To coordinate all of that takes a lot of time, timelining the implementation process, and keeping all of the different parties we are working with, the facilitator, the folks coming on to help us review the different policies we have in the City, folks coming on to help us review the data we have in the City on public safety, and help us analyze and make sense of it. All of these subcommittees and other people we have coming on to help us implement the resolution require coordination. This person will be responsible for the timelining, all of it, and keeping everything on track. Councilmember Graves stated they will not only be leading the facilitator and implementation group, but they will also coordinate with these different partners that have pledged some support, and specifically working with Mayor Elliott and the resolution to figure out the first implementation steps. She asked if that is correct. Mayor Elliott answered in the affirmative and stated as the Implementation Committee and its subcommittees continue to meet, they will be establishing the policies. Councilmember Graves asked if they will do any recruitment to help fill out the Implementation Committee. Mayor Elliott answered in the affirmative. Councilmember Graves asked if the City Council will be part of the hiring process and know who this person is that gets hired or is that only Mayor Elliott’s prevue. Mayor Elliott stated it will involve him and Dr. Edwards but if Councilmember Graves wants to be part of that, sure. Councilmember Graves stated she is curious because she is thinking about the work she does with Opposite Bounds (49) Prevention that has a steering committee, a multijurisdictional group with 08/09/21 -9- DRAFT some more specifically in community with business, and some specifically with law enforcement and other jurisdictional partners like parks, etc. She is trying to understand the framework of what Mayor Elliott is trying to create so she can better understand where are the gaps and where he is starting. That is why she needs more information. Councilmember Graves stated she feels like she understands what Mayor Elliott is trying to do and thinks as a first step to get things going, it makes sense. She can support it but hopes the resolution is clearer than this initial discussion. Councilmember Lawrence-Anderson asked about the group meeting tomorrow that Mayor Elliott had mentioned and asked if she can attend. Mayor Elliott stated Councilmember Lawrence Anderson can attend and asked other members who are interested to message him. Mayor Elliott thanked the City Council for their input and noted staff will draft and present a resolution that has more clarity at the next meeting. ADJOURNMENT Mayor Elliott adjourned the Study Session at 6:51 p.m. 08/09/21 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION AUGUST 9, 2021 VIA ZOOM 1. INFORMAL OPEN FORUM WITH CITY COUNCIL CALL TO ORDER INFORMAL OPEN FORUM The Brooklyn Center City Council met in Informal Open Forum called to order by Mayor Mike Elliott at 6:51 p.m. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were City Manager Reggie Edwards, City Clerk Barb Suciu, and City Attorney Troy Gilchrist. Mayor Mike Elliott opened the meeting for Informal Open Forum. Lori Bardal stated she wants to speak about the Implementation Committee. She stated she 100% agrees that the City Council needs to be in the loop and so does the community, and she does not feel like that has been happening. She asked what has been taking so long, noting it has been 180 days and she does not want another protest in Brooklyn Center or things happening where people are dying at the hands of police. Ms. Bardal stated people are interested in implementing these changes and encouraged the City Council to get this done before more lives are lost. She asked about the timeline, noting the last 54 minutes have been spent on hiring more people, holding more meetings, more bureaucracy, and the timeline has not been mentioned. She wished Open Forum was more of a dialogue than just her making comments without knowing what the City Council is thinking. Ms. Bardal stated Diane Sannes had made comments in May and at the last meeting she attended, Diane had still not received any feedback so she thinks the City’s system is flawed and it needs to be improved. Regarding community engagement, she thinks the City Council meetings should be both in-person and Zoom at this point. Ms. Bardal stated she has some important things to say about the Implementation Committee. She addressed the Daunte Wright memorial, noting it is well maintained and provides a place to grieve, process, and heal. After the unrest last April, she felt it was essential to provide a space where we can reflect but to sustain this memorial, there are needs that Brooklyn Center could help assist. She stated the iconic solidarity fist is a symbol to express unity and strength, it sits on a sidewalk facing 63rd Avenue. She stated with the upcoming winter, she is asking for the City Council’s 08/09/21 -2- DRAFT assistance with financing the cost associated with the installation of a small curvature around the fist so that it may be ADA compliant. Ms. Bardal noted the Daunte Drive street sign is handwritten and asked the City to rename it as Daunte Drive with signage on both ends as a permanent fixture to Kathrene Drive. She stated it is important to ensure the longevity of the memorial and we have the support of the community to make it clean, beautifully kept with flowers, and a way to give back to others. In return, she is asking the City to commission this as a permanent fixture so it will remain for future generations. Ms. Bardal stated in addition, she would like to address a proposal for a memorial for Kobe Heisler, which is long overdue. She consulted with various community members and after much thought would ask that Kylon Park be renamed as Kobe’s Park since it was a special place where he enjoyed spending time with his family. She stated she consulted with local artist Geno Okok who has done work in Brooklyn Park and Crystal. Once approved, Geno has agreed to paint a mural on a structure built as a solidarity bench. The backboard will hold a painting of Kobe riding his bike, leaving a trail of flowers behind since Kobe enjoyed riding his bike and horticulture. She stated this will be a symbol of peace and hope for our neighbors. Ms. Bardal stated Brooklyn Center has endured turmoil and persevered like no other city and yet come together and is thriving. As a gesture of goodwill, she requested both memorials to be financed either in full or partially by the Brooklyn Center Police Department and any remaining funds needed could be subsidized by the City of Brooklyn Center, working towards unity in our community. Melissa Carey stated she is a resident, part of the immigrant movement, and wants to tell her black brothers and sisters and neighbors on this call that she sees them and is sorry for the violence they have experienced. She stated black lives matter and the slurs on the chat were uncalled for and disgusting and need to be denounced. She stated her profile normally says, your struggle is my struggle, and she wants to say they are worthy of honor and respect as image-bearers of God and she stands in solidarity with them. Ms. Carey stated as a City, we are committed to our diversity and justice for all people in our community. That, ultimately, is the thing that will triumph. Ms. Carey stated she is on the call tonight to say thank you and remind the City Council that before COVID, this meeting was streamed so anyone could watch it live. She asked that the resolution mentioned will keep this going as COVID is again (inaudible) and it leaves out moms with babies and people who are too far away to drive, the immune-compromised. She stated we need to make sure this is accessible to our whole City. Ms. Carey stated if face-to-face meetings will resume, she would like the City to continue having Zoom as an option. She noted many more people are showing up to the meetings and she assumes that is what the City Council wants, interaction with folks positively and appropriately. Mayor Elliott confirmed staff is working to assure that capability Joy Anderson, stated she is a resident and had not planned to speak until she received an e-mail at 5:31 p.m. from Armando and Angel of the City Hall Communications Department notifying a 08/09/21 -3- DRAFT select few there was an emergency health resolution by the Mayor. She is deeply concerned that only 250 select people received this communication in a city of 31,000 people. She stated residents are not being communicated with from City Hall. She stated she wanted to bring it up tonight because she has tried multiple times to communicate with the Communications Department, with Dr. Edwards, sent e-mails, called, and there has been no response so she is concerned. Ms. Anderson stated she signed up for the Brooklyn Park communications and they have a fantastic method of communicating with their residents with e-mails and there is a multitude of other things you can opt-in or out of to receive communications about happenings, job notices, events, police, and fire department, and all kinds of things that you want to know about your city. She stated for some reason, Brooklyn Center does not have that and she is frustrated by that so things like the Mayor issuing a health emergency, nobody knows that. She stated she happens to be on the 250 community partners' e-mail list but those are the only people that get communications about things happening in our City. Ms. Anderson stated you can hear the distress in her voice, she is very frustrated and concerned about the disconnect between City Hall and the residents who live here. And, with the unrest we have had, it completely was amplified that there was no communication with the residents. She stated Brooklyn Park was communicating more than Brooklyn Center on what was happening in our City. She asked the City Council to hear her tonight and make this plea to the Communications Department and all of those in City Hall who can make a difference. She suggested they call Brooklyn Park to learn about their website communication system, which is simple to sign up, and then do promotion and send out two postcards that this is available. Ms. Anderson stated Brooklyn Park sends out the communications eloquently, short, to the point, and always in a positive way. She is never hesitant to open one of their communications as she knows it will be quick, positive, and informational. She stated Brooklyn Center needs this as soon as possible. Julie Bourque stated her support for what Melissa touched on and she hopes the City will continue to offer meetings virtually. She would not have been able to attend tonight if it hadn’t been virtual and this offers her a way to participate in the City in a way she has not been able to. She stated as we talk about how to reach more residents and communicate and encourage participation, having a virtual option is necessary given how life is right now and will be in the future. She stated this is an important option to have and to keep. Ms. Bourque stated she also wants to lend support to having permanent memorials in place for Daunte and Kobe, which are important to have in the City so we can both learn and grow and remember and honor those lives. Matt Branch stated he wants to echo those sentiments and empathize that whenever we move to in-person officially that there is a Zoom or online option because if there is not, he will have to say farewell to City Council meetings as he works on Monday nights plus has kids. He stated it has been amazing that he has been able to attend and learn and grow with the City and be part of the process through Zoom and online features. 08/09/21 -4- DRAFT Mayor Elliott thanked Mr. Branch for his comments and stated he will ensure there is a virtual option when we go back to in-person meetings. He stated the pandemic is still here and evolving, which one of the agenda items this evening is to address. A lady stated this is her first time being able to join a City Council meeting. She has been a Brooklyn Center resident for well over 20 years and is concerned she does not understand the workings of our City Council. She has dug through the City’s website seeking to find meeting minutes, resolutions, and ordinances and find they are lacking as far as clarity. The things she sees is the lack of communication between our Mayor and City Council Members with clear communication, clear focus on where we are going, and what we are doing. She is also concerned with the focus on memorials and other financial endeavors to remember individuals of our community who we have lost. She stated this is turning into a big focus of our City Council meetings and a burden to our City Council where we have significant issues with ongoing murders, shootings, unrest in neighborhoods that are very close to schools, and several children in our City. She stated it is very unsafe. She is unclear as to where our City is going with our Police Department and feels our police officers have their hands tied, we are lacking in empowering our police officers to watch over our City, or to communicate effectively their needs on how they could be better served by our community to empower them to do their job well. As a resident, she wants to support our police, Mayor, City Council, and be part of the solution rather than part of the burden. She stated she is lacking in finding ways to plug in with that and does want to say she agrees with others who have communicated tonight that we need to come together as a body versus segmenting into different groups. She agreed with Joy that there needs to be better communication and the option for Zoom meetings is good. She is confused whether the mandate of the lockdown is so the meeting tonight would be on Zoom or where that is headed. She thinks there should be an option for those who feel comfortable to attend in person and interact and discuss meetings as well as get the minutes clearly and concisely, and for the information of the City to be better presented. She stated when talking about memorials, if individuals want to submit one and put it in a park, she finds that to be fine but does not think it should be a burden on our tax dollars or our Police Departments to pay for them. Ashley Long stated she wanted to comment about the police, noting their job is to serve and protect but they have not been doing that at all. She stated they are not protecting anybody but white people so she does not want to hear their input at all because she feels like they will cover themselves up if all they are going to do is kill innocent people for no reason at all. Lori Bardal stated she wanted to quickly address the white supremacist who was on the call earlier because she too has been threatened personally in her home and does not appreciate it and on this call no matter what, they are not backing down. They will follow through on this very important step in the right direction. She is glad we have the support of our communities and City Council 08/09/21 -5- DRAFT and the end goal is that we are not cowering down to these people, the white supremacist who come on this call and try to intimidate them, which is unwarranted and they will not let it happen. She stated she is proud to live in a community that is diverse and will stick up for that no matter what anybody does. Mayor Elliott thanked everyone who commented on Open Forum. He stated we are still going through some challenges as a City and working our way through transformation and evolution. He stated there were a lot of comments this evening, some about public safety and others to the way we do business regarding communication and follow up on concerns expressed before the City Council, which we have to address including issues around capacity. He asked residents to continue to show up and speak and we will get to a better City, noting the vision is that the best place to live in Brooklyn Center no matter who you are. No one else wished to address the City Council. Councilmember Butler moved and Councilmember Lawrence-Anderson seconded to close the Informal Open Forum at 7:24 p.m. Motion passed unanimously. 2. INVOCATION Councilmember Graves shared a poem she wrote a year ago as the Invocation. God has a reservation for us, a placeholder waiting to hold love. A garden with the seeds of unity, yet to be ripened for harvest. Nourishment can still be found in moments of connection. Feel it grow closer, stronger, more enduring. Forces of fear and uncertainty work to tear the fragile fabric, but silk is stronger than steel. Though the cords that connect seem invisible, they hold tightly to the possibility, the potential of blooming love. 3. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in Regular Session called to order by Mayor Mike Elliott at 7:26 p.m. 4. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence- Anderson, and Dan Ryan. Also present were City Manager Reggie Edwards, Community Development Director Meg Beekman, City Clerk Barb Suciu, and City Attorney Troy Gilchrist. 5. PLEDGE OF ALLEGIANCE 08/09/21 -6- DRAFT The Pledge of Allegiance was recited. 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Ryan moved and Mayor Elliott seconded to approve the Agenda and Consent Agenda, as amended, to add Council Consideration Items 10a., Resolution Extending the Period of a Mayor-Declared Local Emergency; and, 10b., Emergency Ordinance Requiring the use of Face Coverings in Public Buildings within the City, and the following consent items were approved: 6a. APPROVAL OF MINUTES 1. July, 26, 2021 – Regular Session 6b. LICENSES MECHANICAL Absolute Mechanical LLC 7338 Ohms Lane Edina, MN 55439 Ideal Air, LLC 17900 Aztec Street NW Andover, MN 55304 PB Services LLC 9410 Bataan Street NE Blaine, MN 55449 Stafford Home Service 6225 Cambridge Street St. Louis Park, MN 55416 RENTAL INITIAL (TYPE IV – six-month license) 5337 Queen Avenue N. Edith Perlin 4201 Lakeside Avenue #319 Nancy Slattery 5308 Lilac Drive Dani Araya 6324 Scott Avenue N. Sayndee Sando INITIAL (TYPE III – one-year license) 1513 Humboldt Place Calvin Johnson Johnson Organization, Inc. 1531 Humboldt Place Calvin Johnson Johnson Organization, Inc. 1537 Humboldt Place Calvin Johnson Johnson Organization, Inc. INITIAL (TYPE II – two-year license) 5803 Xerxes Avenue N. Sonder Point 5803 Xerxes Avenue N. 1330 67th Avenue N. Mark Sibilev 08/09/21 -7- DRAFT 1525 Humboldt Place Calvin Johnson Johnson Organization, Inc. 1543 Humboldt Place Calvin Johnson Johnson Organization, Inc. 1549 Humboldt Place Calvin Johnson Johnson Organization, Inc. 1555 Humboldt Place Calvin Johnson Johnson Organization, Inc. 5603 Knox Avenue N. Paul R. Johnson RENEWAL (TYPE IV – six-month license) 1606 71st Avenue N. Gregory Lang RENEWAL (TYPE III – one-year license) 1605 56th Avenue N. FYR SFR Borrower 3818 61st Avenue N. Sherman Kho 6701 Bryant Avenue N. IH3 Property IL 7006 Morgan Avenue N. Hesham Abdel Hakim RENEWAL (TYPE II – two-year license) 6628 Camden Drive Marie Rickmyer 2407 Ericon Drive Plia Thao – met requirements 6242 Scott Avenue N. Chen Zhou/MSP Home Rental 4718 Twin Lake Avenue N. Richard & Elizabeth Becht RENEWAL (TYPE I – three-year license) 6125 Lilac Drive LaNel Crossings Lang Nelson Assoc 6201 Lilac Drive LaNel Crossings Lang Nelson Assoc 5440-44 Bryant Avenue N. Traiten Gunderson 5909 June Avenue N. Jeffrey Davis 6020 Emerson Avenue N. Chad Tesmer 7110 Riverdale Road James Nelson/ACR Homes 6913 Toledo Avenue N. Fred Hanus 6400 Unity Avenue N. Michelle Vue 4706 Wingard Lane Mains’l Properties Motion passed unanimously. 7. PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS 7a. BROOKLYN CENTER ENTREPRENEURSHIP MARKET STRATEGY FINAL REPORT City Manager Reggie Edwards stated this item was on the agenda previously but the presenter was ill so it was rescheduled to tonight. He introduced the item and invited Ms. Beekman to present the report. 08/09/21 -8- DRAFT Community Development Director Meg Beekman stated the City has been working in partnership with a development team comprised of Alatus, Project for Pride in Living, and Resurrecting World Faith Ministries, on a development project at the northeast corner of Bass Lake Road and Shingle Creek Parkway. The project is within the area known as the Opportunity Site and would be located on EDA-owned property. Ms. Beekman stated this is in predevelopment and the City is about to embark on a community engagement phase. The development, in general, is a multi-phased, mixed-use development program with a mix of housing types, an event center, daycare, and approximately 25,000 square feet of community-driven entrepreneurial space. The program also anticipates several outdoor public spaces, one of which would support and provide additional space for entrepreneurial incubator space for outdoor gathering and pop-up market expansion. The entrepreneurial space is the topic of discussion this evening. This is a component of a much larger development project, which would be delivered by the development but programmed and designed and owned and operated by the City. The purpose of the space is to serve local entrepreneurs and businesses. Ms. Beekman stated the City partnered with ACER and NEOO Partners earlier in the year to conduct a market and feasibility study, engage local business owners in the process, identify a guiding vision, and branding for the entrepreneurial space. The consultant team was also tasked with developing an operating model and proforma, as well as assist the City with identifying an ownership and management solution for the space. NEOO Partners and ACER have completed their work, and the final report is presented in tonight’s meeting packet and Denetrick Powers of NEOO Partners will present the final recommendations, highlights from the study, and identify the next steps for implementing the project. Ms. Beekman stated Mr. Powers came to the City Council several months ago and provided an update at the mid-point of their work and shared much of the community engagement piece, and branding. She invited Mr. Powers to present his findings as it pertains to this study. Denetrick Powers, Co-founder of NEOO Partners, introduced himself and said they were interested in this project because they see a lot of opportunity in Brooklyn Center because of its location, makeup of its businesses and residents, and being the most diverse city in the State of Minnesota. He stated there is a lot of opportunity for residents and small businesses who are doing the best they can despite the pandemic to improve and accelerate their future growth. Mr. Powers stated one of their findings is that no one policy or program will guarantee success as every community is unique in its makeup of programs and partners to serve its businesses. Engagement with those businesses will need to continue past this study to ensure those policies and programs are designed in a way that best serves their needs. Mr. Powers highlighted this project is seen as part of a larger entrepreneurial ecosystem so a comprehensive approach is needed, knowing it will not solve everything, but is a beginning step. He noted the location is in the heart of Brooklyn Center so tailoring the program and policies to provide product and funding and legal support and give a place to grow and establish roots is important. 08/09/21 -9- DRAFT Mr. Powers stated 61.74% of Brooklyn Center’s population are people of color (POC), 41% of firms are POC-owned, and of the businesses owned by POC, only 10% have employees. He stated they do not look at this number as a deficit but as an opportunity to help the other 31% grow and hire members of the community. Mr. Powers stated ACER led community engagement, two surveys, two focus groups focusing on the business community and residents, and a series of one-on-one engagements with small businesses. The items they identified related to a lack of visibility, rents not being affordable enough, not enough retail and office space at the right size, feelings of isolation, and difficulty navigating resources for small businesses. The engagement occurred through conversations and informational interviews with local entrepreneurial leaders, small business incubator leaders, the Neighborhood Development Center (NDC) who was a key advisor to this project, ArcGIS analysis, and national/international best practices research. Mr. Powers stated other challenges identified are that Brooklyn Center has a saturated retail market so small businesses are competing with big-box retail, there is little to no experiential retail destinations with the nearest being Arbor Lakes so there is an opportunity to create a destination center, and there few cultural foodservice offerings. Mr. Powers stated based on that engagement and research, they felt instead of operating as a traditional small business incubator, there was an opportunity to also act as a market space. They are calling it the entrepreneurship Cultural Market Plaza and Small Business Center. He again noted the Brooklyn Center retail market is saturated with big-box retailers and national franchises that don’t reflect the cultural diversity of the City. The BIPOC small business community offers a variety of services and products that are culturally aware of the needs of its community. He noted that a culturally reflective market and small business center would fill gaps in the local economy by attracting visitors from neighboring cities. Mr. Powers stated based on the census data and COVID relief data, the following industries are most likely to be serviced: retail, professional services, and health care/beauty. He noted when they started this project, they heard there was a want of more food offerings but after looking at the data, there are more businesses in these retail, professional services, and health care/beauty uses that need space. They also found there is a myth that ethnic businesses and residents want food businesses but that is not true and the data has proven that. Mr. Powers stated further programs and services would be broken into four customer segments: general assistance, one-time customized assistance, long-term individual assistance, and incubation client (physical tenant for an established business) where they can continue to grow. The secondary market would include customers from the day workforce as well as the general public for a lunch and weekend destination. Mr. Powers stated when developing programing, they determined four must-haves for a small business incubator: 1. The leading entity responsible for startup and ongoing operations; 2. Location services including below-market amenities, office, and retail space, and shared services; 3. Strong partnerships to engage local government, institutions, and business leaders; and, 4. 08/09/21 -10- DRAFT Programing and mentorship providing basic business and tenant assistance and customized assistance for opportunities. Mr. Powers displayed pictures of four other local comparable businesses and stated after looking at them, they felt Mercado Central was the closest comparable in makeup with a lot of retail and office space and some food businesses. He explained the study looked at 14,000 sq. ft. but through ongoing conversations, they recognize that to continue engaging businesses, there may be a need to double that space. Some of the other incubators that provide programming and incentives include NEON, Mercado Central, Midtown Global Market, and Karmel Mall. Mr. Powers stated they found over 30 service providers for small business resources for entrepreneurs, noting some are near Brooklyn Center including African Career, Education Resource Inc. (ACER) who partnered on this study, the Liberian Business Association (LIBA), and CAPI who participated in the focus groups. He stated a lot of the business technical assistance providers could be great partners because they have experience and currently work with culturally diverse small business owners. Mr. Powers presented four business models for small businesses including local economic development, academic/scientific, corporate, and private investors. He explained for this incubator/market, they used the local economic development approach as being the best fit because as a non-profit model there are many activities to provide service to a general set of businesses. Some of the objectives include job creation, economic development, supporting targeted groups, and focuses specifically on small businesses. He reviewed key offerings from the economic development model including hosting and shared services, administrative assistance, consulting and coaching, and access to financing. Some of the problems identified include accessibility of resources, changed subsidy with local government leadership, quality of management, governance, and risk conflicts. Mr. Powers presented the seven principles for program design including entrepreneurs being front and center, fostering conversation, enlisting collaborators, living the values, connecting people, telling the community’s authentic story, and being patient, emphasizing the four that are key for this incubator. Mr. Powers stated they identified key characteristics of top-performing small businesses as follows: 1. Almost all programs are not-for-profit because they need a large subsidy. 2. Incubator sizes range from 4,000 to nearly 1 million sq. ft. They found size isn’t a determinant of success for an incubator. 3. Incubation program budgets range from revenues of $33,000 with expenses of $17,000 to $2.8 million in revenue with expenses of $2.5 million. The size of an incubator’s budget is not a guarantee of success but those that invest more into their programs tend to do better. 4. The average amount of rent and service fees only covers about is 58.7% of the revenue needed to be sustainable. This means the local government is usually covering upwards of 40% of the cost needed to run a successful incubator. 5. Advisory board composition matters to make sure entrepreneurs are part of the incubator design as well as those with experience and local government staff, all key players, are at the table when designing and making decisions. 08/09/21 -11- DRAFT Mr. Powers stated the recommended start-up is as follows: 1. Owned by a non-profit supported by the EDA because the key needs of the community are for affordable space. If the incubator is owned by a non-profit or EDA, it would eliminate taxes for the space, which acts as another subsidy. 2. Needs to be a well-balanced board appointed by the EDA. 3. Full-time director as part of the startup so they understand the design and needs of the incubator at the beginning instead of coming in after everything has been designed. 4. They estimate $350,000 of public investment is needed during the initial year and it could be upwards of $1.2 million over the first four years. This is not the cost of building the incubator but the operational costs. Mr. Powers presented the next steps including establishing an incubator organization, a non-profit and advisory board, to organize stakeholders; design and construction of the incubator, identifying design firms and determining the hard costs for building the incubator; marketing and leasing the incubator space, building a pipeline of businesses using information based on the small business relief grants given and work they did with ACER and LIBA; and, continue to engage small businesses to design the incubator programming. Mr. Powers stated that concludes his presentation. Mayor Elliott thanked Mr. Powers for the presentation. He stated this is the clearest presentation he has ever seen and Mr. Powers has done a great job. Councilmember Butler echoed Mayor Elliott’s comments, noting she had written down questions but during the presentation, they were answered. She thanked Mr. Powers for the thorough presentation, which was well researched about the need, the gaps, and opportunities that a lot of local business owners face and how this can assist to fill some of those gaps as well as partners that were engaged in the process. She stated she had no questions as they were all answered. Mayor Elliott stated he hopes Mr. Powers will continue to work with them as they go through the next stages and implement these recommendations. He noted it is laid out. He stated he visited several entrepreneurial centers, one in Denver that has been operating a decade or so and he was very impressed after a tour and talking with the staff, which is a non-profit. He stated he and Dr. Edwards were fortunate to meet with an incubator center in Chicago that has operated for well over a decade and using the local culture, resources, people, and building a thriving entrepreneurial ecosystem. Councilmember Lawrence-Anderson thanked Mr. Powers for a very thorough presentation, noting for those listening, the City Council received a 44-page thorough examination of this report as well. She asked if the action tonight is to accept the report. Mayor Elliott answered in the affirmative. Councilmember Lawrence-Anderson noted at the beginning it was said there are no budget issues to consider this evening. But, going forward, she is curious because in reading the material, on page 22 of the memorandum, it indicates that the EDA funding is typically for set up but not ongoing. Yet for success, the report indicates it will require ongoing economic support. She stated it is wonderful and asked that the record note she worked for a husband/wife entrepreneurial team and they did extremely well so she respects the entrepreneurial spirit and wants to see it in our City. Yet, she would like as much information as possible, and tonight she fully accepts this 08/09/21 -12- DRAFT thorough report that was well done. Councilmember Lawrence-Anderson stated going forward the City Council will want to clarify, from an operational standpoint, what the City may or may not be required to do. She again thanked Mr. Powers for all of the information. Councilmember Ryan stated he appreciates Mr. Powers' presentation, noting he has put a lot of time and effort into it and it is very helpful. He asked what are some of the major non-profit foundations in the State of Minnesota that might come to the table to support some of our initiatives and if the McKnight Foundation would be one. Mr. Powers stated in their conversations with the Neighborhood Development Center, they expressed interest in this incubator but they have not yet talked about the details of what may look like. From the philanthropic community, the McKnight Foundation and Pohland Foundation have funded entrepreneurial programs in the past, they fund NEON, so they may be potential funders. Mr. Powers stated there will need to be further conversations to determine their priorities. Councilmember Ryan stated this will be an ongoing conversation and he imagines there will be various people who are engaged with this and pursue that avenue. He is open to the concept of a small business incubator but his questions and concerns need to be answered in detail, perhaps not tonight but at a later date. He noted the Community Development Director has informed the City Council that the business incubator component of the Alatus business pilot project would require a substantial operating subsidy from the City, estimated at $1.2 million over the first four years of operation. Councilmember Ryan stated he understands that is an estimate but if it is a fair estimate, that is a substantial commitment and would mean the City would spend a great deal of money to support just a few businesses. He asked how the City would meet a financial commitment of an additional $300,000 each budget year over the next four years. He also asked how the City would get the money, and would it be paid through the general fund financed through the tax levy. Councilmember Ryan asked if the business incubator is built, wouldn’t the subsidy be a long-term commitment going beyond four years. From a financial perspective, he asked if building a business incubator on that scale, possibly 25,000 sq. ft and at that expense, in terms of construction costs and operating subsidies be more feasible if constructed as a later phase of the Opportunity Site development rather than in Phase I. He asked if the business incubator space requiring this level of subsidy and most likely Tax Increment Financing (TIF) cancel out much of the increase in the tax base from the Alatus development. Councilmember Ryan stated the City Council needs to weigh these costs against the potential benefit of the business incubator as part of the Opportunity Site Alatus project, noting the problem with any cost/benefit analysis is that it is easy to discount the cost and overestimate the benefit of the project. He stated as a policymaker, the City Council is charged with the management of the City’s limited resources so he looks forward to seeing a feasibility study that takes a careful and hard look at the business incubator portion of the Alatus proposal as well as the project. Councilmember Ryan stated he is ready to receive the report at this time and thinks it is a great first step in walking through those challenges. Councilmember Ryan again thanked Mr. Powers for his work, which is outstanding and helps us begin the conversation about where the City needs to move and possibly seeking outside resources. 08/09/21 -13- DRAFT Councilmember Graves thanked Mr. Powers for the presentation and stated he did a good job. She stated a small business and some kind of global market in Brooklyn Center is something she has wanted to see since 2014, before getting elected to the City Council. She felt it was missing as a resident and has been talking about it for a long time. Councilmember Graves stated she appreciates the report and knows other cities around Brooklyn Center are moving forward with similar ideas. She also appreciates the questions raised by her fellow Council Members and looks forward to continuing discussions. Mayor Elliott echoed Councilmember Graves’ comments and stated we all want to see this type of development in Brooklyn Center as it has been needed for a while and for far too long, residents of all stripes and backgrounds have expressed they would like to see this happen in Brooklyn Center. Mayor Elliott stated he keeps thinking about the State of Minnesota’s forecast that 70% of its future growth will be from communities of color so, to him, this is not just a feature or token or needs to be just a small part of a business-as-usual development project to check a box. He stated this is, the big opportunity we have in Brooklyn Center to focus on developing businesses we have here, which keep resources here in our community. He noted dollars circulate seven times or so if it is a local business versus bigger national chains where the dollar leaves right away. So, investing upfront in a business like this adds much-needed support for entrepreneurs in our City. We are also investing in having a more stable economic base as these entrepreneurs are often the last to close shops, even during the hardest times, while national chains close their stores across the country. Mayor Elliott stated he thinks this is the right direction, noting the City often makes large investments in big developers, gives them subsidies to the tune of millions of dollars, and doesn’t bat an eye. But when we talk about these entrepreneurs, we want to talk about how much it’s going to cost. Of course, we want to know we are spending taxpayer dollars in the right way and he can’t think of a better way than to support our local small businesses. Mayor Elliott stated the City Council looks forward to seeing Mr. Powers again. Ekta Prakash, CAPI, thanked Mr. Powers for the great presentation, which was well done and she liked it. She pointed out that Brooklyn Center may need to think about the safety protocol too and as we are growing businesses and thinking about how we want to expand, we need to put on the safety lens because we are also thinking about who are the users of the businesses. They want to attract people from out of Brooklyn Center too and to think about safety as it is another hurdle she sees all of the time being in Brooklyn Center and witnessing all of these challenges. She wants the City to address that to assure the people who are living there are safe, the businesses are safe, and they can attract others who come to Brooklyn Center to use our businesses and services. She stated she is struggling with this and wanted to bring it up. Mayor Elliott agreed this needs to be incorporated into our thinking around the development we are doing in Brooklyn Center, including this one. 08/09/21 -14- DRAFT Ms. Beekman thanked Mr. Powers for the presentation and stated it’s been her pleasure to work with him on this project. She stated a couple of things to take note of from a bigger picture standpoint, is that Mr. Powers talked about the entrepreneurial ecosystem and it is really important to note that because as the staff has met with small businesses within the community, service providers, and residents, they have heard about the types of retail experiences people want to have. They want the retail to look more authentic to the community and be locally based. This has come up as staff has developed a program to support small business spaces. They know that no one project will solve all the needs so several projects are being thought about. This would be one component that would serve a particular service and from the beginning, that purpose was focused on serving local entrepreneurs and creating spaces for them to have stable bricks and mortar locations, resources, and networking amongst one another, and provide technical assistance and support to their front door. That is the function of this type of space. Ms. Beekman noted there is an opportunity for pop-up markets and food but as we think about the Opportunity Site development and other redevelopment opportunities, we know there are slices of each element of our needs that can be met. Ms. Beekman stated their staff talked to several different folks who want to focus on what an ethnic market, culturally diverse space, would look like and likely may focus on businesses from outside of the community, also knowing that brings in those experiences and growing the ecosystem of businesses and additional support. They also know there is a need for affordable bricks and mortar space, opportunities to incubate food and other types of business, and technical assistance. Staff is working on those areas and that will be discussed more at tonight’s Work Session. Ms. Beekman stated this is one project amongst many that are designed to create a whole. Councilmember Lawrence-Anderson stated she would like to thank Dr. Edwards, his staff, Ms. Beekman, and her team, for all of the work that has gone into this, adding it does not go unnoticed. Councilmember Ryan moved and Councilmember Lawrence-Anderson seconded to accept the Brooklyn Center Entrepreneurship Market Strategy Report. Motion passed unanimously. 8. PUBLIC HEARINGS None. 9. PLANNING COMMISSION ITEMS None. 10. COUNCIL CONSIDERATION ITEMS 10a. RESOLUTION NO. 2021-95 EXTENDING THE PERIOD OF A MAYOR- DECLARED LOCAL EMERGENCY 08/09/21 -15- DRAFT Mayor Elliott announced that earlier today, he declared a local emergency due to the pandemic. He stated COVID-19 has evolved into a Delta variant and there is another variant coming that is even more contagious. Those changes in the pandemic are the reason they are meeting tonight electronically. He referenced the resolution prepared by staff to extend the local emergency, noting in the Legislature one of the requirements was for the Governor to give up his emergency authorities so the State cannot respond to the emerging dangerous situation we are facing with the pandemic. Mayor Elliott pointed out the rate in which cases are coming in is higher than it was last summer so cities have to act. He explained the action before the City Council is to extend the local emergency and next to consider an indoor mask policy. City Attorney Gilchrist stated unfortunately, the City Council has been through this process a couple of times before. He explained the way the Statute is set up for declaration of local emergencies is that the decision is left solely to the Mayor to make that declaration and it is only in effect for up to three days. Then any extension beyond three days has to come with the consent of the City Council. That is what this resolution proposes. City Attorney Gilchrist stated the Mayor asked for the resolution to be prepared and that would be the next step in the emergency. The resolution reflects the emergency rationale in the declaration, addresses the Delta variant, increased spreading of it, and those vaccinated being subject to it and able to pass the virus. He stated the health pandemic has not gone away but this emergency declaration reflects the most recent and troubling trend that is occurring with the increased transmissibility and infection rate that is occurring. This is a reverse in trends from what we have seen in recent weeks. City Attorney Gilchrist referenced the resolution, noting the operative language in the NOW THEREFORE BE IT RESOLVED, that the City Council supports the Mayor’s declaration of local emergency and extends it until the City Council acts by resolution to repeal it upon the termination of the public health risk no longer warrants maintaining face coverings imposed here. City Attorney Gilchrist noted this resolution should be revised to delete the words ‘face coverings imposed here.’ and instead say: ‘…until the City Council determines the public health risk no longer warrants maintaining the emergency declaration.’ City Attorney Gilchrist stated the next section says the Mayor, City Manager, staff, and Attorney are authorized and directed to take any additional steps to carry out the intent of the resolution. He recapped that the resolution intends to extend the emergency declaration for an indefinite period until the City Council determines to repeal it. Councilmember Lawrence Anderson asked if we are still looking at two acceptances this evening, extending the emergency declaration and the mask mandate, or if they would be combined into one. City Attorney Gilchrist advised they are separate actions. One affirms and extends the Mayor’s emergency declaration and the second is a proposed emergency ordinance that would be acted on separately to implement a mask requirement, which relates to the emergency declaration but will require a unanimous vote so it will be acted on separately. Councilmember Graves asked what is the intent of the emergency declaration. City Attorney Gilchrist stated there are no specific requirements associated with it so unlike the original 08/09/21 -16- DRAFT declaration adopted in 2020 that had a list of things that would happen as a result of the declaration, this one the Mayor acted on today does not have that list. Mayor Elliott explained that having the declaration allows the City to use that State Statute and meet virtually and allows us to enact measures, one of which is the emergency ordinance for masks. Councilmember Graves noted the two measures will be acted on separately and asked if the first does not pass, does that mean the City Council cannot act on the second. Mayor Elliott confirmed that is correct since an emergency related to the pandemic is needed before you can declare a local emergency ordinance. City Attorney Gilchrist stated the City Council has adopted emergency ordinances without an emergency declaration in place but to the Mayor’s point, it does support an emergency ordinance if there already is an emergency declaration in effect. It also supports the idea of meeting electronically if there is a local emergency declaration in place. He stated most cities that did meet virtually over the last year did so under an emergency declaration. He is pointing this out because some neighboring cities may be going to electronic meetings without declaring an emergency. The Statute says that meeting electronically due to a health pandemic or an emergency under Chapter 12 so, technically, they are separate things. The City Council could hold electronic meetings under a health pandemic without a declaration of an emergency, but it does lend support. Councilmember Graves asked what other things could be passing the emergency declaration do besides the two (allow electronic meetings and institute a mask mandate) mentioned. City Attorney Gilchrist stated it puts the City back on an emergency footing that would allow the City, if tied to the emergency, to utilize expedited contracting procedures and those sorts of things. However, he did not see how those things would come into effect. It would also authorize and empower the Mayor to take action by emergency declaration. Councilmember Graves stated if the City Council decided to not approve that today but felt it was needed in two weeks, we could do that as an emergency pretty quickly as they have done in the past. City Attorney Gilchrist advised that is correct if the Mayor adopts a new emergency declaration, which is the first step in being able to extend it. If not approved this evening, the current emergency declaration will expire in three days. Councilmember Graves noted the Mayor could declare another emergency. City Attorney Gilchrist agreed and explained there is no set time between emergency declarations. Councilmember Graves stated she does not necessarily think Brooklyn Center needs an emergency declaration extended at this time but she is interested in having a conversation about a mask mandate specific to City-owned buildings. Mayor Elliott asked whether there are any funding or reimbursements tied to whether there is a local emergency. Dr. Edwards stated not at this particular time other than the ARP fund which is directly related to COVID. Mayor Elliott asked Councilmember Graves what are her reservations about extending the 08/09/21 -17- DRAFT emergency. He saw it as giving the City the ability to act on masks by resolution, which he could have also done by an emergency declaration but thought it was better done through City Council action. Mayor Elliott noted that Minneapolis and St. Paul have their emergency in place. Councilmember Graves stated she does not necessarily have reservations but does not see the total necessity of it at this moment and does not feel as though we would have our hands tied to act should the specific need arise. She stated that is all she cares to share. Councilmember Lawrence-Anderson asked for a point of clarity, noting within the State Statute, what are other powers included within the emergency declaration. She concurred that with the rising cases of COVID due to the Delta variant, meeting in person may not be prudent or safe for the general public, and she concurs with the masking. Councilmember Lawrence-Anderson stated it was clear back in April-May that a full-fledged emergency was needed but she is not quite certain that is necessary and if there is a way we can legally, via State Statute, hold our meetings virtually now and have a City ordinance for masking, that would suffice as opposed to a very opened ended emergency declaration. City Attorney Gilchrist stated the declaration of a local emergency will trigger the City’s emergency plans to be implemented, noting a health pandemic is a little different and just ended nine days ago. It had been in place since March of 2020, consistently existing in the background. Then with the positive news on the pandemic, he encouraged the Mayor to not let it go on perpetually since you can re-enact it. On July 12, 2021, there was a consent agenda item to end the local emergency at the end of July 31, 2021. Now with the Delta variant spiking within the last couple of weeks, the Mayor approached him about reinstating it. City Attorney Gilchrist advised that once enacted, other than triggering the local plans, it allows the City to do things like a contract in a more expeditious means to address the emergency, to rely on mutual aid agreements, and those sorts of things. The unique thing for Brooklyn Center, being a Charter City is that it also ties into a Code provision the City enacted several years ago that also gives the Mayor the authority to enact emergency proclamations and enacting temporary regulations. Mayor Elliott stated he thinks the City needs to enact its emergency management plan, which declared a local emergency will do and free the City to be able to contract more expeditiously. He stated the City Council can vote against it but he will not bring forward another declaration in two weeks. Councilmember Butler stated if the City Council does not pass this emergency declaration and has to go back to meeting in person, she was nervous about and hadn’t heard about any protocols or anything different that would be put in place to keep all of us safe, nothing we can’t assume everyone is vaccinated, nor can we ask. She wondered if we don’t pass this, how can we ensure that people are kept safe in having to attend in-person meetings. She also asked how are we going to keep our residents safe who attend in person. Mayor Elliott stated the City can still meet in person if it does not pass. 08/09/21 -18- DRAFT City Attorney Gilchrist stated the City Council can still meet electronically if this does not pass. Mayor Elliott stated he thinks it would put the City on a better footing to take advantage of that Statute and continue meeting virtually. City Attorney Gilchrist stated he also agrees. Mayor Elliott stated City Attorney Gilchrist had approached him and said he thought the City should end the emergency as it was not needed anymore. But if we do need it, we can always bring it back. Mayor Elliott stated he agreed and is now bringing it back because he sees no downside to declaring an emergency, invoking the emergency management plan, and freeing up staff to take certain actions expeditiously. Councilmember Graves asked, for clarity, when the original emergency proclamation ended at the end of July, does staff still follow CDC recommended guidelines. Dr. Edwards answered in the affirmative and stated staff continues to follow CDC and State guidelines the doors at all City facilities recommend wearing your mask if you are not vaccinated. He stated staff anticipated continuing to do that and ask staff to wear masks if not vaccinated. Councilmember Graves asked if there is anything that staff or the City Attorney can point to specifically, right now, that would help staff with their work or current need related to the pandemic. She thought the comment about the ARP funding was unclear. Dr. Edwards stated staff just finished a seminar on ARP fund requirements and purposes for which the City can utilize those funds. The staff has not put together a list of efforts as far as utilization of those dollars but it would apply to any matters related to COVID. Councilmember Graves asked if there is something that would preclude or open the City to more uses of that funding bypassing the emergency declaration. Dr. Edwards answered no, it would not enhance the City’s ability to use those funds as it has already been authorized as long as the City can document, according to the existing guidelines, that it pertains to COVID. Councilmember Graves stated her opinion stands because if needed, the City Council can make a quick effort, despite the Mayor saying he won’t come back with another emergency declaration. She stated as a leader, if there is further indication that it needs to be brought back, then she thinks the Mayor would do so and if not, and there was a need for different protocols, she would bring it up to the rest of the City Council and she hopes staff would as well. Councilmember Graves stated she is not a specialist or someone who knows what is happening with the virus at all times. But she has been following and working as a public health specialist doing outreach during the pandemic and working with entities within Hennepin County, Minneapolis, and sometimes with Brooklyn Center around it. To her, right now, she does not feel the urgency to extend the emergency. However, that does not mean we shouldn’t diligently watch and make sure that if it is necessary, we take that action. Councilmember Graves stated she does not feel that way right now but does want staff and people visiting our buildings to feel safe so it makes sense to not just recommend wearing a mask but ask people to wear masks in City-owned properties. That is how she feels now and if it changes or 08/09/21 -19- DRAFT someone else feels differently, she is open to hearing their perspective. Mayor Elliott stated he feels differently and if Councilmember Graves is saying that in two weeks if she feels like the situation is serious enough then he should bring forward another declaration, he feels that way right now. Councilmember Graves stated she knows that is how the Mayor feels and if he still feels that way and the rate has doubled again, saying that he won’t bring it forward in two weeks sounds sort of like a threat. Like if you don’t pass it now, I’m not going to bring it up again even if it is warranted. Councilmember Graves stated that is what her point was. Mayor Elliott repeated that he feels it is warranted right now. Councilmember Graves stated and so the Mayor would still feel that it is warranted if it got worse so saying he would not do it again, to her, seems manipulative. Mayor Elliott stated it is not, it’s just being real. He stated the rates of COVID contraction right now are higher now than they were at the height last summer. So, if he brings it forward tonight and the City Council says they don’t see the reason for it and he comes back two weeks from now and says, hey it’s even higher than it was, how sure is he that it will be enough of a change for the City Council to support this. Mayor Elliott noted everyone is saying that what they are seeing with this virus is scarier than it was any time since we’ve had this virus around. He does not understand Councilmember Graves’ apprehension to extend this declaration. Quite honestly, he thinks it is scary out there for all of us and if she is worried about people coming into our buildings not wearing a mask, then the best thing we can do is declare a local emergency and impose masking so people know that it is an emergency and it is serious. He asked what do we have to lose by extending the local emergency. He stated it is a health pandemic. Councilmember Graves stated she is curious and asked if any smaller cities have done this recently, like Brooklyn Park or Crystal, Robbinsdale, Roseville, Falcon Heights, or was it just Duluth, St. Paul, and Minneapolis. She also asked if they did a second declaration of emergency or just pass a mask mandate. Mayor Elliott stated at least one of the mayors he reached out to with this conversation expressed sadness that they ended their declaration at the same time we ended ours in Brooklyn Center. He would not be surprised if that city extended or incorporated a new emergency. He stated when the Governor ended his because that was the only way the Governor could get the budget passed. Then all of the other cities, including Brooklyn Center, followed suit but it was not based on the fact that we were out of a pandemic or emergency. Mayor Elliott stated to him it does not makes sense we are not in a local emergency because we are. He cannot think of a better time to declare an emergency than right now. That is his frustration when Councilmember Graves said he can just come back. He stated it is already worse. 08/09/21 -20- DRAFT Mayor Elliott stated if he sounds frustrated and a little bit angry, it is because he is. He has nothing tied to this, but this is where we are and he hopes the City Council takes the right step. He stated we can look at whether smaller cities have taken this step but maybe they are looking at us to see whether we take this step. He again asked what do we have to lose by extending a local emergency. Mayor Elliott noted that all of the steps the City Council takes to go through the City Attorney in consultation. Councilmember Graves stated she is not under the impression that Mayor Elliott has some other ulterior motives behind it but she feels the things that Mayor Elliott wants to do can be done right now. She is suggesting we don’t rush into the situation but, instead, stay diligent about the rate of the spread and get people to mask up and get vaccines if they are comfortable enough to do so, partnering with other health entities to do so. Councilmember Graves noted she was on the incident management team at the Health Department and a week ago it was disbanded. That does not mean people are not still doing work related to the pandemic because people are still conducting testing, vaccination clinics, practicing COVID mitigation plans. She is thinking about specifically Mayor Elliott’s decision to halt a construction project and then several emergency meetings were needed about it to mitigate some resident concerns related to dust. She noted she is not saying it was not important, but she also thinks it could have set the City up for some possible litigation. So, it was a time-sensitive situation where the City Council had to immediately be available to meet and make decisions based upon Mayor Elliott’s decision under an emergency proclamation to stop something and then get the rest of the City Council on board and behind it. Councilmember Graves stated she is trying to avoid another situation like that and act when she feels like it is pertinent to act right at that moment. She thinks if we saw an exponential rise in cases specified in our community and it felt as though we needed to do that, the City Council would do that. Councilmember Graves stated Mayor Elliott has not given her any data specific but is just talking about the Delta variant and new variants, which she is well aware of. She does not necessarily feel that right now today is the day to do another emergency proclamation and extend those powers beyond three days. She stated if, in three days , she felt differently, then maybe she would say that. And, in two weeks when they hold another City Council meeting we can look at the rates and get recommendations from public health officials and experts on whether or not it will be necessary. Councilmember Graves stated if staff realizes that we need to contractually move much faster because of the pandemic, she is sure they will say that. She stated it may give you more legal footing but it is not impossible to meet virtually or to pass a masking mandate. Councilmember Graves stated she will leave it at that right now; that is how she feels. Mayor Elliott stated he understands and the responsibility is on him to act. He stated Councilmember Graves can second guess his decisions all she wants, that is her prerogative and maybe he made the wrong decision but maybe he didn’t. He stated if he did make the wrong decision, does that mean that now he can never act again. He noted the City was not sued, he had made that decision in consultation with the City Attorney, and of course, we had to meet but he knew that would be part of the process. Mayor Elliott stated he had pretty good advice from the 08/09/21 -21- DRAFT attorney that even if there was a lawsuit, we were on a good footing to win and well within our powers. Mayor Elliott stated again that Councilmember Graves can second guess his decisions if she wants but it was done in consultation with the attorney, we were on good footing, and asked what came out of that. He noted better protective measures for our residents came out of that. He stated he does not agree with Councilmember Graves’ analysis and thinks we are in the middle of a pandemic. He stated if he needs to act, he should be able to act as the Mayor but what he is hearing is that Councilmember Graves does not trust his ability to act. He noted again that the outcome of his actions only meant better protection for our residents and so we needed to have another meeting or two during a pandemic. He asked if that was the downside Councilmember Graves was worried about. Councilmember Graves asked Mayor Elliott to please not put words in her mouth. Councilmember Lawrence-Anderson stated she believes we enacted the first emergency powers after the Governor did and to the best of her knowledge, the Governor has not done that again. She concurred that in and of itself, it is not required at this very moment. She believes there should be a mask ordinance and that we can meet virtually but that is the extent of it as it stands, in her opinion, today. Councilmember Lawrence-Anderson stated we should probably call for a vote and move on with the meeting this evening, with all due respect. Councilmember Ryan stated he concurs with both Councilmembers Graves and Lawrence- Anderson and thinks we should have just had a mask mandate and revisit if we need more sweeping regulation through a local ordinance at a subsequent date. He suggested we move on. Mayor Elliott stated the City Council has that prerogative, he will withdraw the resolution, and we will move on. Councilmember Lawrence-Anderson stated the City Council should hold a vote on the resolution. The City Council reviewed the text of the resolution. Councilmember Ryan asked the City Attorney if the resolution simply authorizes the City to have the authority to impose a rule for the wearing of masks in any public venue in the City of Brooklyn Center whether it is City Hall or other public places. Councilmember Ryan stated he wants to be clear on what we are authorizing. City Attorney Gilchrist stated he had indicated earlier that language was added in error and the City Clerk has already made that revision. The updated resolution was displayed on the screen. He explained that extending the emergency helps support meeting electronically and an emergency ordinance, that would be a separate action, to require masks. It lends support but it is not an absolute requirement for either one of those things. Councilmember Ryan suggested the City Council approach this in a series of steps, which would be consistent with comments made by Councilmembers Graves and Lawrence-Anderson. In that 08/09/21 -22- DRAFT spirit and understanding, he would support this resolution. Councilmember Ryan stated it behooves us, as policymakers, to revisit all the issues as frequently as necessary as these issues with the Delta and other virus variants emerge. That is the only reason he had reservations about passing anything more sweeping because, in the past, the Mayor has taken the initiative to do things that were not necessarily supported by the City Council. He stated he does not want to take issues unnecessarily with the Mayor but because of the Charter and nature of our form of government, we have to act as a collective body. Councilmember Ryan stated he will support this initial resolution for addressing the immediate issues at hand. Councilmember Ryan moved and Mayor Elliott seconded to adopt a Resolution Extending the Period of a Mayor-Declared Local Emergency. Councilmembers Graves and Lawrence-Anderson voted against the same. Motion passed. 10b. ORDINANCE NO. 2021-03 AN EMERGENCY ORDINANCE REQUIRING THE USE OF FACE COVERINGS IN PUBLIC BUILDINGS WITHIN THE CITY City Attorney Gilchrist explained that Mayor Elliott had asked him to prepare an emergency ordinance regarding face coverings in public buildings. He noted this authority comes from Section 3.06 of the City’s Charter and authorizes the City Council to enact an emergency ordinance to provide for the immediate preservation of public health, safety, and welfare. If adopted, it would go into effect immediately or at a specified time. Normally, adopting an ordinance requires two readings and does not go into effect for 30 days. However, the Charter provides for the City Council to act more swiftly, when needed, to address a health, safety, welfare issue. City Attorney Gilchrist advised there is a limited time it would be in effect for 61 days but it can be renewed at the end of that period. The other qualifier to enact an emergency ordinance is that it has to be adopted by a unanimous vote of the City Council Members present at the meeting. In this case, it would have to be a unanimous vote of the entire City Council. Based on the Charter language, the ordinance requires a preamble that explains the nature of the emergency so it refers to the rise of the Delta variant and recent CDC and Minnesota Department of Health recommendations regarding the wearing of masks including those who are fully vaccinated. City Attorney Gilchrist reviewed the ordinance language, legislative findings providing more detail, and mask requirements based on the transmission rate. He also presented the findings and definitions, noting the scope of the ordinance relates to public buildings, focuses on buildings owned by the City, and talks about school buildings that meet the definition of kindergarten, elementary school, middle school, secondary school under the statute, as well as other owned or operated by a governmental entity that is subject to the provisions of the ordinance. City Attorney Gilchrist stated the idea is that the FBI building is probably not subject to this ordinance but for the most part, any other local government building that exists within Brooklyn Center would be subject to this ordinance. City Attorney Gilchrist referenced Section 2 that requires a face-covering except as exempted by 08/09/21 -23- DRAFT Section 3, which he read. He stated this language builds off the CDC regulation and makes it a requirement that when in a public building, you are to wear a mask and this also applies to City employees. The exemptions are for children under two years of age, those unable to wear a mask because of medical or disability issues, individuals unable to remove their face coverings without assistance, those deaf or hard of hearing, or if the mouth must be visible to communicate effectively. He reviewed the signage requirements, enforcement language indicating it is not a criminal offense so if someone refuses, it is up to the building owner or designated officer of that entity to ask them to leave or call upon law enforcement assistance to enforce trespass laws. It also makes it clear that the owner of the public building may rely on an individual’s statement if the person claims to be exempt. This does not put an affirmative duty on the people in the building to test the validity of an exempt claim. City Attorney Gilchrist reviewed the remainder of the ordinance, noting if adopted tonight, it would be in effect tonight at 11:59 p.m. unless changed by the City Council. He noted if the Governor makes a mandate, then the City would yield to the Statewide requirement. Councilmember Lawrence-Anderson stated the City Council did not see this document before tonight’s meeting and she is not able to scroll to read the whole document. Mayor Elliott stated the ordinance was e-mailed to Council Members. City Clerk Barb Suciu confirmed it was e-mailed at 8:18 p.m. Councilmember Lawrence-Anderson stated she does not check e-mails during the Council meeting. City Attorney Gilchrist stated if the City Council is inclined to move forward with this, he would encourage them to consider the definition of public building and whether it is broad enough or too broad because that is an important piece. He advised the face-covering requirement is fairly straightforward though making clear that it applies to City employees, on which Dr. Edwards has a point to make. He asked whether the exemptions are too broad or not broad enough and about the effective dates. He stated those are the primary things to consider if the City Council is inclined to move forward. Ms. Suciu reported there was a chat that if there is a decision on the health of residents, this resolution should have input. Mayor Elliott stated folks are also reaching out to him and wanting to comment but he will leave that up to the City Council. Dr. Edwards stated he concurs with the City Attorney relating to the definition of public facilities and public buildings. He stated if this applies to schools, we want to have communication with the schools as he does not know what those implications would be. He stated for the City government and requiring masks in City buildings for anyone entering as well as staff, they are preparing to move forward to do that but he will yield to the City Council’s decision. He stated they would not require City staff to wear masks in their office, if alone, as there is no need, as well as if they are social distancing. If they are having a meeting with another staff member and socially distancing, then a mask will not be imposed. Dr. Edwards stated there are some exceptions they want for practical application in the work office. 08/09/21 -24- DRAFT Dr. Edwards stated as they deliberated with members about Brooklyn Center, the transmissions are high and rising with numbers at the low point of COVID. He stated he did not want anyone to think there is the type of case numbers that we had at the peak of COVID because we do not. Dr. Edwards stated the rise is primarily in those who are not vaccinated but, never the less, there is a high degree of transmission and it is moving fairly quickly. Dr. Edward stated they still think that it is important and there is an emergency as it relates to erroring on the side of safety and taking those precautionary procedures, which is why they were moving to implement policy as it relates to City buildings and patrons entering as well as staff. Mayor Elliott noted that Brooklyn Center has consistently been in the top five of COVID-19 cities that have the highest infection rates throughout the pandemic and at various times, been number one. Again, it is a situation where we probably need to take more precautions for our population than other people because people of color have consistently contracted the virus at higher rates than other communities and the City has a high percentage of people of color. He stated this is the City Council’s prerogative and he is interested in hearing their thoughts. If they object, he felt they should allow people from the community to comment on this item, noting as one person has said, if the City Council is determining policy about their health, it should be allowed for them to comment and give perspective. He asked if anyone would be opposed to that. Councilmember Lawrence-Anderson announced the Brookdale Library is having its final free vaccine clinic this Thursday from 4-8 p.m. The number to call is 612 348-8900 if you want to preregister but they also accept walk-ins and Hennepin County indicated there is a $50 Visa gift card to those who receive the vaccine at the Brookdale Library. Mayor Elliott asked Dr. Edward to post this information on the City’s website. Councilmember Butler stated one consistent criticism relates to the City’s communication and she hears Dr. Edward’s concern about letting the school know about the mask mandate if approved by the City Council. She stated she met with school officials a couple of days ago and they are wearing masks and they will be wearing masks for the school year so that should not be an issue for them since they are already doing it. She stated it is as simple as putting signs on the doors and having masks available as you walk into the building for the first week or so. Councilmember Butler stated she wants to make sure the City is having a conversation but she does not think it will be a huge barrier in terms specific to the school. Councilmember Butler stated she has no opposition to allowing community input. Mayor Elliott stated hearing no opposition to allowing community input, he would ask City Clerk Suciu to open the chat option. Ms. Suciu asked those interested to raise their hand. Kevin Sherburn thanked the City Council for the opportunity to speak. He lives just north of 494, two blocks from the Police Station, and appreciates the cooperation of the City Council, and the Zoom feature is one of the best communications the City can have. He stated if the City Council can provide the Zoom feature, even when not under the health emergency, many would be quite relieved because of the information they can receive here. He stated hats off to Mayor Elliott and 08/09/21 -25- DRAFT Councilmember Ryan and others because this is what America is all about, cooperation and discussion before you move forward irrationally and spontaneously. Alfreda Daniels stated she appreciates the decision of the City Council. She is a very active resident in Brooklyn Center who recently had a baby and has not yet received the vaccine since she was pregnant when it came out and could not take it at the time. Now her husband is deployed and she does not know how she will react to the vaccine so she was advised not to take it just yet until there is someone available to care for her baby in case she reacts negatively to the vaccine. Ms. Daniels stated she and her baby have stayed indoors for the last three months. She was excited to have her start daycare but recently was told by her daycare provider, because of how the virus is spreading in Hennepin County, she has the choice to stay home but if they have to go, there have to be precautions because the new turn of the virus can impact and affect children. She understands that members of the City Council have experience in different fields but it is important to listen to the residents and people they represent. She stated the City Council does not have to wait until people die to come up with an emergency mandate. She urged the City Council to take the position to make this Citywide, to serve the residents they took an oath to protect because a lot of people who are not vaccinated are not wearing masks and she does not want to be a victim or her child who was born prematurely to be a victim to this new virus. Ms. Daniels stated she sees no downside in taking this position and maybe in two weeks or two months, the City Council can say we no longer need it. She again asked the City Council, on behalf of our elders, the unvaccinated, and the vaccinated who have caught the virus and are dying, such as in Massachusetts to be proactive, noting other cities can learn from Brooklyn Center. Lori Beland thanked City Attorney Gilchrist for finding the research, noting it shows for itself that this is a good decision to move forward and protect our City, our residents, and be proactive in wearing a mask to protect everybody, save lives, and protect our businesses so they don’t have to shut down again. She stated this very small step will go very far in protecting our City in the future. There being no additional public comments, Mayor Elliott turned the discussion back to the City Council. Councilmember Graves stated she is wondering about the nuance between the specifics of our government buildings and staff as Dr. Edwards spoke about. She was not particularly concerned about trying to pass an ordinance over the schools because she was aware of the mitigation efforts they were already putting in place to start school. She asked about the specific language relating to indoor public buildings that are not City-owned. City Attorney Gilchrist reverenced the ordinance language relating to public buildings, noting it includes all of those listed, any building owned by the City that’s essentially a defined public school, or zone operated by a governmental entity. He noted the language is fairly broad and includes all City buildings, school buildings, and any other governmental entity’s buildings within the City. 08/09/21 -26- DRAFT Councilmember Graves asked if the City Council has unilateral control over the Hennepin County Service Center. City Attorney Gilchrist stated that is why the language is a little broad and frankly, he did not have time to research the potential scope but would argue that federal buildings are not subject to a local ordinance like this but County buildings are. Councilmember Graves asked if we know what Hennepin County may be considering or passing specific to mask mandates in their buildings. City Attorney Gilchrist stated he has not checked that and does not know. Councilmember Graves stated the two mask mandates that were passed in Minneapolis and St. Paul were specific to city-owned buildings and strongly urging the city’s businesses or something to that effect. She did not see anything that included ordering over the schools or all government buildings. Councilmember Graves stated she does not necessarily know if it would be an issue though somebody may question the City’s actions and ask if the City does not think they can pass their policies. She is not opposed to a mask mandate, which she said during the discussion of the last agenda item and resolution, and will support a mask mandate for City-owned properties. Councilmember Graves stated she appreciates everyone’s comments and her mind was not changed on this issue. But maybe people misunderstood her. She just did not want to extend the Mayor’s emergency declaration beyond three days but that does not mean she is not in favor of a mask mandate. Councilmember Lawrence-Anderson asked for clarification, noting this mandate is only within City-owned buildings as indicated in Article 3. It will not include a grocery store or other retail outlets at this time. Mayor Elliott stated at this time it is government buildings and does not include retail stores or businesses. Councilmember Lawrence-Anderson stated she has several immune suppressed people in her life so she has been masking diligently even though the mask mandate was lifted. Mayor Elliott moved and Councilmember Butler seconded to adopt Emergency ORDINANCE NO. 2021-03 Emergency Ordinance Requiring the use of Face Coverings in Public Buildings within the City. Councilmember Graves asked the City Attorney if he sees any issue arising with the broad strokes of the definition of a public building. City Attorney Gilchrist stated legally speaking he thinks it is fine but politically speaking, he does not know if the schools will push back on this. He stated the vagueness of Section 3 was to recognize that this will not apply to every building. Mayor Elliott asked if this ordinance can be amended. City Attorney Gilchrist answered in the affirmative, noting due to the emergency nature, the City Council can consider an amendment without going through the normal timing of two readings and 30 days. Councilmember Ryan stated without clarification, he is not comfortable voting on this. He asked what exactly is the City Council voting on. City Attorney Gilchrist advised the motion on the floor is to adopt this emergency ordinance to put in place a requirement that masks be worn in the 08/09/21 -27- DRAFT defined public buildings for the scope of the ordinance, which would be in effect for no longer than 61 days. Councilmember Ryan stated if the City Council votes on this, they will have no more sweep or application in terms of City ordinance or rule than what the City Attorney just described. City Attorney Gilchrist explained it is an ordinance of the City that is enforceable but as he explained during his presentation of the enforcement provision, it is drafted to not create criminal liability for anyone for failure to comply. It puts in place a requirement but does not criminalize failure to comply so it encourages owners of public buildings and the City and schools to comply with the mask mandate for not only their employees but also members of the public that go into their buildings to mask as well. Councilmember Ryan stated the issue of criminalization was the focus of his concern. He thanked City Attorney Gilchrist for the explanation and indicated he has no further concerns. Motion passed unanimously. Ms. Daniels asked, with the numbers increasing, what will it take to have a Citywide mask mandate at this point. She stated even with the precaution in City-owned businesses when people get out, they no longer wear their masks and that could still put residents and children at risk. She asked if the parks are also included in the mask mandate. City Attorney Gilchrist advised the mask mandate would not apply to the outdoor portions of the park and only relates to being indoors in a public building, noting this reflects the recommendation of the CDC. Ms. Daniels asked if the parks will be sanitized as occurred during COVID. Dr. Edwards stated staff did not address or propose anything related to outdoor facilities at this point. Mayor Elliott stated about having a Citywide mask mandate, which is something the City Council can discuss at a future meeting. 11. COUNCIL REPORT None. 12. ADJOURNMENT Mayor Elliott moved and Councilmember Lawrence-Anderson seconded adjournment of the City Council meeting at 9:47 p.m. Motion passed unanimously. 08/09/21 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION AUGUST 9, 2021 VIA ZOOM CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Mike Elliott at 9:47 p.m. ROLL CALL Mayor/President Mike Elliott and Councilmembers/Commissioners Marquita Butler, April Graves, Kris Lawrence-Anderson, and Dan Ryan. Also present were City Manager Reggie Edwards, Community Development Director Meg Beekman, City Attorney Troy Gilchrist, and City Clerk Barb Suciu. BC INNO-HUB CONCEPT REVIEW AND DISCUSSION City Manager Reggie Edwards explained this item has come forward earlier and been rescheduled four times. He stated the item is a presentation on the City’s new liquor store space. He invited Ms. Beekman to present the staff report. Community Development Director Meg provided a brief overview, noting in June of 2019 the City Council directed that 3,500 sq ft. of commercial shell space be constructed as part of the construction of Municipal Liquor Store #1, which is located in the Shingle Creek Crossing Shopping Center. The building pad was larger than the need for the liquor store space so there was an opportunity to construct an additional building space shell at a total cost of $318,000, which is relatively affordable considering the liquor store was being constructed at the same time. The City Council deemed it prudent to do this construction. The cost was originally planned to be repaid over 15 years from the EDA to the liquor store fund, which equated to approximately $27,000 per year. The repayment has not begun and staff has been waiting to determine the use of the space to determine the repayment process and term. Ms. Beekman stated the common area maintenance (CAM) charges are also to be considered and equate to $7.50 per square foot. The City’s CAM rate is $3 per foot for this space, which is fixed, and would be part of any lease rates considered. She noted this is a shell space so additional finishes are required and would generally fall in the range of $150,000 to $300,000 but likely higher now than when that estimate was determined when was constructed. It is also dependent upon the ultimate end-use. 08/09/21 -2- DRAFT Ms. Beekman estimated that equivalent leasable space at market rate would range from $22 to $28 per square foot so the City’s ownership of this space and mechanism through which it was financed does allow for a below-market or reduced rate. Ms. Beekman reviewed the potential options offered to the City Council/EDA at the time this decision was made to not build the space; consider uses that do not require any additional resources on a scale up to and including end uses that would require more substantial or ongoing subsidy, to build additional space to sell it for retail commercial use at a highest and best price; or build additional space and utilize to support the City’s goal around resident economic stability and to support small businesses. At that time, the City Council/EDA did not provide direction on what the use ultimately would be but the consensus at the time was that the use should support the City’s strategic priority around resident economic stability. There are a lot of different ways that could look and given the amount of subsidy or ongoing support the City Council/EDA was comfortable with, there was no clear consensus other than the direction to have staff identify and present what some options were. Ms. Beekman stated over the past year staff explored several options in how that space can be used including leasing to a particular small business like a restaurant at below-market rent to provide an opportunity for one business to get a foothold. She noted that restaurants have a very high up- front cost for a commercial kitchen so it is difficult for start-up or smaller restaurants to do that. Staff explored that option in partnership with business resource providers who are already working with entrepreneurs and businesses. Ultimately, potentially because of the ongoing pandemic, staff was not able to identify a particular partner or business that would work for. Ms. Beekman stated they also looked at establishing a micro-business incubator for small and emerging entrepreneurs. NEON explored this concept for a time and operates something similar in North Minneapolis. Their focus is on food businesses but they have since moved on, pivoted their focus, and are no longer expanding programming. Ms. Beekman stated staff also explored a business resource hub, which is the current proposal and Paadio Consulting will explain that option in more detail. She explained that essentially the vision is to create a small business and workforce resource hub that would deliver diverse and inclusive programming for economic empowerment and fast-track post-pandemic economic recovery and rebuilding. Ms. Beekman stated earlier this evening, the City Council/EDA received a presentation on an entrepreneurial incubator. From the staff’s perspective, when looking at the economic development and small business ecosystem needed in the City, the opportunity with this particular proposal is around fairly nimble, quick-moving, and dynamic, and can flex and adapt to the needs of the community. She noted Mr. Powers had talked about the need to pipeline businesses so when the entrepreneurial marketplace opens, and we find opportunities around culturally specific retail spaces, there is a need to have this flexible and quick responding center for resources to pipeline businesses into these spaces. That is how she views the opportunity around this particular hub, to take all the resource purveyors known who serve within the community and bring them together into a one-stop-shop. 08/09/21 -3- DRAFT Ms. Beekman stated the concept is to serve residents and businesses within the community by providing that hub and one-stop-shop for training and microwork places, which are in high demand according to the feasibility study done by NEON Partners. It also would provide an opportunity for micro popup markets and retail sales within that space and also focus on workforce development and pairing larger businesses within the community with smaller businesses to focus on capacity building. Ms. Beekman stated Paadio is proposing to lease this space from the City and oversee the buildout into a functioning and useable space. They would manage the innovation hub in partnership with service providers throughout the community. Their role will be to deliver programming and services such as technical assistance training; bring in outside service providers to do training; bring in and manage training and development programming based in partnership with the community and regional organizations and City and private entities; manage popup markets and micro-retail opportunities; and, host community collaborative programming and leadership. Ms. Beekman explained Paadio has proposed a phased launch timeline of 36 months that will create early initial opportunities to begin programming right away and continue to develop that programming over time. Paddio has also prepared and provided a business model that talks about their stabilizing of operations over three years. Ms. Beekman stated Paadio has prepared a budget with an estimated buildout of $385,000, first- year start-up costs of $28,000, and annual operating costs of $146,640. They are seeking to raise $500,000 to initiate the project and are requesting the EDA enter into a Memorandum of Understanding (MOU) indicating the City’s support and use of staff and other resources to support fundraising and program development efforts. Ms. Beekman stated this is not dissimilar to when we have a concept plan review for development proposals and they seek a preliminary development agreement with the City Council, which is an indication the City is supportive of the project under certain conditions and willing to help and provide grant writing assistance and the like. Essentially, the request is round that initial asking for direction and from there, developing a fundraising component as well as flush out the feasibility of the project itself and develop the business plan. Ms. Beekman explained if the City Council’s/EDA’s direction is to move forward, staff will draft an MOU for the EDA’s consideration. Some of the terms could include a rent waiver for some time while the innovation hub is starting up and the use of EDA funds to continue the feasibility and fundraising efforts. She noted the EDA’s budget has identified $50,000 to support identifying a use for this space and those funds could be made available as part of this effort. Motion to Extend the Rules Mayor/President Elliott moved and Councilmember/Commissioner Lawrence-Anderson seconded to extend the meeting to 10:30 p.m. Motion passed unanimously. NO VOTE WAS TAKEN. 08/09/21 -4- DRAFT BC INNO-HUB CONCEPT REVIEW AND DISCUSSION – continued Jade Nnadi, Paadio, introduced other team members in attendance and thanked Ms. Beekman for her help in putting together this presentation. He stated he appreciates the opportunity to work together on economic growth for our community. He also thanked the City Council Members for hearing their presentation tonight. Mr. Nnadi stated he appreciates City Manager Edwards and congratulated him on his new position. Mr. Nnadi stated he hopes the City Council/EDA reviewed the proposal that looks at community needs and why Brooklyn Center would benefit from such an opportunity as an innovation hub. He noted that Brooklyn Center is in the center of the Twin Cities and economic growth in our economy and region, in programming. He stated Paadio has talked about improving their lives and families. He displayed a picture of silos and stated many of their clients may see something different in this picture, a windowless room in which one toils head down in isolation to get ahead. He noted our City is home to many immigrants who have experienced challenges in moving to a new community and are seeking generational wealth. He asked if there is a way for us to connect job seekers and microbusiness owners with resources to attract opportunity and prosperity. Mr. Nnadi displayed a picture of Belo Okeh, a recent immigrant, currently working as a personal care assistant (PCA), but trained as an accountant. He is married and he and his wife want to have children and buy a house. However, they are holding off until they are more financially secure. He stated as a foreign speaker, Belo has found the transition to the US to be challenging. He does not have much social capital and wants to find a better job, a professional accountant job, that fully leverages his advanced degree. His full-time PCA job only pays $12 per hour, which does not provide the financial resources to use his university training in regional accountant job listings. Belo needs training in the US and Minnesota tax codes to prepare himself for the regional job market and a higher-income job. Mr. Nnadi displayed a picture of Pang Lee, another person in their study, a second-generation US citizen whose parents immigrated from Southeast Asia. Her family has a rich history in the textile industry and Pang is continuing on that tradition with her athletic clothing line. Now she works in a garage and did not join the Chamber of Commerce or business networking groups because they seemed to be mainly white. The next step for Pang would be to secure a large place for her company and she could use some upscaling of her business such as training, mentoring, and business support groups. Mr. Nnadi stated Pang and Belo have different stories but share some key challenges as face individuals and families across our City. They are short on time and short and capital to invest in growth and prosperity. He asked what does that look like. He stated each uses 100% of their available resources such as time and money to get to their current situations. They are living paycheck to paycheck and seeing the effects of the pandemic you will further understand the frugality their families experience when operating at a subsistence level. He asked when everything you have is essential, how are you supposed to level up your skills, train for new qualifications, upgrade your business, space, technology, or services. He explained the key to growth is the ability to change fast and when a community business or individual has little to 08/09/21 -5- DRAFT nothing, it is not reasonable to expect transformational growth. Mr. Nnadi explained that changing outcomes across our community relies on looking from subsistence to surplus. Mr. Nnadi stated prosperity is the result of having a bit left over after providing for necessities and creating that surplus requires looking at differences between our culture centers and individual opportunities. We have the tools and resources to provide the support that can help the citizens of Brooklyn Center use their earnings and share in the prosperity of our fortunate and growing reason. Mr. Nnadi introduced Robert Sorensen, another person in their study and a facilities manager for a Fortune 500 company who lives in Maple Grove with his wife and children. They are a one- income family and when he is not at work, he likes to golf and enjoys fishing at his lake house. However, at work, Robert is increasingly being asked to diversify the hires in his department. Roberts likes the inclusive vision of the company but has his challenges. His work life and social life don’t bring him in contact with many people of color. Robert needs a connection to a diverse group of potential vendors and employees to support his company’s effort to create better equity. Robert is among many business leaders and managers who are wrestling with the question of what would inclusive business practices look like. Mr. Nnadi displayed a snapshot of the Paadio equity model as applied to business. He explained a simple way to approach things is to look at the relationship and association within the business world, process or outflow from a business, and look at who is involved. Is this a homogonous group, is there diversity, who are the suppliers, customers, investors, managers, lower-wage employees. Mr. Nnadi explained that one measure of diversity and equity would be when all of the contributing population groups are homogenous and have similar makeups to the general population in the area of the company’s operations. When any stakeholder segment diverges from looking like the general population, the picture becomes less inclusive and, in reality, that is true. Mr. Nnadi asked what and how can we do an inclusive department in Brooklyn Center. He reviewed the needs they heard about with the four quadrants of DEIB leadership and innovation; micro-business growth services; upskilling workforce development; and, DEIB business matchmaking marketplace. He said Belo needs support in matching job listings with opportunities, Pang needs support with her business, and Robert needs the opportunity to meet people like Belo and Pang. Mr. Nnadi stated our community, region, and mission meet in the vision and are realized when it comes to building an equitable society in which one truly belongs. Mr. Nnadi asked how can we provide for the needs and support for these businesses, noting good ideas need a good home and they have just such an opportunity right around the corner and close to the City Hall. He noted the City’s shell building on Shingle Creek Parkway sits empty, waiting for a good occupant that can benefit our community, such as the BC innovation hub. Mr. Nnadi stated Paddio has experts in microbusiness development and diversity, equity, and inclusion. He noted Brooklyn Center has the experience to benefit our residents and businesses who need support transitioning from subsistence to surplus. Paadio comes with a rich group of 08/09/21 -6- DRAFT partners ready to support business and the vision of programming at all levels. This means that Paadio plus Brooklyn Center plus Paadio partners equal opportunity for all of our residents. Mr. Nnadi asked how this will all work, noting their proposed innovation hub creates a rich supportive web of services and resources to help people like Pang, Belo, Robert, and many others. The innovation hub is to simplify and demystify the complex web of networks and operations required to lead the community from subsistence living to surplus. This requires integrated services such as micro business navigation, coworking space, upscaling training, cross-sector networking, professional support services, technology for growth and events, and creates the conduit for connecting individuals, organizations, government, and businesses with the resources and expertise to grow our City into a prosperity zone that attracts resources and produces generational wealth for all. Mr. Nnadi presented Paadio’s role in the hub to navigate the shift for maximum outcomes that will provide real value for our community. He reviewed key offerings and programming examples including the definition of micro business as being companies with up to 500 employees. From that point of view, their small businesses are truly multimillion-dollar businesses with a lot of revenue and resources. He noted micro businesses make up the vast majority of businesses in our City. They are small businesses with up to five employees grossing under $22,000 per year. This is the incubation stage for entrepreneurs with rich ideas that fuel our economy and generate a significant portion of our tax base. Microbusiness owners wear many different hats so they need support across the board. He reviewed the many work tasks for mom and pop shops, noting it is rare to possess all of these skills so Paadio supported programming is very valuable. Mr. Nnadi offered to answer questions, noting they live in the best small community. He commented on a presentation he attended about a real estate initiative by Outbound, the benefit of collaborative efforts, and that their program adds value to immigrants and organizations. Mr. Nnadi reviewed their work with other service providers in Brooklyn Center and the Twin Cities area. Mayor/President Elliott thanked Mr. Nnadi for the presentation and opened the floor for comments and questions. Councilmember/Commissioner Graves thanked Mr. Nnadi and Ms. Beekman for the presentation and stated she is excited to hear about this because it is well aligned with other efforts and filling a gap we knew needed to be filled. She was also excited about the space in the first place, getting it built at a lower cost by doing it at the same time as the liquor store, and envisioned it as something that could propel us with our resident economic stability efforts. Councilmember/Commissioner Graves stated it was a good presentation and it sounds like they are already doing a lot of the groundwork to build the relationships that will be necessary. She is hopeful to see how it moves forward. Councilmember/Commissioner Ryan stated his feeling about the space adjacent to Municipal Liquor Store #1 was that he would never have accepted the purchase and the buildout of that space if it had not been the intention of a buildout for the City’s revenue. He thinks it is mistaken to just 08/09/21 -7- DRAFT turn this over for these uses when commercial space is abundant throughout the City of Brooklyn Center that could be used for these worthy purposes for enhancing commercial uses for minority businesses. Councilmember/Commissioner Ryan stated because of the value of this space adjacent to Municipal Liquor Store #1, we should either sell the space or lease it to commercial use. He stated he has heard this is something cities are not particularly good at, leasing out space to be a landlord. But like we have with Shingle Creek Crossing, that absentee landlord engages a property management organization to lease out space. He asked why can’t City lease the space out for our gain, noting the City needs the income. Councilmember/Commissioner Ryan stated that is where he is coming from when other commercial space is abundant at more competitive rates available to this very worthy use that we are all behind, where the City could gain more from either divesting its interest in this pad adjacent to Municipal Liquor Store #1 or lease it out with a property management agency that runs Shingle Creek Crossing. He stated those are his thoughts. Councilmember/Commissioner Butler stated she is struggling a bit to see if this fits into what was presented earlier or if this is a different concept because she is hearing similar themes. She wondered if they are similar ideas, would they be operating in silos or collaboration with the idea proposed earlier. Also, she is thinking about who is running this operation, which was spoken to earlier in the previous presentation on the type of entity that would lead something like this. Councilmember/Commissioner Butler stated she is not opposed to it but also thinks she is not totally on board because there still needs to be some things flushed out. She stated she was never in favor of the liquor store being in that location and we now have a space so we should be utilizing it and making sure it is going towards a good purpose. She stated in thinking about what businesses would want to be next to the liquor store, she is not sure that is the desire of a lot of businesses, but she could be wrong too. Councilmember/Commissioner Butler referenced the question brought up about being able to lease it to another business and wondered about the reality of that happening when Shingle Creek Crossing has many vacant storefronts. She asked what success would the City have in attracting a business to lease our space versus the other spaces already available. Councilmember/Commissioner Butler stated she appreciated the presentation and was sorry it had to be put off. Also, at this late hour, it’s a little bit harder to process all of the information. Ms. Beekman stated in terms of its connection to the space we talked about earlier, she thinks there is an opportunity to fully define that as we go about continuing feasibility on both projects. She does not want to make any definitive statements that it is all figured out because the intention is to continue the work and exploring. She views the two as being connected as this particular opportunity can be fairly quick in terms of implementation. In terms of a business model, her review is that it is a fairly nimble and flexible business model to identify the assets within the community through partnerships and bring them together into a hub or one-stop-shop for 08/09/21 -8- DRAFT entrepreneurs and businesses to be able to come in and quickly receive the services and resources they need. It is a real-time opportunity. Ms. Beekman stated ultimately, she thinks the opportunity is that this could be a pipeline to help build the capacity of businesses so when the entrepreneurial market opens on day 1, there are businesses in the community ready to move in and build out their spaces and begin operating. She stated that does not mean this needs to be in this space forever and maybe in several years when the entrepreneurial market is ready, it relocates into that space but continues to operate in its functions of bringing people together, providing those nimble services, and creating that pipeline for businesses to grow out of. Or, maybe it finds it has a way to define itself distinctly and differently. Ms. Beekman stated the idea is that these spaces and developments we are working on will interconnect and feed into each other and because of the City’s and EDA’s involvement in these projects, there are lots of opportunities to make that happen. Ms. Beekman stated in terms of location, and this space versus other retail space, the City could hire a broker and attempt to lease this space out to a retailer or commercial user for the highest and best or market-rate rent. But she cannot answer the question this evening about the level of interest and likelihood of being able to attract a tenant. She thinks generally speaking cities really should not be in the business of competing directly with the free market in terms of business. So, if that was the direction the City Council/EDA wanted to go, her recommendation would likely be to simply sell it to a private entity, perhaps Shingle Creek Crossing, and have them take that role. She noted the City does own land and has tenants but generally it is for redevelopment with a public purpose or component to the City’s work. Ms. Beekman stated when looking at this space, she does not know staff would have ever recommended that it be considered if the City Council/EDA intended to simply rent it out at a market rate and not have it function in some way to serve a public purpose and interest. She stated there are options if that is the direction the City Council/EDA wants to go. Councilmember/Commissioner Lawrence-Anderson stated she very much appreciates the presentation tonight and certainly appreciates the late hour everyone is experiencing now. She encouraged everyone to go through this agenda item and the background. She noted the City has, through the liquor store fund, incurred quite a bit of debt, $27,000 per year for 15 years based on the $318,000 to build that site. In looking at the options, during the discussion on June 10, 2019, her opinion at that time, due to the debt incurred, was that we would lease it at market rate or sell the space. She noted our constituents paid for that and to lease it for free for three years and with the uncertainty of our budget right now, it is concerning to her. She stated that is not saying it is something she won’t maintain an open mind about, but she is concerned about a long-term investment and continuing expense. Councilmember/Commissioner Lawrence-Anderson stated again it was a great presentation and a lot of information, which she appreciates. As a Work Session item, she noted there is more to discuss. 08/09/21 -9- DRAFT Mr. Nnadi thanked the Council Members for the input and discussion. He stated with this plan, they are looking for a simple term, which he explained. He stated at the end of the day, we know the economic status and business shift in our community and that these businesses need support. He stated last year, the City put some funds around small businesses and also got funds from the federal government and other places and the pandemic is still there. Mr. Nnadi stated their dream is to get going and they plan to use six months to build out the space; however, the pandemic is still there. He commented that some immigrants do not know where to go and ask for help. He noted that most immigrants won’t ask but typical Americans will ask and know how to solve their problem. Mr. Nnadi stated this is not just what they are saying, you support this business. They are saying that they are providing opportunities and especially for those who have lived in the trenches, owners of small businesses going through this pandemic, and knowing the City has supported, in the past, to help businesses move on. That is the point he is coming from but he is not saying the City should sustain it or that it is free. They are saying they want to balance these. Mr. Nnadi shared an example of the Opportunity Site, which he has been involved in for the last two years, and during the last year, he has reviewed the master plan so he knows the Opportunity Site very well. He explained they have in the back of their minds that once they get the hub going, they will have a big screen smart TV that residents can come to this hub and interact with on the Opportunity Site, what the programs will be like, and how to participate. It will provide engagement and reach out to the community and share with them. He stated they plan to be highly involved and in having the model prototype displayed, residents can come in and see the Opportunity Site, the acres of land, and they can get feedback. Mr. Nnadi stated if the City Council/EDA considers the plight of business people who are in the trenches and can’t even support themselves, some are not educated, or maybe because of where they are coming from, they don’t have what it takes to get an adequate job so they are underemployed, this is the opportunity to beef them up. Mr. Nnadi stated the City Council/EDA can look to the Opportunity Site, costs, alternatives, and what value it will create in the community. From that, for those who are underemployed, unemployed, to the micro businesses that are struggling, that is the value. It is not just about what is coming to the City in terms of dollar revenue to rent it out at market rate, but actually what this can transform in the community. Mr. Nnadi stated they propose it in a way that we don’t want the City to run it or be pumping money into it but they will have enough support. He referenced a national organization that is interested in helping, has experience in a hub and is willing to collaborate. He also commented on their conversations with other resource and non-profit organizations who are already in this space. He stated there are a lot of things going on and there is no way he can share all of them here but is willing to discuss, one on one, with the Council Members to give details. He acknowledged there is value in what the City Council/EDA is saying and they have partners who are willing to work with them to make this true. He believes that the value it will bring to the City will be multiple times. 08/09/21 -10- DRAFT Councilmember/Commissioner Butler noted the time has gone beyond 10:30 p.m. and suggested Mayor/President Elliott close the meeting. Mayor/President Elliott thanked Mr. Nnadi for the presentation and stated they will follow up. YOUTH ON BOARDS PROGRAM DISCUSSION This item was rescheduled. ADJOURNMENT Councilmember/Commissioner Butler moved and Councilmember/Commissioner Lawrence- Anderson seconded adjournment of the City Council/Economic Development Authority Work Session at 10:44 p.m. Motion passed unanimously. C ouncil R egular M eeng DAT E:8/23/2021 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :N/A BY:A lix Bentrud, D eputy City Clerk S U B J E C T:A pproval of Licens es Requested Council A con: - Moon to approve the licenses as presented. B ackground: The following bus inesses /persons have applied for C ity licens es as noted. Each bus iness/pers on has fulfilled the requirements of the C ity O rdinance governing respec6ve licens es, s ubmi7ed appropriate applica6ons, and paid proper fees. A pplicants for rental dwelling licens es are in compliance with C hapter 12 of the C ity C ode of O rdinances , unles s comments are noted below the property addres s on the a7ached rental report. M echanical Licenses A nderson's Res iden6al H ea6ng & A /C 1628 C O R D 10 #34 S pring L ake Park M N 55432 M etro H ea6ng and Cooling 1220 C ope Ave E M aplew ood M N 55109 M odern H ea6ng & A /C 2318 F irs t S t N E M inneapolis M N 55418 Tobacco L icense A li S udani / A M Brothers L L C dba Cloud 9 S moke S hop 615 66th Ave S te 5 Brooklyn C enter M N 55430 B udget I ssues: I nclusive C ommunity Engagement: A nracist/Equity Policy Effect: AT TA C H M E N TS : D escrip6on U pload D ate Type Rental C riteria 3/16/2021 Backup M aterial Rentals 8-23-2021 8/17/2021 Backup M aterial Page 2 of 2 b.Police Service Calls. Police call rates will be based on the average number of valid police calls per unit per year. Police incidences for purposes of determining licensing categories shall include disorderly activities and nuisances as defined in Section 12-911, and events categorized as Part I crimes in the Uniform Crime Reporting System including homicide, rape, robbery, aggravated assault, burglary, theft, auto theft and arson. Calls will not be counted for purposes of determining licensing categories where the victim and suspect are “Family or household members” as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (b) and where there is a report of “Domestic Abuse” as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (a). License Category Number of Units Validated Calls for Disorderly Conduct Service & Part I Crimes (Calls Per Unit/Year) No Category Impact 1-2 0-1 3-4 units 0-0.25 5 or more units 0-0.35 Decrease 1 Category 1-2 Greater than 1 but not more than 3 3-4 units Greater than 0.25 but not more than 1 5 or more units Greater than 0.35 but not more than 0.50 Decrease 2 Categories 1-2 Greater than 3 3-4 units Greater than 1 5 or more units Greater than 0.50 Property Code and Nuisance Violations Criteria License Category (Based on Property Code Only) Number of Units Property Code Violations per Inspected Unit Type I – 3 Year 1-2 units 0-2 3+ units 0-0.75 Type II – 2 Year 1-2 units Greater than 2 but not more than 5 3+ units Greater than 0.75 but not more than 1.5 Type III – 1 Year 1-2 units Greater than 5 but not more than 9 3+ units Greater than 1.5 but not more than 3 Type IV – 6 Months 1-2 units Greater than 9 3+ units Greater than 3 Property Address Dwelling Type Renewal or Initial Owner Property Code Violations License Type Police CFS * Final  License  Type ** Previous  License  Type *** 2618 64th Ave N Single Initial HPA US1 LLC/Joseph Florczak 1 II N/A II 1001 65th Ave N Single Initial Messiah Moore /Bright Path Homes 13 IV N/A IV 1519 Humboldt Pl Single Initial Calvin Johnson/Johnson Organization  Inc 2 II N/A II 6224 Kyle Ave N Single Initial Achraf Derbak 3 II N/A II 201 65th Ave N Riverwood Estates Multi 7 Bldgs 84  Units Renewal Riverwood LLC 65  .77 per unit II 0 II II 5601 Lyndale Ave N Multi 1 Bldg  4 Units Renewal Brett Hildreth/Dragon Property  Management 3  .75 per unit I0III 4214 Lakeside Ave N 2 Family  1 Unit Renewal James & Gloria Shoultz 4 II 0 II II 1500 72nd Ave N Single Renewal Mai Le ‐ Met requirements 2 I 0 I III 6005 Admiral Pl Single Renewal Dan Soffia 2 I 0 I II 6336 Beard Ave N Single Renewal Chen Zhou / Cosco Properties 12 IV 0 IV I 6613 Camden Dr Single Renewal Mark Herstrom/Mark One Resources 2 I 0 I I 7044 Drew  Ave N Single Renewal Jennifer Lenhart & Jan Mohrfeld 7 III 0 III I 5121 France Ave N Single Renewal IH3 Property IL 2 I 0 I I 5742 Fremont Single Renewal Bruce Alan Goldberg 4 II 0 II I 4013 Joyce La Single Renewal Frederick Heim 0 I 0 I I 4019 Joyce La Single Renewal IH3 Property IL 5 II 0 II I 4207 Lakeside Ave #226 Single Renewal Beach Condominium Assoc 2 I 0 I I 5315 Logan Ave N Single Renewal Kirsten & Joel Carson 0 I 0 I I 2913 Nash Rd Single Renewal Chen Zhou / Godiva Properties ‐ met  requirements 6 III 0 III IV 6907 Palmer Lake Dr Single Renewal FYR SFR Borrow LLC 2 I 0 I II 6500 Willow La Single Renewal Brett Hildreth/Dragon Property  Management 1I 0 II * CFS = Calls For Service for Renewal Licenses Only (Initial Licenses are not applicable to calls for service and will be listed N/A.) ** License Type Being Issued *** Initial licenses will not show All properties are current on City utilities and property taxes Type 1 = 3 Year    Type II = 2 Year      Type III = 1 Year Rental Licenses for Council Approval on August 23, 2021 C ouncil R egular M eeng DAT E:8/23/2021 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :N/A BY:A ndy S plinter, I nterim F inance D irector S U B J E C T:Extens ion of A udit S ervice P rofessional Contract Requested Council A con: - D irect S taff to extend A udit S ervice C ontract with M alloy, M ontague, Karnowski, Radosevich & C o. (M M K R) for 2021 A udit. B ackground: A s part of the F inance Policies Manual there are adopted procedures iden3fied for reques t for propos als for financial s ervices every six years. The purpos e of this policy is to provide for the orderly conduct of reques3ng propos als for profes s ional services for handling financial affairs , to ens ure that all s ervices w ill be periodically review ed, and that the proper balance will be maintained between cost and quality of s ervices . A udit S ervices I n 2014, a9er a formal reques t for propos al process, the C ouncil maintained audit services with M alloy, Montague, Karnowski, Radosevich & Co. (M M K R) and have maintained that rela3onship through the 2019 fis cal year audit. The current policy dictates that audit s ervices go out for requests for proposals every six years , which was s cheduled for 2020. W ith that current challenges s taff is reques3ng that the C ity enter into a one year contract w ith M M K R to provide con3nuity with thes e challenges. Considering the 3me and effort involved in trans i3oning to a new audit firm, s taff recommends this one year extens ion and comple3ng a full reques t for propos al process in 2022. S taff has been sa3sfied w ith the high-quality w ork, integrity, profes s ionalism and industry know ledge display by M M K R during the prior annual audits . B udget I ssues: A udit fees are budgeted in the department budgets . Total 2021 audit cost propos al of $42,000 is based on one major federal program. I nclusive C ommunity Engagement: A nracist/Equity Policy Effect: S trategic Priories and Values: O pera3onal Excellence AT TA C H M E N TS : D escrip3on U pload D ate Type 2021 P roposal for A udit S ervices 8/10/2021 Exhibit TECHNICAL PROPOSAL FOR CITY OF BROOKLYN CENTER, MINNESOTA FOR PROFESSIONAL AUDITING SERVICES FOR FISCAL YEAR ENDING DECEMBER 31, 2021 JAMES H. EICHTEN, CPA PRINCIPAL E-MAIL: JEICHTEN@MMKR.COM 952.545.0424 -1- July 20, 2021 Mr. Andrew Splinter Acting Finance Director City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Dear Andrew: We are pleased to submit this proposal to provide auditing services for the City of Brooklyn Center, Minnesota (the City) for the year ending December 31, 2021. Our audits will be conducted in accordance with auditing standards generally accepted in the United States of America and the provisions of the Legal Compliance Audit Guide, promulgated by the Office of the State Auditor pursuant to Minnesota Statutes § 6.65. Our audits will also be conducted in accordance with the standards for financial and compliance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act; the provisions of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and any other applicable state or federal audit guide. We anticipate issuing the following report letters in relation to the City’s audit: 1.An opinion on the fair presentation of the City’s basic financial statements in conformity with accounting principles generally accepted in the United States of America, with an “in relation to” opinion on the combining and individual fund financial statements and supporting schedules. 2.A report on compliance and internal control over financial reporting based on an audit of financial statements performed in accordance with Government Auditing Standards. 3.A report on compliance with Minnesota State Laws and Regulations. 4.A report on the Schedule of Expenditures of Federal Awards. 5.A report on compliance with requirements applicable to each major program and internal control over compliance with the Uniform Guidance. C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 -2- We will also provide a management report to communicate comments and recommendations as a result of the audit. Our management report will include the formal communications to the City’s audit/finance committee or its equivalent as required by Statement on Auditing Standards No. 114, The Auditor’s Communication With Those Charged With Governance, including: • The auditor’s responsibility under auditing standards generally accepted in the United States of America, • Planned scope and timing of the audit, • Significant findings from the audit, • Significant accounting policies, • Management judgments and accounting estimates, • Significant audit adjustments, • Other information in documents containing audited financial statements, • Disagreements with management, • Management consultation with other accountants, • Major issues discussed with management prior to retention, and • Difficulties encountered in performing the audit. The management report will also contain a discussion of any financial reporting, internal control, and compliance-related findings; an analysis of the City’s financial condition; recommendations to management on improving its accounting system and financial reports; and updates on any prior year audit issues. We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. The assistance to be supplied by your personnel, including the preparation of schedules, analysis of accounts, preparation of confir mations, and locating documentation for transactions selected for testing, will be discussed and coordinated with you. We understand that the City will be responsible for preparing the initial draft of its Comprehensive Annual Financial Report; as well as editing the report. We understand that we will be responsible for printing and binding the Comprehensive Annual Financial Report. Prior to issuance of the final audit reports, we shall review the management report, internal control letters, and any other required state or federal compliance reports with the City’s management. If our audit procedures indicate that material errors, illegal acts, or other irregularities might exist, we will make an immediate written report to the City’s management, and/or other city officials as appropriate. We will not perform extended services at a cost to the City unless they are so authorized by the appropriate city officials. We believe we are best qualified to perform the engagement for the following reasons: • Our wealth of experience providing auditing, accounting, and consulting services to Minnesota municipalities with similar operations. • Our proficiency performing numerous Single Audits of Federal Awards Programs for Minnesota local governmental entities. • Our thorough and efficient audit process, which emphasizes effective client communications and limited disruptions to client operations. • Experience with and expert knowledge of governmental financial reporting, including the standards of the Governmental Accounting Standards Board (GASB); and the requirements of the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting Program. -3- • Experience with Minnesota city public finance and various municipal enterprise operations, including, water, sewer, storm drainage, street light, liquor, event centers, and a variety of other operations. • Experience with growing metropolitan municipalities, including those with significant development. • Ability to communicate and work with you. To help with your evaluation, the following is a “Summary of Key Qualifications” for quick reference. Please refer to other sections of our proposal for more detailed information. SUMMARY OF KEY QUALIFICATIONS A. Quality • Malloy, Montague, Karnowski, Radosevich & Co., P.A. (MMKR) emphasizes quality service, accomplished by recruiting and developing high-quality personnel. • We are a member of the Governmental Audit Quality Center of the American Institute of Certified Public Accountants (AICPA), which maintains standards for quality control in governmental audits for CPA firms nation-wide. B. Experience and Expertise • Our firm has specialized in providing audit services to governmental entities for over 60 years. Last year, we audited over 25 cities and approximately 30 school districts and 50 other governmental entities of varying size. • Because of this specialization, we have a large pool of knowledgeable and experienced governmental auditors that possess significant knowledge of the complexities of municipal finance in the state of Minnesota. Our governmental auditors work with many cities with operations similar to yours. MMKR professionals also receive extensive continuing education, with internal and external seminars specifically for governmental audits. • MMKR is an industry leader in providing guidance to Minnesota local governments on the accounting and reporting standards established in GASB Statements. We have assisted our local governments with the successful and often early implementation of several complex new GASB standards that have become effective in recent years. This proc ess has provided us with a practical understanding of these new standards that can only be gained by firsthand experience. • Our firm performs dozens of Single Audits of Federal Awards expenditures each year. • In addition to audits, we provide our clients with a wide range of consulting services, including management and operational reviews, budget development and monitoring, cash flow projections, human resources consulting, and payroll tax and employee benefit-related matters. • MMKR professionals are active members of many professional organizations and committees, including the Minnesota Government Finance Officers Association (MnGFOA) and the Minnesota Society of Certified Public Accountants (MNCPA). Our professionals have held various leadership positions on the MNCPA Board of Directors , including past chairman. We are also active in various MNCPA committees, which include planning, moderating, and presenting at the annual city, charter school, and school district audit workshops, committee work on Single Audit implementation, and quality reviews. -4- SUMMARY OF KEY QUALIFICATIONS (CONTINUED) • On our staff, we have reviewers for both the Government Finance Officers Association (GFOA) and the Association of School Business Officials (ASBO) International Certificate of Excellence in Financial Reporting Programs. We have assisted numerous clients with obtaining certificates on first-time submissions and with retaining certificates in subsequent years. • MMKR professionals are also active members of the A ICPA. This active role includes being a member of the AICPA Council; a 400-member group representing members from around the country that provides strategic planning and direction to the AICPA Board of Directors. • Over the years, we have developed many customized audit tools, techniques, and paperless workpaper and report formats, which allow us to perform our audits efficiently and with minimal disruption to our clients’ operations. C. Service • Excellent client satisfaction supported by a very high client retention record. • We are much more than an audit firm; our clients receive many additional benefits and services. • Our client references are our best proof of service commitment; most additions to our governmental client group are the direct result of recommendations from existing clientele who are more than satisfied with our services. A listing of our governmental audit and consulting clients is included in this proposal; please feel free to contact them . We hope you will give our firm and proposal due consideration. We will provide the administration and City Council with the quality and timely service you expect and demand from your auditors . If you have any questions, please contact James H. Eichten, Principal. This proposal is a firm and irrevocable offer for ninety (90) days covering the fiscal year ending December 31, 2021. Sincerely, MALLOY, MONTAGUE, KARNOWSKI, RADOSEVICH & CO., P.A. James H. Eichten, CPA Principal JHE:lmb APPENDIX A PEER REVIEW APPENDIX B RÉSUMÉS JAMES H. EICHTEN, CPA MANAGING PARTNER PROFESSIONAL SUMMARY Since the start of his career in 1989, Jim Eichten has specialized in providing accounting, auditing, and consulting services for clients in governmental, nonprofit, and commercial industries, among others. During this time, Jim has provided service to a variety of institutions; helped organizations earn and retain industry certifications, and consulted on financial management issues. In each of these situations, and for every client project, his focus is to provide solutions that are thorough, tailored to clients' unique needs, and that adhere to the most stringent standards. To keep his skills current, Jim receives at least 40 hours annually of continuing professional education, a significant portion of which are related specifically to governmental issues. Jim holds a Bachelor of Arts degree in business administration, with an accounting emphasis, from the College of St. Thomas. PROFESSIONAL HISTORY ▪ Present: Managing Partner – Malloy, Montague, Karnowski, Radosevich & Co., P.A., Minneapolis, Minnesota ▪ Previous: Senior Accountant – Pannell Kerr Forster, Minneapolis, Minnesota MAJOR ASSIGNMENTS ▪ Annual audits of Minnesota school districts, municipalities, and various other governmental entities ▪ Audits of federal financial assistance programs of Minnesota school districts, municipalities , and various other governmental entities ▪ Assists city clients to obtain and retain the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting ▪ Assists school district clients to obtain and retain the Association of School Business Officials (ASBO) International Certificate of Excellence in Financial Reporting ▪ Management consulting services, including internal control studies, operational reviews , and cash flow projections ▪ Assistance in the development of audit manuals for cities, school districts, fire reliefs , and federal financial assistance programs ▪ Audits of various nonprofit organizations, including rural electric cooperatives, nursing homes, churches, and educational foundations ▪ Annual audits of commercial entities, including preparation of tax returns and monthly compilations EDUCATION ▪ College of St. Thomas Bachelor of Arts in Business Administration with an Emphasis in Accounting JAMES H. EICHTEN, CPA (CONTINUED) PROFESSIONAL QUALIFICATIONS ▪ Certified Public Accountant in Minnesota ▪ Receives at least 40 hours per year of continuing professional education, of which a portion of those hours are related specifically to governmental issues. This is in compliance with Government Auditing Standards PROFESSIONAL MEMBERSHIPS ▪ American Institute of Certified Public Accountants (AICPA) ▪ Minnesota Society of Certified Public Accountants (MNCPA) ▪ Minnesota Association of School Business Officials (MASBO) ▪ ASBO International ▪ Minnesota Chapter of Government Finance Officers Association (MnGFOA) ▪ GFOA of the United States and Canada PROFESSIONAL ACTIVITIES ▪ Board Member of the MNCPA, including chairperson ▪ Member of the Council of the AICPA ▪ Served in many capacities on the MNCPA’s Governmental Accounting and Auditing Committee ▪ Chairperson of the MNCPA’s Professional Standard Strategic Council ▪ Served on committees of the Office of the State Auditor (OSA) and the Minnesota Department of Education (MDE), including implementation issues of Governmental Accounting Standards Board (GASB) Statements ▪ Special review committee member for the GFOA Certificate of Achievement for Excellence in Financial Reporting Programs ▪ Has made presentations to organizations such as the MNCPA, AICPA, MnGFOA, MASBO, OSA, and MDE on subjects such as legislative issues, compliance requirements, implementation issues of GASB Statements, technical reviews, quality reviews, and obtaining a Certificate of Achievement for Excellence in Financial Reporting JACLYN M. HUEGEL, CPA PRINCIPAL Jackie Huegel specializes in meeting the unique accounting, auditing, and consulting needs of school districts, municipalities, and other governmental entities. Jackie has conducted audits of these groups, including those required for their associated federal financial assistance programs. Jackie has also conducted commercial audits, compiled tax returns, and performed monthly compilations. To ensure she stays current with the latest in accounting practices, Jackie receives at least 40 hours annually of continuing professional education, a portion of which are focused on government auditing standards. This training is added to an educational foundation of Jackie's Bachelor of Arts degree in accounting and management from St. Mary's University in Winona. PROFESSIONAL HISTORY ▪ Present: Principal – Malloy, Montague, Karnowski, Radosevich & Co., P.A., Minneapolis, Minnesota MAJOR ASSIGNMENTS ▪ Annual audits of Minnesota school districts, municipalities, and various other governmental entities ▪ Audits of federal financial assistance programs of Minnesota school districts, municipalities, and various other governmental entities ▪ Assists city and school district clients to obtain and retain the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting ▪ Assists school district clients to obtain and retain the Association of School Business Officials (ASBO) International Certificate of Excellence in Financial Reporting ▪ Assistance in the development of audit manuals for cities, school districts, fire reliefs, and federal financial assistance programs ▪ Various commercial and nonprofit audits and tax returns EDUCATION ▪ St. Mary’s University – Winona, Minnesota Bachelor of Arts in Accounting and Management PROFESSIONAL QUALIFICATIONS ▪ Certified Public Accountant in Minnesota ▪ Receives at least 40 hours per year of continuing professional education, of which a portion of those hours are related specifically to governmental issues. This is in compliance with Government Auditing Standards JACLYN M. HUEGEL, CPA (CONTINUED) PRINCIPAL PROFESSIONAL MEMBERSHIPS ▪ American Institute of Certified Public Accountants (AICPA) ▪ Minnesota Society of Certified Public Accountants (MNCPA) ▪ Minnesota Association of School Business Officials (MASBO) ▪ ASBO International ▪ Minnesota Chapter of Government Finance Officers Association (MnGFOA) ▪ GFOA of the United States and Canada PROFESSIONAL ACTIVITIES ▪ Active member of the MNCPA, participating in various committees ▪ Special review committee member for the GFOA Certificate of Achievement for Excellence in Financial Reporting Program ▪ Has made presentations at various functions for boards, councils, and conference attendees APPENDIX C LISTING OF GOVERNMENTAL AUDIT CLIENTS The following is a list of governmental entities for which we have performed/are performing audit and accounting services within the last year. Audit clients that have applied for or been awarded the ASBO International or GFOA Certificate of Excellence in Financial Reporting are identified with an asterisk (“*”). *City of Apple Valley *City of Golden Valley *City of Robbinsdale *City of Arden Hills *City of Monticello *City of Rosemount *City of Bloomington *City of Mounds View City of Saint Peter *City of Brooklyn Center *City of New Hope *City of Shoreview *City of Burnsville City of Newport City of Spring Park *City of Chaska *City of North St. Paul *City of South St. Paul City of Circle Pines *City of Plymouth *City of St. Michael *City of Coon Rapids City of Prior Lake City of Wayzata *City of Farmington *City of Ramsey *White Bear Township Andover Firefighters’ Relief Farmington Firefighters' Relief Roseville Firefighters’ Relief Association Association Association Apple Valley Firefighters' Relief Golden Valley Fire Department Savage Fire Department Firefighters’ Association Relief Association Relief and Pension Association Centennial Fire District Ramsey Firefighters’ Relief St. Michael Firemen’s Relief Centennial Fire Fighters’ Relief Association Association Association Rosemount Firefighters’ Relief West Metro Fire-Rescue District Chaska Fire Department Relief Association Association Bassett Creek Watershed Equity Alliance MN Metropolitan Library Service Agency Management Commission Golden Valley – Crystal – New Hope Minnesota River Valley Transit Black Dog Watershed Management Joint Water Commission Minnesota State Fair Organization Housing and Redevelopment Authority Oak Land Cooperative Center Centennial Lakes Police Department of South St. Paul Rum River Special Education East Central Minnesota Local Government Information Systems Cooperative Educational Cable Cooperative Association (LOGIS) Achieve Language Academy El Colegio Charter School New City School Aurora Charter School Higher Ground Academy New Heights Schools, Inc. BlueSky Charter School, Inc.International Spanish Language Quantum STEAM Academy City Academy Academy Scitech Academy Crosslake Community School, Inc.Laura Jeffrey Academy St. Paul School of Northern Lights Cyber Village Academy Lionsgate Academy Twin Cities Academy DaVinci Academy Metro Deaf School, Inc.Universal Academy East Range Academy of Minnesota Math and Science Technology and Science Academy *ISD No. 11, Anoka-Hennepin *ISD No. 281, Robbinsdale Area Schools *ISD No. 832, Mahtomedi ISD No. 12, Centennial ISD No. 283, St. Louis Park *ISD No. 833, South Washington ISD No. 15, St. Francis *ISD No. 284, Wayzata County Schools *ISD No. 16, Spring Lake Park ISD No. 286, Brooklyn Center ISD No. 885, St. Michael-Albertville ISD No. 139, Rush City ISD No. 578, Pine City Schools ISD No. 197, West St. Paul *ISD No. 621, Mounds View *ISD No. 911, Cambridge *ISD No. 199, Inver Grove Heights *ISD No. 622, North St. Paul Intermediate District No. 287 ISD No. 200, Hastings *ISD No. 624, White Bear Lake Intermediate School District No. 917 *ISD No. 272, Eden Prairie ISD No. 625, Saint Paul Public Schools Northeast Metropolitan Intermediate ISD No. 273, Edina *ISD No. 719, Prior Lake-Savage Area School District No. 916 *ISD No. 278, Orono Schools Northwest Suburban *ISD No. 279, Osseo Area Schools *ISD No. 728, Elk River Integration District ISD No. 280, Richfield ISD No. 831, Forest Lake SSD No. 6, South St. Paul Cities Fire Reliefs Other Governmental Entities Charter Schools Independent School Districts APPENDIX D DOLLAR COST BID PROPOSAL Single Year Ending Basic Audit December 31,Audit Estimate 2021 37,500$ 4,500$ City of Brooklyn Center, Minnesota Schedule of Professional Fees and Expenses For Professional Auditing Services Estimated fees for the year ending December 31, 2021: I certify that I am entitled to represent Malloy, Montague, Karnowski, Radosevich & Co., P.A., (MMKR), empowered to submit the bid, and authorized to sign a contract with the City of Brooklyn Center, Minnesota (the City). Signed: ____________________________________ James H. Eichten, CPA Principal If it should become necessary for the City to request the auditor to render any additional service to either supplement the services requested in this proposal or to perform additional work as a result of the specific recommendations included in any report issued on this engagement or as a result of new standards, then such additional work shall be performed only if set forth in an addendum to the contract between the City and MMKR. Any such additional work agreed to between the City and MMKR shall be performed at the same rates set forth in the Schedule of Professional Fees and Expenses included in this Dollar Cost Bid Proposal. MMKR does not charge its audit clients for inquiries and technical assistance during the year that are minor in nature (those that would not require a significant amount of research or result in the issuance of a separate report letter or letter). Since the Single Audit work is based on the requirements of individual grants, which can vary, the cost of the Single Audit is stated separately and is based on estimated minimum hours to complete a basic Single Audit with one major program. Standard Quoted Hourly Hourly Hours Rates Rates Total Basic audit Principals 30 285$ 240$ 7,200$ Managers and Senior Consultants 55 180 170 9,350 Senior Associates 90 125 115 10,350 Associates and Staff Accountants 115 110 85 9,775 Other – Clerical 10 55 55 550 Subtotal 300 37,225 275 37,500$ Single Audit estimate (based on one major program)4,500$ Total not-to-exceed base fee for the 2021 audit City of Brooklyn Center, Minnesota Schedule of Professional Fees and Expenses For Professional Auditing Services Estimated fees for the year ending December 31, 2021: Reimbursable expenses (photocopies, mileage, etc.) C ouncil R egular M eeng DAT E:8/23/2021 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :N/A BY:M ike M ars h, I nterim D irector of P ublic Works S U B J E C T:Res olu3on A pproving Change O rders 1 and 2 and A ccep3ng Work Performed and A uthoriz ing F inal Payment, I mprovement P roject No. 2020-08, L i: S ta3on 6 Rehabilita3on Requested Council A con: - Moon to approve a resoluon A ppr oving C hange Or der s 1 and 2 and A ccepng Wor k Perfor med and A uthorizing F inal Pay ment, I mprovement P roject No. 2020-08, L i* S taon 6 Rehabilitaon. B ackground: O n J une 2 2 , 2020, the C ity C ouncil aw arded P r oject No. 2020-08 to Minnes ota Mechanical S olu3 ons for the rehabilita3on of L i: S ta3on 6. Minnes ota Mechanical S olu3ons has s uccessfully completed the cons truc3on w ork and is reques 3ng final payment for the project. B udget I ssues: The original contract amount with Minnes ota M echanical S olu3ons for the li: s ta3 on r ehabilita3 on w as $369,800. The total value of work cer3fied for final payment is $378,057.33. The total project cost including con3 ngencies/adminis tra3on/engineering /legal is $416,487.08 and w as completed 8 .5 percent under budget in the amount of $38,512.92. The aCached resolu3 on pr ovides a summary of the final amended cos ts and funding s ources for the project. I nclusive C ommunity Engagement: N/A A nracist/Equity Policy Effect: N/A S trategic Priories and Values: Enhanced Community I mage AT TA C H M E N TS : D escrip3on U pload D ate Type Res olu3on 8/12/2021 Cover Memo C hange O rder 1 8/12/2021 Cover Memo C hange O rder 2 8/12/2021 Cover Memo F inal Payment 8/12/2021 Cover Memo Member introduced the following resolution and moved its adoption: RESOLUTION NO. _______________ RESOLUTION APPROVING CHANGE ORDERS 1 AND 2 AND ACCEPTING WORK PERFORMED AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 2020-08, LIFT STATION 6 REHABILITATION WHEREAS, pursuant to a written contract signed with the City of Brooklyn Center, Minnesota, Minnesota Mechanical Solutions of Waite Park, Minnesota has completed Improvement Project No. 2020-08, Lift Station 6 Rehabilitation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that 1. Final payment shall be made on Improvement Project Nos. 2020-08, Lift Station 6 Rehabilitation, taking the contractor’s receipt in full. The total amount to be paid for said improvements under said contract shall be $378,057.33. 2. The estimated project costs and revenues are hereby amended as follows: COSTS per Low Bid As Final Construction Cost $ 369,800.00 $ 378,057.33 Engineering and Administrative $ 45,200.00 $ 38,429.75 Contingency $ 40,000.00 $ 0.00 TOTAL $ 455,000.00 $ 416,487.08 REVENUES As Awarded As Final Sewer Fund $ 455,000.00 $ 416,487.08 August 23, 2021 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Change Order # 1 Date: 9-1-2020 313 34th Ave South Waite Park, MN. 56387 Phone (320)492-0198 _____________________________________________________________________________________ Job Name: Brooklyn Center Lift Station #6 Job Site address: 3800 Lake Breeze Avenue X Greg BraegelmannCEO Attn: Greg Johnson The City has elected to Install a 200 Amp Cam Lock Connection Cabinet on the New Control Panel instead of the 100 Amp Reverse Contact Generator Receptacle that is in the Plans and Specs. They have recently converted other sites to the Cam Lock Connection Cabinet and have Modified their Generator to work with this type of Connection. I have attached Cut Sheets for a Roam 200 Amp Cam Lock Connection Cabinet for review. There is also additional Cost to go from the Specified Reverse Contact Generator Receptacle to the Connection Cabinet. Please Submit the Cabinet and the Additional Cost for approval and advise on approval. Thanks, Additional Cost $1,117.75 Greg Braegelmann MN Mechanical Solutions Inc. 320-492-0198 3-Phase In-Line Generator Interface 200A / 480VAC Rated • NEMA 3RMTC 6003 ESK4-BOYModel Number 04.21.20.R2 2020 Roam TechnologiesROAM TECHNOLOGIES PROPRIETARY INFORMATION 888-966-7626 • toll free | 972-435-0008 • fax | sales@roamtechnologies.com All Roam products may be ordered under either the MTC or RTC-prefix model numbers. Corresponding MTC and RTC model numbers describe identical products. Orange Brown Yellow CONNECT LAST DISCONNECT FIRST White CONNECTSECOND DISCONNECT FOURTH Green CONNECT FIRST DISCONNECT LAST CONNECTFOURTH DISCONNECT SECOND CONNECTTHIRD DISCONNECT THIRD Connect from le f t t o r i g h t s t a r t i n g w i t h g r o u n d ( g r e e n ) t e r m i n a l Disconnect from r i g h t t o l e f t e n d i n g w i t h g r o u n d ( g r e e n ) t e r m i n a l High voltage. Ris k o f E l e c t r i c S h o c k . For use only for c o n n e c t i o n o f a p o r t a b l e g e n e r a t o r t o the source termi n a l s o f a t r a n s f e r s w i t c h , s u c h t h a t the inlets are onl y e n e r g i z e d f r o m t h e g e n e r a t o r . Do not connect o r d i s c o n n e c t w h i l e e n e r g i z e d . S h u t down generator p r i o r t o c o n n e c t i n g o r d i s c o n n e c t i n g cables. Qualified p e r s o n n e l o n l y . Do not remove c o v e r p l a t e u n l e s s a u t o m a t i c t r a n s f e r switch is locked o u t a n d t a g g e d o u t . This cover must b e r e i n s t a l l e d w h e n w i r i n g i s c o m p l e t e . When protected b y a c i r c u i t b r e a k e r w i t h o u t a n a d j u s t a b l e s h o r t - t i m e response only or b y f u s e s t h i s i n l e t i s r a t e d f o r u s e o n a c i r c u i t c a p a b l e of delivering not m o r e t h a n 2 2 , 0 0 0 R M S s y m m e t r i c a l a m p e r e s , 4 8 0 v o l t s maximum. Wire range: #2 to 4 / 0 . T o r q u e r a t i n g : # 2 t o # 1 – 1 0 0 i n - l b ; 1 / 0 t o 2 / 0 –120 in-lb; 3/0 to 4/0 –220 in-lb. Use 90o C insulation, copper wire only. 038-054-001 R0 © 2015 Roam Technol o g i e s Shown With Optional Bolt-On Mounting Brackets, Top & Bottom UL/cUL 1008 Listed Transfer Switch Accessory Connectors (5) Crouse-Hinds E1016 Series, Cam-Lok Male, Double Set Screw Style Mating Connectors (5) Crouse-Hinds E1016 Series, Cam-Lok (not included) Female (available in matching colors) Operating Voltage 240 VAC Nominal Frequency 60 Hertz Output Current Rating 200 Amperes RMS Short Circuit Current Rating 22,000 Amperes RMS, Symmetrical, 480 VAC Maximum Phases/Configuration Three (L1, L2, L3, Neutral & Safety Ground) Circuit Breaker Rating 200 Amperes per Pole Cables – Wireway Side #2 AWG – 4/0 (Supports Dual 4/0 Lugs) Cables – Plug Side #2 – 2/0 Plug or 2/0 – 4/0 Plug Conduit Trade Size Up to 3 inch (sides, rear, & top) Local Safety Ground Connection Multiple Ground Connection Points Supports Double Holed Ground Lugs on 1" Hole Spacing with 1/4”-20 Thread Enclosure Rating NEMA 3R Access Restriction Screwdriver Latch & Padlock Hasp Dimensions Box / Box + Exterior Components Height 23.50” (59.40 cm) / 25.25” (64.135 cm) Width 18.25“ (46.35 cm) / 18.50” (47.00 cm) Depth 6.25“ (15.875 cm) / 7.25 (18.415 cm) Weight ~38 lbs. / ~17.24 kg Finish Gray Powder Coat Construction Galvaneal Option (Shown) MHK 1129 Bolt-On Mounting Bracket Kit Option (Not Shown) MC 2092 50’ Status Cable Option (Not Shown) MC 2076 Status Jumper Connector Specifications Roam Technologies888-966-7626 • roa m t e c h n o l o g i e s . c o m TRANSFER SWITCHACCESSORYE475038 Model: MTC 6003 ESK4-BOYGenerator Interface P a n e l Ratings: 200A, 480 V A C , 6 0 H z , T h r e e - P h a s e , Type 3R Enclosure Short Circuit Rating: 2 2 , 0 0 0 A m p s R M S symmetrical at 480 V A C Date of Manufacture: M M / Y Y Y Y Roam’s generator interface panels incorporate a cable access restriction feature that prevents accidental or deliberate disconnection of cables once the generator is connected and the panel door is closed and locked. This design minimizes risks of power loss due to vandalism or cable theft—or liability from unauthorized, untrained people accessing high voltage power connections—while still providing quick access for authorized users. Safety & Security—Cable Access Restriction Three Phase Model Shown in Photo © 2015 Roam Technologies ® 038-017-001 R8 Danger. High voltage. Keep Out. Any terminal may be energized when any cable is connected. De-energize cables at the generator prior to opening this cover. Qualified personnel only. LATCH UNLATCHLe f t S i d e L a t c h PRESS IN ON DOORTO TURN LATCH LATCH UNLATCH Ri g h t S i d e L a t c h PRESS IN ON DOORTO TURN LATCH Front Cover Closed View Front Cover Open View Side View Showing Hasp OrangeBrown Yellow CONNECTLAST DISCONNECTFIRST White CONNECTSECOND DISCONNECTFOURTH Green CONNECTFIRST DISCONNECTLAST CONNECTFOURTH DISCONNECTSECOND CONNECTTHIRD DISCONNECTTHIRD Connect from left to right starting with ground (green) terminal Disconnect from right to left ending with ground (green) terminal 200A/600V • 038-020-001 R4 High voltage. Risk of Electric Shock. For use only for connection of a portable generator to the source terminals of a transfer switch, such that the inlets are only energized from the generator. Do not connect or disconnect while energized. Shut down generator prior to connecting or disconnecting cables. Qualified personnel only. Do not remove cover plate unless automatic transfer switch is locked out and tagged out. This cover must be reinstalled when wiring is complete. When protected by a circuit breaker without an adjustable short-time response only or by fuses this inlet is rated for use on a circuit capable of delivering not more than 22,000 RMS symmetrical amperes, 480 volts maximum. Wire range: #2 to 4/0. Torque rating: #2 to #1–100 in-lb; 1/0 to 2/0 –120 in-lb; 3/0 to 4/0 –220 in-lb. Use 90o C insulation, copper wire only. © 2015 Roam Technologies Shown With Optional Bolt-On Mounting Brackets, Top & Bottom 3-Phase In-Line Generator Interface 200A / 480VAC Rated • NEMA 3RMTC 6003 ESK4-BOYModel Number 04.21.20.R2 2020 Roam TechnologiesROAM TECHNOLOGIES PROPRIETARY INFORMATION 888-966-7626 • toll free | 972-435-0008 • fax | sales@roamtechnologies.com All Roam products may be ordered under either the MTC or RTC-prefix model numbers. Corresponding MTC and RTC model numbers describe identical products. UL/cUL 1008 Listed Transfer Switch Accessory Roam Technologies888-966-7626 • roamtechnologies.com TRANSFER SWITCHACCESSORYE475038 Model: MTC 6003 ESK4-BOYGenerator Interface Panel Ratings: 200A, 480VAC, 60 Hz, Three-Phase,Type 3R Enclosure Short Circuit Rating: 22,000 Amps RMS symmetrical at 480 VAC Date of Manufacture: MM/YYYY LIFT STATION NO. 6 REHABILITATION CITY PROJECT NO.: 2020-08 WSB PROJECT NO.: 15644-000 OWNER: City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 CHANGE ORDER NO. 2 CONTRACTOR: Minnesota Mechanical Solutions 313 34th Ave South Waite Park, MN. 56387 YOU ARE DIRECTED TO MAKE THE FOLLOWING CHANGES IN THE CONTRACT DOCUMENT DESCRIPTION: Furnish and install new fabricated steel pipe with welded flanges and interior coating for each forcemain inside the valve vault. July 12, 2021 IT IS UNDERSTOOD THAT THIS CHANGE ORDER INCLUDES ALL ADDITIONAL COSTS AND TIME EXTENSIONS WHICH ARE IN ANY WAY, SHAPE, OR FORM ASSOCIATED WITH THE WORK ELEMENTS DESCRIBED ABOVE. CHANGE IN CONTRACT PRICE: ORIGINAL CONTRACT PRICE: PREVIOUS CHANGE ORDERS: CONTRACT PRICE PRIOR TO THIS CHANGE ORDER: NET INCREASE/DECREASE OF THIS CHANGE ORDER: CONTRACT PRICE WITH ALL APPROVED CHANGE ORDERS: RECOMMENDED BY: GREG F. JOHNSON, PE, PROJECT MANAGER WSB & ASSOCIATES, INC. ENGINEER APPROVED BY: PUBLIC WORKS DIRECTOR DATE CHANGE IN CONTRACT TIME: $369,800.00 ORIGINAL CONTRACT TIME: $1 ,117 .75 NET CHANGE FROM PREVIOUS CHANGE ORDERS: $370,917.7 5 CONTRACT TIME PRIOR TO THIS CHANGE ORDER: $7,139.58 NET INCREASE OF CHANGE ORDER: $378,057.33 CONTRACT TIME WITH APPROVED CHANGE ORDERS MINNESOTA MECHANICAL SOLUTION S CONTRACTOR K:\015644-000\Admln\Constructlon Admln\Changa Ordars\Changa Order No. 2\15644-000 Change Order No. 2 • Brooklyn Center Lift Station No. 6 RehabllitatlonCO 2 N/A NONE NONE NONE NONE 7/14/2021 Change Order# 2 Date: 10-2-2020 Job Name: Lift Station #6 Job Site address: 3800 Lake Breeze Ave Attn: Greg Johnson 313 34th Ave South Waite Park, MN. 56387 Phone (320)492-0198 Price Increase for the Extra Labor Material & Painting for RFl#l Total$ 7,140.00 Greg Braegelmann MN Mechanical Solutions Inc. 320-492-0198 MN Mechanical Project Name DESCRIPTION OF WORK: DESCRIPTION QUANTln MN LABOR Laborer Plumber Pipe Fitter Job Sup Profect Manaaer Overtime • Add ""r Hr Sunday & Holidays -Add per HR MN Material Labor and Material 6' Weld Flanaes and Pioe1008 PainUng Bolls & Gaskets MN Eaulcment Mileage SUBCONTRACTORS SUPPLIERS SUBTOTAL MN LABOR, MATERIALS, SUBCONTRACTORS TOTAL THIS COST PROPOSAL COST PROPOSAL WORKSHEET DATE: COR NO: P.R. NO: R.F.I. NO: ESTIMATED ADDITIONAL CALENDAR DAYS REQUIRED: 0 days LABOR MAT'L UNIT UNIT PRICE LABOR UNIT PRICE MATERIAL Page 1 SUB CONTRACTS Thank you for the inquiry and please keep us in mind for your future coating and lining needs. I will send a brief introduction to our company via separate e-mail for your file and review. We will receive your new, bare steel pipe spools, blast the interior and exterior per SSPC SPl0, line with 30 mils minimum ofTnemec Permashield 431, coat with 6 mils minimum ofTnemec N140, measure dry film in accordance with SSPC PA 2 standards, protect flange faces during processing and leave bare, holiday test lining prior to shipment and load processed pipe using padded inbound dunnage and isolation rope as applicable. Bolt hole bores shall receive overspray only to allow for field assembly. All pricing is based on the receipt of new pipe free of internal bracing, mud, oil, grease or other surface contamination, and with smooth, continuous weld seams suitable for the processing quoted without remedial grinding or welding by Bennett-Rogers prior to blast. All pricing is firm for 30 days. 2 EA 1 EA 6"X 36" FLG X FLG STE EL SPOOLS ESTIMATED FRE IGHT $325.00 EA $425.00 Please let me know if additional information is needed at this time. Thank you, Dustin Bremness PLANT AN D FLANGED EQUIPMENT, LLC Phone: {763) 762-4960 Cell: (651) 338-5759 Fax: (763) 792-3876 Email: db@plantandf langed.com CITY OF BROOKLYN CENTER 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 Project No. 2020-08 Payment Voucher No. 3 and Final For Period Ending August 9, 2021 City of Brooklyn Center to:Minnesota Mechanical Solutions 313 34th Avenue S Waite Park, MN 56387 320-444-7940 Amount of Contract: $369,800.00 Date Contract Approved: June 22, 2020 Change Order No. 1-2 $8,257.33 TOTAL (Adjusted Contract):$378,057.33 Project Description: Lift Station No. 6 Improvements Contract Value Less Less Amount of Work Charges 0 Less Net Project Account Per Resolution Certified and Percent Previous Amount Number Number No. 2020-054 To Date Deducts Retained Payments Due 2020-08 49251-6530-8202008 $369,200.00 $378,057.33 $0.00 $315,400.00 $62,657.33 Change Orders 1-2 $8,257.33 Total Project $377,457.33 $378,057.33 $0.00 $315,400.00 $62,657.33` Payment 1 $78,850.00 Payment 2 $236,550.00 Payment 3 $62,657.33 Total Payments $378,057.33 This is to certify that work items shown on this statement of work certified herein have been actually furnished for the referenced project in accordance with plans & specifications approved and the total work is 100%complete. ___________________________________________________________ Project Manager/Inspector Director of Public Works CITY OF BROOKLYN CENTER CITY OF BROOKLYN CENTER Date:________________Date: __8/11/2021____________ CONTRACTOR CERTIFICATION This is to certify that the quantities and values of work certified herein are fair and includes all work items completed to date. Date: __________________________________________ CONTRACTOR I hereby authorize payment of this voucher. Date: _______________________________________ City Manager CITY OF BROOKLYN CENTER ____Hold check and call when ready. ___ Send check to address shown above. K:\015644-000\Admin\Construction Admin\Pay Request\Pay Request No. 3 (Final)\Final Pay App Cover Letter to City.docx 1 7 8 E 9 T H S T R E E T | S U I T E 2 0 0 | S A I N T P A U L , M N | 5 5 1 0 1 | 6 5 1 . 2 8 6 . 8 4 5 0 | W S B E N G . C O M August 10, 2021 Mr. Michael Weber City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Re: Application for Payment No. 3 (Final) Lift Station No. 6 Rehabilitation City Project No. 2020-08 WSB Project No. 015644-000 Dear Mr. Weber, Please find attached Application for Payment No. 3 (Final) from MN Mechanical Solutions, Inc. for the construction of the above referenced project. We reviewed this application and find it acceptable for payment. Therefore, we recommend making a payment of $62,657.33 to MN Mechanical Solutions, Inc. We have also enclosed the following required documents: 1. Satisfactory showing that the contractor has complied with the provisions of Minnesota Statutes 290.92 requiring withholding state income tax (IC134 forms); 2. Evidence in the form of an affidavit that all claims against the contractor by reasons of the contract have been fully paid or satisfactorily secured (lien waivers); 3. Consent of Surety to Final Payment certification from the contractor’s surety; 4. Two-year maintenance bond; 5. Approved punch list; and 6. Certificate of Substantial Completion. If you are in agreement, please sign the application and process it for payment. Sincerely, WSB Greg Johnson, PE Director of Water/Wastewater gjohnson@wsbeng.com (651) 286-8466 Issued Date WSB Field Representative Project Description WSB Project Manager WSB Proj. No.Contractor City Proj. No.Contractor Project Manager S.P. / S.A.P. Punch List Type Preliminary Partial Final Item No. 1 2 3 4 5 6 7 8 9 Remove erosion control devices upon finishing turf restoration 10 11 Cover and fill-in lifting hooks in the wet well cover slab with non-shrink grout 12 13 14 15 16 17 18 19 20 7/26/2021 7/26/2021 6/3/2021 Submit as-built mark-ups Submit lien waivers Submit Contractor Affidavit IC-134 Submit Operation and Maintenance manuals 015644-000 X Greg Braegelmann2020-08 7/26/2021 7/26/2021 June 28, 2021 Lift Station No. 6 Rehabilitation 8/9/2021 Ursinio Puga Greg Johnson MN Mechanical Solutions Submit of Consent of Surety 8/9/2021 Install pressure gauges in the valve vault 178 East 9th Street, Suite 200 St. Paul, MN 55101 Phone: 651.286.8450 7/14/2021 Submit Two Year Maintenance Bond dated to begin on the achieved substantial completion date of January 1, 2021 7/26/2021 8/9/2021 N/A Description Date Accepted Punch List Complete Certificate of Substantial Completion Complete turf restoration per plans (Note 8/Sheet C.01) around slab with seed and blanket 8/9/2021 CERTIFICATE OF SUBSTANTIAL COMPLETION LIFT STATION NO. 6 REHABILITATION CERTIFICATE OF SUBSTANTIAL COMPLETION CITY OF BROOKLYN CENTER, MN WSB PROJECT NO. 015644-000 PAGE 1 The following documents are attached to and made part of this Certificate: Punch List dated -punch items have not been completed by contractor. For items to be attached see definition of Substantial Completion as supplemented and other specifically noted conditions precedent to achieving Substantial Completion as required by Contract Documents. This Certificate does not constitute an acceptance of Work not in accordance with the Contract Documents nor is it a release of CONTRACTOR's obligation to complete the Work in accordance with the Contract Documents. Executed by ENGINEER on WSB & ASSOCIATES, INC. ENGINEER BY: �� -------'--------------(Authorized Signature) CONTRACTOR accepts this Certificate of Substantial Completion on MINNESOTA MECHANICAL SOLUTIONS, INC. CONTRACTOR OWNER accepts this Certificate of Substantial Completion on CITY OF BROOKLYN CENTER. OWNER BY: ------------------(Authorized Signature) July 13, 2021 Date Date LIFT STATION NO. 6 REHABILITATION CITY OF BROOKLYN CENTER, MN WSB PROJECT NO. 015644-000 CERTIFICATE OF SUBSTANTIAL COMPLETION PAGE2 7/14/2021 C ouncil R egular M eeng DAT E:8/23/2021 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :N/A BY:A ndy S plinter, I nterim F inance D irector S U B J E C T:Res olu.on C alling for a P ublic H earing on P ropos ed S pecial A sses s ments for D elinquent P ublic U.lity A ccounts Requested Council A con: - Moon to approve a r esoluon calling a public hear ing for Monday, S eptember 27, 2021 on proposed special assessments for delinquent public ulity service accounts. B ackground: O ne of the City ’s methods for collec.ng unpaid u.li.es is to as s ess them to the property s erved by the u.lity. Under M innesota S tatutes (M.S . 444.075, S ubd. 3f) municipali.es are allow ed to cer.fy unpaid u.li.es to the property taxes for the parcel served by the u.lity. C ity C ode S ec.on 4-105 confirms the City ’s expecta.on that this method of collec.on w ill be used for delinquent, unpaid u.lity charges. For the Fall A sses s ment of 2021, accounts included in the preliminary asses s ment roll a>ached to this memorandum include those delinquent and unpaid as of J une 30, 2021. This list is sorted and pres ented by the addres s number of the cus tomer. This year there are 705 accounts totaling $507,064.95 in unpaid u.lity charges and penal.es. This compares w ith 640 accounts totaling $470,640.50, at this point of the year, in 2020. W ith the adop.on of this resolu.on, a le>er will be s ent to each of thes e accounts informing them of the amount due on their account, the poten.al as s essment of the amount to their property taxes , and informing them of the P ublic H earing loca.on, date and .me. Follow ing the P ublic H earing on S eptember 27, 2021 the C ouncil w ill be as ked to consider a res olu.on cer.fying overdue, unpaid accounts for asses s ment against 2022 property taxes B udget I ssues: I nclusive C ommunity Engagement: A nracist/Equity Policy Effect: S trategic Priories and Values: S afe, S ecure, S table C ommunity AT TA C H M E N TS : D escrip.on U pload D ate Type Res olu.on calling public hearing 8/10/2021 Cover Memo D elinquent lis .ng 8-5 8/10/2021 Cover Memo Member introduced the following resolution and moved its adoption: RESOLUTION NO. _______________ RESOLUTION CALLING FOR A PUBLIC HEARING ON PROPOSED SPECIAL ASSESSMENTS FOR DELINQUENT PUBLIC UTILITY SERVICE ACCOUNTS BE IT RESOLVED by the City Council of the City of Brooklyn Center that: 1. A hearing shall be held on the 27th day of September 2021, in City Hall at 7:00 PM or as soon thereafter as the matter may be heard, to pass upon the proposed assessments for Delinquent Public Utility Service Accounts. 2. The City Clerk, with the assistance of the Interim Finance Director, shall forthwith prepare assessment rolls for the above charges and shall keep them on file and open to inspection by any interested persons. 3. The City Clerk is directed to cause a notice of the Public Hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing. 4. The City Clerk shall cause mailed notice to be given to the owner of each parcel described in such assessment rolls not less than two weeks prior to the hearing. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 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Notice $632.27 BROOKLYN CENTER Active Disconnect Order Generated $453.12 BROOKLYN CENTER Active First Notice $311.47 BROOKLYN CENTER Active First Notice $937.90 BROOKLYN CENTER Active Disconnect Order Generated $865.43 BROOKLYN CENTER Active No Collection Activity $721.28 BROOKLYN CENTER Active First Notice $888.93 BROOKLYN CENTER Active First Notice $438.90 BROOKLYN CENTER Active First Notice $831.04 BROOKLYN CENTER Active First Notice $724.52 BROOKLYN CENTER Active Disconnect Order Generated $564.95 BROOKLYN CENTER Active First Notice $425.15 BROOKLYN CENTER Active No Collection Activity $471.87 BROOKLYN CENTER Active No Collection Activity $805.53 BROOKLYN CENTER Active No Collection Activity $771.79 BROOKLYN CENTER Active First Notice $576.03 BROOKLYN CENTER Active First Notice $399.41 BROOKLYN CENTER Active First Notice $698.99 BROOKLYN CENTER Active First Notice $687.21 BROOKLYN CENTER Active No Collection Activity $283.55 BROOKLYN CENTER Active First Notice $564.95 BROOKLYN CENTER Active First Notice $868.17 BROOKLYN CENTER Active No Collection Activity $305.21 BROOKLYN CENTER Active First Notice $209.57 BROOKLYN CENTER Active First Notice $627.64 BROOKLYN CENTER Active No Collection Activity $421.04 BROOKLYN CENTER Active First Notice $1,317.38 BROOKLYN CENTER Active First Notice $695.38 BROOKLYN CENTER Active First Notice $296.16 BROOKLYN CENTER Active First Notice $794.99 BROOKLYN CENTER Active First Notice $626.31 BROOKLYN CENTER Active Disconnect Order Generated $694.96 BROOKLYN CENTER Active Disconnect Order Generated $282.00 BROOKLYN CENTER Active First Notice $340.57 BROOKLYN CENTER Active Reconnected $212.48 BROOKLYN CENTER Active First Notice $728.28 BROOKLYN CENTER Active No Collection Activity $776.98 BROOKLYN CENTER Active First Notice $663.02 BROOKLYN CENTER Active Disconnect Order Generated $458.15 BROOKLYN CENTER Active First Notice $871.03 BROOKLYN CENTER Active No Collection Activity $215.39 BROOKLYN CENTER Active First Notice $214.56 BROOKLYN CENTER Active First Notice $651.80 BROOKLYN CENTER Active First Notice $375.49 BROOKLYN CENTER Active First Notice $868.52 BROOKLYN CENTER Active First Notice $898.22 BROOKLYN CENTER Active First Notice $1,023.78 BROOKLYN CENTER Active First Notice $647.45 BROOKLYN CENTER Active First Notice $1,893.28 BROOKLYN CENTER Active First Notice $795.41 BROOKLYN CENTER Active First Notice $221.21 BROOKLYN CENTER Active First Notice $793.08 BROOKLYN CENTER Active First Notice $649.03 BROOKLYN CENTER Active Disconnect Order Generated $676.74 BROOKLYN CENTER Active First Notice $718.70 BROOKLYN CENTER Active First Notice $430.90 BROOKLYN CENTER Active First Notice $721.72 BROOKLYN CENTER Active First Notice $688.37 BROOKLYN CENTER Active First Notice $791.80 BROOKLYN CENTER Active No Collection Activity $933.00 BROOKLYN CENTER Active No Collection Activity $1,145.87 BROOKLYN CENTER Active First Notice $653.59 BROOKLYN CENTER Active First Notice $472.31 BROOKLYN CENTER Active First Notice $540.82 BROOKLYN CENTER Active First Notice $206.66 BROOKLYN CENTER Active First Notice $840.16 BROOKLYN CENTER Active First Notice $784.55 BROOKLYN CENTER Active First Notice $221.21 BROOKLYN CENTER Active First Notice $206.66 BROOKLYN CENTER Active First Notice $283.94 BROOKLYN CENTER Active First Notice $354.89 BROOKLYN CENTER Active First Notice $998.40 BROOKLYN CENTER Active No Collection Activity $548.87 BROOKLYN CENTER Active First Notice $671.33 BROOKLYN CENTER Active First Notice $620.70 BROOKLYN CENTER Active First Notice $727.39 BROOKLYN CENTER Active First Notice $681.29 BROOKLYN CENTER Active First Notice $688.37 BROOKLYN CENTER Active First Notice $710.50 BROOKLYN CENTER Active First Notice $564.95 BROOKLYN CENTER Active First Notice $743.87 BROOKLYN CENTER Active First Notice $800.32 BROOKLYN CENTER Active First Notice $870.91 BROOKLYN CENTER Active First Notice $460.89 BROOKLYN CENTER Active First Notice $722.59 BROOKLYN CENTER Active First Notice $714.91 BROOKLYN CENTER Active First Notice $422.05 BROOKLYN CENTER Active First Notice $696.54 BROOKLYN CENTER Active First Notice $571.99 BROOKLYN CENTER Active First Notice $528.56 BROOKLYN CENTER Active First Notice $253.45 BROOKLYN CENTER Active First Notice $509.32 BROOKLYN CENTER Active First Notice $1,033.76 BROOKLYN CENTER Active First Notice $564.95 BROOKLYN CENTER Active First Notice $880.79 BROOKLYN CENTER Active First Notice $616.95 BROOKLYN CENTER Active First Notice $607.41 BROOKLYN CENTER Active First Notice $953.72 BROOKLYN CENTER Active First Notice $909.16 BROOKLYN CENTER Active First Notice $676.87 BROOKLYN CENTER Active First Notice $827.30 BROOKLYN CENTER Active No Collection Activity $224.32 BROOKLYN CENTER Active First Notice $378.31 BROOKLYN CENTER Active First Notice $768.52 BROOKLYN CENTER Active Bankrupt $343.48 BROOKLYN CENTER Active First Notice $592.93 BROOKLYN CENTER Active First Notice $630.13 BROOKLYN CENTER Active First Notice $688.38 BROOKLYN CENTER Active First Notice $857.65 BROOKLYN CENTER Active First Notice $599.23 BROOKLYN CENTER Active No Collection Activity $384.22 BROOKLYN CENTER Active First Notice $2,103.22 BROOKLYN CENTER Active First Notice $897.54 BROOKLYN CENTER Active First Notice $755.93 BROOKLYN CENTER Active First Notice $886.80 BROOKLYN CENTER Active First Notice $817.33 BROOKLYN CENTER Active First Notice $625.81 BROOKLYN CENTER Active First Notice $872.32 BROOKLYN CENTER Active First Notice $635.04 BROOKLYN CENTER Active First Notice $925.76 BROOKLYN CENTER Active First Notice $392.75 BROOKLYN CENTER Active First Notice $841.80 BROOKLYN CENTER Active First Notice $740.76 BROOKLYN CENTER Active First Notice $751.52 BROOKLYN CENTER Active First Notice $249.84 BROOKLYN CENTER Active First Notice $889.43 BROOKLYN CENTER Active First Notice $629.50 BROOKLYN CENTER Active First Notice $535.42 BROOKLYN CENTER Active First Notice $871.05 BROOKLYN CENTER Active First Notice $777.99 BROOKLYN CENTER Active First Notice $475.85 BROOKLYN CENTER Active First Notice $824.07 BROOKLYN CENTER Active First Notice $691.38 BROOKLYN CENTER Active No Collection Activity $384.12 BROOKLYN CENTER Active First Notice $1,022.78 BROOKLYN CENTER Active First Notice $340.48 BROOKLYN CENTER Active Disconnect Order Generated $372.58 BROOKLYN CENTER Active First Notice $536.47 BROOKLYN CENTER Active First Notice $513.44 BROOKLYN CENTER Active First Notice $436.65 BROOKLYN CENTER Active First Notice $769.43 BROOKLYN CENTER Active First Notice $610.89 BROOKLYN CENTER Active First Notice $938.65 BROOKLYN CENTER Active First Notice $776.68 BROOKLYN CENTER Active First Notice $836.96 BROOKLYN CENTER Active First Notice $729.74 BROOKLYN CENTER Active First Notice $1,161.19 BROOKLYN CENTER Active No Collection Activity $369.67 BROOKLYN CENTER Active First Notice $872.28 BROOKLYN CENTER Active First Notice $315.42 BROOKLYN CENTER Active First Notice $861.69 BROOKLYN CENTER Active First Notice $750.15 BROOKLYN CENTER Active First Notice $283.92 BROOKLYN CENTER Active First Notice $748.75 BROOKLYN CENTER Active First Notice $880.06 BROOKLYN CENTER Active First Notice $775.04 BROOKLYN CENTER Active No Collection Activity $247.33 BROOKLYN CENTER Active First Notice $735.46 BROOKLYN CENTER Active First Notice $417.30 BROOKLYN CENTER Active Disconnect Order Generated $997.54 BROOKLYN CENTER Active First Notice $934.50 BROOKLYN CENTER Active First Notice $686.23 BROOKLYN CENTER Active First Notice $794.43 BROOKLYN CENTER Active First Notice $383.49 BROOKLYN CENTER Active No Collection Activity $287.28 BROOKLYN CENTER Active First Notice $869.93 BROOKLYN CENTER Active First Notice $1,086.22 BROOKLYN CENTER Active First Notice $763.86 BROOKLYN CENTER Active First Notice $854.57 BROOKLYN CENTER Active First Notice $743.71 BROOKLYN CENTER Active First Notice $887.67 BROOKLYN CENTER Active First Notice $864.70 BROOKLYN CENTER Active First Notice $837.64 BROOKLYN CENTER Active First Notice $565.40 BROOKLYN CENTER Active First Notice $793.80 BROOKLYN CENTER Active First Notice $713.72 BROOKLYN CENTER Active First Notice $693.63 BROOKLYN CENTER Active First Notice $734.38 BROOKLYN CENTER Active First Notice $924.55 BROOKLYN CENTER Active First Notice $551.56 BROOKLYN CENTER Active First Notice $291.10 BROOKLYN CENTER Active First Notice $709.51 BROOKLYN CENTER Active First Notice $799.83 BROOKLYN CENTER Active No Collection Activity $561.90 BROOKLYN CENTER Active First Notice $790.53 BROOKLYN CENTER Active First Notice $680.13 BROOKLYN CENTER Active First Notice $308.87 BROOKLYN CENTER Active Disconnect Order Generated $889.94 BROOKLYN CENTER Active First Notice $537.39 BROOKLYN CENTER Active No Collection Activity $716.03 BROOKLYN CENTER Active No Collection Activity $223.77 BROOKLYN CENTER Active First Notice $666.04 BROOKLYN CENTER Active First Notice $661.30 BROOKLYN CENTER Active First Notice $669.75 BROOKLYN CENTER Active First Notice $246.29 BROOKLYN CENTER Active First Notice $235.96 BROOKLYN CENTER Active First Notice $603.63 BROOKLYN CENTER Active First Notice $803.16 BROOKLYN CENTER Active First Notice $761.34 BROOKLYN CENTER Active First Notice $817.55 BROOKLYN CENTER Active First Notice $493.10 BROOKLYN CENTER Active First Notice $736.16 BROOKLYN CENTER Active First Notice $703.97 BROOKLYN CENTER Active First Notice $957.63 BROOKLYN CENTER Active First Notice $587.77 BROOKLYN CENTER Active First Notice $724.80 BROOKLYN CENTER Active Disconnect Order Generated $413.55 BROOKLYN CENTER Active First Notice $659.35 BROOKLYN CENTER Active First Notice $949.60 BROOKLYN CENTER Active No Collection Activity $810.51 BROOKLYN CENTER Active First Notice $675.92 BROOKLYN CENTER Active First Notice $716.91 BROOKLYN CENTER Active First Notice $862.18 BROOKLYN CENTER Active First Notice $264.63 BROOKLYN CENTER Active First Notice $434.40 BROOKLYN CENTER Active First Notice $635.32 BROOKLYN CENTER Active First Notice $671.05 BROOKLYN CENTER Active First Notice $327.25 BROOKLYN CENTER Active First Notice $1,009.15 BROOKLYN CENTER Active First Notice $349.30 BROOKLYN CENTER Active First Notice $584.95 BROOKLYN CENTER Active First Notice $473.93 BROOKLYN CENTER Active First Notice $400.00 BROOKLYN CENTER Active First Notice $597.10 BROOKLYN CENTER Active First Notice $259.77 BROOKLYN CENTER Active First Notice $934.34 BROOKLYN CENTER Active First Notice $477.40 BROOKLYN CENTER Active First Notice $559.75 BROOKLYN CENTER Active First Notice $703.41 BROOKLYN CENTER Active No Collection Activity $710.39 BROOKLYN CENTER Active First Notice $384.95 BROOKLYN CENTER Active First Notice $263.67 BROOKLYN CENTER Active First Notice $297.98 BROOKLYN CENTER Active First Notice $714.07 BROOKLYN CENTER Active No Collection Activity $25,320.58 BROOKLYN CENTER Active First Notice $444.75 BROOKLYN CENTER Active Disconnect Order Generated $1,379.11 BROOKLYN CENTER Active No Collection Activity $917.57 BROOKLYN CENTER Active First Notice $293.80 BROOKLYN CENTER Active First Notice $635.04 BROOKLYN CENTER Active No Collection Activity $1,039.79 BROOKLYN CENTER Active First Notice $301.07 BROOKLYN CENTER Active No Collection Activity $209.57 BROOKLYN CENTER Active First Notice $615.37 BROOKLYN CENTER Active First Notice $619.60 BROOKLYN CENTER Active First Notice $430.12 BROOKLYN CENTER Active First Notice $825.55 BROOKLYN CENTER Active First Notice $925.28 BROOKLYN CENTER Active First Notice $326.20 BROOKLYN CENTER Active First Notice $601.24 BROOKLYN CENTER Active First Notice $206.66 BROOKLYN CENTER Active First Notice $674.66 BROOKLYN CENTER Active First Notice $803.20 BROOKLYN CENTER Active First Notice $792.12 BROOKLYN CENTER Active First Notice $1,002.89 BROOKLYN CENTER Active First Notice $712.56 BROOKLYN CENTER Active First Notice $953.31 BROOKLYN CENTER Active First Notice $497.68 BROOKLYN CENTER Active Disconnect Order Generated $281.52 BROOKLYN CENTER Active First Notice $752.32 BROOKLYN CENTER Active No Collection Activity $418.42 BROOKLYN CENTER Active First Notice $333.25 BROOKLYN CENTER Active No Collection Activity $735.26 BROOKLYN CENTER Active First Notice $673.96 BROOKLYN CENTER Active No Collection Activity $490.43 BROOKLYN CENTER Active First Notice $747.10 BROOKLYN CENTER Active First Notice $658.39 BROOKLYN CENTER Active First Notice $348.20 BROOKLYN CENTER Active First Notice $695.94 BROOKLYN CENTER Active First Notice $1,048.22 BROOKLYN CENTER Active First Notice $665.65 BROOKLYN CENTER Active First Notice $806.36 BROOKLYN CENTER Active First Notice $859.72 BROOKLYN CENTER Active First Notice $368.70 BROOKLYN CENTER Active First Notice $715.79 BROOKLYN CENTER Active First Notice $412.24 BROOKLYN CENTER Active Reconnected $541.14 BROOKLYN CENTER Active First Notice $7,082.35 BROOKLYN CENTER Active First Notice $1,411.35 BROOKLYN CENTER Active First Notice $1,060.99 BROOKLYN CENTER Active First Notice $273.74 BROOKLYN CENTER Active First Notice $350.54 BROOKLYN CENTER Active First Notice $838.79 BROOKLYN CENTER Active First Notice $735.04 BROOKLYN CENTER Active First Notice $1,139.97 BROOKLYN CENTER Active First Notice $552.43 BROOKLYN CENTER Active First Notice $585.66 BROOKLYN CENTER Active First Notice $924.99 BROOKLYN CENTER Active First Notice $704.11 BROOKLYN CENTER Active First Notice $903.85 BROOKLYN CENTER Active First Notice $775.22 BROOKLYN CENTER Active First Notice $647.31 BROOKLYN CENTER Active First Notice $578.54 BROOKLYN CENTER Active No Collection Activity $748.32 BROOKLYN CENTER Active First Notice $632.29 BROOKLYN CENTER Active First Notice $713.58 BROOKLYN CENTER Active First Notice $746.96 BROOKLYN CENTER Active No Collection Activity $671.48 BROOKLYN CENTER Active First Notice $691.14 BROOKLYN CENTER Active First Notice $551.02 BROOKLYN CENTER Active First Notice $792.26 BROOKLYN CENTER Active First Notice $682.76 BROOKLYN CENTER Active First Notice $564.95 BROOKLYN CENTER Active First Notice $766.74 BROOKLYN CENTER Active First Notice $643.63 BROOKLYN CENTER Active No Collection Activity $1,051.76 BROOKLYN CENTER Active First Notice $218.14 BROOKLYN CENTER Active First Notice $799.70 BROOKLYN CENTER Active First Notice $495.80 BROOKLYN CENTER Active First Notice $258.19 BROOKLYN CENTER Active First Notice $666.63 BROOKLYN CENTER Active No Collection Activity $718.56 BROOKLYN CENTER Active First Notice $679.64 BROOKLYN CENTER Active First Notice $1,301.36 BROOKLYN CENTER Active First Notice $363.68 BROOKLYN CENTER Active First Notice $387.40 BROOKLYN CENTER Active First Notice $561.74 BROOKLYN CENTER Active No Collection Activity $329.97 BROOKLYN CENTER Active First Notice $500.22 BROOKLYN CENTER Active Reconnected $613.24 BROOKLYN CENTER Active First Notice $612.60 BROOKLYN CENTER Active First Notice $534.12 BROOKLYN CENTER Active First Notice $412.35 BROOKLYN CENTER Active Disconnect Order Generated $1,671.32 BROOKLYN CENTER Active First Notice $621.12 BROOKLYN CENTER Active First Notice $612.60 BROOKLYN CENTER Active No Collection Activity $240.09 BROOKLYN CENTER Active First Notice $732.09 BROOKLYN CENTER Active First Notice $685.04 BROOKLYN CENTER Active Disconnect Order Generated $520.35 BROOKLYN CENTER Active First Notice $369.58 BROOKLYN CENTER Finalled First Notice $577.29 BROOKLYN CENTER Active First Notice $356.56 BROOKLYN CENTER Active First Notice $521.61 BROOKLYN CENTER Active Disconnect Order Generated $1,228.69 BROOKLYN CENTER Active First Notice $350.86 BROOKLYN CENTER Active First Notice $959.16 BROOKLYN CENTER Active First Notice $678.52 BROOKLYN CENTER Active First Notice $809.27 BROOKLYN CENTER Active First Notice $712.14 BROOKLYN CENTER Active First Notice $341.45 BROOKLYN CENTER Active First Notice $820.35 BROOKLYN CENTER Active First Notice $459.58 BROOKLYN CENTER Active First Notice $1,007.09 BROOKLYN CENTER Active First Notice $1,608.76 BROOKLYN CENTER Active No Collection Activity $600.43 BROOKLYN CENTER Active First Notice $809.45 BROOKLYN CENTER Active First Notice $489.53 BROOKLYN CENTER Active First Notice $774.80 BROOKLYN CENTER Active First Notice $595.59 BROOKLYN CENTER Active First Notice $294.42 BROOKLYN CENTER Active Disconnect Order Generated $726.45 BROOKLYN CENTER Active First Notice $863.32 BROOKLYN CENTER Active First Notice $366.34 BROOKLYN CENTER Active First Notice $513.16 BROOKLYN CENTER Active First Notice $460.78 BROOKLYN CENTER Active No Collection Activity $640.82 BROOKLYN CENTER Active First Notice $760.67 BROOKLYN CENTER Active No Collection Activity $603.22 BROOKLYN CENTER Active First Notice $692.75 BROOKLYN CENTER Active First Notice $835.31 BROOKLYN CENTER Active First Notice $726.97 BROOKLYN CENTER Active First Notice $806.53 BROOKLYN CENTER Active First Notice $2,049.35 BROOKLYN CENTER Active First Notice $870.73 BROOKLYN CENTER Active First Notice $331.84 BROOKLYN CENTER Active No Collection Activity $516.61 BROOKLYN CENTER Active First Notice $688.09 BROOKLYN CENTER Active First Notice $786.69 BROOKLYN CENTER Active First Notice $423.20 BROOKLYN CENTER Active First Notice $682.27 BROOKLYN CENTER Active First Notice $596.19 BROOKLYN CENTER Active First Notice $687.28 BROOKLYN CENTER Active First Notice $352.21 BROOKLYN CENTER Active Disconnect Order Generated $1,121.70 BROOKLYN CENTER Active First Notice $513.55 BROOKLYN CENTER Active First Notice $997.14 BROOKLYN CENTER Active First Notice $522.34 BROOKLYN CENTER Active First Notice $902.64 BROOKLYN CENTER Active First Notice $679.57 BROOKLYN CENTER Active First Notice $644.00 BROOKLYN CENTER Active First Notice $483.78 BROOKLYN CENTER Active First Notice $865.65 BROOKLYN CENTER Active First Notice $710.50 BROOKLYN CENTER Active First Notice $383.21 BROOKLYN CENTER Active No Collection Activity $873.40 BROOKLYN CENTER Active First Notice $706.60 BROOKLYN CENTER Active First Notice $738.51 BROOKLYN CENTER Active First Notice $561.37 BROOKLYN CENTER Active First Notice $384.68 BROOKLYN CENTER Active First Notice $564.95 BROOKLYN CENTER Active First Notice $1,073.15 BROOKLYN CENTER Active First Notice $595.84 BROOKLYN CENTER Active First Notice $682.93 BROOKLYN CENTER Active First Notice $653.59 BROOKLYN CENTER Active First Notice $455.38 BROOKLYN CENTER Active First Notice $203.49 BROOKLYN CENTER Active First Notice $994.25 BROOKLYN CENTER Active First Notice $409.20 BROOKLYN CENTER Active First Notice $1,009.12 BROOKLYN CENTER Active First Notice $416.23 BROOKLYN CENTER Active First Notice $706.69 BROOKLYN CENTER Active First Notice $765.89 BROOKLYN CENTER Active First Notice $981.77 BROOKLYN CENTER Active First Notice $356.59 BROOKLYN CENTER Active No Collection Activity $1,249.00 BROOKLYN CENTER Active No Collection Activity $707.77 BROOKLYN CENTER Active Disconnect Order Generated $2,817.68 BROOKLYN CENTER Active First Notice $758.18 BROOKLYN CENTER Active First Notice $384.68 BROOKLYN CENTER Active First Notice $867.94 BROOKLYN CENTER Active First Notice $1,090.49 BROOKLYN CENTER Active First Notice $538.41 BROOKLYN CENTER Active First Notice $858.50 BROOKLYN CENTER Active First Notice $203.11 BROOKLYN CENTER Active First Notice $746.08 BROOKLYN CENTER Active First Notice $735.91 BROOKLYN CENTER Active First Notice $554.07 BROOKLYN CENTER Active First Notice $922.03 BROOKLYN CENTER Active First Notice $747.38 BROOKLYN CENTER Active Disconnect Order Generated $543.41 BROOKLYN CENTER Active First Notice $691.94 BROOKLYN CENTER Active First Notice $654.43 BROOKLYN CENTER Active First Notice $506.74 BROOKLYN CENTER Active First Notice $804.01 BROOKLYN CENTER Active First Notice $804.81 BROOKLYN CENTER Active First Notice $814.35 BROOKLYN CENTER Active No Collection Activity $508.07 BROOKLYN CENTER Active First Notice $1,005.16 BROOKLYN CENTER Active First Notice $295.02 BROOKLYN CENTER Active First Notice $413.08 BROOKLYN CENTER Active Disconnect Order Generated $364.87 BROOKLYN CENTER Active First Notice $316.52 BROOKLYN CENTER Active First Notice $819.96 BROOKLYN CENTER Active First Notice $962.31 BROOKLYN CENTER Active First Notice $522.94 BROOKLYN CENTER Active No Collection Activity $292.23 BROOKLYN CENTER Active Disconnect Order Generated $1,470.09 BROOKLYN CENTER Active First Notice $526.41 BROOKLYN CENTER Active First Notice $834.61 BROOKLYN CENTER Active First Notice $576.83 BROOKLYN CENTER Active First Notice $6,386.22 BROOKLYN CENTER Active First Notice $7,175.16 BROOKLYN CENTER Active First Notice $355.12 BROOKLYN CENTER Active First Notice $221.21 BROOKLYN CENTER Active First Notice $722.03 BROOKLYN CENTER Active No Collection Activity $210.67 BROOKLYN CENTER Active First Notice $820.64 BROOKLYN CENTER Active First Notice $685.74 BROOKLYN CENTER Active First Notice $795.41 BROOKLYN CENTER Active First Notice $789.31 BROOKLYN CENTER Active First Notice $672.94 BROOKLYN CENTER Active First Notice $358.34 BROOKLYN CENTER Active Disconnect Order Generated $220.83 BROOKLYN CENTER Active First Notice $1,158.89 BROOKLYN CENTER Active No Collection Activity $372.58 BROOKLYN CENTER Active First Notice $811.13 BROOKLYN CENTER Active First Notice $624.12 BROOKLYN CENTER Active First Notice $203.75 BROOKLYN CENTER Active First Notice $984.63 BROOKLYN CENTER Active First Notice $880.80 BROOKLYN CENTER Active First Notice $483.06 BROOKLYN CENTER Active First Notice $876.42 BROOKLYN CENTER Active First Notice $803.45 BROOKLYN CENTER Active First Notice $215.34 BROOKLYN CENTER Active First Notice $970.24 BROOKLYN CENTER Active Disconnect Order Generated $702.36 BROOKLYN CENTER Active First Notice $899.53 BROOKLYN CENTER Active First Notice $718.74 BROOKLYN CENTER Active First Notice $579.08 BROOKLYN CENTER Active First Notice $370.55 BROOKLYN CENTER Active First Notice $410.03 BROOKLYN CENTER Active First Notice $687.21 BROOKLYN CENTER Active First Notice $451.15 BROOKLYN CENTER Active No Collection Activity $882.82 BROOKLYN CENTER Active First Notice $398.77 BROOKLYN CENTER Active First Notice $713.27 BROOKLYN CENTER Active First Notice $542.11 BROOKLYN CENTER Active First Notice $705.27 BROOKLYN CENTER Active First Notice $655.62 BROOKLYN CENTER Active First Notice $757.76 BROOKLYN CENTER Active First Notice $666.21 BROOKLYN CENTER Active First Notice $245.55 BROOKLYN CENTER Active First Notice $944.19 BROOKLYN CENTER Active First Notice $632.27 BROOKLYN CENTER Active First Notice $1,235.44 BROOKLYN CENTER Active First Notice $275.01 BROOKLYN PARK Active First Notice $467.10 BROOKLYN CENTER Active First Notice $468.48 BROOKLYN CENTER Active Disconnect Order Generated $354.05 BROOKLYN CENTER Active First Notice $775.88 BROOKLYN CENTER Active No Collection Activity $239.82 BROOKLYN CENTER Active First Notice $1,356.28 BROOKLYN CENTER Active First Notice $987.67 BROOKLYN CENTER Active First Notice $713.65 BROOKLYN CENTER Active First Notice $569.71 BROOKLYN CENTER Active First Notice $660.25 BROOKLYN CENTER Active First Notice $803.34 BROOKLYN CENTER Active First Notice $1,193.75 BROOKLYN CENTER Active First Notice $840.15 BROOKLYN CENTER Active First Notice $341.35 BROOKLYN CENTER Active First Notice $671.75 BROOKLYN CENTER Active First Notice $468.72 BROOKLYN CENTER Active First Notice $577.19 BROOKLYN CENTER Active First Notice $202.86 BROOKLYN CENTER Active First Notice $209.57 BROOKLYN CENTER Active First Notice $906.54 BROOKLYN CENTER Active First Notice $417.49 BROOKLYN CENTER Active Bankrupt $632.23 BROOKLYN CENTER Active First Notice $660.39 BROOKLYN CENTER Active First Notice $788.75 BROOKLYN CENTER Active First Notice $895.62 BROOKLYN CENTER Active First Notice $810.04 BROOKLYN CENTER Active First Notice $898.75 BROOKLYN CENTER Active First Notice $442.26 BROOKLYN CENTER Active First Notice $846.98 BROOKLYN CENTER Active First Notice $818.32 BROOKLYN CENTER Active First Notice $877.07 BROOKLYN CENTER Active First Notice $206.75 BROOKLYN CENTER Active First Notice $772.97 BROOKLYN CENTER Active First Notice $353.15 BROOKLYN CENTER Active First Notice $365.57 BROOKLYN CENTER Active First Notice $548.95 BROOKLYN CENTER Active First Notice $644.30 BROOKLYN CENTER Active First Notice $215.39 BROOKLYN CENTER Active First Notice $797.16 BROOKLYN CENTER Active First Notice $209.57 BROOKLYN CENTER Active First Notice $227.15 BROOKLYN CENTER Active No Collection Activity $314.38 BROOKLYN CENTER Active First Notice $256.70 BROOKLYN CENTER Active First Notice $400.00 BROOKLYN CENTER Active First Notice $433.76 $507,064.95 Member introduced the following resolution and moved its adoption: RESOLUTION NO. _____ RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION TO BARB SUCIU, CITY CLERK FOR CONDUCTING THE 2020 ELECTIONS DURING THE COVID-19 PANDEMIC WHEREAS, City Clerk Barb Suciu is the city official charged with conducting elections for the City Of Brooklyn Center in accordance with State and Federal election laws; and WHEREAS, during the beginning of the pandemic, active precautions were established and implemented by the City Clerk for the March Presidential Primary Election; and WHEREAS, after the Presidential Primary Election, the City Clerk in accordance with recommendations from the Minnesota Department of Health worked to remove polling places from schools to other locations in order to protect the health of students during the pandemic; and WHEREAS, City Clerk Suciu actively implemented precautionary measures for candidate filing by having candidates file by appointment only to ensure safety for all; and WHEREAS, due to COVID-19, City Clerk Barb Suciu effectively implemented online election judge training to ensure all judges were properly trained following State and Federal election laws; and WHEREAS, City Clerk Suciu successfully conducted absentee voting and Election Day activities for the State Primary Election with social distancing, sanitizing, plexiglass screens, and other precautionary measures in place; and WHEREAS, City Clerk Suciu effectively conducted health care facility absentee voting with the precautionary measures that were established by the Minnesota Secretary of State; and WHEREAS, City Clerk Suciu wisely established a Ballot Drop Off at City Hall and a no-contact ballot drive-thru at the East Fire Station to accommodate voters and protect the health of voters by helping prevent the spread of the COVID-19 virus; and WHEREAS, City Clerk Suciu actions facilitated safer voting processes that resulted in a 66% turn out for absentee voting and a 34% in-person on November 3, 2020, for the Presidential Election with social distancing, sanitizing objects with protection to the voters, and staff as established by the Minnesota Secretary of State. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that we recognize Barb Suciu, City Clerk for excellent leadership in conducting the 2020 Elections During the COVID-19 Pandemic. August 23, 2021 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. C ouncil R egular M eeng DAT E:8/23/2021 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :M ike M ars h, I nterim P ublic Works D irector BY:A ndrew H ogg, P.E., A s s is tant C ity Engineer S U B J E C T:Res olu1on Vaca1ng Certain Eas ements W ithin L ot 1, Block 1 Evangelical C hurch of the M aster 2nd A ddi1on, H ennepin County, Minnes ota Requested Council A con: - M oon to open the P ublic H earing, take public input, close the P ublic H ear ing and consider approval of a resoluon vacang certain easements that are associated w ith the 69th Avenue North A ddion. B ackground: A public hearing is s cheduled on A ugus t 23, 2021. T he public hearing is to cons ider vaca1 ng certain eas ements as referenced abov e that are as s ociated with the L ot 1, Block 1 Evangelical C hurch of the M aster 2nd A ddi1 on, H ennepin County, Minnes ota. The P lanning C ommis s ion has review ed the final plat for 69th Avenue N orth A ddi1 on. I n connec1 on w ith the final plat and easement dedica1on proceedings, the developer is reques1ng releas e and termina1 on of easements that are either no longer needed or are being replaced by new easements or conflict w ith the propos ed pla=ng. T he easements proposed to be releas ed and terminated are indicated in the a>ached exhibit. A s part of the P ublic H earing and no1fica1on process, affected en11es w ith interests in said exis1ng eas ements have been no1 fied in accordance with City O rdinance and S tate S tatute. I t is s taff ’s opinion that the por1ons of the easements proposed to be vacated are no longer needed and should not nega1vely affect rights to public easements . We are unaware of any en1ty objec1ng to the proposed vaca1on. The a>ached exhibits outline the release and ter mina1on of easements and s how the loca1 ons of s aid exis1ng eas ements . T he City A>orney has r ev iewed the release and ter mina1on documents and concurs to the purpos e and form of the documents. S taff recommends that a presenta1on be provided to the C ity Council prior to holding the P ublic H earing. Following the pres enta1on, a P ublic H earing to consider vaca1 ng the eas ements as refer enced above s hould be conducted to receive public comments . A resolu1on vaca1ng cer tain easements w ithin Lot 1, Block 1 Ev angelical Church of the M as ter 2nd A ddi1 on, H ennepin C ounty, Minnes ota w ill be prov ided for City Council considera1on upon closing of the P ublic H earing. I t should be noted that this res olu1on will only take effect upon the releas e and filing of the final plat of 69t h Avenue North A ddi1on, execu1on and filing of as s ociated and s eparate r ededicated easements , and upon execu1on and filing the s ubdivision agreement for s aid as s ociated development. B udget I ssues: There are no budget is s ues to consider. I nclusive C ommunity Engagement: N/A A nracist/Equity Policy Effect: N/A S trategic Priories and Values: Targeted Redevelopment AT TA C H M E N TS : D escrip1on U pload D ate Type Res olu1on 8/16/2021 Cover Memo Exhibit B 8/16/2021 Cover Memo Member introduced the following resolution and moved its adoption: RESOLUTION NO. _______________ RESOLUTION VACATING CERTAIN EASEMENTS WITHIN LOT 1, BLOCK 1, EVANGELICAL LUTHERAN CHURCH OF THE MASTER 2ND ADDITION, HENNEPIN COUNTY, MINNESOTA WHEREAS, the Planning Commission has recommended approval for the plat for 69th AVENUE NORTH ADDITION based on certain conditions as set forth in the City Council Resolution No. No. 2021-84 and Planning Commission Resolution No. 2021-02; and WHEREAS, certain existing easements on existing properties are either no longer needed, or are being replaced by new easements pertaining to the properties contained within the proposed plat for 69th AVENUE NORTH ADDITION; and WHEREAS, the easements proposed to be vacated are identified as follows and are hereafter referred to as “the Easements”: That part of Lot 1, Block 1, EVANGELICAL LUTHERAN CHURCH OF THE MASTER 2ND ADDITION, Hennepin County, Minnesota, described as follows: Commencing at the southeast corner of said Lot 1; thence northerly along the easterly line of said Lot 1, a distance of 142.99 feet, more or less, to a corner of said Lot 1; thence westerly along the northerly line of said Lot 1, a distance of 140.00 feet, more or less, to a corner of said Lot 1 and also the point of beginning of the parcel to be described; thence continuing along the last described line to a point that is distance 5.00 feet westerly of the easterly line of said Lot 1; thence northerly parallel to the easterly line of said Lot 1, a distance of 105.20 feet, more or less, to the intersection with a line drawn parallel with and 10.00 feet southerly of the northerly line of said Lot 1; thence easterly parallel with the northerly line of said Lot 1, a distance of 5.00 feet to said easterly line of said Lot 1; thence southerly, along said easterly line of said Lot 1, to the point of beginning.; and WHEREAS, after due notice and public hearing, the City Council has determined that the Easements will be no longer needed, once the plat of 69th AVENUE NORTH ADDITION is recorded, and it is in the public interest to vacate the Easements; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1. The City Council hereby approves the vacation of the Easements described above and depicted in the attached Exhibit. RESOLUTION NO. _______________ 2. The City Clerk is directed to prepare a Notice of Completion of Vacation Proceedings and to record it with the Hennepin County Recorder or Hennepin County Registrar of Titles, as appropriate; provided, that this resolution will only take effect upon the release and filing of the final plat of 69th AVEUNE NORTH ADDITION, execution and filing of associated and separate rededicated easements, and upon execution and filing the subdivision agreement for said associated development. August 23, 2021 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Emerson Lane Du p o n t A v e n u e 69th Avenue69th Avenue Em e r s o n A v e n u e N o r t h EXHIBIT LOT 1 B L O C K 1 LOT 2 LEGAL DESCRIPTION OF VACATED DRAINAGE AND UTILITY EASEMENT: That part of Lot 1, Block 1, EVANGELICAL LUTHERAN CHURCH OF THE MASTER 2ND ADDITION, Hennepin County, Minnesota, described as follows: Commencing at the southeast corner of said Lot 1; thence northerly along the easterly line of said Lot 1, a distance of 142.99 feet, more or less, to a corner of said Lot 1; thence westerly along the northerly line of said Lot 1, a distance of 140.00 feet, more or less, to a corner of said Lot 1 and also the point of beginning of the parcel to be described; thence continuing along the last described line to a point that is distance 5.00 feet westerly of the easterly line of said Lot 1; thence northerly parallel to the easterly line of said Lot 1, a distance of 105.20 feet, more or less, to the intersection with a line drawn parallel with and 10.00 feet southerly of the northerly line of said Lot 1; thence easterly parallel with the northerly line of said Lot 1, a distance of 5.00 feet to said easterly line of said Lot 1; thence southerly, along said easterly line of said Lot 1, to the point of beginning. # LICENSE NO. DATE S1 AUGUST 3, 2021 Minnetonka, Minnesota 55345 Phone (952) 474-7964 17917 Highway 7 Web: www.advsur.com Advance Surveying & Engineering, Co. LUTHERAN CHURCH OF THE MASTER 1107 EMERSON LANE CLIENT NAME / JOB ADDRESS BROOKLYN CENTER, MN SHEET TITLE SHEET NO. SHEET 1 OF 1 DRAWING ORIENTATION & SCALE 40200 EASEMENT VACATION EXHIBIT DRAWING NUMBER # 42379 Thomas M. Bloom SHEET SIZE 22 X 34 SCALE - 1" = 20'211262 TB EASEMENT VACATION C ouncil R egular M eeng DAT E:8/23/2021 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :N/A BY:A ndy S plinter, I nterim F inance D irector S U B J E C T:Res olu.on A warding the S ale of $8,950,000 G eneral O bliga.on I mprovement and U .lity Revenue Bonds , S eries 2021 A F ixing Their Form and S pecifica.ons ; D irec.ng Their Execu.on and D elivery; and P roviding for Their Payment Requested Council A con: - Moon to approve a resoluon aw arding the sale of $8,950,000 G eneral Obligaon I mprovement and Ulity Revenue Bonds, S eries 2021 A fixing their form and specificaons; direcng their execuon and delivery ; and providing for their pay ment. B ackground: O n J uly 26, 2 0 2 1 the C ity C ouncil adopted a resolu.on s e;ng the date for the compe..ve nego.ated sale of $8,9 5 0 ,000 G eneral O bliga.on I mprov ement and U .lity Rev enue B onds , S eries 2021 A . T he bond proceeds w ill be us ed to finance the construc.on of G randv iew S outh A r ea I mprovements and the S torm Water por.on of Brooklyn Boulevard P hase I I I mprovements. We have a>ached a copy of the P reliminary O fficial S tatement w hich describes the bond s ale in more detail. We an.cipate that S tandard & Poor ’s will confirm that the bonds will con.nue to be rated A A . The ra.ng report will be s ent to the Council when received prior to the Council mee.ng. The City ’s financial advisor, Baker Tilly, will receive compe..ve proposals at 10:30am on A ugust 26, 2021. D oug G reen, D irector at Baker Tilly w ill be present at the Council mee.ng to dis cus s the recommenda.ons for the s ale. Grandview S outh A rea Improvements The G r andv iew S outh pr oject area extends from 57th Avenue to 59th Avenue and from L ogan Avenue to D upont Avenue. The total proj ect length is 15,557 feet. The neighborhood cons is ts of approximately 183 res iden.al proper.es (R1), one s chool property (R1), tw o church proper.es (R1 ), 14 mul.-family proper.es (R4 and R5), and three commercial proper.es (C 1 and C 2). O n M ay 13, 2 0 1 9 , the C ity C ouncil approv ed res olu.ons es tablishing improv ement projects for the G randview A rea. O n S eptember 28th 2020 the City C ouncil approved a res olu.on ordering improvements and authorizing prepara.on of plans and s pecifica.ons for the G r andv iew S outh A rea s treet, storm drainage and u.lity improvements . The City C ouncil als o approved a res olu.on cer.fying the s pecial as s essments on this project on D ecember 14, 2020. O n March 8th, 2 0 2 1 the C ity Council accepted the bid and awarded the contr act of the G randview North pr oject to the low es t res pons ible bidder. T he es .mated total cos t of the proj ect (amended per low bid) is $10,171,743. B rooklyn B oulevard Phase I I S torm Water Improvements P has e I I of the Brooklyn Boulevard I mprovements runs from Bass L ake Road to I -94. O n March 8th, 2021 T he City entered into a C ooper a.ve C ons truc.on A greement for Brooklyn Boulevard Corridor P r oject P hase 2 I mpr ovements with H ennepin C ounty. O n M ay 10, 2021 the C ity Council accepted the bid and awarded the contr act of the B rook lyn Boulevard P hase I I project to the low est res pons ible bidder. The es .mated total cost of the project (amended per low bid) is $17,804,603 The total es .mate combined cos t (amended per low bid) of the tw o proj ects is $27,9 7 6 ,346. O f this total cos t, $8,950,000 of s treet, sanitary s ewer, storm w ater, and water infrastructure costs w ill be financed through bond proceeds and paid from a combina.on of future pr oper ty taxes and u.lity r ev enues . This equates to approximately 32% of the total project cos t. Brooklyn B oulev ar d P has e I I is largely funded by Federal and C ounty contr ibu.ons, the lar ges t s har e of C ity expens es relates to S torm Water I mpr ovements and that is the only por .on of that proj ect the C ity is bonding for. B udget I ssues: The propos ed 2021 A bond is s ue includes approximately $2.0 5 5 million in s treet reconstruc.on cos ts that w ill be repaid from an addi.onal debt s erv ice property tax levy and $1.3 million that will be repaid with s pecial as s essments. The es.mated required levy for the new debt s erv ice in 2022 is approximately $216,639.09, which equates to an approximate 1.08% levy increase for taxes payable in 2022. The u.lity funds pay for infrastructure replacement cos ts through u.lity charges. I ssuing debt to provide funding for the infras tructur e improv ements w ill allow the C ity to minimize the impact on thes e charges . The 2021 A bond is s ue includes $1.935 million in water u.lity cos ts , $2.2240 million in storm w ater u.lity costs and $1 .42 million in sanitary sew er u.lity cos ts that w ill be funded through w ater, storm w ater, and sanitary sew er u.lity fees . D ebt S ummary (By Repayment S ource) P roperty Tax Levy $2,055,000 S pecial A s s essments 1,300,000 Water Charges 1,935,000 S torm Water Charges 2,240,000 S anitary S ewer C harges 1,420,000 Total D ebt I s s ue $8,950,000 We hav e a>ached a copy of the proj ected debt s chedules for the is s uance of bonds prepar ed by the City ’s financial advisor, Baker Tilly. A bond ra.ng call is expected to take place A ugus t 11, in w hich we an.cipate that S tandard & Poor ’s will confirm that the bonds will con.nue to be rated A A . The an.cipated net interes t cos t of the bond s ale is 1.08 percent, w hich compares to 1 .1 percent received on las t y ear ’s bond issue. The City ’s financial advis or, Baker T illy at 1 0 :30am on A ugust 2 3 , 2 0 2 1 , will receive compe..ve propos als. P roceeds from the bonds will be received S eptember 22, 2021. I nclusive C ommunity Engagement: A nracist/Equity Policy Effect: S trategic Priories and Values: S afe, S ecure, S table C ommunity, Key Trans porta.on I nves tments , O pera.onal Excellence AT TA C H M E N TS : D escrip.on U pload D ate Type P reliminary O fficial S tatement 8/13/2021 Exhibit Res olu.on A warding the S ale 8/17/2021 Resolu.on Le>er ____________________________ *Preliminary; subject to change. Th e i n f o r m a t i o n c o n t a i n e d i n t h i s P r e l i m i n a r y O f f i c i a l S t a t e m e n t i s d e e m e d b y t h e Ci t y to b e f i n a l a s o f t h e d a t e h e r e o f ; h o w e v e r , t h e p r i c i n g a n d u n d e r w r i t i n g i n f o r m a t i o n i s s u b j e c t t o c o m p l e t i o n o r a m e n d m e n t . Un d e r n o c i r c u m s t a n c e s s h a l l t h i s P r e l i m i n a r y O f f i c i a l S t a t e m e n t c o n s t i t u t e a n o f f e r t o s e l l o r t h e s o l i c i t a t i o n o f a n o f f e r to b u y, n o r s h a l l t h e r e b e a n y s a l e o f t h e s e s e c u r i t i e s i n a n y j u r i s d i c t i o n i n w h i c h s u c h o f f e r , so l i c i t a t i o n o r s a l e w o u l d b e u n l a w f u l p r i o r t o r e g i s t r a t i o n o r q u a l i f i c a t i o n u n d e r t h e s e c u r i t i e s l a w s o f a n y s u c h j u r i s d i c t io n . PRELIMINARY OFFICIAL STATEMENT DATED AUGUST 3, 2021 NEW ISSUE S&P Rating: Requested NOT BANK QUALIFIED In the opinion of Kennedy & Graven, Chartered, Bond Counsel for the Bonds, based on present federal and Minnesota laws, regulations, rulings and decisions (which excludes any pending legislation which may have a retroactive effect), and assuming compliance with certain covenants, interest to be paid on the Bonds is excluded from gross income for federal income tax purposes and, to the same extent, from taxable net income of individuals, estates and trusts for Minnesota income purposes, and is not a preference item for purposes of computing the federal alternative minimum tax or the Minnesota alternative minimum tax imposed on individuals, trusts, and estates. Such interest is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income. No opinion will be expressed by Kennedy & Graven, Chartered regarding other state or federal tax consequences caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of the Bonds. The Bonds will not be designated as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations. See "TAX EXEMPTION" and "OTHER FEDERAL AND STATE TAX CONSIDERATIONS" herein. $8,950,000* City of Brooklyn Center, Minnesota General Obligation Improvement and Utility Revenue Bonds, Series 2021A (the “Bonds”) (Book Entry Only) Dated Date: Date of Delivery Interest Due: Each February 1 and August 1, commencing August 1, 2022 The Bonds will mature February 1 in the years and amounts* as follows: 2023 $870,000 2024 $895,000 2025 $890,000 2026 $885,000 2027 $890,000 2028 $895,000 2029 $895,000 2030 $905,000 2031 $905,000 2032 $920,000 The City of Brooklyn Center, Minnesota (the “City”) may elect on February 1, 2030, and on any day thereafter, to redeem Bonds due on or after February 1, 2031 at a price of par plus accrued interest. The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge (i) special assessments against benefited properties; and (ii) net revenues of the City’s water, sanitary sewer, and storm drainage utility funds for repayment of a portion of the Bonds. The proceeds of the Bonds will be used to finance (i) various street improvements; and (ii) related utility improvements within the City. Proposals shall be for not less than $8,878,400 plus accrued interest, if any, on the total principal amount of the Bonds. Proposals shall specify rates in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity as stated on the proposal must be 98.0% or greater. Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above. Following receipt of proposals, a good faith deposit will be required to be delivered to the City by the lowest bidder as described in the “Terms of Proposal” herein. Award of the Bonds will be made on the basis of True Interest Cost (TIC). The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities depository for the Bonds. Individual purchases may be made in book entry form only, in the principal amount of $5,000 and integral multiples thereof. Investors will not receive physical certificates representing their interest in the Bonds purchased. (See “Book Entry System” herein.) Zions Bancorporation, National Association, Chicago, Illinois will serve as registrar (the “Registrar”) for the Bonds. The Bonds will be available for delivery at DTC on or about September 22, 2021 PROPOSALS RECEIVED: Monday, August 23, 2021 until 10:30 A.M., Central Time CONSIDERATION OF AWARD: Council meeting commencing at 7:00 P.M., Central Time on Monday, August 23, 2021 Further information may be obtained from Baker Tilly Municipal Advisors, LLC, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101-2887 (651)223-3000. CITY OF BROOKLYN CENTER, MINNESOTA CITY COUNCIL Mike Elliott Mayor Marquita Butler Council Member April Graves Council Member Kris Lawrence-Anderson Council Member Dan Ryan Council Member CITY MANAGER Reggie Edwards INTERIM DIRECTOR OF FISCAL AND SUPPORT SERVICES Andrew Splinter MUNICIPAL ADVISOR Baker Tilly Municipal Advisors, LLC Saint Paul, Minnesota BOND COUNSEL Kennedy & Graven, Chartered Minneapolis, Minnesota Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2021 Baker Tilly Municipal Advisors, LLC. For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this document, as the same may be supplemented or corrected by the City from time to time, may be treated as a Preliminary Official Statement with respect to the Bonds described herein that is deemed final as of the date hereof (or of any such supplement or correction) by the City. By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded copies of the Final Official Statement in the amount specified in the Terms of Proposal. No dealer, broker, salesman or other person has been authorized by the City to give any information or to make any representations with respect to the Bonds, other than as contained in the Preliminary Official Statement or the Final Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the City. Certain information contained in the Preliminary Official Statement or the Final Official Statement may have been obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE PRELIMINARY OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE PRELIMINARY OFFICIAL STATEMENT NOR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATE THEREOF. References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Preliminary Official Statement or the Final Official Statement, they will be furnished upon request. Any CUSIP numbers for the Bonds included in the Final Official Statement are provided for convenience of the owners and prospective investors. The CUSIP numbers for the Bonds are assigned by an organization unaffiliated with the City. The City is not responsible for the selection of the CUSIP numbers and makes no representation as to the accuracy thereof as printed on the Bonds or as set forth in the Final Official Statement. No assurance can be given by the City that the CUSIP numbers for the Bonds will remain the same after the delivery of the Final Official Statement or the date of issuance and delivery of the Bonds. TABLE OF CONTENTS Page(s) Terms of Proposal .............................................................................................................................. i-v Introductory Statement ....................................................................................................................... 1 Continuing Disclosure ....................................................................................................................... 2 The Bonds .......................................................................................................................................... 2 Authority and Purpose ....................................................................................................................... 5 Sources and Uses of Funds ................................................................................................................ 5 Security and Financing ...................................................................................................................... 5 Future Financing ................................................................................................................................ 6 Litigation ............................................................................................................................................ 6 Legality .............................................................................................................................................. 6 Tax Exemption ................................................................................................................................... 6 Other Federal and State Tax Considerations ...................................................................................... 8 Not Bank Qualified Tax-Exempt Obligations ................................................................................... 9 Rating ................................................................................................................................................. 9 Municipal Advisor ............................................................................................................................. 9 Certification ....................................................................................................................................... 10 City Property Values .......................................................................................................................... 11 City Indebtedness ............................................................................................................................... 12 City Tax Rates, Levies and Collections ............................................................................................. 17 Funds on Hand ................................................................................................................................... 18 Investments ........................................................................................................................................ 18 General Information Concerning the City ......................................................................................... 19 Governmental Organization and Services .......................................................................................... 25 Proposed Form of Legal Opinion ............................................................................................ Appendix I Continuing Disclosure Certificate ........................................................................................... Appendix II Summary of Tax Levies, Payment Provisions, and Minnesota Real Property Valuation ..................................................................................... Appendix III Excerpt of 2020 Comprehensive Annual Financial Report .................................................... Appendix IV * Preliminary; subject to change. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2021 Baker Tilly Municipal Advisors, LLC. - i - THE CITY HAS AUTHORIZED BAKER TILLY MUNICIPAL ADVISORS, LLC TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $8,950,000* CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT AND UTILITY REVENUE BONDS, SERIES 2021A (BOOK ENTRY ONLY) Proposals for the above-referenced obligations (the “Bonds”) will be received by the City of Brooklyn Center, Minnesota (the “City”) on Monday, August 23, 2021 (the “Sale Date”) until 10:30 A.M., Central Time (the “Sale Time”) at the offices of Baker Tilly Municipal Advisors, LLC (“Baker Tilly MA”), 380 Jackson Street, Suite 300, Saint Paul, Minnesota, 55101, after which time proposals will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at its meeting commencing at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Baker Tilly MA will assume no liability for the inability of a bidder or its proposal to reach Baker Tilly MA prior to the Sale Time, and neither the City nor Baker Tilly MA shall be responsible for any failure, misdirection or error in the means of transmission selected by any bidder. All bidders are advised that each proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner in which the proposal is submitted. (a) Sealed Bidding. Completed, signed proposals may be submitted to Baker Tilly MA by email to bondservice@bakertilly.com or by fax (651) 223-3046, and must be received prior to the Sale Time. OR (b) Electronic Bidding. Proposals may also be received via PARITY®. For purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the official time with respect to all proposals submitted to PARITY®. Each bidder shall be solely responsible for making necessary arrangements to access PARITY® for purposes of submitting its electronic proposal in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City, its agents, nor PARITY® shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City, its agents, nor PARITY® shall be responsible for a bidder’s failure to register to bid or for any failure in the proper operation of, or have any liability for any delays or interruptions of or any damages caused by the services of PARITY®. The City is using the services of PARITY® solely as a communication mechanism to conduct the electronic bidding for the Bonds, and PARITY® is not an agent of the City. If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this Terms of Proposal shall control. Further information about PARITY®, including any fee charged, may be obtained from: PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018 Customer Support: (212) 849-5000 - ii - DETAILS OF THE BONDS The Bonds will be dated as of the date of delivery and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2022. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts* as follows: 2023 $870,000 2024 $895,000 2025 $890,000 2026 $885,000 2027 $890,000 2028 $895,000 2029 $895,000 2030 $905,000 2031 $905,000 2032 $920,000 * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds or the amount of any maturity or maturities in multiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Bonds as that of the original proposal. Gross spread for this purpose is the differential between the price paid to the City for the new issue and the prices at which the proposal indicates the securities will be initially offered to the investing public. Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above. In order to designate term bonds, the proposal must specify “Years of Term Maturities” in the spaces provided on the proposal form. BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company (“DTC”), New York, New York, which will act as securities depository for the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The lowest bidder (the “Purchaser”), as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable regulations of the Securities and Exchange Commission. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2030, and on any day thereafter, to redeem Bonds due on or after February 1, 2031. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All redemptions shall be at a price of par plus accrued interest. - iii - SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge (i) special assessments against benefited properties; and (ii) net revenues of the City’s water, sanitary sewer, and storm drainage utility funds for repayment of a portion of the Bonds. The proceeds of the Bonds will be used to finance (i) various street improvements, and (ii) related utility improvements with in the City. NOT BANK QUALIFIED TAX-EXEMPT OBLIGATIONS The City will not designate the Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. BIDDING PARAMETERS Proposals shall be for not less than $8,878,400 plus accrued interest, if any, on the total principal amount of the Bonds. No proposal can be withdrawn or amended after the time set for receiving proposals on the Sale Date unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity as stated on the proposal must be 98.0% or greater. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. ESTABLISHMENT OF ISSUE PRICE In order to provide the City with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (collectively, the “Code”), the Purchaser will be required to assist the City in establishing the issue price of the Bonds and shall complete, execute, and deliver to the City prior to the closing date, a written certification in a form acceptable to the Purchaser, the City, and Bond Counsel (the “Issue Price Certificate”) containing the following for each maturity of the Bonds (and, if different interest rates apply within a maturity, to each separate CUSIP number within that maturity): (i) the interest rate; (ii) the reasonably expected initial offering price to the “public” (as said term is defined in Treasury Regulation Section 1.148-1(f) (the “Regulation”)) or the sale price; and (iii) pricing wires or equivalent communications supporting such offering or sale price. Any action to be taken or documentation to be received by the City pursuant hereto may be taken or received on behalf of the City by Baker Tilly MA. The City intends that the sale of the Bonds pursuant to this Terms of Proposal shall constitute a “competitive sale” as defined in the Regulation based on the following: (i) the City shall cause this Terms of Proposal to be disseminated to potential bidders in a manner that is reasonably designed to reach potential bidders; (ii) all bidders shall have an equal opportunity to submit a bid; (iii) the City reasonably expects that it will receive bids from at least three bidders that have established industry reputations for underwriting municipal bonds such as the Bonds; and (iv) the City anticipates awarding the sale of the Bonds to the bidder who provides a proposal with the lowest true interest cost, as set forth in this Terms of Proposal (See “AWARD” herein). Any bid submitted pursuant to this Terms of Proposal shall be considered a firm offer for the purchase of the Bonds, as specified in the proposal. The Purchaser shall constitute an “underwriter” as said term is defined in the Regulation. By submitting its proposal, the Purchaser confirms that it shall require any agreement among underwriters, a selling group agreement, or other agreement to which it is a party relating to the initial sale of the Bonds, to include provisions requiring compliance with the provisions of the Code and the Regulation regarding the initial sale of the Bonds. - iv - If all of the requirements of a “competitive sale” are not satisfied, the City shall advise the Purchaser of such fact prior to the time of award of the sale of the Bonds to the Purchaser. In such event, any proposal submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours of the notice of award of the sale of the Bonds, the Purchaser shall advise the City and Baker Tilly MA if 10% of any maturity of the Bonds (and, if different interest rates apply within a maturity, to each separate CUSIP number within that maturity) has been sold to the public and the price at which it was sold. The City will treat such sale price as the “issue price” for such maturity, applied on a maturity-by-maturity basis. The City will not require the Purchaser to comply with that portion of the Regulation commonly described as the “hold-the-offering-price” requirement for the remaining maturities, but the Purchaser may elect such option. If the Purchaser exercises such option, the City will apply the initial offering price to the public provided in the proposal as the issue price for such maturities. If the Purchaser does not exercise that option, it shall thereafter promptly provide the City and Baker Tilly MA the prices at which 10% of such maturities are sold to the public; provided such determination shall be made and the City and Baker Tilly MA notified of such prices whether or not the closing date has occurred, until the 10% test has been satisfied as to each maturity of the Bonds or until all of the Bonds of a maturity have been sold. GOOD FAITH DEPOSIT To have its proposal considered for award, the Purchaser is required to submit a good faith deposit via wire transfer to the City in the amount of $89,500 (the “Deposit”) no later than 1:30 P.M., Central Time on the Sale Date. The Purchaser shall be solely responsible for the timely delivery of its Deposit, and neither the City nor Baker Tilly MA have any liability for delays in the receipt of the Deposit. If the Deposit is not received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder, direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder. A Deposit will be considered timely delivered to the City upon submission of a federal wire reference number by the specified time. Wire transfer instructions will be available from Baker Tilly MA following the receipt and tabulation of proposals. The successful bidder must send an e-mail including the following information: (i) the federal reference number and time released; (ii) the amount of the wire transfer; and (iii) the issue to which it applies. Once an award has been made, the Deposit received from the Purchaser will be retained by the City and no interest will accrue to the Purchaser. The amount of the Deposit will be deducted at settlement from the purchase price. In the event the Purchaser fails to comply with the accepted proposal, said amount will be retained by the City. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must be set forth on the bidder’s proposal. The City specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs associated with the issuance and administration of such policy and associated ratings and expenses (other than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the Bonds. - v - CUSIP NUMBERS If the Bonds qualify for the assignment of CUSIP numbers such numbers will be printed on the Bonds; however, neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the Purchaser to accept delivery of the Bonds. Baker Tilly MA will apply for CUSIP numbers pursuant to Rule G-34 implemented by the Municipal Securities Rulemaking Board. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the Purchaser. SETTLEMENT On or about September 22, 2021, the Bonds will be delivered without cost to the Purchaser through DTC in New York, New York. Delivery will be subject to receipt by the Purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has been made impossible by action of the City, or its agents, the Purchaser shall be liable to the City for any loss suffered by the City by reason of the Purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bonds, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The Purchaser's obligation to purchase the Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Bonds. OFFICIAL STATEMENT The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the Bonds, and said Preliminary Official Statement has been deemed final by the City as of the date thereof within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For an electronic copy of the Preliminary Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Municipal Advisor to the City, Baker Tilly Municipal Advisors, LLC, by telephone (651) 223-3000, or by email bondservice@bakertilly.com. The Preliminary Official Statement will also be made available at https://connect.bakertilly.com/bond-sales-calendar. A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the maturity dates, principal amounts, and interest rates of the Bonds, together with any other information required by law. By awarding the Bonds to the Purchaser, the City agrees that, no more than seven business days after the date of such award, it shall provide to the Purchaser an electronic copy of the Final Official Statement. The City designates the Purchaser as its agent for purposes of distributing the Final Official Statement to each syndicate member, if applicable. The Purchaser agrees that if its proposal is accepted by the City, (i) it shall accept designation and (ii) it shall enter into a contractual relationship with its syndicate members for purposes of assuring the receipt of the Final Official Statement by each such syndicate member. Dated July 26, 2021 BY ORDER OF THE CITY COUNCIL /s/ Barb Suciu City Clerk ____________________________ * Preliminary; subject to change. - 1 - OFFICIAL STATEMENT $8,950,000* CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT AND UTILITY REVENUE BONDS, SERIES 2021A (BOOK ENTRY ONLY) INTRODUCTORY STATEMENT General This Official Statement contains certain information relating to the City of Brooklyn Center, Minnesota (the “City”) and its issuance of $8,950,000* General Obligation Improvement and Utility Revenue Bonds, Series 2021A (the “Bonds”). The Bonds will be general obligations of the City for which it will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge (i) special assessments against benefited properties; and (ii) net revenues of the City’s water, sanitary sewer, and storm drainage utility funds for repayment of a portion of the Bonds. See “SECURITY AND FINANCING” herein. Inquiries may be directed to Mr. Andrew Splinter, Interim Director of Fiscal and Support Services, City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430, by telephoning (763) 569-3352, or by e-mailing asplinter@ci.brooklyn-center.mn.us. Inquiries may also be made to Baker Tilly Municipal Advisors, LLC, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101-2887, by telephoning (651) 223-3000, or by e-mailing bondservice@bakertilly.com. Potential Impacts Resulting from Coronavirus (COVID-19) On March 11, 2020, the World Health Organization proclaimed the Coronavirus (COVID-19) to be a pandemic. In an effort to lessen the risk of transmission of COVID-19, the United States government, state governments, local governments and private industries have taken measures to limit social interactions in an effort to limit the spread of COVID-19, affecting business activities and impacting global, state and local commerce and financial markets. The emergence of COVID-19 and the spread thereof is an emerging and evolving issue. As the federal, state, and local governments, including the City, continue efforts to contain and limit the spread COVID-19 disease, future tax and other revenue collections may deviate from historical or anticipated collections and may have an adverse impact on the financial position and operations of the City and its ability to fund debt obligations, including the Bonds in accordance with its terms. The City is not able to predict and makes no representations as to the economic impact of the COVID-19 pandemic on the City or its financial position. As of the date of this Official Statement, the City has received a total of $2,433,415 of CARES funding, which has been allocated as follows: $1,549,821 to the general fund, $366,683 to special revenue funds, $58,193 to capital projects, $9,487 to internal service funds, and $449,231 to enterprise funds. - 2 - CONTINUING DISCLOSURE In order to assist the Underwriter in complying with SEC Rule 15c2-12 (the “Rule”), pursuant to the Awarding Resolution, the City has covenanted to comply with the continuing disclosure certificate (the “Undertaking”) for the benefit of holders or beneficial owners of the Bonds to provide certain financial information and operating data relating to the City to the Municipal Securities Rulemaking Board annually, and to provide notices of the occurrence of certain events enumerated in the Rule to the Municipal Securities Rulemaking Board and to any state information depository. The specific nature of the Undertaking, as well as the information to be contained in the annual report or the notices of material events, is set forth in the Undertaking in substantially the form attached hereto as Appendix II, subject to such modifications thereof or additions thereto as: (i) consistent with requirements under the Rule, (ii) required by the purchaser of the Bonds from the City, and (iii) acceptable to the Mayor and the Manager of the City. The City believes it has complied for the past five years in accordance with the terms of its previous continuing disclosure undertakings entered into pursuant to the Rule, except to the extent the following are deemed to be material. In reviewing its past disclosure practices, the City notes the following: • Prior continuing disclosure undertakings entered into by the City included language stating that the City’s audited financial statements would be filed “as soon as available.” Although the City did not always file “as soon as available,” the audited financial statements were timely filed within the required twelve (12) month timeframe as provided for in each undertaking. A failure by the City to comply with the Undertaking will not constitute an event of default on the Bonds (although holders or other beneficial owners of the Bonds will have the sole remedy of bringing an action for specific performance). Nevertheless, such a failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. THE BONDS General Description The Bonds are dated as of the date of delivery and will mature annually on February 1 as set forth on the front cover of this Official Statement. The Bonds are issued in book entry form. Interest on the Bonds is payable on February 1 and August 1 of each year, commencing August 1, 2022. Interest will be payable to the holder (initially Cede & Co.) registered on the books of the Registrar as of the fifteenth day of the calendar month next preceding such interest payment date. Interest will be computed on the basis of a 360-day year of twelve 30-day months. Principal of and interest on the Bonds will be paid as described in the section herein entitled “Book Entry System.” Zions Bancorporation, National Association, Chicago, Illinois will serve as Registrar for the Bonds, and the City will pay for registrar services. Redemption Provisions Mailed notice of redemption shall be given to the registered owner(s) of the Bonds in accordance with the requirements of DTC which currently requires no less than twenty (20) days nor more than sixty (60) days prior to the redemption date. Failure to give such written notice to any registered owner of the Bonds or any defect therein shall not affect the validity of any proceedings for the redemption of the Bonds. All Bonds or portions thereof called for redemption will cease to bear interest after the specified redemption date, provided funds for their redemption are on deposit at the place of payment. - 3 - Optional Redemption The City may elect on February 1, 2030, and on any day thereafter, to redeem Bonds due on or after February 1, 2031. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all the Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each participant’s interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All redemptions shall be at a price of par plus accrued interest. Book Entry System The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation, and Fixed Income Clearing Corporation all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. - 4 - To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of the Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co. or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the City or its agent on the payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or its agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to City or its agent. Under such circumstances, in the event that a successor depository is not obtained, certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered to DTC. The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. - 5 - AUTHORITY AND PURPOSE The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429, 444, and 475. The proceeds of the Bonds will be used to finance (i) street improvement projects (the “Improvement Portion”); and (ii) related utility improvements (the “Utility Portion”) throughout various areas of the City. SOURCES AND USES OF FUNDS The composition of the Bonds is estimated to be as follows: Improvement Utility Portion Portion Total Sources of Funds: Principal Amount $3,355,000 $5,595,000 $8,950,000 Total Sources of Funds $3,355,000 $5,595,000 $8,950,000 Uses of Funds: Deposit to Project Funds $3,300,000 $5,500,000 $8,800,000 Costs of Issuance 28,160 50,240 78,400 Allowance for Discount Bidding 26,840 44,760 71,600 Total Uses of Funds $3,355,000 $5,595,000 $8,950,000 SECURITY AND FINANCING The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. Additional sources of security for the Bonds are discussed below. Improvement Portion The City will pledge special assessments against benefited properties for repayment of a portion of the Improvement Portion of the Bonds. Special assessments in the principal amount of approximately $1,300,000 are expected to be filed in the fall of 2021 for first collection in 2022, and will be filed over a term of ten years with equal annual payments of principal. Interest on the unpaid balance will be charged at an interest rate of 4.00%. The City will make its first levy for the Improvement Portion of the Bonds in 2021 for collection in 2022. Each year’s collection of taxes and special assessments, if collected in full, will be sufficient to pay 105% of the interest payment due August 1 of the collection year and the principal and interest payment due February 1 of the following year. - 6 - Utility Portion Pursuant to Minnesota Statutes, Chapter 444, and the resolution awarding the sale of the Bonds, the City will covenant to impose and collect charges for the service, use, availability and connection to the water, sanitary sewer, and storm drainage utilities (the “Utilities”) to produce net revenues in amounts sufficient to support the operation of the Utilities and to pay 105% of debt service due on obligations to which it has pledged the net revenues of the Utilities, including the Utility Portion of the Bonds. The City is required to annually review the budget of the Utilities to determine whether current rates and charges are sufficient and to adjust such rates and charges as necessary. The City does not anticipate the need to levy taxes for repayment of the Utility Portion of the Bonds. FUTURE FINANCING The City does not anticipate issuing any additional long-term general obligation debt for at least the next 90 days. LITIGATION The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the City's ability to meet its financial obligations. LEGALITY The Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered, of Minneapolis, Minnesota, as Bond Counsel. Bond Counsel has not participated in the preparation of this Official Statement and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify any of the financial or statistical statements or data contained in this Official Statement and will express no opinion with respect thereto. A legal opinion in substantially the form set out in Appendix I herein will be delivered at closing. TAX EXEMPTION At closing Kennedy & Graven, Chartered, of Minneapolis, Minnesota, Bond Counsel for the Bonds, will render an opinion that, at the time of their issuance and delivery to the original purchaser, under present federal and State of Minnesota laws, regulations, rulings and decisions (which excludes any pending legislation which may have a retroactive effect), the interest on the Bonds is excluded from gross income for purposes of United States income tax and is excluded, to the same extent, from taxable net income of individuals, estates and trusts for Minnesota income purposes, and is not a preference item for purposes of computing the federal alternative minimum tax or the Minnesota alternative minimum tax imposed on individuals, trusts, and estates. Such interest is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income. No opinion will be expressed by Kennedy & Graven regarding other federal or state tax consequences caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of Bonds. Preservation of the exclusion of interest on the Bonds from federal gross income and state gross and taxable net income, however, depends upon compliance by the - 7 - City with all requirements of the Internal Revenue Code of 1986, as amended, (the “Code”) that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be (or continue to be) excluded from federal gross income and state gross and taxable net income. The City will covenant to comply with requirements necessary under the Code to establish and maintain the Bonds as tax-exempt under Section 103 thereof, including without limitation, requirements relating to temporary periods for investments and limitations on amounts invested at a yield greater than the yield on the Bonds. Original Issue Premium Certain maturities of the Bonds (the “Premium Bonds”) may be sold to the public at an amount in excess of their stated redemption price at maturity. Such excess of the purchase price of such Premium Bonds over the stated redemption price at maturity constitutes original issue premium with respect to such Premium Bonds. A purchaser of a Premium Bond must amortize any original issue premium over the term of such Premium Bond using constant yield principles, based on the purchaser’s yield to maturity. As original issue premium is amortized, the purchaser’s basis in such Premium Bond is reduced by a corresponding amount, resulting in an increase in the gain (or a decrease in the loss) to be recognized for federal income tax purposes upon a sale or disposition of such Premium Bond prior to its maturity. Even though the purchaser’s basis is reduced, no federal income tax deduction is allowed. Purchasers of any Premium Bonds at a premium, whether at the time of initial issuance or subsequent thereto, should consult with their own tax advisors with respect to the determination and treatment of premium for federal income tax purposes and with respect to state and local tax consequences of owning such Premium Bonds. Original Issue Discount Certain maturities of the Bonds (the “Discount Bonds”) may be sold at a discount from the principal amount payable on such Discount Bonds at maturity. The difference between the price at which a substantial amount of the Discount Bonds of a given maturity is first sold to the public (the “Issue Price”) and the principal amount payable at maturity constitutes “original issue discount” under the Code. The amount of original issue discount that accrues to a holder of a Discount Bond under section 1288 of the Code is excluded from federal gross income to the same extent that stated interest on such Discount Bond would be so excluded. The amount of the original issue discount that accrues with respect to a Discount Bond under section 1288 is added to the owner’s federal tax basis in determining gain or loss upon disposition of such Discount Bond (whether by sale, exchange, redemption or payment at maturity). Interest in the form of original issue discount accrues under section 1288 pursuant to a constant yield method that reflects semiannual compounding on dates that are determined by reference to the maturity date of the Discount Bond. The amount of original issue discount that accrues for any particular semiannual accrual period generally is equal to the excess of (1) the product of (a) one-half of the yield on such Bonds (adjusted as necessary for an initial short period) and (b) the adjusted issue price of such Bonds, over (2) the amount of stated interest actually payable. For purposes of the preceding sentence, the adjusted issue price is determined by adding to the Issue Price for such Bonds the original issue discount that is treated as having accrued during all prior semiannual accrual periods. If a Discount Bond is sold or otherwise disposed of between semiannual compounding dates, then the original issue discount that would have accrued for that semiannual accrual period for federal income tax purposes is allocated ratably to the days in such accrual period. If a Discount Bond is purchased at a price that exceeds the sum of the Issue Price plus accrued interest and accrued original issue discount, the amount of original issue discount that is deemed to accrue thereafter to the purchaser is reduced by an amount that reflects amortization of such excess over the remaining term of such Bond. - 8 - No opinion is expressed as to state and local income tax treatment of original issue discount. It is possible under certain state and local income tax laws that original issue discount on a Discount Bond may be taxable in the year of accrual, and may be deemed to accrue differently than under federal law. Holders of Discount Bonds should consult their tax advisors with respect to the computation and accrual of original issue discount for federal income tax purposes and with respect to the state and local tax consequences of owning such Discount Bonds. OTHER FEDERAL AND STATE TAX CONSIDERATIONS Property and Casualty Insurance Companies Property and casualty insurance companies are required to reduce the amount of their loss reserve deduction by the applicable percentage of the amount of tax-exempt interest received or accrued during the taxable year on certain obligations, including interest on the Bonds. Foreign Insurance Companies Foreign companies carrying on an insurance business in the United States are subject to a tax on income which is effectively connected with their conduct of any trade or business in the United States, including “net investment income.” Net investment income includes tax-exempt interest such as interest on the Bonds. Branch Profits Tax A foreign corporation is subject to a branch profits tax imposed by Section 884 of the Code. A branch's earnings and profits may include tax-exempt municipal bond interest, such as interest on the Bonds. Passive Investment Income of S Corporations Passive investment income, including interest on the Bonds, may be subject to federal income taxation under Section 1375 of the Code for an S corporation that has Subchapter C earnings and profits at the close of the taxable year if more than a certain percentage of the gross receipts of such S corporation is passive investment income. General The preceding is not a comprehensive list of all federal or State tax consequences which may arise from the receipt or accrual of interest on the Bonds. The receipt or accrual of interest on the Bonds may otherwise affect the federal income tax (or Minnesota income tax or franchise tax) liability of the recipient based on the particular taxes to which the recipient is subject and the particular tax status of other items of income or deductions. All prospective purchasers of the Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the Bonds. - 9 - NOT BANK QUALIFIED TAX-EXEMPT OBLIGATIONS The City will not designate the Bonds as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Code, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations. RATING Application for a rating of the Bonds has been made to S&P Global Ratings (“S&P”), 55 Water Street, New York, New York. If a rating is assigned, it will reflect only the opinion of S&P. Any explanation of the significance of the rating may be obtained only from S&P. There is no assurance that a rating, if assigned, will continue for any given period of time, or that such rating will not be revised, suspended or withdrawn, if, in the judgment of S&P, circumstances so warrant. A revision, suspension or withdrawal of a rating may have an adverse effect on the market price of the Bonds. MUNICIPAL ADVISOR The City has retained Baker Tilly Municipal Advisors, LLC as municipal advisor in connection with certain aspects of the issuance of Bonds (the “Municipal Advisor” or “BTMA”). BTMA is a registered municipal advisor and a wholly-owned subsidiary of Baker Tilly US, LLP (“BTUS”), an accounting firm and has been retained by the City to provide certain financial advisory services including, among other things, preparation of the deemed “nearly final” Preliminary Official Statement and the Final Official Statement (the “Official Statements”). The information contained in the Official Statements has been compiled from records and other materials provided by City officials and other sources deemed to be reliable. The Municipal Advisor has not and will not independently verify the completeness and accuracy of the information contained in the Official Statements. The Municipal Advisor’s duties, responsibilities and fees arise solely as Municipal Advisor to the City and they have no secondary obligations or other responsibility. BTUS was engaged to conduct the executive recruitment search for the Finance Director of the City within the 24-month period ending on the date of this Official Statement. BTUS performed this search under a separate engagement contract and received a separate fee from the City pursuant to that contract. Municipal Advisor Registration: BTMA is a Municipal Advisor registered with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board. As such, BTMA is providing certain specific municipal advisory services to the Issuer, but is neither a placement agent to the Issuer nor a broker/dealer and cannot participate in the underwriting of the Bonds. The offer and sale of the Bonds shall be made by the Issuer, in the sole discretion of the Issuer, and under its control and supervision. The Issuer has agreed that BTMA does not undertake to sell or attempt to sell the Bonds, and will take no part in the sale thereof. - 10 - Other Financial Industry Activities and Affiliations: BTUS is an advisory, tax and assurance firm headquartered in Chicago, Illinois. BTUS and its affiliated entities, have operations in North America, South America, Europe, Asia and Australia. BTUS is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 47 territories, with 33,600 professionals. Baker Tilly Investment Services, LLC (“BTIS”) is registered as an investment adviser with the Securities and Exchange Commission (“SEC”) under the Federal Investment Advisers Act of 1940. BTIS provides discretionary and non-discretionary investment management services to government and municipal entities. BTIS may provide advisory services to the clients of BTMA. Baker Tilly Capital, LLC (“BTC”), a wholly owned subsidiary of BTUS, is a limited purpose broker/dealer registered with the SEC and member of the Financial Industry Regulatory Authority (“FINRA”). BTC provides merger & acquisition, capital sourcing and corporate finance advisory services. BTC may provide transaction advisory services to clients of BTMA. Baker Tilly Financial, LLC (“BTF”), a wholly owned subsidiary of BTUS, is an investment adviser registered with the SEC. BTF provides both discretionary and non-discretionary portfolio management, , consulting and retirement plan management services to individuals and retirement plans. BTF may provide advisory services to the clients of BTMA. BTMA has no other activities or arrangements that are material to its advisory business or its clients with a related person who is a broker-dealer, investment company, other investment adviser or financial planner, bank, law firm or other financial entity. CERTIFICATION The City has authorized the distribution of the Preliminary Official Statement for use in connection with the initial sale of the Bonds and a Final Official Statement following award of the Bonds. The Purchaser will be furnished with a certificate signed by the appropriate officers of the City stating that the City examined each document and that, as of the respective date of each document and the date of such certificate, each document did not and does not contain any untrue statement of material fact or omit to state a material fact necessary, in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. - 11 - CITY PROPERTY VALUES Trend of Values(a) Assessment/ Assessor’s Market Value Adjusted Collection Estimated Sales Economic Homestead Taxable Taxable Net Year Market Value Ratio(b) Market Value(c) Exclusion Market Value Tax Capacity 2020/21 $2,606,518,800 94.6% $2,756,949,732 $128,892,345 $2,468,226,455 $30,738,953 2019/20 2,448,176,800 95.2 2,573,197,729 135,015,397 2,304,437,403 29,240,979 2018/19 2,234,245,900 89.6 2,499,069,716 144,494,942 2,081,039,958 26,538,221 2017/18 2,054,586,200 94.5 2,178,582,990 154,116,646 1,892,639,554 25,120,921 2016/17 1,870,150,101 92.5 2,028,801,815 163,771,285 1,699,535,316 22,841,269 (a) For a description of the Minnesota property tax system, see Appendix III. (a) Sales Ratio Study for the year of assessment as posted by the Minnesota Department of Revenue, https://www.revenue.state.mn.us/economic-market-values and https://www.revenue.state.mn.us/economic-market-values-reports (c) Economic market values for the year of assessment as posted by the Minnesota Department of Revenue, https://www.revenue.state.mn.us/economic-market-values and https://www.revenue.state.mn.us/economic-market-values-reports. Source: Hennepin County, Minnesota, July 2021, except as otherwise noted. 2020/21 Adjusted Taxable Net Tax Capacity: $30,738,953 Real Estate: Residential Homestead $15,402,978 49.78% Commercial/Industrial, Railroad, and Public Utility 11,075,150 35.80 Residential Non-Homestead 3,932,548 12.71 Seasonal Recreational and Other 11,200 0.04 Personal Property 517,001 1.67 2020/21 Net Tax Capacity $30,938,877 100.00% Less: Captured Tax Increment (5,089,788) Contribution to Fiscal Disparities (3,804,245) Plus: Distribution from Fiscal Disparities 8,694,109 2020/21 Adjusted Taxable Net Tax Capacity $30,738,953 Ten of the Largest Taxpayers in the City 2020/21 Net Taxpayer Type of Property Tax Capacity The Luther Company LLC Car Dealer $ 719,700 The Molasky Group of COS FBI Regional Headquarters 505,250 Marvin F Poer and Company Property Tax Advisors 408,690 Lake Point Apartments LLC Apartments 322,313 TLN Lanel Ltd Partnership Apartments 320,600 Brooklyn Hotel Partners Hotel 312,250 Medtronic Inc. Industrial 310,250 G B Homes LLC Custom Home Builders 291,850 Brookdale Corner LLC Retail 288,730 Melrose Gates LLC Apartments 250,113 Total $3,729,476* * Represents 12.1% of the City's 2020/21 adjusted taxable net tax capacity. - 12 - CITY INDEBTEDNESS Legal Debt Limit and Debt Margin* Legal Debt Limit (3% of 2020/21 Estimated Market Value) $78,195,564 Less: Outstanding Debt Subject to Limit 0 Legal Debt Margin as of September 22, 2021 $78,195,564 * The legal debt margin is referred to statutorily as the “Net Debt Limit” and may be increased by debt service funds and current revenues which are applicable to the payment of debt in the current fiscal year. NOTES: Certain types of debt are not subject to the legal debt limit. See Appendix III – Debt Limitations. General Obligation Special Assessment Debt Est. Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 9-22-21 12-19-13 $4,920,000 Improvements 2-1-2024 $ 965,000 7-9-15 5,240,000 Improvements 2-1-2026 2,685,000 10-13-16 1,820,000 Street Improvements 2-1-2027 1,140,000 6-8-17 3,735,000 Street Improvements 2-1-2028 2,680,000 7-10-18 3,835,000 Street Improvements 2-1-2029 3,140,000 9-12-19 4,050,000 Street Improvements 2-1-2030 3,180,000 11-24-20 2,050,000 Improvements 2-1-2031 1,955,000 9-22-21 3,355,000 Improvements (the Improvement Portion) 2-1-2032 3,355,000 Total $19,100,000 General Obligation Tax Increment Debt Est. Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 9-22-21 12-19-13 $6,040,000 Taxable Tax Increment 2-1-2022 $2,195,000 12-8-16 2,075,000 Tax Increment Refunding 2-1-2029 2,075,000 12-8-16 1,725,000 Taxable Tax Increment Refunding 2-1-2023 600,000 Total $4,870,000 General Obligation Utility Revenue Debt Est. Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 9-22-21 7-9-15 $1,660,000 Utility Revenue Refunding 2-1-2025 $ 695,000 10-13-16 3,605,000 Utility Revenue 2-1-2027 2,265,000 6-8-17 4,880,000 Utility Revenue 2-1-2028 3,380,000 7-10-18 4,350,000 Utility Revenue 2-1-2029 3,635,000 9-12-19 5,800,000 Utility Revenue 2-1-2030 4,540,000 11-24-20 2,955,000 Utility Revenue 2-1-2031 2,830,000 9-22-21 5,595,000 Utility Revenue (the Utility Portion) 2-1-2032 5,595,000 Total $22,940,000 - 13 - Revenue Debt Est. Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 9-22-21 1-20-15 $19,662,798 Taxable GO PFA Water Loan 8-20-2034 $13,799,445 Liquor Enterprise Debt Est. Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 9-22-21 9-26-19 $2,620,000 Lease Revenue 2-1-2035 $2,420,000* * These bonds are being issued through means of an operating lease-purchase agreement between the City and the Economic Development Authority of Brooklyn Center, Minnesota (the “EDA”). This issue is repaid with annual appropriation lease payments to be made by the City. Estimated Calendar Year Debt Service Payments G.O. Special Assessment Debt G.O. Tax Increment Debt Principal Principal Year Principal & Interest(a) Principal & Interest 2021 (at 9-22) (Paid) (Paid) (Paid) (Paid) 2022 $ 2,225,000 $ 2,719,098 $2,490,000 $2,582,680 2023 2,545,000 2,971,819 305,000 355,333 2024 2,585,000 2,938,045 330,000 373,525 2025 2,410,000 2,689,193 335,000 371,875 2026 2,445,000 2,650,938 340,000 369,700 2027 1,930,000 2,073,406 350,000 371,938 2028 1,755,000 1,848,389 355,000 368,563 2029 1,365,000 1,416,633 365,000 369,563 2030 955,000 978,079 2031 555,000 563,171 2032 330,000 332,310 Total $19,100,000(b) $21,181,081 $4,870,000 $5,163,177 (a) Includes estimated debt service on the Improvement Portion of the Bonds. (b) 98.3% of this debt will be retired within ten years. - 14 - Estimated Calendar Year Debt Service Payments (Continued) G.O. Utility Revenue Debt Revenue Debt Principal Principal Year Principal & Interest(a) Principal & Interest 2021 (at 9-22) (Paid) (Paid) (Paid) (Paid) 2022 $ 1,965,000 $ 2,545,118 $ 1,002,000 $ 1,140,390 2023 2,555,000 3,074,403 1,012,000 1,140,370 2024 2,655,000 3,102,303 1,022,000 1,140,250 2025 2,710,000 3,081,446 1,033,000 1,141,030 2026 2,725,000 3,016,271 1,043,000 1,140,700 2027 2,820,000 3,033,289 1,053,000 1,140,270 2028 2,485,000 2,626,857 1,064,000 1,140,740 2029 2,020,000 2,101,834 1,075,000 1,141,100 2030 1,535,000 1,573,066 1,085,000 1,140,350 2031 880,000 893,904 1,096,000 1,140,500 2032 590,000 594,130 1,107,000 1,140,540 2033 1,118,000 1,140,470 2034 1,089,445 1,100,735 Total $22,940,000(b) $25,642,621 $13,799,445(c) $14,787,445 Liquor Enterprise Debt Principal Year Principal & Interest 2021 (at 9-22) (Paid) (Paid) 2022 $ 135,000 $ 213,900 2023 140,000 213,400 2024 145,000 212,700 2025 155,000 216,700 2026 160,000 215,400 2027 165,000 213,900 2028 170,000 213,050 2029 175,000 212,875 2030 180,000 212,550 2031 185,000 212,075 2032 195,000 216,375 2033 200,000 215,450 2034 205,000 214,375 2035 210,000 213,150 Total $2,420,000(d) $2,995,900 (a) Includes estimated debt service on the Utility Portion of the Bonds. (b) 97.4% of this debt will be retired within ten years. (c) 76.0% of this debt will be retired within ten years. (d) 66.5% of this debt will be retired within ten years. - 15 - Other Debt Obligations Charter School Lease Revenue Bonds The City issued $8,225,000 Charter School Lease Revenue Bonds (Twin Lakes Stem Academy Project), Series 2021A and $730,000 Taxable Charter School Lease Revenue Bonds (Twin Lakes Stem Academy Project), Series 2021B (collectively ,the “Lease Revenue Bonds”) on behalf of SYH Brooklyn Center LLC (the “Company”), a Minnesota nonprofit limited liability company, the sole member of which is Spark Youth. Proceeds of the Lease Revenue Bonds will be used by the Company to finance the acquisition and improvement of an existing school facility located at 6201 Noble Avenue North, Brooklyn Center, Minnesota (the “School Facility”) to be owned by the Company and leased to Twin Lakes STEM Academy, a Minnesota nonprofit corporation and501(c)(3) organization (the “Charter School”). The Lease Revenue Bonds will be secured by and payable from an assignment and pledge of all money held under a trust indenture, and lease payments to be made by the Charter School in amounts sufficient to pay debt service on the Lease Revenue Bonds. The Lease Revenue Bonds will also be secured by a mortgage lien on and security interest in the School Facility pursuant to an agreement between the Company and U.S. Bank National Association as Trustee. The Lease Revenue Bonds are not secured by or payable from any taxes, revenues or assets of the City, except for the City’s interest in revenues derived from a loan agreement and amounts held pursuant to a trust indenture. As of this Official Statement, the Lease Revenue Bonds are outstanding in the principal amounts of $8,225,000 and $730,000, respectively. Operating Leases The City has leased a portion of the police second floor expansion area to the Local Government Information Systems Association (LOGIS) as a backup computer facility. The lease has a term of ten years, commencing on January 12, 2016 and calls for monthly lease payments based on square-footage. Lease revenue for the year ended December 31, 2020 was $12,000. Future minimum lease revenues under the current agreement is as follows: Year Ending December 31 2021 $12,000 2022 12,000 2023 12,000 2024 12,000 2025 12,000 Total $60,000 The City previously entered into two operating leases for its municipal liquor stores. One of the leased spaces was replaced with a new City-owned building in 2020. The remaining lease began in 2013 and has a term of ten years. Rent expenses for the fiscal year ended December 31, 2020 were $190,977. The following is a schedule by years of future minimum rental payments required under the remaining operating lease as of December 31, 2020: Year Ending December 31 2021 $ 93,360 2022 93,360 2023 93,360 Total $280,080 - 16 - The City has a lease for a building being used as a sit-down restaurant. The lease was signed in 2011 with a ten-year term, with an option to extend the lease for an additional five years. Rental revenue for the year ended December 31, 2020 was $103,029. Future minimum base rent revenues under the current agreement are as follows: Year Ending December 31 2021 $96,190 The City has a lease for a building known as “Building D”, consisting of approximately 4,100 square feet and located within the Earle Brown Heritage Center. The lease was signed in 2009 with a ten-year term, with an option for two renewals of five years each. Rental revenue for the year ended December 31, 2020 was $78,810. Future minimum base rent revenues under the current agreement are as follows: Year Ending December 31 2021 $ 78,810 2022 78,810 2023 78,810 Total $236,430 The City has a lease for golf carts used at Centerbrook Golf Course. The lease was signed in 2019 with a four-year term. Total rental expenses under the lease agreement for the year ended December 31, 2020 was $13,234. Future minimum base rent payments under the current agreement are as follows: Year Ending December 31 2021 $12,012 2022 12,012 2023 12,012 Total $36,036 Overlapping Debt 2020/21 Debt Applicable to Adjusted Taxable Est. G.O. Debt Tax Capacity in City Taxing Unit(a) Net Tax Capacity As of 9-22-21(b) Percent Amount Hennepin County $2,261,068,019 $ 937,475,000 1.4% $ 13,124,650 Hennepin County Regional Railroad 2,261,068,019 94,705,000 1.4 1,325,870 Three Rivers Park District 1,563,969,505 50,610,000 2.0 1,012,200 I.S.D. No. 11 (Anoka-Hennepin) 301,895,093 251,620,000 20.8 52,336,960 I.S.D. No. 279 (Osseo) 224,913,697 150,885,000 4.5 6,789,825 I.S.D. No. 281 (Robbinsdale) 131,495,210 177,780,000 5.2 9,244,560 I.S.D. No. 286 (Brooklyn Center) 9,660,809 46,259,000 100.0 46,259,000 Metropolitan Council 4,576,186,304(d) 8,825,000(c) 0.7 61,775 Metropolitan Transit 3,662,962,426(d) 187,200,000 0.8 1,497,600 Total $131,652,440 (a) Only those units with outstanding general obligation debt are shown here. (b) Excludes general obligation tax and aid anticipation certificates and revenue-supported debt. (c) Excludes general obligation debt supported by wastewater revenues and housing rental payments. Includes certificates of participation. (d) 2019/20 valuations. - 17 - Debt Ratios* G.O. G.O. Direct & Direct Debt Overlapping Debt To 2020/21 Estimated Market Value ($2,606,518,800) 0.92% 5.97% Per Capita - (30,253 – 2020 U.S. Census Estimate) $792 $5,144 * Excludes general obligation utility revenue debt, revenue debt, liquor enterprise debt, and other debt obligations. CITY TAX RATES, LEVIES AND COLLECTIONS Tax Capacity Rates for a Resident in Independent School District No. 286 (Brooklyn Center) 2016/17 2017/18 2018/19 2019/20 2020/21 Hennepin County 44.087% 42.808% 41.861% 41.084% 38.210% City of Brooklyn Center 71.904 68.432 71.860 66.589 66.260 I.S.D. No. 286 (Brooklyn Center)(a) 40.438 46.098 50.075 47.372 45.987 Special Districts(b) 9.319 8.973 8.550 8.219 7.813 Total 165.748% 166.311% 172.346% 163.264% 158.270% (a) In addition, Independent School District No. 286 (Brooklyn Center) has a 2020/21 market value tax rate of 0.19085% spread across the market value of property in support of an excess operating levy. (b) Special districts include Metropolitan Council, Metropolitan Transit, Metropolitan Mosquito Control, Hennepin Park Museum, Hennepin County Regional Rail Authority, Three Rivers Park District, and the Hennepin County Housing and Redevelopment Authority. NOTE: This table includes only net tax capacity-based rates. Certain other tax rates are based on market value. See Appendix III. Tax Levies and Collections Collected During Collected and/or Abated Net Collection Year as of 1-1-21 Levy/Collect Levy* Amount Percent Amount Percent 2020/21 $20,278,373 (In Process of Collection) 2019/20 19,836,092 $19,857,378 100.1% $19,857,378 100.1% 2018/19 18,757,679 18,623,860 99.3 18,700,650 99.7 2017/18 17,415,844 17,320,084 99.5 17,402,664 99.9 2016/17 16,455,160 16,342,413 99.3 16,459,137 100.0 * The net levy excludes state aid for property tax relief and fiscal disparities, if applicable. The net levy is the basis for computing tax capacity rates. See Appendix III. - 18 - FUNDS ON HAND As of May 31, 2021 General Fund $ 5,527,315 Special Revenue Funds 8,542,121 Debt Service Funds (230,241) Capital Project Funds 12,275,288 Enterprise Fund 13,698,314 Internal Service 5,833,640 Total Cash and Investments $45,646,437 INVESTMENTS The City’s investment policy, last revised in April 2016, has the objectives of preserving safety of principal, retaining sufficient liquidity, providing a market rate of return, and yielding stable earnings on invested City funds. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. Safety of principal is the foremost objective. Liquidity and yield are also important considerations. It is essential that the investment portfolio remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. The investment portfolio of the City shall be designed to attain a market-average rate of return during budgetary and economic cycles, taking into account the City’s investment risk constraints and liquidity needs. Return on investment is of least importance compared to the objectives for safety and liquidity. Securities shall be held to maturity with the exceptions of meeting the liquidity needs of the portfolio and minimizing loss of principal for a security of declining credit. Minnesota Statutes, Chapter 118A, authorizes and defines an investment program for municipal governments. The City may invest in the following instruments allowed by Minnesota Statutes: a. United States Securities: including bonds, notes, bills or other securities which are direct obligations of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress, which carry the full faith and credit of the United States. b. Commercial paper issued by U.S. corporations or their Canadian subsidiaries that is rated in the highest quality by at least two nationally recognized rating agencies and matures in 90 days or less. c. Certificates of Deposit (Time Deposits) that are fully insured by the Federal Deposit Insurance Corporation. d. Repurchase agreements and reverse repurchase agreements may be entered into with financial institutions identified by Minnesota Statutes, Chapter 118A. Reverse repurchase agreements may only be entered into for a period of 90 days or less and only to meet short-term cash flow needs. e. Securities lending agreements may be entered into with financial institutions identified by Minnesota Statutes, Chapter 118A. - 19 - f. Minnesota joint powers investment trusts may be entered into with trusts identified by Minnesota Statutes, Chapter 118A g. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of short-term securities permitted by Minnesota Statutes, Chapter 118A. h. Bonds of the City of Brooklyn Center issued in prior years may be redeemed at current market price, which may include a premium, prior to maturity using surplus funds of the debt service fund set up for that issue. Such repurchased bonds shall be canceled and removed from the obligation of the fund. i. General obligation bonds of state or local governments rated A or better by a national bond rating services. j. Revenue obligations of state or local governments rated AA or better by a national bond rating agency. k. The Minnesota Municipal Money Market Fund (4M) that was established by the League of Minnesota Cities to address the investment needs of the Minnesota cities. Authority to manage the investment program is vested in the City Manager and City Treasurer/Director of Fiscal and Support Services, with the City Treasurer responsible for establishing and maintaining an internal control structure to provide reasonable assurance that the objectives of the investment policy are met. As of May 31, 2021, the City had $45,569,634 invested, with a market value of $45,824,305 (100.56%). The market value of the City’s investments includes the following: $9,949,712 (21.71%) in government agency securities; $18,452,226 (40.27%) in certificates of deposit; $1,460,862 (3.19%) in money market accounts; and $15,961,505 (34.83%) in municipal bonds. All of the investments in the City’s portfolio mature within 72 months or less. The longest investment held by the City is currently scheduled to mature in March 2027. GENERAL INFORMATION CONCERNING THE CITY The City is a northern suburb of the Minneapolis/Saint Paul metropolitan area, adjacent to the City of Minneapolis. The City is wholly within Hennepin County and encompasses an area of approximately 8.5 square miles (5,440 acres). The Mississippi River forms the City’s eastern boundary. Population The City’s population trend is shown below. Percent Population Change 2020 U.S. Census Estimate 30,253 0.5% 2010 U.S. Census 30,104 3.2 2000 U.S. Census 29,172 1.0 1990 U.S. Census 28,887 (7.5) 1980 U.S. Census 31,230 -- Sources: United States Census Bureau, http://www.census.gov/. - 20 - The City’s population by age group for the past five years is as follows: Data Year/ Report Year 0-17 18-34 35-64 65 and Over 2020/21 9,117 7,560 11,459 4,075 2019/20 9,031 7,596 11,342 3,976 2018/19 9,050 7,607 11,312 3,938 2017/18 8,970 7,568 11,254 3,896 2016/17 8,956 7,650 11,255 3,879 Sources: Environics Analytics, Claritas, Inc. and The Nielsen Company. Transportation Major transportation routes in and through the City, including Interstate Highways 94 and 694 and State Highways 100 and 252, have provided a continued impetus for the development of the City's commercial tax base. Major Employers Approximate Number Employer Product/Service of Employees Hennepin County Government 9,300(a) Promeon, Inc. (a division of Medtronic) Medical devices 1,100 Luther Auto Group (five locations) Automobile dealership 555(b) Independent School District No. 286 (Brooklyn Center) Education 396 City of Brooklyn Center Government 342(b) Walmart Retail 278(b) University of Minnesota Physicians Healthcare 212 Caribou Coffee (Headquarters) Coffee retailer 200 Maranatha Care Center, Presbyterian Homes Continuing care/retirement community 200(b) TCR Corporation Metal components 150 Cass Screw Machine Products Screw machine parts 124 Cub Foods Grocery 125 Health Partners-Brooklyn Center Medical and dental clinic 97 (a) Not all employees are located within the City. (b) Includes full-time and part-time employees. Source: This does not purport to be a comprehensive list and is based on a September 2020 best efforts telephone survey of individual employers. Some employers do not respond to inquiries. - 21 - Labor Force Data Annual Average June 2017 2018 2019 2020 2021 Labor Force: City of Brooklyn Center 15,349 15,428 15,612 15,651 15,353 Hennepin County 698,548 703,310 711,530 706,189 700,187 Minneapolis-Saint Paul MSA 1,979,780 2,016,208 2,023,566 2,005,559 1,990,536 State of Minnesota 3,050,764 3,059,402 3,092,899 3,094,701 3,050,586 Unemployment Rate: City of Brooklyn Center 3.9% 3.3% 3.6% 8.7% 7.5% Hennepin County 3.0 2.5 2.8 6.2 4.8 Minneapolis-Saint Paul MSA 3.3 2.7 3.0 6.1 4.5 State of Minnesota 3.4 3.0 3.2 6.2 4.4 Source: Minnesota Department of Employment and Economic Development, https://apps.deed.state.mn.us/lmi/laus. 2021 data are preliminary. Retail Sales and Effective Buying Income (EBI) City of Brooklyn Center Data Year/ Total Retail Total Median Report Year Sales ($000) EBI ($000) Household EBI 2020/21 $928,992 $698,139 $51,116 2019/20 690,888 685,562 50,024 2018/19 650,264 630,186 46,331 2017/18 571,339 582,953 43,718 2016/17 623,655 545,667 40,885 Hennepin County Data Year/ Total Retail Total Median Report Year Sales ($000) EBI ($000) Household EBI 2020/21 $37,562,633 $60,644,521 $67,002 2019/20 37,920,168 50,058,891 66,440 2018/19 35,994,743 46,545,289 63,176 2017/18 32,491,357 43,417,597 60,957 2016/17 33,502,543 40,956,757 57,190 The 2020/21 Median Household EBI for the State of Minnesota was $62,120. The 2020/21 Median Household EBI for the United States was $56,093. Sources: Environics Analytics, Claritas, Inc. and The Nielsen Company. - 22 - Permits Issued by the City Total Permits Commercial Permits Residential Permits Year Number Value Number Value Number Value 2021 (to 7-9) 1,362 $13,983,429 126 $ 7,725,483 1,236 $ 6,257,946 2020 2,883 56,445,490 461 38,479,410 2,422 17,966,080 2019 3,623 79,076,831 923 67,320,334 2,700 11,756,497 2018 3,181 77,347,546 481 63,424,938 2,700 13,922,608 2017 5,758 59,017,940 3,042 41,405,474 2,716 17,612,466 2016 4,745 71,232,941 2,547 48,819,051 2,198 22,413,890 2015 4,834 51,457,015 2,655 34,769,633 2,179 16,687,382 2014 5,251 125,369,473 2,844 109,829,770 2,407 15,539,703 2013 7,309 67,228,061 3,874 42,049,442 3,435 25,178,619 2012 5,188 31,227,915 2,811 21,729,528 2,377 9,498,387 Includes all permits except for temporary land use and vacant building registrations. Classification is based on zoning type. Source: City of Brooklyn Center. Growth and Development Successful redevelopment continues to be the key to commercial and industrial tax base growth, including: The 80-acre Opportunity Site, which is planned for a mix of commercial and residential redevelopment, along with regional recreational and entertainment amenities. • Since 2008, the EDA has acquired 44 acres of land within the Opportunity Site. This includes the former Brookdale Square shopping center site, former Brookdale Ford dealership property, and former Target store. • In 2016, the City Council approved the creation of a 25 year tax increment redevelopment district and completed the soil corrections and final demolition of the former Brookdale Ford building, floor lifts, and underground LP tank. • The EDA entered into a Preliminary Development Agreement (PDA) with Alatus, LLC, a Minneapolis-based developer, in April 2018 for the southern 35 acres of the Opportunity Site. The PDA identified Alatus as the master developer to plan the site and initiate a Phase I development. • In May 2018, the census tract (27053020200) that the Opportunity Site is located within was designated as an Opportunity Zone. • City EDA renewed its PDA with Alatus in April of 2019, taking the lead on the master planning for the entire 80-acre Opportunity Site in collaboration with Alatus. The timing was structured to allow Alatus to move forward with Phase I in conjunction with the creation of a master plan. • The City engaged a consultant to update the 2006 Opportunity Site Master Plan. A draft of the Master Plan has been completed and a traffic study and stormwater plan are underway. The Master Plan is in final draft form and will be going to the City Council in the summer of 2021 for final adoption. Zoning regulations are currently being drafted for the site. • Alatus is in predevelopment on Phase I of the development, which they intend to move ahead with in 2021. Phase I would include 750 units of multi-family housing with a mix of market-rate and affordable, and 36,000 square feet of additional commercial space, including 20,000 square feet of community driven entrepreneurial market space. Alatus has partnered with Project for Pride in Living on the project. They anticipate bringing the project through entitlements in the fall of 2021. An Environmental Assessment Worksheet is currently underway. - 23 - Additional development activities in 2020 and 2021 include: • On September 24, 2018, Earle Brown Elementary School (1500 59th Avenue North) received approval to construct a new 1,200 square-foot front entry, a 23,551 square-foot second story addition, and select site improvements. Construction began following end of the school year in June 2019 and is still underway. • The City approved plans to construct a new car wash facility within the Shingle Creek Crossing shopping center. The project is currently under construction. • The City approved an application by C Alan Homes to construct 13 triplexes on EDA owned lots along Brooklyn Boulevard. The project consists of a total of 39 three-bedroom units in 13 structures. Construction is underway on the first two buildings, with the rest to follow through the end of 2021. • Real Estate Equities completed 270 new units at 5801 Xerxes Avenue N. The project includes a mix of 143 affordable independent senior units (Sonder Point) and 127 workforce units (Sonder House). The first building opened April 1, 2021 and was fully leased at opening. The second building will officially open in August 2021 and is also fully leased. • Sears has entered into a purchase agreement with Scannell Properties for the 15-acre former Sears site. An environmental assessment and additional due diligence are currently being conducted on the site. It is anticipated that a formal land use application will be submitted in the summer of 2021 for a commercial business center for the site. • Construction is nearing completion on the 30-lot Eastbrook Estates subdivision by Developer Centra Homes on approximately 8 acres of land located west of 252 and south of 69th Avenue North. All 30 lots have been sold and all building permits have been issued. The City recently submitted the final punch list to Centra Homes on the new streets. • The City has entered into a Preliminary Development Agreement with JO Companies for a multi-family apartment on the EDA-owned properties at Brooklyn Boulevard and 61st Avenue North. JO properties has continued its due diligence and is putting together an application for 9% Low Income Housing Tax credits that was submitted to the Minnesota Housing Finance Authority in June 2021. Other Activities in 2020 and 2021 • Brooklyn Boulevard (49th Avenue to Bass Lake Road) was reconstructed and modernized to improve roadway safety, enhance traffic operations, reduce access points and provide improvement bicycle and pedestrian facilities. Federal funding through the Surface Transportation Program has been awarded to the City and Hennepin County for this project. Phase I of the project has been completed. Phase II will focus on Brooklyn Boulevard from Bass lake Road north to 69th Avenue. Construction began in the spring of 2021 and is anticipated to be completed in 2022. • In conjunction with the Brooklyn Boulevard reconstruction, the City is undertaking a land use study along the corridor and the creation of an overlay district with regulatory framework intended to facilitate redevelopment. The study will include the numerous EDA-owned properties along the corridor and identify a plan for their reuse. • The City is in the process of rewriting of its zoning ordinances. This will include the creation of several new mixed-use zoning districts to implement the recent 2040 Comprehensive Plan. The mixed-use zoning districts will introduce higher density housing to currently underdeveloped areas of the City where housing has historically not been allowed, such as the Opportunity Site, along Brooklyn Boulevard, and in other key redevelopment sites in the City. - 24 - Financial Institutions* City residents are served by branch facilities of Wells Fargo Bank, National Association; Bremer Bank, National Association; Bank of America; TCF National Bank, and Old National Bank as well as numerous credit unions. * This does not purport to be a comprehensive list. Source: Federal Deposit Insurance Corporation, https://research.fdic.gov/bankfind/. Health Care Services The following is a summary of inpatient health care facilities located in and around the City: Facility Location No. of Beds Maranatha Care Center City of Brooklyn Center 97 Nursing Home Living Well Lyndale City of Brooklyn Center 8 Supervised Living MTAI Brooklyn Center City of Brooklyn Center 6 Supervised Living North Memorial Medical Center City of Robbinsdale 518 Hospital 42 Infant Bassinets In addition, senior living options including assisted living and memory support are also provided through The Sanctuary at Brooklyn Center. Source: Minnesota Department of Health, http://www.health.state.mn.us/. Education Public Education The following districts serve the residents of the City: 2020/21 School Location Grades Enrollment ISD No. 11 (Anoka-Hennepin) City of Anoka PK-12 37,719 ISD No. 279 (Osseo) City of Osseo PK-12 20,672 ISD No. 281 (Robbinsdale) City of Robbinsdale PK-12 11,692 ISD No. 286 (Brooklyn Center) City of Brooklyn Center PK-12 2,333 Source: Minnesota Department of Education, www.education.state.mn.us. The City’s taxable net tax capacity is attributable to each of the four school districts as follows: Portion of 2020/21 Taxable Net Tax Capacity Located in the City % of Total ISD No. 279 (Osseo) $ 10,048,437 32.7% ISD No. 286 (Brooklyn Center)* 9,660,809 31.4 ISD No. 281 (Robbinsdale) 6,887,856 22.4 ISD No. 11 (Anoka-Hennepin) 4,141,851 13.5 Total $30,738,953 100.0% * Located entirely within the City. -25 - Non-Public Education City residents are also served by the following private schools: 2020/21 School Location Grades Enrollment King of Grace Lutheran School City of Golden Valley K-8 170 Sacred Heart Catholic School City of Robbinsdale K-8 161 St. Alphonsus City of Brooklyn Center K-8 139 RiverTree School City of Crystal K-12 127 St. Raphael Catholic School City of Crystal K-8 115 Holy Trinity Lutheran School City of New Hope K-8 72 Source: Minnesota Department of Education, www.education.state.mn.us. Post-Secondary Education City residents have access to various colleges and universities located throughout the Minneapolis/St. Paul metropolitan area. GOVERNMENTAL ORGANIZATION AND SERVICES Organization The City has been a municipal corporation since 1911 and is governed under a Home Rule Charter adopted in 1966 and subsequently amended. The City has a Council-Manager form of government and the Mayor and four Council Members are elected to serve overlapping four-year terms. The following individuals comprise the current City Council: Expiration of Term Mike Elliott Mayor December 31, 2022 Marquita Butler Council Member/Mayor Pro Tem December 31, 2024 April Graves Council Member December 31, 2022 Kris Lawrence-Anderson Council Member December 31, 2024 Dan Ryan Council Member/Acting Mayor Pro Tem December 31, 2022 The City Manager, Dr. Reggie Edwards, is responsible for the administration of Council policy and the daily management of the City. The Manager is appointed by the Council and serves at its discretion. Dr. Edwards has served the City in this position since April 2021. Prior to that, Dr. Edwards served as the City's Assistant Manager. The Interim Director of Fiscal and Support Services, Mr. Andrew Splinter, is responsible for directing the City’s financial operations, including preparation of the comprehensive annual financial report and interim reports, and the investment of City funds. Mr. Splinter has served as the City’s Interim Director of Fiscal and Support Services since June 28, 2021. Previously, Mr. Splinter served as Assistant Director of Fiscal & Support Services. The City has 176 regular full-time and 200 seasonal full- and part-time employees. - 26 - Services 49 full-time sworn police officers and a support staff of 13 provide protective services in the City. Fire protection is provided by one full-time Chief, one full-time Deputy Chief, one full-time fire inspector/educator, and a 27-member volunteer force. The City has two fire stations and a class 4 insurance rating. All areas of the City are serviced by municipal water and sewer systems, with exception to one property located at 5306 Perry Avenue North. Water is supplied by nine wells and storage is provided by three elevated tanks with a combined total capacity of 3.0 million gallons. The municipal water system has a pumping capacity of 16.4 million gallons per day (mgd). In 2016, the City brought a new water treatment plant online, capable of filtering 10 mgd. When combined with the capacity of 1.7 mdg from Well #2, the City now has a total finished water capacity of 11.7 mgd. The average daily water demand is estimated to be 2.9 mgd and peak demand is estimated to be 9.7 mgd. Water connections totaled 9,000 as of May 31, 2021. Although the City owns and maintains its own sanitary and storm sewer collection systems, wastewater treatment facilities are owned and operated by the Metropolitan Council Environmental Services (MCES). The City is billed an annual service charge by MCES, which is adjusted each year based on the prior years’ actual usage. The City had 8,852 sewer connections as of May 31, 2021. Labor Contracts The status of labor contracts in the City are as follows: Expiration Date Bargaining Unit No. of Employees of Current Contract IUOE Local 49 26 December 31, 2021 LELS Local 82 38 December 31, 2021 LELS Local 86 10 December 31, 2021 Subtotal 74 Non-unionized employees 102 Total employees 176 Employee Pensions All full-time employees and certain part-time employees of the City are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF), which are cost-sharing multiple-employer retirement plans. GERF members belong to the Coordinated Plan and are covered by Social Security. All police officers, fire fighters and peace officers who qualify for membership by statute are covered by PEPFF. The City’s contributions to GERF and PEPFF are equal to the contractually required contributions for each year as set by State Statute, and are as follows for the past five years: GERF PEPFF 2020 $649,561 $887,315 2019 651,633 818,676 2018 612,983 761,952 2017 572,442 720,865 2016 550,846 689,601 - 27 - For more information regarding the liability of the City with respect to its employees, please reference “Note 4. Defined Benefit Pension Plan – City Employees” of the City’s Comprehensive Annual Financial Report for fiscal year ended December 31, 2020, an excerpt of which is included as Appendix IV of this Official Statement. Multiple-Employer Defined Benefit Pension City employees belonging to the International Union of Operating Engineers (IUOE) are participants in a multiple-employer defined benefit pension plan, the Central Pension Fund of the International Union of Operating Engineers and Participating Employers (CPF), administered by the Board of Trustees of the Central Pension Fund. The plan is a cost-sharing pension plan that is not a state or local governmental pension plan, is used to provide defined benefit pensions to employers that are not state or local governmental employers, and has no predominate state or local government employer. The plan issues a publicly available financial report located on their website at www.cpfiuoe.org. The City has 26 employees who are covered by this pension plan. The plan provides benefits such as monthly retirement income, special and early retirement benefits, post-retirement surviving spouse benefits, pre-retirement surviving spouse benefits, and disability benefits. The City’s contributions to the plan are pursuant to a collective bargaining agreement with the IUOE which expires December 31, 2021. The required contribution rate is $0.96 per hour, which is applied to all compensated hours, and capped at $5,000 per year. With regards to withdrawal from the pension plan, the parties agree that the amount that would otherwise be paid in salary or wages will be contributed instead to the CPF as pre-tax employer contributions. The City’s contributions to IOUE for the past five years are as follows: IUOE 2020 $48,624 2019 53,912 2018 51,152 2017 50,782 2016 51,410 For more information regarding the liability of the City with respect to its employees, please reference “Note 6. Multiple-Employer Defined Benefit Pension Plan” of the City’s Comprehensive Annual Financial Report for fiscal year ended December 31, 2020, an excerpt of which is included as Appendix IV of this Official Statement. PEDCP Five Council members of the City are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax- qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until the time of withdrawal. Plan benefits depend solely on the amounts contributed to the plan plus investment earnings less administrative expenses. An eligible elected official who chooses to participate in the plan contributes 5% of their salary, which is matched by the elected official’s employer. PERA receives 2% of employer contributions and 0.025% of the assets in each member’s account annually for administering the plan. The City’s contributions to PEDCP for the past five years are as follows: PEDCP 2020 $1,623 2019 1,591 2018 944 2017 925 2016 907 - 28 - For more information regarding the liability of the City with respect to its employees, please reference “Note 7. Defined Contribution Plan” of the City’s Comprehensive Annual Financial Report for fiscal year ended December 31, 2020 an excerpt of which is included as Appendix IV of this Official Statement. City Firefighter’s Association The City contributes to the Brooklyn Center Fire Department Relief Association (the “Association”), which is the administrator of a single employer, public employee defined benefit retirement system to provide a retirement plan (the “Plan”) to volunteer firefighters of the City who are members of the Association. The Association is organized and operates under the provisions of the Minnesota State Statutes 424A, and provides benefits in accordance with those statutes. The Association provides retirement benefits to members and survivors upon death of eligible members. Benefits are established by the Association and approved by the City Council under the applicable statutes. The defined retirement benefits are based on a member’s years of service. Vesting begins after the tenth year of service with a 60% benefit increasing to 100% after the 20th year of service. Full benefits are available to members after 20 years of service and having attained the age of 50. The current benefit available is a lump sum distribution of $8,500 per year of service. Vested, terminated members who are entitled to benefits but are not yet receiving them are bound by the provisions in effect at the time of termination of membership. The City levies property taxes at the direction of and for the benefit of this plan and passes through state aids allocated to the plan, all in accordance with State statutes. The minimum tax levy obligation is the financial contribution requirement for the year less anticipated state aids. The City’s contributions to the Firefighter’s Association for the past five years are as follows: Annual Percentage Net Year Pension of APC Pension Ending Cost (APC) Contributed Obligation December 31, 2020 $ 67,773 252% -0- December 31, 2019 85,089 187 -0- December 31, 2018 85,089 181 -0- December 31, 2017 71,203 206 -0- December 31, 2016 101,453 141 -0- Funded status of the Association as reported to-date: Assets in Actuarial Excess of Actuarial Actuarial Value Accrued Unfunded Accrued Funded Valuation Date of Assets Liability Liability Ratio January 1, 2019 $4,238,325 $3,239,606 $998,719 130.8% January 1, 2017 3,673,474 3,036,210 637,264 121.0 January 1, 2015 3,508,210 3,084,717 423,493 113.7 January 1, 2013 3,282,317 3,279,231 3,086 100.1 For more information regarding the liability of the City with respect to its employees, please reference “Note 5. Defined Benefit Pension Plan – Single Employer – Fire Relief Association” of the City’s Comprehensive Annual Financial Report for fiscal year ended December 31, 2020, an excerpt of which is included as Appendix IV of this Official Statement. Sources: City’s Comprehensive Annual Financial Reports. - 29 - GASB 68 The Government Accounting Standards Board (GASB) has issued Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68) and related GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date-an amendment to GASB 68, which revised existing standards for measuring and reporting pension liabilities for pension plans provided to City employees and require recognition of a liability equal to the City’s proportionate share of net pension liability, which is measured as the total pension liability less the amount of the pension plan's fiduciary net position. The City’s proportionate shares of the pension costs and the City’s net pension liability for GERF and PEPFF for the past five years are as follows: GERF PEPFF Proportionate Net Proportionate Net Share of Pension Share of Pension Pension Costs Liability Pension Costs Liability 2020 0.1240% $7,434,368 0.4405% $ 5,806,261 2019 0.1189 6,573,715 0.4483 4,772,607 2018 0.1194 6,623,822 0.4330 4,615,334 2017 0.1201 7,667,105 0.4410 5,954,026 2016 0.1172 9,516,059 0.4290 17,216,516 For more information regarding GASB 68 with respect to the City, please reference “Note 4. Defined Benefit Pension Plan – City Employees” of the City’s Comprehensive Annual Financial Report for fiscal year ended December 31, 2020, an excerpt of which is included as Appendix IV of this Official Statement. Additional and detailed information about GERF’s net position is available in a separately-issued PERA financial report, which may be obtained at www.mnpera.org; by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088; or by calling 1-800-652-9026. Sources: City’s Comprehensive Annual Financial Reports. Other Postemployment Benefits The Government Accounting Standards Board (GASB) issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (GASB 75), establishing new accounting and financial reporting requirements related to post-employment healthcare and other non-pension benefits (referred to as Other Postemployment Benefits or “OPEB”). The City provides post-employment insurance benefits to certain eligible employees through its OPEB Plan, a single-employer defined benefit plan administered by the City. All post-employment benefits are based on contractual agreements with employee groups, and eligibility for these benefits is based on years of service and/or minimum age requirements. The City is required by State statute to allow retirees to continue participation in the City’s group health insurance plan in the individual terminates service with the city through service or disability retirement. Former employees who are receiving, or who have met age and service requirements to receive, an annuity from a Minnesota public pension plan and those receiving a disability benefit from such a plan are immediately eligible to participate in this plan. Retirees may obtain dependent coverage if the employee received dependent coverage immediately before leaving employment. Covered spouses may continue coverage after the death of a retiree. In addition, the surviving spouse of an active employee may continue coverage in the group health insurance plan after the employee’s death. All health care coverage is provided through the City’s group health insurance plans. - 30 - The City currently finances the plan on a pay-as-you-go basis. During 2020, the City expended $131,937 for these benefits. The following employees were covered by the benefit terms as of the latest actuarial valuation: Retirees and beneficiaries receiving benefits 14 Active plan members 163 Total 177 The City’s net OPEB liability was measured as of December 31, 2019, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of January 1, 2020. The discount rate used was 4.09%. Components of the City’s OPEB liability and related ratios for the fiscal year ended December 31, 2020 are as follows: Service cost $ 114,736 Interest 85,818 Differences between expected and actual experience 45,132 Changes of assumptions 277,698 Benefit payments (110,790) Net change in total OPEB liability $ 412,594 Total OPEB liability – beginning of year 2,038,900 Total OPEB liability – end of year $ 2,451,494 Covered payroll $12,599,989 Total OPEB liability as a percentage of covered payroll 19.46% For more information regarding GASB 75 with respect to the City, please reference “Note 8. Other Post-Employment Benefits (OPEB) Plan” of the City’s Comprehensive Annual Financial Report for fiscal year ended December 31, 2020, an excerpt of which is included as Appendix IV of this Official Statement. Sources: City’s Comprehensive Annual Financial Reports. - 31 - General Fund Budget Summary 2020 Budget 2020 Actual 2021 Budget January 1 Fund Balance $12,524,212 $12,524,217 $14,205,568 Revenues: Taxes $19,547,857 $18,800,513 $19,048,357 Licenses and Permits 1,075,001 991,972 1,016,093 Intergovernmental 1,813,781 3,371,120 1,854,590 Charges for Services 790,150 293,498 825,750 Fines & Forfeits 246,500 155,462 216,000 Special Assessments 50,000 63,154 100,000 Investment Earnings 125,000 266,188 79,900 Transfers In 1,148,154 1,201,027 1,573,097 Miscellaneous 145,700 156,714 559,837 Total Revenues $24,942,143 $25,299,648 $25,273,624 Expenditures: General Government $ 4,697,820 $ 4,630,012 $ 4,761,238 Public Safety 12,548,980 12,267,694 11,459,459 Public Works 2,830,295 2,577,035 4,217,639 CARS 3,243,299 2,381,699 1,831,698 Economic Development 1,013,021 804,083 1,751,300 Non-Departmental 398,728 547,400 1,032,290 Transfers Out 210,000 410,374 220,000 Total Expenditures $24,942,143 $23,618,297 $25,273,624 December 31 Fund Balance $12,524,212 $14,205,568 $14,205,568 Sources: The City. Major General Fund Revenue Sources Revenue 2016 2017 2018 2019 2020 Taxes $16,128,373 $16,766,847 $17,361,854 $18,357,019 $18,800,513 Intergovernmental 1,466,341 1,496,165 1,658,391 1,692,425 3,371,120 Licenses and Permits 932,051 904,785 1,209,029 1,172,439 991,972 Charges for Services 765,831 809,031 861,965 792,319 293,498 Fines & Forfeits 211,712 243,915 273,507 239,893 155,462 Sources: City’s Comprehensive Annual Financial Reports. APPENDIX I ____________________________ * Preliminary; subject to change. I-1 PROPOSED FORM OF LEGAL OPINION City of Brooklyn Center, Minnesota $8,950,000 General Obligation Improvement and Utility Revenue Bonds, Series 2021A We have acted as bond counsel to the City of Brooklyn Center, Minnesota (the “Issuer”) in connection with the issuance by the Issuer of its General Obligation Improvement and Utility Revenue Bonds, Series 2021A (the “Bonds”), originally dated the date hereof, and issued in the original aggregate principal amount of $8,950,000. In such capacity and for the purpose of rendering this opinion we have examined such certified copies of certain proceedings, certifications and other documents, and applicable laws as we have deemed necessary. Regarding questions of fact material to this opinion, we have relied on certified proceedings and other certifications of public officials and other documents furnished to us without undertaking to verify the same by independent investigation. Under existing laws, regulations, rulings and decisions in effect on the date hereof, and based on the foregoing we are of the opinion that: 1. The Bonds have been duly authorized and executed, and are valid and binding general obligations of the Issuer, enforceable against the Issuer in accordance with their terms. 2. The principal of and interest on the Bonds are payable primarily from special assessments levied or to be levied on property specially benefited by local improvements, ad valorem taxes for the Issuer’s share of the cost of the improvements and revenues of the water, sanitary sewer and storm drainage systems of the Issuer, but if necessary for the payment thereof additional ad valorem taxes are required by law to be levied on all taxable property of the Issuer, which taxes are not subject to any limitation as to rate or amount. 3. Interest on the Bonds is excludable from gross income of the recipient for federal income tax purposes and, to the same extent, is excludable from taxable net income of individuals, trusts, and estates for Minnesota income tax purposes, and is not a preference item for purposes of the computation of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax imposed on individuals, trusts and estates. However, such interest is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income. The opinion set forth in this paragraph is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes and from taxable net income for Minnesota income tax purposes. The Issuer has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause interest on the Bonds to be included in gross income for federal income tax purposes and taxable net income for Minnesota income tax purposes retroactively to the date of issuance of the Bonds. We express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly set forth herein. 4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors’ rights generally and by equitable principles, whether considered at law or in equity. We have not been asked and have not undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we express no opinion with respect thereto. This opinion is given as of the date hereof and we assume no obligation to update, revise, or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur. Dated September __, 2021 at Minneapolis, Minnesota. APPENDIX II ____________________________ * Preliminary; subject to change. II-1 CONTINUING DISCLOSURE CERTIFICATE $8,950,000 City of Brooklyn Center, Minnesota General Obligation Improvement and Utility Revenue Bonds Series 2021A September __, 2021 This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the City of Brooklyn Center, Minnesota (the “Issuer”) in connection with the issuance of its General Obligation Improvement and Utility Revenue Bonds, Series 2021A (the “Bonds”) in the original aggregate principal amount of $8,950,000. The Bonds are being issued pursuant to resolutions adopted by the City Council of the Issuer (the “Resolutions”). The Bonds are being delivered to ______________, _________, ___________ (the “Purchaser”) on the date hereof. Pursuant to the Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events. The Issuer hereby covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders (as defined herein) of the Bonds in order to provide for the public availability of such information and assist the Participating Underwriter(s) (as defined herein) in complying with the Rule (as defined herein). This Disclosure Certificate, together with the Resolutions, constitutes the written agreement or contract for the benefit of the Holders of the Bonds that is required by the Rule. Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: “Annual Report” means any annual report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Audited Financial Statements” means annual financial statements of the Issuer, prepared in accordance with GAAP as prescribed by GASB. “Bonds” means the General Obligation Improvement and Utility Revenue Bonds, Series 2021A, issued by the Issuer in the original aggregate principal amount of $8,950,000. “Disclosure Certificate” means this Continuing Disclosure Certificate. “EMMA” means the Electronic Municipal Market Access system operated by the MSRB and designated as a nationally recognized municipal securities information repository and the exclusive portal for complying with the continuing disclosure requirements of the Rule. “Final Official Statement” means the deemed final Official Statement, dated ________________, 2021, which constitutes the final official statement delivered in connection with the Bonds, which is available from the MSRB. II-2 “Financial Obligation” means a (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of a Financial Obligation as described in clause (a) or (b). The term “Financial Obligation” shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. “Fiscal Year” means the fiscal year of the Issuer. “GAAP” means generally accepted accounting principles for governmental units as prescribed by GASB. “GASB” means the Governmental Accounting Standards Board. “Holder” means the person in whose name a Bond is registered or a beneficial owner of such a Bond. “Issuer” means the City of Brooklyn Center, Minnesota, which is the obligated person with respect to the Bonds. “Material Event” means any of the events listed in Section 5(a) of this Disclosure Certificate. “MSRB” means the Municipal Securities Rulemaking Board located at 1300 I Street NW, Suite 1000, Washington, DC 20005. “Participating Underwriter” means any of the original underwriter(s) of the Bonds (including the Purchaser) required to comply with the Rule in connection with the offering of the Bonds. “Purchaser” means ______________, _________, ___________. “Repository” means EMMA, or any successor thereto designated by the SEC. “Rule” means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time, and including written interpretations thereof by the SEC. “SEC” means Securities and Exchange Commission, and any successor thereto. Section 3. Provision of Annual Financial Information and Audited Financial Statements. (a) The Issuer shall provide to the Repository not later than 12 months after the end of the Fiscal Year commencing with the year that ends December 31, 2021, an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual Report. (b) If the Issuer is unable or fails to provide to the Repository an Annual Report by the date required in subsection (a), the Issuer shall send a notice of that fact to the Repository and the MSRB. (c) The Issuer shall determine each year prior to the date for providing the Annual Report the name and address of each Repository. II-3 Section 4. Content of Annual Reports. The Issuer’s Annual Report shall contain or incorporate by reference the following sections of the Final Official Statement: 1. City Property Values 2. City Indebtedness 3. City Tax Rates, Levies and Collections In addition to the items listed above, the Annual Report shall include Audited Financial Statements submitted in accordance with Section 3 of this Disclosure Certificate. Any or all of the items listed above may be incorporated by reference from other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to the Repository or the SEC. If the document incorporated by reference is a final official statement, it must also be available from the MSRB. The Issuer shall clearly identify each such other document so incorporated by reference. Section 5. Reporting of Material Events. (a) This Section 5 shall govern the giving of notice of the occurrence of any of the following events (“Material Events”) with respect to the Bonds: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults, if material; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701–TEB), or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security; 7. Modifications to rights of security holders, if material; 8. Bond calls, if material, and tender offers; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the securities, if material; 11. Rating changes; 12. Bankruptcy, insolvency, receivership or similar event of the obligated person; II-4 13. The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material; 15. Incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and 16. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties. (b) The Issuer shall file a notice of such occurrence with the Repository or with the MSRB within 10 business days of the occurrence of the Material Event. (c) Unless otherwise required by law and subject to technical and economic feasibility, the Issuer shall employ such methods of information transmission as shall be requested or recommended by the designated recipients of the Issuer’s information. Section 6. EMMA. The SEC has designated EMMA as a nationally recognized municipal securities information repository and the exclusive portal for complying with the continuing disclosure requirements of the Rule. Until the EMMA system is amended or altered by the MSRB and the SEC, the Issuer shall make all filings required under this Disclosure Certificate solely with EMMA. Section 7. Termination of Reporting Obligation. The Issuer’s obligations under the Resolutions and this Disclosure Certificate shall terminate upon the redemption in full of all Bonds or payment in full of all Bonds. Section 8. Agent. The Issuer may, from time to time, appoint or engage a dissemination agent to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate, and may discharge any such agent, with or without appointing a successor dissemination agent. Section 9. Amendment; Waiver. Notwithstanding any other provision of the Resolutions or this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally recognized bond counsel to the effect that such amendment or waiver would not, in and of itself, cause a violation of the Rule. The provisions of the Resolutions requiring continuing disclosure pursuant to the Rule and this Disclosure Certificate, or any provision hereof, shall be null and void in the event that the Issuer delivers to the Repository an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which impose the continuing disclosure requirements of the Resolutions and the execution and delivery of this Disclosure Certificate are invalid, have been repealed retroactively or otherwise do not apply to the Bonds. The provisions of the Resolutions requiring continuing disclosure pursuant to the Rule and this Disclosure Certificate may be amended without the consent of the Holders of the Bonds, but only upon the delivery by the Issuer to the Repository of the proposed amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the compliance with the Rule. II-5 Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 11. Default. In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate any Holder of the Bonds may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under the Resolutions and this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default with respect to the Bonds and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel performance. Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Participating Underwriters, and the Holders from time to time of the Bonds, and shall create no rights in any other person or entity. IN WITNESS WHEREOF, we have executed this Disclosure Certificate in our official capacities effective as of the date and year first written above. CITY OF BROOKLYN CENTER, MINNESOTA Its Mayor Its City Manager APPENDIX III III-1 SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND MINNESOTA REAL PROPERTY VALUATION Following is a summary of certain statutory provisions relative to tax levy procedures, tax payment and credit procedures, and the mechanics of real property valuation. The summary does not purport to be inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the complete text of applicable statutes, rules and regulations of the State of Minnesota. Property Valuations (Chapter 273, Minnesota Statutes) Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by statute, be appraised at least once every five years as of January 2 of the year of appraisal. With certain exceptions, all property is valued at its market value, which is the value the assessor determines to be the price the property to be fairly worth, and which is referred to as the “Estimated Market Value.” The 2013 Minnesota Legislature established the Estimated Market Value as the value used to calculate a municipality’s legal debt limit. Economic Market Value. The Economic Market Value is the value of locally assessed real property (Assessor’s Estimated Market Value) divided by the sales ratio as provided by the State of Minnesota Department of Revenue plus the estimated market value of personal property, utilities, railroad, and minerals. Taxable Market Value. The Taxable Market Value is the value that Net Tax Capacity is based on, after all reductions, limitations, exemptions and deferrals. Net Tax Capacity. The Net Tax Capacity is the value upon which net taxes are levied, extended and collected. The Net Tax Capacity is computed by applying the class rate percentages specific to each type of property classification against the Taxable Market Value. Class rate percentages vary depending on the type of property as shown on the last page of this Appendix. The formulas and class rates for converting Taxable Market Value to Net Tax Capacity represent a basic element of the State's property tax relief system and are subject to annual revisions by the State Legislature. Property taxes are the sum of the amounts determined by (i) multiplying the Net Tax Capacity by the tax capacity rate, and (ii) multiplying the referendum market value by the market value rate. Market Value Homestead Exclusion. In 2011, the Market Value Homestead Exclusion Program (MVHE) was implemented to offset the elimination of the Market Value Homestead Credit Program that provided relief to certain homesteads. The MVHE reduces the taxable market value of a homestead with an Assessor’s Estimated Market Value up to $413,800 in an attempt to result in a property tax similar to the effective property tax prior to the elimination of the homestead credit. The MVHE applies to property classified as Class 1a or 1b and Class 2a, and causes a decrease in the City’s aggregate Taxable Market Value, even if the Assessor’s Estimated Market Value on the same properties did not decline. Property Tax Payments and Delinquencies (Chapters 275, 276, 277, 279-282 and 549, Minnesota Statutes) Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the various counties within the State. Each taxing jurisdiction is required to certify the annual tax levy to the county auditor within five (5) working days after December 20 of the year preceding the collection year. A listing of property taxes due is prepared by the county auditor and turned over to the county treasurer on or before the first business day in March. III-2 The county treasurer is responsible for collecting all property taxes within the county. Real estate and personal property tax statements are mailed out by March 31. One-half (1/2) of the taxes on real property is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid by their due date are assessed a penalty on homestead property of 2% until May 31 and increased to 4% on June 1. The penalty on nonhomestead property is assessed at a rate of 4% until May 31 and increased to 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through October 1 of the collection year for unpaid real property taxes. In the case of the second installment of real property taxes due October 15, a penalty of 2% on homestead property and 4% on nonhomestead property is assessed. The penalty for homestead property increases to 6% on November 1 and again to 8% on December 1. The penalty for nonhomestead property increases to 8% on November 1 and again to 12% on December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the unpaid tax. However, personal property that is owned by a tax-exempt entity, but is treated as taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties as real property. On the first business day of January of the year following collection all delinquencies are subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for a tax lien judgment with the district court. By March 20 the county auditor files a publication of legal action and a mailing of notice of action to delinquent parties. Those property interests not responding to this notice have judgment entered for the amount of the delinquency and associated penalties. The amount of the judgment is subject to a variable interest determined annually by the Department of Revenue, and equal to the adjusted prime rate charged by banks but in no event is the rate less than 10% or more than 14%. Property owners subject to a tax lien judgment generally have three years (3) to redeem the property. After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof, then sells those properties not claimed for a public purpose at auction. The net proceeds of the sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any remaining balance in most cases being divided on the following basis: county - 40%; town or city - 20%; and school district - 40%. Property Tax Credits (Chapter 273, Minnesota Statutes) In addition to adjusting the taxable value for various property types, primary elements of Minnesota's property tax relief system are: property tax levy reduction aids; the homestead credit refund and the renter’s property tax refund, which relate property taxes to income and provide relief on a sliding income scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The homestead credit refund, the renter’s property tax refund, and targeted credits are reimbursed to the taxpayer upon application by the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid, equalization aid, county program aid and disparity reduction aid. Debt Limitations All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory “net debt” limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the amount remaining after deducting from gross debt the amount of current revenues that are applicable within the current fiscal year to the payment of any debt and the aggregate of the principal of the following: 1. Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. III-3 2. Warrants or orders having no definite or fixed maturity. 3. Obligations payable wholly from the income from revenue producing conveniences. 4. Obligations issued to create or maintain a permanent improvement revolving fund. 5. Obligations issued for the acquisition, and betterment of public waterworks systems, and public lighting, heating or power systems, and of any combination thereof or for any other public convenience from which a revenue is or may be derived. 6. Debt service loans and capital loans made to a school district under the provisions of Minnesota Statutes, Sections 126C.68 and 126C.69. 7. Amount of all money and the face value of all securities held as a debt service fund for the extinguishment of obligations other than those deductible under this subdivision. 8. Obligations to repay loans made under Minnesota Statutes, Section 216C.37. 9. Obligations to repay loans made from money received from litigation or settlement of alleged violations of federal petroleum pricing regulations. 10. Obligations issued to pay pension fund or other postemployment benefit liabilities under Minnesota Statutes, Section 475.52, subdivision 6, or any charter authority. 11. Obligations issued to pay judgments against the municipality under Minnesota Statutes, Section 475.52, subdivision 6, or any charter authority. 12. All other obligations which under the provisions of law authorizing their issuance are not to be included in computing the net debt of the municipality. Levies for General Obligation Debt (Sections 475.61 and 475.74, Minnesota Statutes) Any municipality that issues general obligation debt must, at the time of issuance, certify levies to the county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an amount that if collected in full will, together with estimates of other revenues pledged for payment of the obligations, produce at least five percent in excess of the amount needed to pay principal and interest when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is without limitation as to rate or amount. Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) “Fiscal Disparities Law” The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as “Fiscal Disparities,” was first implemented for taxes payable in 1975. Forty percent of the increase in commercial- industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis/Saint Paul seven-county metropolitan area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and Washington Counties) is contributed to an area-wide tax base. A distribution index, based on the factors of population and real property market value per capita, is employed in determining what proportion of the net tax capacity value in the area-wide tax base shall be distributed back to each assessment district. III-4 STATUTORY FORMULAE: CONVERSION OF TAXABLE MARKET VALUE (TMV) TO NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS Local Tax Payable Property Type 2017-2021 Residential Homestead (1a) Up to $500,000 1.00% Over $500,000 1.25% Residential Non-homestead Single Unit (4bb) Up to $500,000 1.00% Over $500,000 1.25% 2-3 unit and undeveloped land (4b1) 1.25% Market Rate Apartments Regular (4a) 1.25% Low-Income (4d) Up to $150,000(c) 0.75% Over $150,000(c) 0.25% Commercial/Industrial/Public Utility (3a) Up to $150,000 1.50%(a) Over $150,000 2.00%(a) Electric Generation Machinery 2.00% Commercial Seasonal Residential Homestead Resorts (1c) Up to $600,000 0.50% $600,000 - $2,300,000 1.00% Over $2,300,000 1.25%(a) Seasonal Resorts (4c) Up to $500,000 1.00%(a) Over $500,000 1.25%(a) Non-Commercial (4c12) Up to $500,000 1.00%(a)(b) Over $500,000 1.25%(a)(b) Disabled Homestead (1b) Up to $50,000 0.45% Agricultural Land & Buildings Homestead (2a) Up to $500,000 1.00% Over $500,000 1.25% Remainder of Farm Up to $1,880,000(d) 0.50%(b) Over $1,880,000(d) 1.00%(b) Non-homestead (2b) 1.00%(b) (a) State tax is applicable to these classifications. (b) Exempt from referendum market value based taxes. (c) Legislative increases, payable 2019. Historical valuations are: Payable 2018 - $121,000; Payable 2017 - $115,000; Payable 2016 - $106,000; and Payable 2015 - $100,000. (d) Legislative increases, payable 2019. Historical valuations are: Payable 2018 - $1,940,000; Payable 2017 - $2,050,000; Payable 2016 - $2,140,000; and Payable 2015 - $1,900,000. NOTE: For purposes of the State general property tax only, the net tax capacity of non-commercial class 4c(1) seasonal residential recreational property has the following class rate structure: First $76,000 – 0.40%; $76,000 to $500,000 – 1.00%; and over $500,000 – 1.25%. In addition to the State tax base exemptions referenced by property classification, airport property exempt from city and school district property taxes under M.S. 473.625 is exempt from the State general property tax (MSP International Airport and Holman Field in Saint Paul are exempt under this provision). APPENDIX IV IV-1 EXCERPT OF 2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT Data on the following pages was extracted from the City’s Comprehensive Annual Financial Report for fiscal year ended December 31, 2020. The reader should be aware that the complete financial statements may contain additional information which may interpret, explain or modify the data presented here. The City’s comprehensive annual financial reports for the years ending 1966 through 2019 were awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. The City has submitted its Comprehensive Annual Financial Report for the 2020 fiscal year to GFOA. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such Comprehensive Annual Financial Report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. INDEPENDENT AUDITOR'S REPORT To the City CoW1cil and Management City of Brooklyn Center, Minnesota REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Brooklyn Center, Minnesota (the City) as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of :financial statements that are free from material misstatement, whether due to fraud or error. AUDITOR'S RESP0NSIBil,l1Y Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the :financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. OPINIONS In our opinion, the financial statements referred to on the previous page present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2020, and the respective changes in financial position and, where applicable, cash flows thereof, and the budgetary comparison for the General Fund and budgeted major special revenue funds for the year then ended, in accordance with accounting principles generally accepted in the United States of America. OTHER MA TIERS Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the required supplementary information (RSI), as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual fund statements and schedules, and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not required parts of the basic financial statements. The combining and individual fund statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. OTHER REPORTING REQUIRED BY GoVEBNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated May 24, 2021 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over :financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. 111~, 1'1~r1 K-w.J<, ~.t. .. , ... <A.-. ~ ~-./>.A. Minneapolis, Minnesota May24,2021 IV-2 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 As management of the City of Brooklyn Center (the City), we offer readers of the City's Annual Comprehensive Financial Report (ACFR), this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2020. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 1-7 of this ACFR. Financial Highlights The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $160,550,829 (net position). Of this amount, $23,819,445 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors. The City's total net position increased by $7,638,123 (5.0%) from the previous year, The increase can be primarily attributed to a significant amount of tax increment revenues and utility revenues being used for debt service and capital outlay. As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $57,135,658, which is an increase of$2,823,146 (5.20%) from the previous year. Of the total fund balance, $12,136,345 (21.24%) is unassigned, which is free from any internal or external constraints of its use. The General fund has a fund balance of$14,205,568 at the close of the current fiscal year. During 2020, the fund balance increased $1,681,351 (13.42%) from the previous year. The unassigned fund balance at year end is $12,352,562, which represents 52.00% of the following year's budget. The remaining portion of the fund balance is nonspendable or assigned. The City's total outstanding bonded debt decreased by $1,742,000 during the current fiscal year, from $63,113,445 to $61,371,445. The City retired $6,527,000 in principal in 2020, and issued $4,785,000 in new debt for infrastructure projects that included the Grandview North Area Infrastructure Improvement Project and rehabilitation of Water Tower # I. Overview of the Financial Statements The discussion and analysis are intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements include three components: I) government-wide financial statements, 2) fund financial statements, and 3) notes to the fmancial statements. This ACFR also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements: The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents infonnation showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include: general government. public safety, public works, community services, parks & l"CCreation, economic development, and interest on long-tenn debt. The business-type activities of the City include: municipal liquor, Earle Brown Heritage Center, water utility, sanitary sewer utility, storm drainage utility, street light utility, and the recycling utility. The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate Housing and Redevelopment Authority and Economic Development Authority, for which the City is financially accountable. Although legally separate, these component units, function for-all practical purposes as a department of the City, and therefore have been included as an integral part of the primary government. The government-wide financial statements can be found on pages 29 through 31 of this ACFR. Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like state and local governments, uses fund accounting to eosure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar infonnation presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term fmancial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 22 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the following: General, Tax Increment District No. 3, Debt Service, Capital Improvements, Municipal State Aid for Construction, Special Assessment Construction, and Street Reconstruction Funds which are considered to be major funds. Data from the other 15 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements or schedules, elsewhere in this ACFR. The City adopts an annual appropriated budget for nearly all funds presented in this ACFR. A budgetary comparison statement has been provided in the basic fmancial statements for the General fund and the Tax Increment District No. 3 fund. The budgetary comparison statemeots for any nonmajor funds are provided elsewhere in this ACFR. The basic governmental fund fmancial statements can be found on pages 32 through 40 of this ACFR. IV-3 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 Proprietary Funds: Proprietary funds provide similar information to the government-wide financial statements, but in more detail. The City maintsins two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses entetprise funds to account for its: municipal liquor, Earle Brown Heritage Center, water utility, sanitary sewer utility, storm drainage utility, street light utility, and recycling utility. All of the City's enferprise funds are considered to be major funds, and separate information is provided for each of them in the basic financial statements. Internal service funds are an accounting device to accumulate and allocate costs internally antong the City's various functions. The City uses internal service funds to account for its: central garage, employee retirement benefits, pension -coordinated, pension - police and fire, and compensated absences accumulations. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual dsta for the internal service funds is provided in the form of combining statements elsewhere in this ACFR. Because all of these services predominately benefit governmental rather than business-type functions, they have been included as governmental activities in the government-wide financial statements. The basic proprietary fund financial statements can be found on pages 42 through 47 of this ACFR. Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the dsta provided in the government-wide and fund financial statements. The notes to the financial ststements can be found on pages 49 through 90 of this ACFR. Other Information: In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information, for other post-employment benefits (OPEB) and defined benefit pension plans. The schedule of changes in the City's total OPEB liability and related ratios, City contributions, City's and nnn-employer prnportionate share of net pension liability, and schedule of changes in Net Pensinn Asset can be found on pages 91 through IOI of this ACFR. The combining and budgetary comparison statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary informatinn. Combining and budgetary comparisnn statements can be found on pages 103 through 161 of this ACFR. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $160,550,829 at the close of the most recent fiscal year. The largest portion of the City's net position ($98,257,502 or 61.20%) reflects its investment in capital assets, wbich includes: land infrastructure, buildings, and machinery & equipment, less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidste these liabilities. CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 CITY OF BROOKLYN CENTER -SUMMARY OF NET POSITION Governmental Activities Business-Type Activities 2020 2019 2020 2019 2020 Current and other assets $ 77,873,628 $ 78,587,258 $ 18,326,844 $ 25,042,033 $ %,200,472 Capital assets 72,579,894 68,784,513 81,248,474 76,186,001 153,828,368 Total assets 150,453,522 147,371,771 99,575,318 101,228,034 250,028,840 Deferred outflows of resomces 4,617,608 6,222,876 4,617,608 Long-term liabilities outstanding 38,175,263 38,201,286 36,416,500 36,385,0% 74,591,763 Other liabilities 6,776,783 7,613,928 4,888,553 5,387,561 11,665,336 Total liabilities 44,952,046 45,815,214 41,305,053 41,772,657 86,257,099 Deferred inflows of resources 7,838,520 14,322,104 7,838,520 Net investment in capital assets 54,471,240 52,560,591 43,786,262 43,450,307 98,257,502 Restricted 38,473,882 35,743,847 38,473,882 Unrestricted 9,335,442 5,152,891 14,484,003 16,005,070 23,819,445 Total Net Position $ 10b_280,564 $ 93,457,329 $ 58,270,265 $ _ 5_!1,45_5,377 $ 160,550,829 Total 2019 $ 103,629,291 144,970,514 248,599,805 6,222,876 74,586,382 13,001,489 s1,sp,s11 14,322,104 96,010,898 35,743,847 21,157,%1 $ 152,912,706 At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. A portion of the City's net position (23.96%) represents resources that are subject to external restrictions on how they may be used. The remaining portion ( 14.84%) may be used to meet the City's ongoing obligatinns. Current and other assets decreased by over $7 .4 million during 2020. This relates to the usage of current assets to fund increases in capital assets which increased by $8.8 million. The governments! activities had a significant decrease in the amount of deferred outflows and inflows of resources. The change is primarily a result of GASB Ststement No. 68 in which the City is required to report its proportionate share of the Minnesota Public Employees Retirement Associatinn (PERA) net pensinn liabilities and deferred outflows and inflows of resources. Recording these items does not change the City's future contribution requirements or obligations under the plans, which are determined by Minnesota ststutes. IV-4 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 The enterprise funds have a combined ending net position of $60,918,786, of which $17,132,524 (28.12%) is unrestricted and can be used for operations. As a measure of the liquidity of the enterprise funds, it may be useful to compare the unrestricted net position to the operating expenses. For the current year, unres1ricted net position is 113.55% of the current year operating expenses. Other factors concerning the finances of these funds have already been addressed in the discussion of the City's business-type activities. General Fund Budgetary Highlights During the year, there were no amendments to the General Fund budget. The City had budgeted for a break-even year in 2020, however there was a positive variance in revenues of $304,632, and expenditures and transfers of $1,376,719. The revenue variance was driven by unbudgeted CARES grant funding which was offset by significant negative variances in lodging taxes and charges for services due to various Covid-19 related shutdowns. The largest expenditure variances were in Parks and Recreation due to shutdown of the Community Center for a large portion of the year among other programs, and in economic development related to reduced lodging tax payments forwarded to North Metro Tourism Board. Capital Asset and Debt Administration Capital Assets: The City's inves1ment in capital assets for its governmental and business-type activities at the end of the current year, amotmts to $153,828,368 (net of accumulated depreciation). This investment in capital assets includes: land, buildings, infrastructure machinery and equipment, and construction in progress. The City's investment in capital assets increased $8,857,854 (6.11 %) from the previous year. Major capital asset events during the current year included the following: The Interstate Area neighborhood infrastructure reconstruction project was partially completed, with a total cost of $8, 733,849 including construction in progress from the previous year. This amount includes work on streets, as well as water, sewer, storm and street light utilities. The Grandview North Area Infrastructure project was partially completed, with a total cost of $5,381,051 (including previous years). This amount includes work on streets, water, sewer, stonn, and street light utilities. The Brooklyn Boulevard street reconstruction project (49th Avenue to Bass Lake Road) continued construction, with a total of $15,659,473 in costs (including previous years). This amount includes work on streets, as well as water, sewer, storm and street light utilities. Federal funding through the Surface Transportation Program has been awarded to the City and Hennepin County for this project. Phase II Engineering and Plarming also got underway during 2020 totalling $1,497,673. The Bellvue Mill and Overlay project was completed, with a total cost of $2,114,882 (including previous years). This amount includes work on streets, water, sewer, stonn, and street light utilities. The Rehabilitation of Water Tower #1 was completed at a total cost of$781,799. The City completed construction of a municipal liquor store with total costs of $2,952,674. The Central Garage purchased or completed setup of 18 pieces of machinery & equipment during the year. The total outlay for machinery and equipment during the year was $923,898 CITYOFBROOKLYNCENTER,MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 CITY OF BROOKLYN CENTER -CAPITAL ASSETS (net of depreciation) Governmental Activities Business-type Activities 2020 2019 2020 2019 Land $ 5,632,883 $ 5,632,883 $ 2,698,879 $ 2,698,879 Easements 88,704 88,704 I0,285 10,285 Construction in progress 11,469,260 5,699,286 11,855,805 6,920,806 Land improvements 238,599 267,754 Other land improvements 5,840,636 6,209,125 Buildings and improvements 9,188,779 9,905,593 24,820,509 22,316,360 Machinery and equipment 4,484,842 4,536,876 370,749 416,323 Street infrastructure 35,874,790 36,712,046 Street light systems 576,172 646,273 Mains and lines 40,677,476 42,909,321 Total $ 72,579,894 s 68,784,513 $ 81,24~7!__! 76,186,001 2020 $ 8,331,762 98,989 23,325,065 238,599 5,840,636 34,009,288 4,855,591 35,874,790 576,172 40,677,476 $ _ 153,828,368 Additional information on the City's capital assets can be found in Note 3 (C) on pages 62 through 63 of this ACFR. Long-Term Debt: At the end of the current year, the City had outstanding long-term bonded debt of $61,371,445. CITY OF BROOKLYN CENTER· LONG-TERM LIABILITIES Governmental Activities Business~type Activities 2020 2019 2020 2019 2020 General obligation tax increment lxmds $ 7,300,000 $ 9,650,000 $ $ $ 7,300,000 General obligation improvement bonds 16,739,519 16,525,276 1,115,481 1,294,724 17,855,000 General obligation revenue bonds 18,905,000 17,350,000 18,905,000 General obligation lease revenue bonds 2,520,000 2,520,000 2,520,000 General obligation revenue n-14,791,445 15,773,445 14,791,445 Unsmorti:red premiums (discounts) 1,405,244 1,463,854 1,917,557 1,883,170 3,322,801 Compensated absences 1,552,660 1,408,546 1,552,660 Net pension liability 13,240,629 11,346,322 13,240,629 Total OPEB liability 2,451,494 2,038,900 2,451,494 Total $ 42,689,546 $ 42,432,898 $ 39,249,483 $ 38,821,339 $ 81,939,029 Total 2019 s 8,331,762 98,989 12,620,092 267,754 6,209,125 32,221,953 4,953,199 36,712,046 646,273 42,909,321 $ 144,97(),_514 Total 2019 $ 9,650,000 17,820,000 17,350,000 2,520,000 15,773,445 3,347,024 1,408,546 11,346,322 2,038,900 $ 81,254,237 The City's total outstanding bonded debt decreased by $1,742,000 during the current fiscal year, from $63,113,445 to $61,371,445. The City retired $6,527,000 in principal in 2020, and issued $4,785,000 in new debt for infrastruc1llre projects that included the Grandview North Area lnfrastruc1llre Improvement Project and rehabilitation of Water Tower #1. The City's bond rating is AA from Standsrd & Poor's Ratings Services. State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total Taxable Market Value. The current debt limitation for the City is $68,409,378. The City does not currently have any debt outstanding that is applicable to the limit. Additional information on the City's long-term debt can be found in Note 3 (F) on pages 67 through 71 of this ACFR. IV-7 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 Economic Factors and Next Year's Budget and Rates All of these factors were considered in the preparation of the City's budget for the 2021 fiscal year. • The unemployment rate for the City is 8. 7% at the end of the 2020 fiscal year, wbich is an increase from the rate of 3 .6% a year ago. This compares to the State's average unemployment rate of 6.2% and the national average of 8.1 %. • An increase in estimated taxable market value of7.09% from taxes payable 2020 to 2021. The taxable market value increase was driven by significant increases in residential property values (6.2%) and apartment property values (9.7%). • Continuing redevelopment throughout the City will yield net growth in tax base and stability in tax base along with providing job growth in the City. • Since 2008, the EDA has acquired approximately 35 acres of land including the former Brookdale Square shopping center site and former Brookdale Ford dealership property. The EDA entered into a Preliminary Development Agreement with Alatus, LLC as the master developer of this site. In May 2018, the site was federally designated as an Opportunity Zone. The preliminary development concept proposed involves the construction of a mixed-use apartment/hotel/commercial/single-family development together with related improvements including a centralized park area, new roads and storm water ponding improvements. • As a result of the impact of COVID 19 on the travel and tourism industry the City's collection of lodging tax was significantly impacted Net revenues in 2020 were approximately 50% of budget and the City plans to offset some of the continued shortfall into 2021 with fund balance reserves untill the industry recovers. • The COVID 19 pandemic amplified the need for emergency preparedness. CARES funding was utilized to equip the emergency operations center with better technlogy. Going forward the City will review and expand funds available for future emergency response. The City's policy is to maintain a General fund unassigned fund balance of 50% -52% of the ensuing year's budgeted General fund operations. Additionally the City's capital project funding policy that transfers the amount of fund balance exceeding 52% to the Capital Improvements fund following the completed audit of the City's ACFR. Total unassigned and assigned fund balance at the end of2020 was $14,121,566 (59.45%) of the adopted 2021 budgeted expenditures. The City intends to make a Capital Improvements fund transfer of$1,372,967 from the General fund during 2021. Requests for Information This financial report is designed to provide a general overview of the City of Brooklyn Center's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430. IV-8 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF NET POSITION December 31, 2020 ASSETS Cash and investments Receivables: Accounts -net Taxes Special assessments Internal balances Due from other governments Prepaid items Inventories Notes receivable Assets held for resale Capital assets: Nondepreciable Depreciable Net pension asset Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred pension resources Deferred OPEB resources Total deferred outflows of resources LIABILITIES Accounts payable Contracts payable Accrued salaries and wages Accrued interest payable Due to other governments Deposits payable. lJnearnedrevenue Compensated absences payable: Due within one year Due in more than one year Total OPEB liability: Due in more than one year Bonds and net pension liability payable: Due within one year Due in more than one year Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred pension resources Deferred OPEB resources State aid received for subsequent years Total deferred inflows ofresources NET POSITION Net investment in capital assets Restricted for: Tax increment financing Economic development Law enforcement enhancements Debt service Pension benefits State-aid street systems lJnrestricted Total net position Governmental Activities $ 46,891,591 436,152 561,623 5,374,273 2,648,521 2,552,789 52,245 54,410 59,216 18,295,285 17,190,847 55,389,047 947,523 150,453,522 4,076,073 541,535 4,617,608 871,272 156,251 510,863 300,877 146,401 275,245 1,591 155,266 1,397,394 2,451,494 4,359,017 34,326,375 44,952,046 4,840,090 82,111 2,916,319 7,838,520 54,471,240 25,284,162 1,866,516 11,158 7,873,661 766,001 2,672,384 9,335,442 $ I 02,280,564 The notes to the financial statements are an integral part of this statement. Business-Type Activities Total $ 16,596,060 $ 63,487,651 2,876,005 3,312,157 561,623 478,150 5,852,423 (2,648,521) 2,552,789 243,861 296,106 781,289 835,699 59,216 18,295,285 14,564,969 31,755,816 66,683,505 122,072,552 947,523 99,575,318 250,028,840 4,076,073 541,535 4,617,608 477,799 1,349,071 125,068 281,319 83,221 594,084 343,808 644,685 106,565 252,966 587,673 862,918 331,436 333,027 155,266 1,397,394 2,451,494 2,832,983 7,192,000 36,416,500 70,742,875 41,305,053 86,257,099 4,840,090 82,111 2,916,319 7,838,520 43,786,262 98,257,502 25,284,162 1,866,516 11,158 7,873,661 766,001 2,672,384 14,484,003 23,819,445 $ 58,270,265 $ 160,550,829 IV-9 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF ACTIVITIES For the Year Ended December 31, 2020 FUNCTIONS/PRQ{,RAMS Government activities: General government Public safety Public works Community services Parks and recreation Economic development Interest on long-term debt Total government activities Business-type activities: Municipal liquor Earle Brown Heritage Center Water utility Sanitary sewer utility Storm drainage utility Street light utility Recycling utility .Total business-type activities Total $ $ The notes to the financial statements are an integral part of this statement. Expenses 4,834,450 $ 13,057,043 6,450,769 171,344 3,218,266 2,872,886 634,139 31,238,897 5,699,529 3,034,695 4,377,809 4,551,331 2,441,109 306,619 396,402 20,807,494 52,046,391 $ Program Revenues Operating Capital Charges For Grants and Grants and Services Contributions Contributions 412,993 $ $ 808,885 1,005,949 13,451 1,527,479 3,138,757 408,515 36,557 10,198 303,046 37,149 1,946,890 2,607,134 3,148,955 5,503,163 1,309,634 4,261,455 4,662,764 1,691,946 476,766 394,495 18,300,223 20,247,113 $ 2,607,134 $ 3,148,955 General revenues: Property taxes Tax increments Lodging taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on disposal of capital asset Transfers -capital assets Total general revenues and transfers Change in net position Net position -Janwuy I Net position -December 31 Net (Expense) Revenue and Changes in Net Position Governmental Business-Type Activities Activities Total $ (4,421,457) $ $ (4,421,457) (11,242,209) (11,242,209) (1,771,082) (I, 771,082) (171,344) (171,344) (2,762,996) (2,762,996) (2,532,691) (2,532,691) (634,139) (634,139) (23,535,918) (23,535,918) (196,366) (196,366) (1,725,061) (1,725,061) (116,354) (116,354) 111,433 111,433 (749,163) (749,163) 170,147 170,147 (1,907) (1,907) (2,507,271) (2,507,271) (23,535,918) (2,507,271) (26,043,189) 20,136,395 20,136,395 6,566,099 6,566,099 561,602 561,602 4,432,381 449,232 4,881,613 971,753 480,975 1,452,728 82,875 82,875 (391,952) 391,952 32,359,153 1,322,159 33,681,312 8,823,235 (1,185,112) 7,638,123 93,457,329 59,455,377 152,912,706 $ I 02,280,564 $ 58,270,265 $ 160,550,829 IV-10 CITY OF BROOKLYN CENTER, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2020 Municipal Tax State Aid Special Other Increment Debt Capital for Assessment Street Nonrnajor Total General District No. 3 Service Improvements Construction Construction Reconstruction Governmental Governmental ASSETS Cash and investments $ 14,607,156 $ 5,247,197 $ 4,376,976 $ l,II0,319 $ 3,108,623 $ 1,579,756 $ 5,089,944 $ 5,314,031 $ 40,434,002 Receivables: Accounts -net 171,268 7,500 6,493 185,966 7 371,234 Current taxes 130,172 20,952 I0,261 2,857 164,242 Delinquent taxes 198,267 199,114 397,381 Special assessments 75,131 3,787,301 524 1,511,317 5,374,273 Due from other funds 204,852 204,852 Due from other governments 23,920 10,000 2,480,464 30,851 2,545,235 Notes receivable 59,216 59,216 Inventories 32,659 799 33,458 Prepaid items 51,343 902 52,245 Advances to other funds 356,954 356,954 Assets held for resale 17,860,307 434,978 18,295,285 Total assets 15,494,768 23,335,070 8,174,538 1,127,336 5,589,087 3,091,073 --5,275,9JQ. 6,200,595 68~8~377 LIABILITIES Accounts payable 175,782 68,075 290,424 30,087 127,235 152,496 844,099 Contracts payable 63,181 74,169 18,901 156,251 Accrued salaries and wages 485,256 13,533 498,789 . Due to other funds 204,852 204,852. Due to other governments 97,975 7,844 384 39,577 145,780 Deposits payable 258,970 1,856 14,419 275,245 Unearned revenue 556 1,035 1,591 Advances from other funds 356,954 356,954 Total liabilities 1,018,539 78,810 353,605 384 104,256 146,136 781,831 2,483,561 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes 198,267 198,267 Unavailable revenue -tax increments 199,114 199,114 Unavailable revenue -special assessments 72,394 3,775,856 524 1,506,684 5,355,458 Unavailable revenue -intergovernmental 2,916,319 2,916,319 Total deferred inflows of resources 270,661 199,114 3,775,.856 524 2,916,319_ 1,506,684 8,669,158 FUND BALANCES (DEFICITS) Nonspendable 84,002 1,701 85,703 Restricted 23,057,146 4,398,682 2,672,384 3,904,674 34,032,886 Committed 773,207 5,129,774 1,728,606 7,631,587 Assigned 1,769,004 1,480,133 3,249,137 Unassigned 12,352,562 (216,217) 12,136,345 Total fund balances 14,205,568 23,057,146 ____298,682 773,207 2,672,384 1,480,133 5,129,774 5,418,764 57,135,658 Total liabilities, deferred inflows of resources and fund balances $ 15,494,768 $ 23,335,070 $ 8,174,538 _ $ 1,127,336 $ 5,589,087 $ 3,091,073 $ 5,275,910 $ 6,200,595 $ 68,288,377 The notes to the financial statements are an integral part of this statement. IV-11 CITY OF BROOKLYN CENTER, MINNESOTA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION December 31, 2020 Fund balances -governmental funds Amounts reported for the governmental activities within the statement of net position are different because: Capital assets used in governmental activities are not financial resources, and therefore, are not reported as assets in governmental funds. Cost of capital assets Accumulated depreciation Long-term liabilities, including bonds payable, are not due and payable in the current period, and therefore, are not reported as liabilities in governmental funds. Bonds payable Accrued interest payable Unamortized premium Some receivables are not available soon enough to pay for the current period's expenditures, and therefore, are unavailable in governmental funds. Delinquent property taxes receivable Delinquent tax increments receivable Special assessments receivable The Plan Fiduciary Net Position of the City's Fire Relief Association Pension Fund currently exceeds the actuarially determined total pension liability creating a net pension asset Deferred outflows related to the City's Fire Relief Association Pension Fund Change of assumptions Contributions to the plan subsequent to the measurement date Deferred inflows related to City's Fire Relief Association Pension Fund Grant funding of contributions to the plan subsequent to the measurement date Net difference between expected and actual liability, projected and actual investment earnings, and change of assumptions Internal service funds are used by management to charge the cost of certain activities to individual funds. The assets, liabilities, and deferred outflows/inflows are included in the governmental statement of net position. Total net position -governmental activities The notes to the financial statements are an integral part of this statement. $ $ 57,135,658 121,577,946 (52,638,738) (24,039,519) (300,877) (1,405,244) 198,267 199,114 5,355,458 947,523 110,343 177,079 (177,079) (291,865) (4,567,502) 102,280,564 IV-12 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF REVENUES, EXPENDmJRES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2020 Municipal Tax State Aid Special Other Increment Debt Capital for Assessment Street Nonmajor Total General District No. 3 Service Improvements Construction Construction Reconstruction Governmental Governmental REVENUES Property taxes $ 18,238,911 $ $ 1,456,676 $ $ $ $ $ 405,209 $ 20,100,796 Tax increments 5,201,153 1,195,244 6,396,397 Lodging taxes 561,602 561,602 Franchise fees 738,213 738,213 Licenses and permits 991,972 991,972 Intergovernmental 3,371,120 2,444,615 1,412,471 607,037 7,835,243 Charges for services 293,498 241,029 1,065 293,840 829,432 Special assessments 63,154 1,143,880 563,786 1,770,820 Fines and forfeits 155,462 640 156,102 Investment earnings (net of market value adjustment) 266,188 92,277 74,597 12,296 72,176 17,527 175,021 117,823 827,905 Miscellaneous 156,714 35,415 32,987 225,116 Total revenues 24,098,621 5,569,874 2,675,153 2,456,911 __ 1,484,647 582,378_ 913,234 ~780. . 40~4~:1,.598 EXPENDITURES Current: General government 3,971,106 232,689 4,203,795 Public safety 12,267,694 121,488 12,389,182 Public works 2,034,162 105,834 2,857 2,142,853 Community services 171,344 171,344 Parks and recreation 2,368,409 328,679 2,697,088 Economic development 632,739 1,330,802 1,004,838 2,968,379 Nondepartmental 547,400 547,400 Capital outlay: General government 752 752 Public safety 51,889 51,889 Public works 3,361,877 564 1,841,451 4,227,779 9,431,671 Parks and recreation 13,290 13,290 Debt service: Principal 4,090,757 4,090,757 Interest 756,623 756,623 Fiscal agent fees 11,759 11,759 Bond issuance costs 34,857 34,857 Total expenditures 22,006,896 1,330,802 4,859,139 _____1_d_6_]__,877 106J9__!_ 1,844,308 __ 4,262,636 ·-1,739,583 ~639 Excess (deficiency) of revenues over (under) expenditures 2,091,725 4,239,072 (2,183,986) (904,966) 1,378,249 (1,261,930) (3,349,402) 913,19'[ -~959 OTHER FINANCING SOURCES (USES) Transfers in 2,591,346 64,874 1,176,410 3,832,630 Issuance of debt 1,955,000 1,955,000 Premium on issuance of debt 81,687 81,687 Transfers out (410,374) (2,796,461) (761,295) (3,968,130) Total other financing sources (uses) (410,374) (2,796,461) 2,591,346 64,874 2,036,687 415,115 ~187 Net change in fund balance 1,681,351 1,442,611 407,360 (840,092) 1,378,249 (1,261,930) (1,312,715) 1,328,312 2,823,146 Fund balances -January 1 12,524,217 21,614,535 3,991,322 1,613,299 1,294,135 2,742,063 6,442,489 4,090,452 54,312,512 Fund balances -December 31 $ 14,205,568 $ 23,057,146 $ 4,398,682 $ 773,207 $ 2,672,384 $ 1,480,133 $ 5,129,774 $ 5,418,764 __!__BJ31,658 The notes to the financial statements are an integral part of this statement. IV-13 CITY OF BROOKLYN CENTER, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2020 Total net change in fund balances -governmental funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives as depreciation. Capital outlays Depreciation expense Contributions of capital assets from the proprietary funds increase net position in the statement of activities, but do not appear in the governmental funds because they are not financial resources. The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, the governmental funds report the affect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities Long-term debt issued (including premiums on current year bonds) Principal repayments Amortization of bond discount and premium Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. Contributions to the Fire Relief Association Pension are reported as expenses in the fund financial statements. In the statement of activities, however, all facets of the pension plan are taken into account and when considering things such as investment return, changes in assumptions, and plan performance differing from expectations, pension expense related to this retirement plan for the year was reported at the following amount. Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting, certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Property taxes Tax increments Special assessments Internal service funds are used by management to charge the cost of certain activities to individual funds. This amount is net revenue attributable to governmental activities. Change in net position -governmental activities The notes to the financial statements are an integral part of this statement. $ $ 2,823,146 7,971,092 (3,710,814) (391,952) (2,036,687) 4,090,757 140,297 28,803 (156,821) 35,599 169,702 (559,592) 419,705 8,823,235 IV-14 CITY OF BROOKLYN CENTER, MINNESOTA TAX INCREMENT DISTRICT NO. 3 -STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL For the Year Ended December 31, 2020 Budgeted Amounts Original Final REVENUES Tax increments $ 4,379,239 $ 4,379,239 Charges for services 164,548 164,548 Investment earnings (net of market value adjustment) 42,742 42,742 Miscellaneous 1,400,000 1,400,000 Total revenues 5,986,529 5,986,529 EXPENDITURES Current: Economic development 842,214 842,214 Excess of revenues over expenditures 5,144,315 5,144,315 OTHER FINANCING SOURCES (USES) Transfers in 281,502 281,502 Transfers out (2,234,513) (2,234,513) Total other financing sources (uses) (1,953,011) (1,953,011) Net change in fund balance 3,191,304 3,191,304 Fund balance -January I 21,614,535 21,614,535 Fund balance -December 3 I $ 24,805,839 $ 24,805,839 The notes to the financial statements are an integral part of this statement. Variance with Final Budget - Actual Positive Amounts (Negative) $ 5,201,153 $ 821,914 241,029 76,481 92,277 49,535 35,415 (1,364,585) 5,569,874 (416,655) 1,330,802 (488,588) 4,239,072 (905,243) (281,502) (2,796,461) (561,948) (2,796,461) (843,450) 1,442,611 (1,748,693) 21,614,535 $ 23,057,146 $ (1,748,693) IV-16 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2020 &vernmen1al Business-Type Activities Business--~ Activities Activities- Municipal Earle Brown w-Sanitary Sewer Stonn Drainage Street Light Recycling Total Internal ~ Hori~ Center Util!ll'. Util!ll'. Uti!!ll'. Utility Util!ll'. ~rise Service ASSETS Current assets: Cash and cash equiwlents $ 1,441,472 $ 1,662,759 $ 3,135,562 $ 4,878,097 $ 4,119,635 · S 1,152,977 $ 205,558 $ 16,596,060 $ 6,457,589 Receivables: Accounts-net 8,127 10,333 1,187,312 1,121,588 380,352 87,504 80,789 2,876,005 64,918 Special assessments 474,724 3,426 478,150 Due from other governments 1,554 Prepaid items 23,248 13,279 1,259 204,816 1,259 243,861 Inventories 695,195 36,325 49,769 781,289 20,952 Total current assets 2,168,042 1,722,696 4,848,626 6,207,927 4,501,246 1,240,481 286,347 20,975,365 -----625.!,_013 Noncurrent assets: Capital assets: Land 594,298 1,493,300 20,734 3,389 587,158 2,698,879 Easements 20,335 10,285 30,620 I.and improvements 570,769 570,769 Buildings and improvements 2,952,675 13,057,343 27,002,589 2,571,416 45,584,023 166,108 Machinery and equipment 106,913 740,815 163,334 179,130 109,332 1,299,524 10,616,777 Street light systems 1,087,627 1,087,627 Mains and lines 29,157,595 27,981,910 36,096,405 93,235,910 Construction in progress 2,524,950 4,374,913 4,059,246 896,696 11,855,805 Total capital assets 3,653,886 15,862,227 58,869,202 35,131,093 40,862,426 1,984,323 156,363,157 H>;1s2-;-s35 Less: accumulated depreciation (187,530) {12,385,676) !23,867,228! (18,349,448) {19,813,346) {511,455) {75,114,683) i7,142,199l Net capital assets 3,466,356 3,476,551 35,001,974 16,781,645 21,049,080 1,472,868 81,248,474 3,640,686 Total noncurrerrt assets 3,466,356 3,476,551 35,001,974 16,781,645 21,049,080 1,472,868 81,248,474 3,640,686 Total assets 5,634,398 5,199,247 39,850,600 22,989,572 25,550,326 2,713,349 ~47 --102,223,839 _____1_0,!!ll_,699 DEFERRED OUTFWWS OF RESOURCES Deferred pension resources 3,788,651 Deferred OPED resources 541,535 Total deferred outfloM of resources ~186 LIABILITIES Current liabilities: Accounts payable 136,941 26,111 . 46,102 252,368 358 15,860 59 477,799 27,173 Contracts payable 27,841 34,523 62,704 125,068 Accrued salaries and wages 27,020 23,134 17,503 6,291 9,273 83,221 12,074 Accrued interest payable 35,667 182,786 69,209 56,146 343,808 Due to other governments 64,344 8,709 33,512 106,565 621 Deposils payable 581,548 6,125 587,673 Unearned revenue 29,585 1,600 300,251 331,436 Notes payable 992,000 992,000 Bonds payable 100,000 848,750 577,233 315,000 1,840,983 Compensated absences payable 155,266 Total current liabilities 393,557 660,234 2,436,749 1,001,317 380,777 15,860 59 4,888,553 ~134 Noncurrent liabilities: Notes payable 13,799,445 13,799,445 Bonds payable 2,629,806 10,388,659 6,064,395 3,534,195 22,617,055 Compensated absences payable 1,397,394 TotalOPEBliability 2,451,494 Net pension liability 13,240,629 Total noncurrent liabilities 2,629,806 24,188,104 6,064,395 3,534,195 36,416,500 17,089,517 Total liabilities 3,023,363 660,234 26,624,853 7,065,712 3,914,972 ___ 1_5,860 ~ 41,305,053 17,284,651 DEFERRED INFWWS OF RESOURCES Deferred pension resources 4,371,146 Deferred OPED resources 82,111 Total deferred inflows of resources 4,453,257 NETPOSffiON Net investment in capital assets 736,550 3,476,551 10,219,490 10,680,918 17,199,885 1,472,868 43,786,262 3,640,686 Unrestricted 1,874,485 1,062,462 3,006,257 5,242,942 4,435,469 1,224,621 286,288 17,132,524 ~09 Total net position $ 2,611,035 $ 4,539,013 $ 13,225,747 I is,923,860 $ 21,635,354 $ 2,ffl,419 $ 2ira.~8ii $ 60,918,786 __ {,2_, Net position from this Statement S 60,918,786 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds {2,648,521 Net position of business-type activities 58,270,265 The notes to thefmancial statements are an integral part of this statement. IV-17 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2020 Governmental Business-Type Activities Business-Type Activities Activities- Municipal Earle Brown Water Sanitary Sewer Storm Drainage Street Light Recycling Total Internal Liquor Herita!le Center Utility Utili~ Utility Utility Utility ~rise Service OPERATING REVENUES Sales and user fees $ 5,490,543 $ 1,304,966 $ 4,206,283 $ 4,662,342 $ 1,691,946 $ 449,286 $ 394,495 $ 18,199,861 $ 3,559,356 Cost of sales (3,989,186) (826,353) (4,815,539) Total operating revenues 1,501,357 478~_611_ 4,206,283 4,662,3Q 1,691,946 --449,286 394,495 I_3d_8~3~ 3,55~356 OPERA TING EXPENSES Personal services 909,611 1,059,005 610,323 270,334 324,114 3,173,387 2,155,611 Supplies 33,J31 72,239 316,795 26,058 13,541 481 405 462,650 353,728 Other services 271,169 614,745 932,051 3,034,503 529,352 52,520 394,117 5,828,457 215,456 Insurance 22,687 41,952 45,435 21,115 2,759 1,132 1,880 136,960 66,115 Utilities 55,433 153,166 219,288 36,689 2,800 182,385 649,761 537 Rent 190,977 190,977 Depreciation 107,432 258,709 1,800,118 977,861 1,431,750 70,101 4,645,971 897,970 Total operating expenses 1,590,440 2,199,816 3,924,010 4,366,560 2,304,316 306,619 __ 3_96,402 ·-15,088,163 3,6~2,_417 Operating income (loss) (89,083) (1,721,2032 282,273 295,782 (612,370) 142,667 (1,907) (1,703,8412 (130,061) NONO PERA TING REVENUES (EXPENSES) Intergovernmental 61,484 335,719 18,862 8,271 24,896 449,232 120,006 Investment earnings (net of market value adjustment) 29,667 42,811 87,134 152,855 138,112 25,587 4,809 480,975 143,848 Special assessments 47,046 422 47,468 Gain on sale of capital assets 82,875 Loss on sale of capital assets (34,688) (34,688) (9,316) Other revenue (expense) 12,620 4,668 8,126 27,480 52,894 28,049 Interest and fiscal agent fees (87,001) (441,4522 (172,818) (119,029) (820,3002 Total nonoperating revenues (expenses) (17,918) 383,198 (280,284) (11,270) 43,979 53,067 4,809 175,58I_ 365,462 Income (loss) before contributions and transfers (107,001) (1,338,005) 1,989 284,512 (568,391) 195,734 2,902 (1,528,260) 235,401 Capital contributions from other funds 391,952 391,952 Transfers in 135,500 Change in net position (107,001) (1,338,005) 1,989 284,512 (176,439) 195,734 2,902 (I, 136,308) 370,901 Net position -January I 2,718,036 5,877,018 13,223,758 15,639,348 21,811,793 2,501,755 283,386 62,055,094 (7,586,924) Net position -December 31 $ 2,i'i1!,o:'!s $ 4,539,013 $ g,225,747 $ 15,923,860 $ 21,635,354 $ i,697,4B9 $ iRli,isR $ 60,918,786 $ ('7,216,023) Change ·in net position from this Statement $ (I, 136,308) Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (48,804) Change in net position of business-type activities $ (l,l85,l 12) The notes to the financial statements are an integral part of this statement. IV-18 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2020 Governmental Business-T~ Activities Business-Type Activities Activities- Municipal Earle Brown Water Sanitary Sewer Stonn Drainage Street Light Recycling Total Internal ~ H~Center Utili!l Utili!l Utili!l Utility Utility Enterprise Service CASH FWWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 5,470,790 s 1,483,816 $ 4,097,420 $ 4,642,831 s 1,690,175 $ 462,270 $ 398,449 $ 18,245,751 Receipts from interfimd services provided 3,540,812 Other operating receipts 74,104 340,387 26,988 8,271 24,896 27,480 502,126 37,536 Payments fur interfund services received (137,197) (164,676) (208,613) (199,524) (209,735) (25,766) (11,169) (956,680) (42,314) Payments to suppliers (5,188,715) (1,648,080) (1,351,884) (2,834,173) (376,081) (200,100) (386,578) (11,985,611) (677,965) Payments to employees !853,079l !1,010,986! !572,533l (256,969l (305,902) !2,999,469) (2,254,190l Net cash flows provided (used) by operating activitiea (634,097) (999,539) 1,991,378 ~436 823,353 263,884 702 2,806,117 ________6()1_879 CASH FWWS FROM NONCAPITAL FINANCING ACTMTIES Transfers in (operating) 110,000 Intertimd payable (operating) 4,862 4,862 Special assessments 149,571 (3,004) 146,567 Intergovernmental grants 8,841 Net cash flows provided (used) by noncapital financing activities 4,862 149,571 !3,004) 151,429 ___ 1_1_8,841 CASH FWWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (646,385) (43,919) (2,515,184) (3,678,642) (2,378,098) (54,430) (9,316,658) (923,898) Transfers in (capital) 25,500 Principal paid on revenue and improvement bonds (773,750) (460,493) (220,000) (1,454,243) Principal paid on revenue notes (982,000) (982,000) Interest paid on capital debt (75,674) (491,456) (180,289) (131,396) (878,815) Proceeds from g.o. revenue bonds 1,825,604 1,118,107 2,943,711 Proceeds from sale of assets 172,432 Net cash flows provided (used) by capital and related financing activities !722,059) (43,919) F,936,786l !3,201,317) !2,729,494) (54,430! !9,688,005) !725,966) CASH FWWS FROM INVESTING ACTIVITIES Interest on investments 29,667 42,811 87,134 152,855 138,112 25,587 4,809 480,975 143,848 Net increase (decrease) in cash and cash equivalents (1,326,489) (995,785) (708,703) (1,691,030) (1,768,029) 235,041 5,511 (6,249,484) 140,602 Cash and cash equivalents -January 1 2,767,961 2,658,544 3,844,265 6,569,127 5,887,664 917,936 200,047 22,845,544 6,316,987 Cash and cash equivalents -December 31 s 1,441,472 $ 1,662,759 $ 3,135,562 $ 4,878,097 $ 4,119,635 $ 1,152,977 $ 205,558 $ 16,596,060 $ 6,457,589 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) $ (89,083) $ (1,721,203) $ 282,273 $ 295,782 $ (612,370) $ 142,667 $ (1,907) $ (1,703,841) $ (130,061) Adjustments to reconcile operating income (loss) to net cash flows provided (used) by operating activities: Depreciation 107,432 258,709 1,800,118 977,861 1,431,750 70,101 4,645,971 897,970 Other income (expense) related to operations 74,104 340,387 26,988 8,271 24,896 27,480 502,126 139,214 (locn:ase) decrease in assets: Accowtts receivable (347) 178,850 (17,436) (19,511) (1,771) 12,984 3,954 156,723 (18,045) Due fiom other governments 104,238 104,238 Prepaid items 5,136 18,162 2,629 6,415 (25) 32,317 550 Inventories 33,349 (2,514) (11,173) 19,662 327 (Increase) decrease in deferred outflows of resources: DefeITed outflows for pension 1,315,958 Increase (decrease) in liabilities Accowrts payable (754,569) (154,984) (9,365) 90,995 (21,126) 10,652 (1,345) (839,742) (85,320) Due to other governments 4,452 (18,055) 3,096 (10,507) Net pension liability 1,894,307 Accrued salaries and wages 4,835 (3,129) 5,675 623 1,999 10,003 558,756 Unearned revenue (19,406) (91,427) (110,833) (Increase) decrease in deferred inflows of resources: Deferred pension resources !3,969,777) Net cash flows provided (used) by operating activities $ (634,097! $ !999,539! $ 1,991,378 $ 1,360,436 $ 823,353 $ 263,884 $ 702 $ 2,806,117 ~879 NONCASH FINANCING ACTIVITIES Acquisitions of capital assets on account $ $ $ 34,523 $ $ $ $ $ 34,523 $ Capital assets contributed fiom other funds $ $ $ s s 391,952 $ $ $ 391,952 $ Capita] asset trade-ins $ $ $ $ $ $ $ $ $ 54,000 Loss on disposa1 of capital assets $ 34,688 $ $ $ $ $ $ $ 34,688 $ 9,316 Grants deposited with pension plan $ $ $ $ $ $ $ $ ~474 The notes to the financial statements are an integral part of this statement. IV-19 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 The City of Brooklyn Center was incorporated in 1911 and has operated under a Council/Manager form of government since the adoption of the City charter in 1966. The governing body consists ofa Mayor and four City Council members. elected at-large to serve four-year staggered terms. The City provides a full range of municipal services to its citizens, including public safety (police and fire protection), highways and streets, parks and recreation, public improvements, planning and inspections, economic development, sanitary . and storm sewer, water, and general administrative services. Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), as applied to governmental units by the Governmental Accounting Standards Board (GASB). The City's significant accounting policies are described below. A. REPORTING ENTITY The City includes all funds, organizations, institutions, agencies, departments, boards, and offices that are not legally separate from the City. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the basic financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit ifit appoints a voting majority of the organization's governing body and is able to impose its will on the organization by significantly influencing the programs, projects, activities, or level of services perfonned or provided by the organization, or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City. Blended component units, although legally separate, are, in substance, part of the government's operations. A blended component unit is reported as ifit were a fund of the City throughout the year. It is included at both the government-wide and fund financial reporting levels. A description of the City's blended component units follows: City of Brooklyn Center Housing and Redevelopment Authority (HRA) -The City Council serves as the Board of Directors for the HRA, with the power to levy taxes and enter into contracts. The Counci1 reviews and approves the tax levy and all expenditures for the HRA. The HRA is reported as a Special Revenue fund. The HRA does not issue separate financial statements. Financial information may be obtained at the City's offices. City of Brooklyn Center Economic Development Authority (EDA)-The governing board for the EDA is the City Council, with the power to issue bonds and enter into contracts. The council reviews and approves major community development improvement activities. City general obligation tax increment financing bonds are issued to finance EDA activities. The EDA is reported as a Special Revenue fund. The EDA does not issue separate financial statements. Financial infonnation may be obtained at the City's offices. B, GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all activities of the primary government and its component units. Governmental activities, which nonnally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or business-type activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business-type activity. Taxes and other items not included among program revenues are. reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes and special assessments are recognized as revenues in the year for which they are levied. Grants and simi1ar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal year. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to claims and judgments, compensated absences, net pension liabi1ities, and OPEB are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year. Only the portion of special assessments receivable due within the current fiscal year is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurabl~ and available only when cash is received by the government. The City reports the following major governmental funds: General Fund This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Most of the current day-to-day operations of the governmental units are financed from this fund. Tax Increment District No. 3 Special Revenue Fund This fund was established to account for the collection of tax increment generated revenues for parcels within the District. These funds are used to finance the various redevelopment activities throughout the City. This fund also provides the resources to repay the debt service on bonds issued to finance these redevelopment activities. Debt Service Fund This fund is used to account for the collection of property taxes, special assessments and other resources which are used to repay the principal and interest on debt issued for various improvements in the City. IV-20 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TIIE FINANCIAL STATEMENTS December 31, 2020 Capital Improvements Capital Project Fund This fund was established to provide funds and to account for the expenditure of such funds, for major capital outlays. The accumulation of funds to provide for such outlays is an attempt to reduce future debt issuance. The financing sources of the fund primarily consist of transfers from other funds. Municipal State-Aid/or Construction Capital Project Fund This fund was established to account for the state allotment of construction and maintenance aid. The source of the State funding is provided for through the collection of gasoline taxes. The funds accumulated must be used on transportation related construction and maintenance projects. Special Assessment Construction Capital Project Fund This fund was established to account for the resources and expenditures required for the acquisition and construction of capital facilities or improvements financed wholly or in part by special assessments levied against benefited properties. Street Reconstruction Capital Project Fund This fund was established to account for the resources and apenditures required for the acquisition and construction of capital facilities or improvements financed wholly or in part by :franchise fees. The government reports the following major enterprise funds: Municipal Liquor Fund The fund accounts for the operations of the City's municipal off-sale liquor stores. Earle Brown Heritage Center Fund The Earle Brown Heritage Center is a pioneer farmstead that has been historically preserved and restored as a modern multipurpose facility. Its convention center can host conferences, trade shows and concerts. Water Utility Fund The fund accounts for pumping. treatment and distribution of water to customers. Administration, wells, water treatment, water storage, and distribution are included. Sanitary Sewer Utility Fund The fund accounts for the coHection and pumping of sanitary sewage through a system of sewer lines and lift stations. Sewage is treated by the Metropolitan Council Environmental Services whose fees represent about 60% of this fund's operating expenses. Storm Drainage Utility Fund The fund accounts for the collection and treatment of surface runoff water that does not require sanitary wastewater treatment. It incorporates not only the storm sewer collection system, but also structures such as holding ponds and facilities to improve water quality. Fees are based upon the quantity of water running off a property and vary with both size and absorption characteristics of the parcel. Street Light Utility Fund The fund accounts for the electrical service, maintenance, repair and replacement of lights owned by the City as wel1 as those lights owned by Xcel Energy. Recycling Utility Fund The fund accounts for the contracted services to provide a City wide recycling program. Additionally, the City reports the following fund type: Internal Service Funds Account for compensated absences, health care insurance benefits for retired employees, pension liabilities, and central garage services provided to other departtnents of the City on a cost reimbursement basis. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TIIE FINANCIAL STATEMENTS December 31, 2020 As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds and intemaJ service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. CASH AND INVESTMENTS The City considers all highly liquid inves1ments with a maturity of three months or less when porchased to be cash equivalents. All of the cash and investments allocated to the proprietary funds have original maturities of90 days or less. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from pooled investments are allocated on the basis of applicable participation by each of the funds. The City's investment policy authorizes the City to invest in the following: a) United States Securities: including bonds, notes, bills or other securities which are direct obligations of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress, which carry full faith and credit of the United States. b) Commercial paper issued by U.S. corporations or their Canadian subsidiaries that is rated in the highest quality by at least two nationally recognized rating agencies and matures in 90 days or less. c) Certificates of Deposits (Time Deposits) that are fully insored by the f<:deral Deposit Insurance Corporation. d) Repurchase agreements and reverse repurchase agreements may be entered into with financial institutions identified by Minnesota Statutes Chapter 118A. Reverse repurchase agreements may only be entered into for a period of 90 days or less and only to meet short-term cash flow needs. e) Securities lending agreements may be entered into with financial institutions identified by Mmnesota Statutes Chapter 118A. t) Minnesota joint powers investment trusts may be entered into with trusts identified by Minnesota Statutes Chapter 118A. g) Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of short term securities permitted by Minnesota Statutes 118A. · h) Bonds of the City of Brooklyn Center issued in prior years, may be redeemed at current market price, which may include a premium, prior to maturing using surplus funds of the debt service fund set up for that issue. IV-21 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TIIE FINANCIAL STATEMENTS December 31, 2020 i) General obligation bonds of state or local goverrunents rated A or better by a national bond rating service. j) Revenue obligations of state or local governments rated AA or better by a national bond rating agency. k) The Minnesota Municipal Money Marlee! Fund ( 4M) that was established by the League of Minnesota Cities to address the invesbnent needs of Minnesota cities. Investments are reported at fair value, based on quoted market prices as of the balance sheet date, except for investments in external investment pools, whicb are stated at amortized cost. The reported value of these funds is the same as the value of the pool shares. For the 4M fund, there are no unfunded eotmnitments, redemption frequency is daily, and there is no redemption notice for the Liquid class; the redemption notice period is 14 days for the Plus Class. Adjustments necessary to record investments at fair value are recorded in the operating statement as increases or decreases in investment earnings. Investment income on commingled funds is allocated monthly, based on month-end balances. E. RECEIVABLES AND PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Short-term interfund loans are classified as "due to/from other funds." All short-term interfund receivables and payables at December 31, 2020 are planned to be eliminated in 2021. Long-term interfund loans are classified as "advances to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, as reported in the fund financial statements, are offset by restricted or committed fund balance in applicable governmental funds. This classification is based on the restraint that will be placed on the advanced funds when they are returned to the lending fund. All misce11aneous accounts receivable and trade receivables, other than utilities, are presented net of an allowance for doubtful accounts. All utility trade receivables are reported.at gross because it is the City's policy to certify delinquent account balances as special assessments. The City expects to make full collection of all property tax and special assessmeat receivables, so no allowance is considered necessary. Property tax levies are submitted to the County in December eacb year. The County allocates these levies across taxable properties in the City based on valuations certified in the prior year. The County collects these levies and distributes the City's proceeds in June and December of the fiscal year. These tax.es are reported as general revenues in the government-wide financial statements in the year levied. Unpaid taxes at December 31 become.liens on the respective property and are classified as delinquent receivables and are fully offset by a deferred inflow of resources in the fund financial statements. Delinquent taxes receivable includes the past six years of uncollected taxes. Special assessments represent the financing for public improvements paid fur by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Governmental special assessments have been offset by a deferred inflow of resources for collections not received within 60 days after year end in the fund financial statements. F. INVENTORIBS AND PREPAID ITEMS Inventories in the governmental funds are reported using the consumption method and valued at cost, using the first in/first out (FIFO) method. Inventories in the proprietary funds are valued at cost, using the weighted average method in the Municipal Liquor and Earle Brown Heritage Center Funds and the FIFO method in all other funds. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TIIE FINANCIAL STATEMENTS December 31, 2020 G. ASSETS HELD FOR RESALE Assets held for resale represent various property purchases made by the City with the intent to sell in order to increase tax base or to attract new businesses. These assets are stated at the lower of cost or acquisition value. During the year ended December 31, 2020 management has reviewed the cost value reported for these assets and has indicated the properties are fairly presented for financial reporting puiposes. R CAPITAL ASSETS Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and intangible assets such as easements and computer software, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost in excess of the amounts in the table below and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. Infrastructure Buildings and Building Improvements Land Improvements Heavy Equipment Furniture and Furnishings Motorized Vehicles Technology Equipment Land Easements $ 250,000 50,000 25,000 25,000 10,000 10,000 10,000 10,000 The costs of nonnal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projecis are constructed. Capital assets of the City, as well as the component units, are depreciated using the straight line method over the following estimated useful lives: Easements -temporary Land improvements Buildings and structures Water and sewer mains and lines, wells and storage tanks, sewer lift stations Infrastructure Street light systems Machinery and equipment I. DEFERRED OUTFLOWS OF RESOURCES 25 years 25 years 25 years 25 years 15 years 5 -15 years In addition to assets. the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate fmancial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in the categoiy and are reported only in the statements of net position. These items result from actuarial calculations and current year pension and OPEB contributions made subsequent to the measurement date. IV-22 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO IBE FINANCIAL STATEMENTS December 31, 2020 J. PENSIONS For purposes of measuring the net pension liability/asset, deferred outflows of resources, deferred inflows of resources, and pension expense, infonnation about the fiduciary net position of the applicable pension and additions to or deductions from the pension plan's fiduciary net position have been determined on the same basis as they are reported by the plan except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. K. DEFERRED INFLOWS OF RESOURCES In addition to liabilities, statements of financial position or balance sheets will sometimes report a separate section for deferred inflows of resources. This separate :financial statement element represents an acquisition of net position that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has three types of items, which arise under a modified accrual basis of accounting, which qualify for reporting in this category. One item, unavailable revenue, is reported only in the governmental funds Balance Sheet. The governmental funds report unavailable revenue from sources such as: property taxes, tax increments, and special assessments. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available. The second item, imposed nonexchange revenue transactions, state aid, and capital funding received for subsequent years, is deferred and recognized as an inflow of resources in the period that the resources are required to be used. This item is reported both in the governmental fund balance sheet and the government-wide statement ofNet Position as a deferred inflow of resources. The third item results from actuarial calculations related to the City's pension and OPEB obligations. L. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation and vested sick leave pay is accrued in the Public Employees Compensated Absences internal service fund. In accordance with the provisions of Statement of Government Accounting Standards No. 16, Accou.1ting for Compensated Absences, a liability is recognized for that portion of accumulating sick leave benefits that is vested. The City pays out up to 230 hours of vacation upon seperation and one third of accrued sick leave time. M. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Under Minnesota Statute 4 71.61, subdivision 2(b ), public employers must allow retirees and their dependents to continue coverage indefinitely in an employer-sponsored health care plan, under the following conditions: 1) retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan; 2) coverage must continue in group plan until age 65 and pay no more than the group premium; and 3) retirees may obtain dependent coverage immediately before retirement. All premiums are funded on a pay-as-you-go basis. The liability was actuarially determined, in accordance with GASB Statement No. 75, at January I, 2020. The liability is accrued in the Public Employees Retirement internal service fund. N. LONG TERM OBLIGATIONS In the government-wide financial statements and proprietary fund types in the fund financial statements, Jong-term debt and other long-tenn obligations are reported as liabilities in the applicable governmental activities, business-type activities. or proprietary fund type statement of net position. Bond premiums and discounts, if material, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 0. FUND EQUITY Fund equity in the fund financial statements is classified as fund balance for governmental funds and net position for proprietary funds. Fund equity in the government-wide financial statements is classified as net position for both governmental and business-type activities. Fund Balance -In the fund financial statements, governmental funds report fund balance in classifications that disclose restraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable -consists of amounts that are not in spendable fonn or are required to be maintained intact. Restricted -consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed -consists of internally imposed constraints. These constraints are imposed by formal action (resolution) of the City Council, which is the highest level of decision making authority. Assigned -consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City's intended use. These constraints are established by the City Council or, pursuant to council resolution, the City Manager or the City Manager's designee. Unassigned -is the residual classification for the general fund and alsd reflects negative residual amounts in other funds. When both restricted and unrestricted fund balances are available for an allowable use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for an allowable use, it is the City's policy to use resources in the fo1lowing order; 1) committed, 2) assigned, and 3) unassigned. The City has formally adopted a fund balance policy for the General Fund. The policy establishes a year-end target unassigned fund balance amount of 50-52% of the next year's operating budget for cash flow needs (working capital). At December 31, 2020 the unassigned fund balance of the General fund was 52% of the subsequent year's budgeted expenditures. Net Position -Net position represents the difference between assets, deferred outflows of resources, deferred inflows of resources, and liabilities. Net position, net investment in capital assets, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any bonds used for the acquisition, construction, or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through constitutional provisions or enabling legislation, or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. All remaining net position is reported as unrestricted. When both restricted and unrestricted net position are available for an allowable use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. IV-23 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 P. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues and expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. Q. USEOFESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates end assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from such estimates. R. NEW ACCOUNTING PRONOUNCEMENTS The Governmental Accounting Standards Board recently approved the following statements which were not implemented in these financial statements. The effect these s1andards may have on future financial statements has not been determined at this time. Statement No. 87, Leases. The goal of this statement is to better meet the information needs of users by improving accounting and financial reporting for leases by governments. It establishes a single model for lease accounting based on the principle that leases are financin~ of the right to use an underlying asset. This statement increases the usefulness of financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. The statement excludes shortwtenn leases of 12 months ( or less). The requirements of this statement are effective for reporting periods beginning after June 15, 2021. Note 2 STEWARDSIIlP. COMPLIANCE, AND ACCOUNTABILITY A. BUDGETARY INFORMATION Annual budgets are adopted on a basis ·consistent with accounting principles generally accepted in the United States for all governmental funds. AU annual appropriations lapse at fiscal year end. In September, the City Manager submits to the City Council proposed operating budgets for the fiscal year commencing the following January. The proposed general fund budget and preliminary tax levy must be certified to the County prior to September 30. The Council holds public hearings on the certified budget end levy and must submit a final levy to the County prior to the end of December. The appropriated budget is prepared by fund and department The City Council must authorize any transfer of budgeted amounts between departments or funds. Transfers of budgeted amounts within deparbnents in the General Fund must be authorized by the City Manager. The legal level of budgeta,y control is the department level for the General Fund and the fund level for all other governmental funds. There were no supplemental budgetary appropriations or amendments during the year. CITYOFBROOKLYNCENTER,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 For the year ended December 31, 2020 expenditures and transfers out exceeded appropriations in the following General Fund departments and other governmental funds: Final Budget Major Funds: General Fund: Elections and voter registration $ 174,154 Assessing 210,200 Government buildings 939,939 Fire protection 1,556,794 Protective inspection 287,086 Emergency preparedness 11,500 Engineering department 1,080,500 Park and recreation administration 258,903 Community development administration 263,121 Nondepartmental 398,728 Transfers out 210,000 Special Revenue Funds: Tax Increment District No. 3 842,214 Capital Project Funds: Capital Improvements 1,331,800 Special Assessment Construction 1,042,300 Street Reconstruction 2,350,000 Nonmajor Funds: Special Revenue Funds: Economic Development Authority 475,088 Police Forfeitures 13,000 Centerbrook Golf Course 301,550 Tax Increment District No. 7 B. DEFICIT FUND EQUITY Deficit fund equity exists at December 31, 2020 in the following funds: Unassigned deficit fund balance Nonmajor Funds: Centerbrook Golf Tax Increment District No. 6 Tax Increment District No. 8 Unrestricted deficit net position Internal Service Funds: EE Retirement Benefit Pension -GERF Pension · PEPFF Actual $ 181,607 239,969 1,152,247 1,592,343 350,321 47,801 1,087.684 274,623 366,653 547,400 410,374 1,330,802 3,361,877 1,844,308 4,262,636 705,483 57,025 322,533 30,845 Excess of Appropriations $ (7,453) (29,769) (212,308) (35,549) (63,235) (36,301) (7,184) (15,720) (103,532) (148,672) (200,374) (488,588) (2,030,077) (802,008) (1,912,636) (230,395) (44,025) (20,983) (30,845) 199,713 4,004 12,500 1,932,817 7,017,266 6,805,858 The deficits are being funded through internal borrowing and will be repaid from :future collections of tax increment revenues, intergovernmental revenue, customer revenues, and internal transfers. The Internal service fund deficits will be funded through future interfund charges, state grant revenues, and employee withholdings. IV-24 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TilE FINANCIAL STATEMENTS December 31, 2020 Note 3 DETAILED NOTES ON ALL FUNDS A. DEPOSITS AND INVESTMENTS In accordance with Minnesota Statutes, the City maintains deposits at only those depository banks authorized by the City Council. All such depositories are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The fair value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Authorized collateral includes the lel!l'l investments described in Note l .D., as well as certain first mortl!llge notes, and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be placed in safekeeping in a restricted account at the Federal Reserve bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or contro11ed by the financial institution furnishing the collateral. At year-end, the City's carrying value and bank balance of deposits was $0. As of December 31, 2020 the City had the following investments and maturities: Investment Maturities (in years) Investment Type Fair Value Nomaturity <I 1-3 Negotiable certificates of deposit $ 22,320,852 $ s 9,380,862 s 9,199,480 Federal agency notes 8,506,204 1,522,144 6,984,060 Municipal bonds 11,819,342 1,712,762 4,514,461 External investment pool -4M Fund 13,966,187 13,966,187 Money market 6,860,361 6,860,361 Total Investments $ 63,472,946 $ 20,826,548 $ 12,615,768 $ 20,698,_00I As of December 31, 2020, the City had the following summary of investments related to the credit risk, par values and fair values of securities: %oftotal Investment Type Credit Risk(•) Par Fair Value Portfolio Negotiable certificates of deposit Not rated $ 21,790,000 $ 22,320,852 35.17% Federal agency notes AA 8,360,000 8,506,204 13.40% Municipal bonds A or better 11,110,000 11,819,342 18.62% External investment pool -4M Fund Not rated 13,966,185 13,966,187 22.00% Money market AAA 6,860,329 6,860,361 10.81% Total Investments $ 62,086,514 s 63,472,946 100.00% (*) The credit risk for the Federal Agency Notes, Municipal Bonds and Money Market ratings are provided by S&P. Cash and investments at year-end consist of the following: Investments Petty cash and change funds Total cash, cash equivalents, and investments The deposits and investments of the City are presented in the financial statements as follows: Statement of Net Position Cash and investments $ 63,472,946 14,705 S 63,487,651 $ 63,487,651 3-6 3;740,SIO 5,592,119 9,332,629 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TilE FINANCIAL STATEMENTS December 31, 2020 The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level I inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities relationship to benchmark quoted prices. The City bas the following recurring fair value measurements as of December 31, 2020: Fair Value Measurement Usin_s. Investment Type 12/31/2020 Level I Level 2 Level3 Investments at fair value: Negotiable certificates of deposit Federal agency notes Municipal bonds Money market Total Investments Jnvesbnents at amortized cost: External investment pool -4M Fund Total 22,320,852 8,506,204 ll,819,342 6,860,361 49,506,759 13,966,187 ~ 6,860,361 6,860,361 22,320,852 8,506,204 11,819,342 42,646,398 Interest rate risk-The City's investment policy mitil!llleS interest rate risk by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and by investing operating funds primarily in short-term securities. The City's policy restricts investments to investments maturing no more than six years from the date of the purchase. No more than ten percent of the City's portfolio at any time shall be invested in securities with maturities of more than five years. The policy also states that the portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably expected. Credit risk -The City's investment policy restricts investment instruments to those authorized by Minnesota Statutes § 118A as listed in Note I .D. The policy also requires that any counterparty in investment transactions be pre-qualified and approved by the City Council and that the portfolio be diversified to limit potential losses on individual securities. Concentration of credit risk-The City's investment policy requires that the investment portfolio be diversified to minimize potential losses on individual securities. As of year end, the City had portfolio concentrations in excess of five percent (excluding external investment pools) in the following federal agencies: Federal Home Loan Bank (5.86%). Custodial credjt risk The City's investment policy requires that securities purchased from any bank or dealer be placed with an independent third party for custodial safekeeping. Investments in investment pools and money rruukets are not evidenced by securities that exist in physical or book entry fonn, and therefore are not subject to custodial credit risk disclosures. All of the City's remaining investments were held in an institutional trust under contract with the City for safekeeping services. IV-25 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO nm FINANCIAL STATEMENTS December 31, 2020 B. RECEIVABLES Significant receivable balances not expected to be collected within one year of December 31, 2020 are as follows: Delinquent Delinqueot Duo from Property Tax Special Other Taxes Increments Assessments Governments Major Funds: General $ 198,267 $ $ 72,394 $ Tax Increment District No. 3 199,114 Debt Service 3,775,856 Capital Improvements 524 Municipal State Aid for Construction 2,480,464 Special Assessment Construction 1,506,684 Nonmajor Funds Revolving Loan Total $ 198_,2_67 $ 199,114 $ 5,355,458 $ 2,480,464 Notes Receivable $ 59,216 $ 59,216 The Economic Development Authority (EDA) offers a down payment and closing cost assistance program to home buyers purchasing foreclosed or vacant properties as their principal residence. The program offers up to a $10,000, no-interest deferred loan that is forgivable if the borrower resides in the property for five consecutive years. As of December 31, 2020, the balance of these loans is $20,000. There has been an allowance for doubtful accounts recorded for the same atnount, as it is fully expected that these loans will be forgiven. The Revolving Loan Fund received a grant from the Minnesota Investment Fund and disbursed an interest-free loan to Get Bizzy coffee in the ainount of SI O 1,513 in 2018. It will be repaid in 60 monthly installments of$1,692 ending December I, 2023. As tho repayments are made, the City will remit 60% to tho Minnesota Department of Employment and Econontic Development. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO nm FINANCIAL STATEMENTS December 31, 2020 C. CAPITAL ASSETS Capital asset activity for tho year ended December 31, 2020 was as follows: .Beginning Ending Balance Increases Decreases Balance Governm.eotal activities: Capital assets, not being depreciated: Land $ 5,632,883 $ $ $ 5,632,883 Easements -perpetual 88,704 88,704 Construction in progress 5,699,286 7,197,360 (1,427,386) 11,469,260 Total capital assets, not being depreciated 11,420,873 7,197,360 (1,427,386) ]7,]90,847 Capital assets, being depreciated: Easements -remporary 22,715 22,715 Buildings and improvements 25,991,735 218,790 26,210,525 Land improvements 12,436,714 12,436,714 Machinecy and equipment 11,912,222 1,082,024 (690,149) 12,304,097 Street infrastructure 62,763,683 1,432,250 64,195,933 Total capital assets, being depreciated I 13,127,069 2,733,064 (690,149) 115,169,984 Less accumulated depreciation for: Easements -remporary 22,715 22,715 Buildings and improvements 16,086,142 935,604 17,021,746 Land improvements 6,227,589 368,489 6,596,078 Machinery and equipment 7,375,346 1,035,185 (591,276) 7,819,255 Street infrastructure 26,051,637 2,269,506 28,321,143 Total accumulated depreciation 55,763,429 4,608,784 (591,276) 59,780,937 Total capital assets being depreciated -net 57,363,640 (1,875,720) (98,873) 55,389,047 Governmental activities capital assets -net $ 68,784,513 $ 5,321,640 $ (1,526,259) $ 72,579,894 Depreciation expense was charged to functions/progratns of the City as follows: Governmental activities: General government $ 158,369 Public safety 508,861 Public works 2,548,751 Parks and recreation 493,049 Economic development 1,784 Capital assets held by the City's internal service funds are charged to the various functions based on their usage of the assets 897,970 Total depreciation expense -governmental activities $ 4,608,784 IV-26 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 Beginning Balance Increases Decreases Business-type activities: Capital assets, not being depreciated: Land $ 2,698,879 $ $ Easements -perpetual 10,285 Construction in progress 6,920,806 7,921,595 (2,986,596) Total capital assets, not being depreciated 9,629,970 7,921,595 (2,986,596) Capital assets, being depreciated: Easements -temporary 20,335 Land improvements 570,769 Buildings and improvements 41,998,401 3,778,393 (192,771) Machinery and equipment 1,384,542 84,745 (169,763) Street light sys_, 1,087,627 Mains and lines 92,290,915 944,995 Total capital assets, being depreciated I ~7 ,~3~,3§9 4,RUR,m ~62,mj Less accumulated depreciation for: Easements --ponuy 20,335 Land improvements 303,015 29,155 Buildings and improvements 19,682,041 1,274,244 (192,771) Machinery and equipment 968,219 95,631 (135,075) Street light systems 441,354 70,101 Mains and lines 49,381,594 3,176,840 Total accumulated depreciation 70,796,558 4,645,971 (327,846) Total capital assets being depreciated -net 66,556,031 162,162 (34,688) Business-type activities capital assets -net $ 76,186,001 $ 8,083,757 $ (3,021,284) Depreciation expense was charged to functions/programs of the City as follows: Business-type activities: Municipal liquor $ 107,432 Earle Brown Heritage Center 258,709 Water utility 1,800,118 Sanitary sewer utility 977,861 Stonn drainage utility 1,431,750 Street light utility 70,101 Total depreciation expense -business-type activities t 4,645,971 Ending Balance $ 2,698,879 10,285 11,855,805 14,564,969 20,335 570,769 45,584,023 1,299,524 1,087,627 93,235,910 141,798, 188 20,335 332,170 20,763,514 928,775 511,455 52,558,434 75,114,683 66,683,505 $ 81,248,474 CITY OF BROOKLYN CENTER,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 CONSTRUCTION COMMITMENTS At December 31, 2020 the City had construction project contracts in progress. The commitments related to remaining contract balances are summarized as follows: Project Brooklyn Boulevanl Corridor Project Phase I 51st A venue Frontage Road Improvements Water Tower #I Rehab Lift Station #2 Rehab Lift Station #6 Rehab Bellvue Mill & Overlay Interstate Area Improvements Grandview North Area Improvements Total D. INTERFUND BALANCES AND TRANSFERS Contract Amount $ 12,670,125 616,511 707,950 997,000 369,200 2,472,410 9,667,269 5,074,230 $ 32,574,695 Remaining Commitment $ 97,134 3,126 52,022 121,034 53,800 329,945 1,873,608 183,413 S 2,714,082 The composition of due to/from other fund balances at December 31, 2020 are as follows: Due from Dueto Fund Other Funds Other Funds MaJor Funds: General $ 204,852 $ Nonmajor Funds: Centerbrook Golf Course 192,352 Tax Increment District No. 8 12,500 Total $ 204,852 $ 204,852 lnterfund due to/from balances are representative of lending/borrowing arrangements to cover deficit cash balances at the end of the fiscal year. Balances will be paid with future tax increments, ~g revenues, interfund transfers, and/or receipt of federal grant funds. Individual fund advances to and advances from other funds at December 31, 2020 are as follows: Advances to Advances From Fund Other Funds Other Funds NonmaJor Funds: Tax Increment District No. 5 $ $ 356,954 Tax Increment District No. 2 356,954 $ 356,954 $ 356,954 The $356,954 advance berween the Tax Increment District No. 2 and the Tax Increment District No. 5 funds was made to provide funding for a specific development project within the City. The financing plan for the Tax Increment District projects payments of approximately $110,000 in 2019 through 2024. IV-27 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TIIB FINANCIAL STATEMENTS December 31, 2020 The composition of interfund transfers as of December 31, 2020 are as follows: Transfer In Transfer Out Governmental Funds: Major Funds: General $ $ 410,374 Tax Increment District No. 3 2,796,461 Debt Service 2,591,346 Capital Improvements 64,874 Nonmajor Funds: Housing and Redevelopment Authority 404,462 Economic Development Authority 404,462 Centerbrook Golf Course 85,000 Tax Increment District No. 4 561,948 Tax Increment District No. 5 356,833 Technology 125,000 Total governmental funds 3,832,630 3,968,130 Proprietary Funds: Governmental activities: Internal Service Central Garage 25,500 EE Comp Absences 110,000 Total proprietary funds 135,500 Total all funds $ 3,968,130 s 3,968,130 Interfund transfers allow the City to allocate financial resources to the funds that receive benefit ftom services provided by another fund or to provide additional capital and infrastructure funding. In addition, interfund transfers are occasionally authorized to allow redistribution of resources between funds for the most efficient use of funds. In 2020, the following non•routine transfers were made between funds: The General Fund transferred $25,500 to the Central Garage to fund a vehicle out of the 2020 budget that was not yet purchased. The General Fund transferred $110,000 to the EE Comp Absenses fund to set aside previously levied funds for increases in Part-Time Livable Wages during 2021. The General Fund transferred $64,874 to the Capital Improvements fund for Unassigned Fund Balance at 12/31/19 in excess of 52% of the 2020 General Fund budget. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TIIB FINANCIAL STATEMENTS December 31, 2020 E. OPERATING LEASES The City has leased a portion of the police second floor expansion area to the Local Government Information Systems Association (LOGIS) as a backup computer facility. The lease has a term of ten years, commencing on January 12, 2016 and calls for monthly lease payments based on square-footsge. Lease rev"!lue for the year ended December 31, 2020 was $12,000. Future minimum lease revenues under the current agreement is as follows: Year Total Ending Minimum Rents 2021 $ 12,000 2022 12,000 2023 12,000 2024 12,000 2025 12,000 $ 60,000 The City leased space for both of its liquor stores for part of 2020, one of which was replaced by the new City owned building. The remaining lease is ten years and began in 2013. The lease provides for a minimum monthly base rent payment, plus a pro-rata share of common area expenses. Additional lease payments are required if agreed-upon revenue thresholds are attained. The lease may be cancelled at the City's option if the City ceases liquor operations. Total rental expense under the lease agreements for the year ended December 3 I, 2020 was $ I 90,977. Future minimum base rent payments under the remaining agreement are as follows: Year EndinJ!. 2021 2022 2023 Total Minimum Rents ~360 93,360 93,360 $ 280,080 The City is the lessor in an operating lease for a building being used for a sit-down restsurant The lease was originally signed in 20 I I with a ten year term with an option to extend for an additional five years. For the year ended 2020, the City received $103,029 in rental revenue. Future minimum base rent revenues under the current agreement are as follows: Year Total Endin_l!c Minimum Rents 2021 s 96,190 IV-28 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 The City is the lessor in an operating lease for a building, known as "Building D", consisting of approximately 4,100 square feet and located within the Earle Brown Heritage Center. The lease was originally signed January I, 2009 with a ten year term with an option for two renewals of five years each. For the year ended 2020, the City received $78,810 in rental revenue. Future minimum base rent revenues under the current agreement are as follows: Year Total Ending Minimum Rents 2021 $ 78,810 2022 78,810 2023 78,810 s 236,430 The City leases golf carts used at Centerbrook Golf Course. A new lease was signed May I 0, 2019 with a 4 year term. Total rental expenses under the lease agreements for the year ended December 31, 2020 was $13,234. Future minimum base rent payments under the current agreement are as follows: F. LONG-TERM DEBT GOVERNMENTAL ACTIVITIES Year Total Ending Minimum Rents 2021 $ 12,012 2022 12,012 2023 12,012 36,036 The City issued general obligation improvement bonds to provide funds for the construction of major capital facilities and construction Of infrastructure. These bonds are reported in the governmental activities of the City. The City issued general obligation tax increment bonds to finance various redevelopment projects aod redevelopment property acquisitions within the City. These bonds are reported in the governmental activities of the City. CITY OF BROOKLYN CENTER,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 Final Interest Maturity Original Payable Rates Date Date Issue 12/31/2020 0.0. Tax Increment Bonds: Taxable Tax Increment Bonds of2013A 2.00-3.25% 12/19/2013 02/01/2022 $ 6,040,000 $ 4,335,000 Tax Increment Bonds of2016B 2.00-2.50% 12/08/2016 02/01/2029 2,075,000 2,075,000 Taxable Tax Increment Bonds of2016C 2.00-2.30% 12/08/2016 02/01/2023 1,725,000 890,000 Total G.0. Tax Increment Bonds 9,840,000 7,300,000 G.O. Improvement Bonds: Improvement Bonds, 2013B 3.00% 12/19/2013 02/01/2024 4,920,000 1,495,000 Jmprovement Bonds, 2015A 2.00 -2.50o/o 07/09/2015 02/01/2026 3,416,248 2,089,519 Improvement Bonds, 2016A 2.00% 10/13/2016 02/01/2027 1,820,000 1,320,000 Improvement Bonds, 2017 A 2.25-3.00% 06/08/2017 02/01/2028 3,735,000 3,035,000 Improvement Bonds, 2018A 3.00-5.00% 07/10~018 02/01/2029 3,835,000 3,490,000 Improvement Bonds, 2019A 4.00-5.00% 09/12/2019 02/01/2030 3,355,000 3,355,000 Jmprovement Bonds, 2020A 1.00-2.00% 11/24/2020 02/01/2031 1,955,000 1,955,000 Total G.O. Improvement Bonds 23,036,248 16,739,519 Unamortized Bond Premiums 1,970,038 1,405,244 Total -bonded indebtedness s 34,846;186 25,444,763 Other Liabilities: Compensated absences payable 1,552,660 Net pension liability 13,240,629 Total OPEB liability 2,451,494 Total governmental activities $ __ 42,689,546 All long-term bonded indebtedness outstanding at December 31, 2020 is backed by the full faith and credit of the City, including improvement and tax increment bond issues. Bonds in the governments] activities will be retired by future property tax levies, tax increments or special assessments accumulated in the specific debt services funds. In the event that a deficiency exists because of unpaid or delinquent taxes or speciaJ assessments at the time a debt service payment is due, the City must provide resources to cover the deficiency until other resources are available. At the end of the current year, there are $8,174,538 of assets accumulated in the debt service fimds for future debt service. Included within those accumulated assets, there was a combined $3,797,562 of property taxes aod special assessments receivable. IV-29 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO Tiffi FINANCIAL STATEMENTS December 31, 2020 Annual debt service requirements to maturity for governmental activities long-term debt are as follows: Governmental Activities YearEnding G.O. TaxlncrementBonds G.O. lmprovementBonds December 31 Principal Interest Principal Interest BUSINESS-TYPE ACTIVITIES 2021 2022 2023 2024 2025 2026-2030 2031 Total 2,430,000 $ 2,490,000 305,000 330,000 335,000 1,410,000 '1Joo,lioo $ 166,520 $ 1,929,017 92,680 2,042,277 50,333 2,015,537 43,525 2,053,796 36,875 1,880,316 69,763 6,593,576 225,000 459,696 S 16,739,519 $ 503,727 448,966 381,688 313,234 245,643 424,670 1,406 $ 2,319,334 The City issued general obligation revenue bonds to finance the metering of all City connected -and sewer utility services in 20 I 0 which were refunded in 2015. The City also issued general obligation revenue bonds in 2015, 2016, 2017, 2018, 2019 and 2020 for utility portions of infrastructure improvement projects and a Revenue Note fmanced by the MN Public Facilities Authority Drinking Water State Revolving Fund for the construction of a new water treatment plant. In 2019 the City issued Lease Revenue Bonds for the construction of a City~ed municipal liquor store. These bonds are reported in the business-type activities of the City. Final Interest Maturity Original Payable Rares Date Date Issue 12/31/2020 G.O. Improvement Bonds: Improvement Bonds, 2015A 2.00-2.50% 07/09/2015 02/01/2026 $ 1,823,752 $ 1,115,481 G.O. Lease Revenue Bonds: Lease Revenue Bouds of2019B 3.00-4.00% 09/18/2019 02/01/2035 2,520,000 2,520,000 General Obligation Taxable Utility Revenue Bonds: Revenue Refunding Bonds of 2015A 2.00-2.50% 07/09/2015 02/01/2026 1,660,000 860,000 Revenue Bonds of2016A 2.00"/o 10/13/2016 02/01/2027 3,605,000 2,615,000 Revenue Bonds of 2017 A 2.25-3.00% 06/08/2017 02/01/2028 4,625,000 3,805,000 Revenue Bonds of 2018A 3.00-5.00% 07/10/2018 02/01/2029 4,350,000 4,005,000 Revenue Bonds of2019A 4.00-5.00% 09/12/2019 02/01/2030 4,790,000 4,790,000 Revenue Bonds of2020A 1.00-2.00% 11/24/2020 02/01/2031 2,830,000 2,830,000 Total General Obligation Taxable Utility Revenue Bonds 21,860,000 18,905,000 General Obligation Taxable Utility Revenue Notes: PFA Revenue Note of2015 1.00% 01/20/2015 08/20/2034 19,622,797 14,791,445 Unamortized Bond Premiums 2,091,162 1,917,557 Total business-type activities $ 47,917,711 li 39,249,483 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO Tiffi FINANCIAL STATEMENTS December 31, 2020 Annual debt service requirements to maturity for business,.type activities long-term debt are as follows: Year Ending December31 2021 2022 2023 2024 2025 2026-2030 2031-2035 Total Year Ending December 31 2021 2022 2023 2024 2025 2026-2030 2031-2035 Total Business-Type Activities G.O. im.!'_rovernent Bonds G.O. Lease Revenue Bonds Principal Interest Principal Interest $ 180,983 $ 182,723 184,463 186,204 189,684 191,424 22,871 19,234 15,562 11,623 7,157 2,393 $ 100,000 135,000 140,000 145,000 155,000 850,000 995,000 83,600 78,900 73,400 67,700 61,700 217,775 $ l,its,481 $ 78,840 ~ ~ 76,425 Business,. Type Activities G.O. Revenue Bonds G.O. Revenue Notes Principal Interest Principal Interest $ 1,560,000 $ 580,763 $ 992,000 $ 148,310 1,965,000 536,169 1,002,000 138,390 2,030,000 469,119 1,012,000 128,370 2,105,000 399,175 1,022,000 118,250 2,160,000 326,206 1,033,000 108,030 8,780,000 609,272 5,320,000 383,160 305,000 1,906 4,410,445 111,800 $ 18,905,000 li 2,~2~,610 S 14,791,445 $ 1,136,310 The utility revenue bonds, lease revenue bonds, and notes are backed by the full faith and credit of the City. Bonds and Notes in the business-type activities will be retired with the net revenues of the Liquor fund, Wat.er Utility, Sanitary Sewer Utility, and Storm Drainage Utility systems. (Net revenues of each system are defined as the excess of gross revenues and earnings over the normal, reasonable, and current com of operating and maintaining the system.) In the event that a deficiency exists because of inadequate net revenues at the time a debt service payment is due, the City must provide resources to cover the deficiency until other resources are available. For the year ended December 31, 2020, the liquor, water, sewer, and storm utility funds provided net revenues of ($123,398), which accounts for a debt-service coverage ratio of (3. 72%) on principal and interest payments of $3,315,058. IV-30 CITY OF BROOKLYN CENI'ER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2020 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance OneYear Governmental activities: Bonds payable: G.O. tax increment bonds $ 9,650,000 $ $ (2,350,000) $ 7,300,000 $ 2,430,000 G.0. improvement bonds 16,525,276 1,955,000 (1,740,757) 16,739,519 1,929,017 Premium 1,463,854 81,687 (140,297) 1,405,244 Total bonds payable 27,639,130 2,036,687 (4,231,054) 25,444,763 4,359,017 Compensated absences 1,408,546 276,840 (132,726) 1,552,660 155,266 Net Pension liability: GERF 6,573,715 1,721,186 (860,533) 7,434,368 PEPFF 4,772,607 2,126,814 (1,093,160) 5,806,261 Total OPEB liability 2,038,900 523,384 (110,790) 2,451,494 Total government activity long-term liabilities $42,432,898 $ 6,684,911 $ (6,428,263) $_ 42,689,546 $ 4,514,283 Business,.type activities: Bonds payable: G.O. improvement bonds $ 1,294,724 $ $ (179,243) $ 1,115,481 $ 180,983 G.O. lease revenue bonds 2,520,000 2,520,000 100,000 G.O. revenue bonds 17,350,000 2,830,000 (1,275,000) 18,905,000 1,560,000 G.O. revenue notes 15,773,445 (982,000) 14,791,445 992,000 Premium 1,883,170 113,711 (79,324) 1,917,557 Total business-type activity long-term liabilities $38,821,339 $ 2,943,711 $ (2,515,567) $ 39,249~ $ 2,832,983 Compensated absences are liquidated by the Public Employees Compensated Absences internal service fund and the total OPEB liability by the Public Employees Retirement internal service fund. Net pension liabilities will be liquidated by the Pension -GERF and Pension -PEPFF internal service funds. CONDUIT DEBT OBLIGATIONS From time to time, the City has issued Housing Revenue Bonds and lnduslrial Revenue Bonds or Notes to provide assistance to qualified private sector entities for the acquisition and construction of housing, indusliial, or commercial facilities deemed to be in the public interest. The bonds or notes are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. The City has no obligation of its as-or of its general tax base for the repayment of any of these bonds or notes. Accordingly, the bonds or notes are not reported as liabilities in the accompanying financial statements. Upon final redemption of the bonds or notes, ownership of the property transfers to the private sector entity served by the bond or note issue. As of December 31, 2020 there were two series of fixed rare Multifamily Housing Revenue Refunding bonds, one Housing Revenue Development Refmancing Note, two Healthcare Revenue Notes, four Senior Housing Development Revenue Notes, three Multifamily Housing Revenue bonds, and two Charter School Lease Revenue bonds outstanding. The aggregate amount of conduit debt as of December 31, 2020 is $66,619,253. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 G. FUND EQUITY Net position reported in the government-wide statement ofnet position at December 31, 2020 include the following: Governmental activities Net investment in capital assets: Cost of capital assets Less: accumulated depreciation Less: related long-term debt outstanding Total net investment in capital assets Restricted: Tax increment financing Economic development Law enforcement enhancements Debt service Pension benefits State-aid Street Systems Total reslricted Unrestricted Total governmental activities net position $132,360,831 (59,780,937) (18,108,654) 54,471,240 25,284,162 1,866,516 11,158 7,873,661 766,001 2,672,384 38,473,882 9,335,442 $ 102,280,564 Related debt for governmental activities capital assets includes $16,739,519 in G.0. Improvement Bonds and $1,456,131 of premium which was the amount issued to finance the street portion of construction projects. Business-type activities Net investment in capital assets: Cost of capital assets Less: accumulated depreciation Less: related long-term debt outstanding Add: unspent bond proceeds Total net investment in capital assets Unrestricted Total business-type activities net position $ I 56,363,157 (75,114,683) (38,359,620) 897,408 43,786,262 14,484,003 $ 58,270,265 IV-31 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TiiE FINANCIAL STATEMENTS Decernbec 31, 2020 A-led fund balances reported in the governmental funds balance sheet at Decembec 31, 2020 include the following: Governmental funds Nonspendable Restricted Conunitted Assigned General Inventories $ 32,659 $ $ $ Prepaid Items 51,343 Capital hnprovements 1,769,004 Tax Increment District No. 3 Tax Increment Financing 23,057,146 Debt Service Debt Service 4,398,682 Capital Improvements Capital Improvements 773,207 Municipal State-Aid for Construction State-Aid s1reet systems 2,672,384 Special Assessment Construction Capital hnprovements 1,480,133 Street Reconstruction Fund Street Improvements 5,129,774 Nonmajor Funds Centerorook Golf Course 799 Tax Increment Financing 2,027,902 Economic Development 902 1,865,614 Law Enforcement Enhancements 11,158 Public Safety 8,112 Cable Communications 124,159 Community Recreation 78,475 Emergency Capital Improvements 1,171,730 Technology Improvements 346,130 Total fund balances $ 85,703 $ 34,032,886 $ 7,631,587 $ 3,249,137 N2te ~ DEFINED BENEJ!II l!m§lm! PLAN -cm EMJ!WYEES A. PLAN DESCRIPTION The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 40J(a) of the Intemal Revenue Code. I. GENERAL EMPWYEES RETIREMENT FUND (GERF) All full-time and certain part-time employees of the City are covered by the GERF. GERF members belong to the Cooolinated Plan. Coordinated Plan members are covered by Social Security. 2. PUBLIC EMPWYEES POLICE AND FIRE FUND (PEPFF) The PEP FF, originally established for police officers and fll'efighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July I, 1999, the PEPFF also covers police officers and firefighters belonging to a local fire relief association that elected to merge with and transfer assets and administration to PERA. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TiiE FINANCIAL STATEMENTS Decernbec 31, 2020 B.BENEFITSPROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. J. GERF BENEFITS General Employees Plan benefits are based on a membec's highest average salary for any five successive years of allowable service, age, and years of credit at tennination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July I, 1989, receive the higher of Method I or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method I, the accrual rate for Coordinated members is 1.2 percent ofaverage salary for each of the first 10 years of service and I. 7 percent of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is I. 7 percent of average salary for all years of service. For members hired prior to July I, 1989, a full annuity is available when age plus years of service equal 90 and nonna.1 retirement age is 65. For members hired on or after July l, 1989, nonnal retirement age is the age for unreduced Social Security benefits capped at 66. Annuities, disability benefits, and survivor benefits are increased effective every January I. Beginning January I, 2019, the postretirement increase will be equal to 50 percent of the cost-of-living adjustment (COLA) announced by the Social Security Administration (SSA), with a minimum increase of at least I percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January l, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July I, 1989, or age 66 for individuals hired on or after July I, 1989). Members retiring under Rule of 90 are exempt from the delay to nonnal retirement. 2. PEPFF BENEFITS Benefits for the PEPFF members first hired after June 30, 2010, but before July l, 2014, vest on a prorated basis from 50 percent after five years up to 100 percent after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50 percent after ten years of service up to I 00 percent after twenty years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July I, 1989, when age plus years of service equal at least 90. Annuities, disability benefits, and survivor benefits are increased effective every January I. Beginning January I, 2019, the postretirement increase will be fixed at I percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase wi11 receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of1he June 30 before the effective date of the increase wil1 receive a reduced prorated increase. C. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. I. GERF CONTRIBUTIONS Cooolinated Plan members were required to contribute 6.5 percent of their annual covered salary in calendar year 2020. The City was required to contribute 7 .5 percent for Cooolinated Plan members in calendar year 2020. The City's contributions to the GERF for year ended Decernbec 31, 2020 were $649,561. The City's contributions were equal to the required contributions as set by state statute. IV-32 CITY OF BROOKLYN CENTER, MINNESOTA NOIBS TO TilE FINANCIAL STATEMENTS December 31, 2020 2. PEPFF CONTRIBUTIONS Police and Fire member's contribution rates increased from 11.3 percent of pay to 11.8 percent and employer rates increased from 16.95 percent to 17.70 percent on January I, 2020. The City contributionstothePEPFF for the year ended December 31, 2020 were $887,315. The City's contributions were equal to the required contributions as set by state statute. D. PENSION COSTS The City reported amounts for pension expense in the statement of activities, as well as deferred outflows, deferred inflows, and net pension liability in the statement of net position associated with various plans as follows: Pension Defmed Deferred Net Pension Pension PJan Ex~ Outflows Inflows Liability PERA-GERF $ 441,092 $ 739,813 $ 322,712 $ 7,434,368 PERA-PEPFF 713,552 3,048,838 4,048,434 5,806,261 PERA-PEDCP 1,623 Fire Relief Association 156,821 287,422 468,944 Central Pension Fund 48,624 Total s 1:m.m $ 4,076,073 $ 4,S40,090 $ 13,240,629 I. GERF PENSION COSTS Al December 31, 2020, the City reported a liability of $7,434,368 for its proportionate share of the GERF's net pension liability. The City's net pension liabi1ity reflected a reduction due to the State of Minnesota's contn"bution of $16 million to the fund in 2020. The State of Minnesota is considered a nonemployer ccmtnl,uting entity and their contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $229,207. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July I, 2019 through June 30, 2020, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2020, the City's proportion was 0.1240 percent which was an increase of 0.0051 percent from its proportion measured as ofJune 30, 2019. For the year ended December 31, 2020, the City recognized pension expense of $660, I 93 for its proportionate share of the GERF's pension expense. In addition, the City recognized an additional $19,948 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the GERF. Adjustments for deferred inflows and outflows dereased the total amount reported across governmental and busineas type activities to $441,092 CITY OF BROOKLYN CENTER, MINNESOTA NOIBS TO TilE FINANCIAL STATEMENTS December 31, 2020 At December 31, 2020, the City reported its proportionate share of the GERFs deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual economic experience Changes in actuarial assumptions Differences between projected and actual investment earnings Changes in proportion GERF contributions paid subsequent to the measurement date Totals $ Deferred Outflows of Reso\U'CeS 65,005 148,293 211,476 315,039 739,1!1~ Deferred Inflows of Resources $ 28,128 269,542 25,042 $ 322,712 $315,039 reported as defened outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions wiI1 be recognized in pension expense as follows: Year Pension Ended Expense December 31, Amount 2021 $ (350,610) 2022 61,677 2023 211,381 2024 179,614 Total $ 102,062 2. PEPFF PENSION COSTS At December 31, 2020, the City reported a liability of $5,806,261 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July I, 2019 through June 30, 2020, relative to the total employer contnbutions received from all of PERA's participating employers. At June 30, 2020, the City's proportion was 0.4405 percent which was a decrease of 0.0078 percent from its proportion measured as of June 30, 2019. The State of Minnesota contributed $13.5 million to the Police and Fire Fund in the plan fiscal year endd June 30, 2020. The contribution consisted of$4.5 million in direct state aid that does meet the definition ofa special funding situation and $9.0 million in supplemental state aid that does not meet the definition of a special funding situation. The $4.S million direct state was paid on October I, 2019. Thereafter, by October I ofeacb year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July I, 2048, whichever is earlier. The $9 million in supplemental state aid wilJ continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90"/o funded, whichever occurs later. IV-33 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 The State of Minnesota is included as a non-employer conttibuting entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $4.5 million in direct state aid. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $136,792. Police and Fire Piao employers need to recognize their porportionate share of the State of Minnesota's pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements. For the year ended December 31, 2020 the City recognized pension expense of $1,003,794 for its proportionate share of the Police and Fire Plan's pension expense. Adjustment for deferred inflows and outflows adjusted this amount reported to public safety activities to $713,552. The City recognized $42,085 as grant revenue for its proportionate share of the State of Minnesota's pension expense for the contribution of $4.5 million to the Police and Fire Fund. The State of Minnesota is not included as a non•employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City recogniz.ed $39,645 for the year ended December 31, 2020 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on~behalf contributions to the Police and Fire Fund. At December 31, 2020, the City reported its proportionate share of the PEPFF's deferred outflows of resources and deferred inflows of resources related to pension from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual economic experience $ 256,552 $ 268,536 Changes in actuarial assumptions 1,895,001 3,624,420 Differences between projected and actual investment eamings 183,529 Changes in proportion 269,247 155,478 PEPFF contributions paid subsequent to the measurement date 444,509 Totals $ 3,048,838 $ 4,048,434 $444,509 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Pension Ended Expense December 31, Amount 2021 $ (412,255) 2022 (1,534,203) 2023 247,322 2024 264,798 2025 (9,767) Total S (1,444,105) CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 E. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2020, actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions: Inflation Active Member Payroll Growth Investment Rate of Return General Employees Plan 2.25% per year 3.00% per year 7.50% Police & Fire Plan 2.5% per year 3.25% per year 7.50% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors, and disabi1itants for all plans were based on RP 2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for the General Employees Plan and 1.0 percent per year for the Police and Fire Plan. Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2019. The most recent four-year experience study for Police and Fire Plan was completed in 2020. The recommended assumptions for these plans were adopted by the Board and will be effective with the July I, 2020 actuarial valuations if approved by the state legislature. The following changes in actuarial assumptions and plan provisions occurred in 2020: General Employees Fund Changes in Actuarial Assumptions The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.00%. Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of retirement were changed as recommended in the Jurte 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of90 and early retirements. Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males aod females. The base mortslity table for heahhy annuitants and employees was changed from the RP-2014 table to the Pub-20 IO General Mortslity table, with adjuslinents. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the Pub-2010 General/Teacher disabled annuitant mortslity table, with adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed spouse age difference was changed from two years older for females to one year older. The assumed number of married male new retirees electing the 1000/o Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 1000/o Joint & Survivor option changed from 15% to 30%. The correspooding number of married new retirees electing the Life annuity optioo was adjusted accordingly. Changes in Plan Provisions Augmentation for current privatized members was reduced to 2.0% for the period July I, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. Police and Fire Fund Changes in Actuarial Assumptions • The morality projection scale was changed from MP-2018 to MP-2019. IV-34 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TIIBFINANCIAL STATEMENTS December 31, 2020 The State Board oflnvestment, which manages the investments of PERA, prepares an analysis of the reasonableness of the long-term expected rate of return on a regular basis using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Domestic Stocks International Stocks Bonds (Fixed Income) Alternative Assets (Private Marlcets) Cash F. DISCOUNT RATE Target Allocation 35.50% 17.50% 20.00'/o 25.00% 2.00% Long-Term Expected Real Rate of Return 5.10% 5.30'A, 0.75% 5.90% 0.00% The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on these assumptions, the fiduciary net positions of the General Employees Fund and the Police and Fire Fund was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. PENSION LIABILITY SENSITMTY The following presents the City's proportionate share of the net pension liabi1ity for all plans it participates in, calculated using the discount rates disclosed in the preceding paragraphs, as we11 as what the City's proportionate share of the net pension liability would be if it were calcu1ated using a discount rate I percentage point lower or I percentage point higher than the cUITeDt discount rates: 1%Lower Current Discount Rate !%Higher Sensitivity of Net Pension Liability General Employees Fund 6.50% $ 11,914,712 7.50% 7,434,368 8.50% 3,738,443 H. PENSION PLAN FIDUCIARY NET POSITION Police and Fire Fund 6.50% $ 11,572,715 7.50% 5,806,261 8.50% 1,035,532 Detailed infonnation about each pension plan's fiduciary net position is available in a separately issued PERA flll8Ilcial report that includes financial statements and required supplementary information. That report may be obtained by: Internet: Phone: Mail: www.mnpera.org (651) 296-7460 60 Empire Drive, #200 St. Paul, MN 55103-2088 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TIIB FINANCIAL STATEMENTS December 31, 2020 Note 5 DEFINED BENEFIT PENSION PLAN -SINGLE EMPLOYER -FIRE RELmF ASSOCIATION A. PLAN DESCRIPTION The City contributes to the Brooklyn Center Fire Deparbnent Relief Association (the Association) which is the administrator of a single employer, public employee defined benefit retirement system to provide a retirement plan (the Plan) to volunteer firefighters of the City who are members of the As.fflCiation. The Association is organized and operates under the provisions of Minnesota State Statutes 424A, and provides benefits in accordance with those sta1ntes. At December 31, 2019, the membership of the Association consisted of: Retirees and beneficiaries currently receiving benefits Terminated employees entitled to benefits but not yet receiving them Active plan participants -vested Active plan participants -non-vested Total 14 15 8 19 56' The Association issues a financial report that includes financial statements and required supplementary information for the Brooklyn Center Fire Department Relief Association. That report is available at the City ofBrooklyn Center City offices. B. BENEFITS PROVIDED Basic Service Pension for Retired Members -Upon retirement each individual will receive a lump sum distribution of$8,500 per year of service. This benefit level was placed into effect on January 1, 2019. Prior to 1998, a monthly benefit level of $26.50 was available for retirees. The monthly benefit is no longer an option for retiring member,;. Vested, terminated members, who are entitled to benefits but are not yet receiving them, are bound by the provisions in effect at the time of tennination from membership. Basic Service Pension for Deferred Pensioner -A member who is otherwise qualified for a service pension but who has not reached the age of 50 years may retire from the Fire Department without forfeiting the member's right to such pension. Upon approval of an application therefore, the deferred pensioner shall receive a pension based on the benefit level at that time multiplied by such person's years of active service with the Fire Department and further multiplied by the decimal equivalent of the applicable percentage determined from the following table: Years of Service 10 11 12 13 14 15 16 17 18 19 20 and beyond C. FUNDING POLICY Applicable Percentage 60% 64 68 72 76 80 84 88 92 96 100 The City levies property taxes at the direction of and for the benefit of the Plan and passes through state aids allocated to the Plan, all in accordance with enabling State statutes. The minimum tax levy obligation is the financial contribution requirement for the year less anticipated state aids. IV-35 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 D. CONTRIBUTIONS Authority for contributions to the pension plan is -blished by Minn. Stat. § 69. 77 and may be amended only by the Minnesota State Legislature. See 2018 Minn. Laws, ch. 111, art. 5, § 31 to 42 and 80. There are no employee contributions. The City provided no statutory contributions in 2020. The actuary compares the actual statutoi:y contribution rate to a nrequired" contribution rate. The required contribution rate consists of: (a) normal costs based on entry age normal cost methods, (b) a supplemental contribution for amortizing any unfunded actuarial accrued liability, and (c) an allowance for administrative expenses. E. PENSION COSTS At December 31, 2020, the City reported an asset of $947,523 for the difference between the Fire Relief Plan Fiduciary net position and the total pension liability. The net pension asset was measured as of December 31, 2019, and the total pension liability used to calculate the net pension asset was detennined by an actuarial valuation as of that date. Changes in Net Pension Asset Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) Balance at 12/31/19 $ 2,703,445 $ 3,405,643 $ (702,198) Changes for the year Service cost 99,907 99,907 Interest 137,983 137,983 Changes of benefit terms 164,525 164,525 Contributions ~ State and local 165,652 (165,652) Net invesbnent income 503,214 (503,214) Benefit payments (350,222) (350,222) Administrative expenses (21,707) 21,707 Other changes 581 (581) Net changes 52,193 297,518 (245,325) Balance at 12/31/20 $ 2,755,638 ~t 3,703,16] s 1m.mi Plan Changes since the prior measurement date include the following: The lump sum benefit amount increased from $7,700 to $8,500 At December 31, 2020, the City reported deferred outflows of resources, and deferred inflows of resources related to pensions from the following sources: Changes in actuarial assumptions Difference between expected and actual liability Difference between projected and actual investment earnings Contribution paid subsequent to measurement date Totals Deferred Outflows of Resources $ 110,343 177,079 $ 287,422 Deferred Inflows of Resources 17,076 128,077 146,712 177,079 $ 468,944 $177,079 reported as deferred outflows of resources related to pensions resulting from state aid received subsequent to the measurement date will be recognized as a reduction of the net pensioo liability in the year ended December 31, 2021. Deferred inflows of resources totaling $177,079 related to state aid received subsequent to the measurement date will be recognized for its impact on the net pension liability in the year ended December 31, 2021. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2020 Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as foJlows: F. ACTUARIAL ASSUMPTIONS Year Ended December 31, 2021 2022 2023 2024 2026 Thereafter Total Pension Expense Amount $ (32,730) (67,508) 14,291 (80,190) (12,213) (3,!72.1 U81,522) The Association is funded with contributioos from the City ofBrooklyn Center. The actuarially determined contributions in the Schedule of Contributions are calculated as of the beginning of the fiscal year in which contributions were reported. The following methods and assumptions were used to calculate the actuarially determined contnbutions reported in the most recent fiscal year end. • The most recent actuarial valuation date is January I, 2019. • Actuarial cost is determined using the Entry Age Normal Cost Method. • The actuarial value of assets is market value. • The unfunded accrued liability is amortized using a 20-year rolling end date. • Investment rate of return is 5.25 percent • The inflation rate assumption is 2.50 percent.· • Mortality assumptions for pre-retirement, post-retiremeot, and post-disability are: Pre-retirement: RP-2014 employee generational mortality table projected with mortality improvement scale MP-2017, from a base year of 2006. Post-retirement: Post-disability: RP-2014 annuitant generational mortality table projected with mortality improvement scale MP-2017 from a base year of 2006. Male rates are adjusted by a factor of .96. RP-2014 annuitaot generational mortality table projected with mortality improvement scale MP-2017 from a base year of 2006. Male rates are adjusted by a factor of .96. IV-36 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TilE FINANCIAL STATEMENTS December 31, 2020 The long-tenn expected rate of return on pension plan investments was determined using a building-block method in which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These asset class estimates are combined to produce the portfolio long-tenn expected rate of return by weighting the expected future res] rates of return by the current asset allocation percentage ( or target allocation, if available) and by adding expected inflation. Best-estimates of geometric real and nominaJ rates of return for each major asset class included in the pension plan's as.set allocation as of the measurement date are summarized in the following table: Allocation at Asset Class Measurement Date Doroestic Equity International Equity Fixed Income Real Estate and Ahernatives Cash and Equivalents Total Reduced for assumed investment expense 45.00% 15.00% 30.00% 0.00% 10.00% 100.00% Long-tenn Long-Term Expected Real Expected Nominal Rate of Return Rate of Return 4.76% 7.26% 5.41% 7.91% 2.01% 4.51% 4.53% 7.03% 0.74% 3.24% 6.58% -1.40% Net assumed inveshneot return (weighted average rounded to 1/4%) 5.25% G. DISCOUNT RATE The discount rate used to measure the total pension liability was 5.25 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at the actual statutory contribution rate. Based on those assumptions, the Association's fiduciary net position was projected to be available to make all projected future benefit payments of the cumm.t plan members. Therefore, the long-tenn expected rate of return on pension plan inveshnents was applied to all periods of projected benefit payments to determine the total pension liability. H. PENSION LIABILITY (ASSET) SENSITIVITY The following presents the net pension asset calculated using the discount rate of 5.25 percent. as wel1 as what the net pension (asset)/liability would be if it were calculated using a discount rate that is one-percentage-point lower ( 4.25 perceot) or one perceotage-point higher (6.25 percent) than the current rate: 4.25% 5.25% 6.25% City's Proportionate Share One Point Current One Point of the Net Pension (Asset) Liability Decresse Rate Increase Net Pension (Asset)/Liability $ (853,630) $ (947,523) $ (1,035,823) CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TilE FINANCIAL STATEMENTS December 31, 2020 Note 6 MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN City employ-belonging to International Union of Operating Engineers (IUOE) are participants in a multiple-employer defined benefit pension plan Central Pension Fund of the International Union of Operating Engineers and Participating Employers (CPF) administered by the Board of Trustees of the Central Pension Fund. The plan is a cost-sharing pension plan that is not a state or local governmental pension plan, is used to provide defined benefit pensions both to employers that are not state or local governmental employers, and has no predominant state or local government employer. The Plan issues a publicly available financial report located on their website at www.cpfiuoe.org. The City has 26 employees who are covered by this pension plan. The plan provides beoefits such as monthly retiremeot income, special and early retirement benefits, post-retirement surviving spouse benefits, pre-retirement surviving spouse benefits, and dissbility benefits. The CPF is a supplemental Pension Fund au1horized by Minnesota Statutes, 356.24, subdivision 1(9). The CPF Plan of Benefits and the Agreement and Declaration ofTrust will serve as the governing documeots. The City's contributions to the plan are pursuant to a collective balpining agreement with the IUOE which expires December 31, 2021. The required contribution rate is $0.96 per hoor, which is applied to all compensated hours, and capped at $5,000 per year. Total employer contributions for the year ended December 31, 2020 were $48,624. With regsrd to withdrawal from the pensioo plan, the parties agree that the amount that would otherwise be paid in salary or wages will be contributed instead to the CPF as pre-tax employer contributions. Note 7 DEFINED CONTRIBUTION PLAN There are five City Council members of the City covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan under Section 401 (a) of the Internal Revenue Code and all contributions by or on behalfof employees are tax deferred until time of withdrawal. The defined contribution plan consists of individual accounts paying a lump-sum benefi~ plan beoefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses, therefore, there is no future liability to the employer. Minnesota Statutes, Chapter 353(0.03), specifies plan provisioos, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5 perceot of salary which is matched by the elected official's employer. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemeotal Investment Fund. For administering the plan, PERA receives 2 perceot of employer contributioos and twenty-five hundredths of I percent (.0025%) of the assets in each member's account annually. Pension expeose for the year is equal to contributions made. Total contributioos made by the City during fiscal year 2020 were: Required Rate for Employees & Contributioo Amount Percentage of Covered Payroll Employers For the Year Ended: Empl~ Employer Employee Employer Employee Employer December 31, 2020 $ 1,623 $ 1,623 5.0% 5.()% 5.0% 5.0% IV-37 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TIIB FINANCIAL STATEMENTS December 31, 2020 Note 8 OTHER POST-EMPLOYMENT BENEFITS /OPEBl PLAN A. Plan Description The City provides post-employment insurance benefits to certain eligible employees through its OPEB Plan, a single-employer defined benefit plan administered by the City. All post-employment benefits are based on contractual agreements with employee groups. Eligibility for these benefits is based on years of service and/or minimum age requirements. These contractual agreements do not include any specific contribution or funding requirements. The plan does not issue a publicly available financial report. No plan assets are accumulated in a trust that m-the criteria in paragraph 4 of GASB SIBtement No. 75. B. Benefits Provided ~ The City is required by State Statute to allow retirees to continue participation in the City's group health insurance plan if the individual tenninates service with the City through service retirement or disability retirement Former employees who are receiving. or who have met age and service requirements to receive. an annuity from a Minnesota public pension plan and those receiving a disability benefit from such a plan are immediately eligible to participate in this Plan. Retirees may obtain dependent coverage if the employee received dependent coverage immediately before leaving employment Covered spouses may continue coverage after the death of a retiree. In addition, the surviving spouse of an active employee may continue coverage in the group health insurance plan after the employee's death. All health care coverage is provided through the City's group health insurance plans. The retiree is required to pay the premium as described below: Employees hired before January 1 1992 witll continuous full-time employment Employees who, on the date of their retirement, meet eligibility requirement for a full retirement annuity under PERA or PERA Police without reduction of benefits because of age, disability, or any other reason for reduction shall be eligible for the City to pay I 00% of the single-person premium until such time as the retiree is eligible for Medicare or at age 65, whichever is sooner. If the retiree desires to continue coverage in excess of siligle coverage, the additional cost for the coverage sha11 be paid to the City by the retiree on a monthly basis. Employees hired after January I 1992 The retiree is required to pay I 00% of their premium cost for the City-sponsored group health insurance plan in which they participate. The premium is a blended rate detennined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, they are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Disabled police and firefighter The City is required to continue to pay the employer's contribution toward health coverage for police or firefighters disabled in the line of duty per Minnesota Statute 299A.465, until age 65. Dependent coverage is included, if the dependents were covered at the time of the disability. C. Contributions The required contribution is based on projected pay-as-you-go financing requirements, with additional amounts to prefund benefits as determined periodically by the City. The City's current year required pay-as-you-go contributions to finance the benefits described in the previous section totaled $131,937. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO TIIB FINANCIAL STATEMENTS December 31, 2020 D. Membership Membership in the plan consisted of the following as of the latest actuarial valuation Retirees and beneficiaries receiving benefits Active plan members Total members E. Total OPEB Liability of the City 14 163 177 The City's total OPEB liability of $2,451,494 as of year-end was measured as of December 31, 2019, and was determined by an actuarial valuation as of January I, 2020. F. Actuarial .Assumptions The total OPEB liability was determined by an actuarial valuation as of January I, 2020, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount rate 20-year municipal bond yield Inflation rate Salary increases Medical trend rate 2.74% 2.74% 2.00% 3.25% 7.67% grading to 5.00% over 8 years The actuarial assumptions used in the latest valuation were based on those used to value pension liabilities for Minnesota city employees. The state pension plans base their assumptions on periodic experience studies. Economic assumptions are based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source infonnation as well as for consistency with the other economic assumptions. Since the plan is not funded by an irrevocable trus~ the discount rate is equal to the 20-year municipal bond yield rate of2.74 percent, which was set by considering published rate information for 20-year high quality, tax-esernpt, general obligation municipal bonds as of the measurement date. The City discount rate used in the prior measurement date was 4.09 percent. Mortality rates were based on the RP-2014 White Collar Mortality Tables with MP-2018 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel). The mortality rates used in the previous study were based on the RP-2014 adjusted to 2006 White Collar Mortality Tables with MP-2016 Generational Improvement Scale (Blue Collar Tables for Police and Fire Persormel). Medical trend rates were also changed from the previous study to better anticipate short-term and long-term medical increases. Future retirees electing coverage is assumed to be 55 percent for employees. Spouses of Coordinated Plan participants is assumed to be 400/o electing coverage and spouses of Police & Fire Fund participants is assumed to be 60%. IV-38 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO 1HE FINANCIAL STATEMENTS December 31, 2020 G. Change, in the Total OPED Liability Beginning balance-January I, 2020 Changes for the year Service cost Interest Difference, between expected and actual experience Changes of a,sumptions Benefit payments Total net changes Ending balance -December 31, 2020 Assumption changes since the prior measurement date include the following: • The discount rate wa, changed from 4.09 percent to 2.74 percent. Tota!OPEB Liability $ 2,038,900 114,736 85,818 45,132 277,698 (110,790) 412,594 $ 2,451,494 •The healthcare trend rates, mortality tables, and payroll growth rates were updated for changes in recent studies and inflationary adjusbnents. H. Total OPED Liability Sensitivity to Disconnt and Health-Care Trend Rate Changes The following presents the total OPED liability of the City, as well as what the City's total OPEB liability would be ifit were caJculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the cumm.t discount rate: OPEB Discount Rate Total OPEB Liability 1%Decrease -----rr,w,, $ 2,688,402 Current Discount Rate 2.74% $ 2,451,494 1% Increase ------r.'wlo $ 2,241,541 The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates: Current Medical 1%Decrease Trend Rate 1% Increase Medical Trend Rate 6.67 to 4.00% 7.67 to 5.00% 8.67 to 6.00% over 8 years over 8 years over 8 years Total OPED Liability $ 2,174,590 $ 2,451,494 $ 2,783,035 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO 1HE FINANCIAL STATEMENTS December 31, 2020 I. OPED Expen,e and Related Deferred Outflows of Reoourees and Deferred Inflows of Resources For the current year ended, the City recognized OPEB expense of$240,933. As of year-end, the City reported deferred outflows of resource, and deferred inflows of resources related to OPEB from the following sources: Changes in actuarial assumptions Difference between expected and actual economic experience Contribution paid subsequent to measurement date Totals $ s Deferred Outflows of Resource, 284,406 125,192 131,937 541,~ Deferred Inflows of Resources $ 82,111 $ 82,111 A total of$131,937 reported as defered outflows of resources related to OPEB resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ending December 31, 2021. Amounts reported as deferred outflows of resources and deferred inflows ofrescurces related to OPEB will be recognized in OPEB expense as follows: Note 9 OTHER INFORMATION A. RISK MANAGEMENT Year Ended December 31, 2021 2022 2023 2024 2025 Thereafter Total OPEB Expense Amount $ 40,379 40,379 40,379 40,379 40,379 125,592 $327,487 The City is exposed to various risks ofloss related to torts; theft o~ damage to and destructioo of assets; errors and omissions and natural disastas. Property and casualty insurance is provided through the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool currently operating as a conunon risk management and insurance program for Minnesota cities: general liability, property, automobile, mobile property and marine, crime, employee dishonesty, boiler, aod open meeting law. The City pays an annual insurance premium to the LMCIT for its insurance coverage. The City is subject to supplemental assessments if deemed necessary by the LMCIT. Currently, the LMCIT is self-sustaining through member premiums and reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portions of the insurance policies. The amount of these deductibles is considered inunateria1 to the financial statements. Workers' compensation coverage is provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed neceosary by the LMCIT. The LMCIT reinsures through Workers' Compensation Reinsurance Association (WCRA) as required by law. For workers' compensation, the City is not subject to a deductible. The City's workers' compensation is retroactively rated. With this type of coverage, fmal premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. IV-39 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 3 I, 2020 There were no significant changes in insurance from the previous year or settlements in excess of insurance coverage for any of the past three years. B. ARBITRAGE REBATE The Tax Refonn Act of 1986 requires governmental entities to pay to the federal government income earned on the proceeds from the issuance of debt in excess of interest costs, pending the expenditure of the borrowed funds. This rebate of interest income (known as arbitrage) applies to governmental debt issued after August 31, 1986. The City issued greater than $5 million of bonds in subsequent years and therefore is required to rebate excess investment income relating to these issues to the federal government. The extent of the City's liability for arbitrage rebates on the remaining bond issues is not determinable at this time. However, in the opinion of management. any such liability would be immaterial. C. LITIGATION The City is subject to certain legal claims in the normal course of business. Management does not expect the resolution of these claims will have a material impact on the City's financial condition or results of operations. D . .JOINT VENTURES AND .JOINTLY GOVERNED ORGANIZATIONS The City has several agreements with other entities that provide reduced costs, better service, and additional benefits to the participants. The programs in which the City participates are listed below and amounts recorded within the current year's financial statements are disclosed. Local Government Information Systems Association (LOGIS) This consortium of approximately 30 government entities provides computerized data processing and support services to its members. LOGIS is legally separate; the City does not appoint a voting majority of its board, and the Consortium is fiscally independent of the City. The total amount recorded within the 2020 financial statements of the City is $1,101,229 for general services and application upgrades provided. Costs were allocated to the various funds based on applications and/or use of services. Complete financial statements for LOGIS may be obtained at the LOGIS offices located at 5750 Duluth Street, Golden Valley, Minnesota 55422. LOGIS Insurance Group This group provides cooperative purchasing of health and life insurance benefits for approximately 45 governmental entities. The total of2020 health and life insurance costs paid by the City was $1,876,463. Complete financial statements may be obtained from Gallagher Benefit Services, Inc. located at 3600 American Blvd West, Bloomington, MN 55431. The BrogkJyn Center Fire Department Relief Association (the Association) The Association is organized as a nonprofit organization, legally separate from the City, by its members to provide pension and other benefits to members in accordance with Minnesota Statutes. Its board of directors is elected by the membership of the Association and not by the City Council. The Association issues its own set of financial statements. All funding is conducted in accordance with applicable Minnesota Statutes, whereby state aids flow to the Association, tax levies are determined by the Association and are only reviewed by the City. The Association pays benefits directly to its members. The Association may certify tax levies to Hennepin County directly if the City does not carry out this function. Because the Association is fiscally independent of the City, the financial information of the Association has not been included within the City's financial statements. (See Note 5 for disclosures relating to the pension plan operated by the Association.) Complete financial statements for the Association may be obtained at the City offices located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 3 I, 2020 E. TAX ABATEMENTS The City entered into a property tax abatement with Hurlbut-Zeppa Charitable Trust AR under Minnesota Statute 469.1813. Under the Statute the City may grant a prospective property tax abatement if (1) it expects the benefits to the City of the abatement agreement to at least equal the costs of the proposed agreement or intends the abatement to phase in a property tax increase and (2) it finds that doing so is in the public interest. The abatement increased the City's tax base and provided employment opportunities within the City. For the year ended December 31, 2020, the City abated $ lO I ,575 of property taxes to Hurlbut-Zeppa Charitable Trust AR for the construction and opening of the Embassy Suites Hotel. The abatement is equal to the City's portion of increased property taxes paid on the increased market value of the development of the property for payable years 20 IO to 2019. F. SUBSEQUENT EVENT The City is exposed to numerous liabilities subsequent to year end resulting from an Officer involved shooting that received national media attention. These include potential settlements with the victim's family, security costs to prevent the destruction of police headquarters by protesters, and potential lawsuits involving the dismissal of employees without due process. The results of these items cannot be estimated at this time and no potential liabilities have been recorded as of year end. IV-40 CITY OF BROOKLYN CENTER, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS For the Year Ended December 31, 2020 2020 2019 2018 Total OPEB liability Service cost $ 114,736 $ 143,059 $ 130,096 Interest 85,8I8 71,986 71,659 Differences between expected and actual experience 45,132 43,355 73,751 Changes of assumptions 277,698 (103,957) 51,929 Benefit payments (110,790) (130,222) (156,791) Net change in total OPEB liability 412,594 24,221 170,644 Total OPEB liability· beginning of year 2,038,900 2,014,679 1,844,035 Total OPEB liability -end of year $ 2,451,494 $ 2,038,900 $ 2,014,679 Covered payroll $ 12,599,989 $ 12,122,568 $ 11,524,587 Total OPEB liability as a percentage of covered payroll 19.46% 16.82% 17.48% Note I: Note 2: 2020 Changes in Actuarial Assumptions The discount rate was changed from 4.09 percent to 2. 74 percent. The healthcare trend rates, mortality tables, and payroll growth rates were updated for changes in recent studies and inflationary adjustments. 2019 Changes in Actuarial Assumptions The discount rate was changed from 3 .44 percent to 4.09 percent 2018 Changes in Actuarial Assumptions The health care trend rates were changed to better anticipate short-term and long-term medical increases. The mortality table was updated from RP-2014 adjusted to 2006 to the RP-2014 White Collar Mortality Tables with MP-2016 Generational Improvement Scale. The actuarial cost method was changed from entry age, level dollar to entry age, level percent of pay as prescribed by GASB 75. The discount rate was changed from 4.50 percent to 3.44 percent. The City implemented GASB Statement No. 75 for the year ended December 31, 2018. The schedules within the RSI section require a 10-year presentation. Additiona1 years will be presented as they become available. CITY OF BROOKLYN CENTER, MINNESOTA SCHEDULE OF CITY CONTRIBUTIONS PUBLIC EMPLOYEES GENERALEMPWYEES RETIREMENT FUND Required Supplementary lnformstion (Lsst Ten Years•) Statutorily Contributions in Relation Required to the Statutorily Required Contribution Deficiency Covered Fiscal Year Endi!i; Contributions (a) Contributions (b) (Excess)(a -b) Pairoll'' (d) December 31, 2020 $ 649,561 $ 649,561 $ $ December 31, 2019 651,633 651,633 December 31, 2018 612,983 612,983 December 31, 2017 572,442 572,442 December 31, 2016 550,846 550,846 December 31, 2015 564,168 564,168 • This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015. •• For purposes of this schedule, covered payroll is defined as "pensionable wages". 8,660,814 8,688,397 8,173,316 7,634,297 7,344,613 7,522,240 Contributions as a Percentage of Covered Pa!!£ll (bid) 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% IV-41 CITY OF BROOKLYN CENTER, MINNESOTA SCHEDULE OF CITY'S AND NON-EMPLOYER PROPORTIONAlE SHARE OF NET PENSION LIABILITY PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUND Required Supplementary Infonnation (Last Ten Years•) Proportfomte""" of the Net Pension Employer's Employ,n Employ,n propom"""" Llabilityandthe Proporuon Proporuomte Shore shareoftheStateof Employer'sshareofthe (Percentage)of (Ammmt)ofthe Minnesota'sproportionate StateofMinnesota's the Net Pension Net Pension shareoftbeNet ShareoftheNet FiscalYear~ Llabili~iAsset} Li,i,;i!!z(Asoots) Pension Lla~ Pension Llabil!!l'. June JO, 2020 0.1240% $ 7,4J4.368 $ 229,207 $ 7,663,575 June JO, 2019 0.1189% 6,573,715 204,J24 6,nB,039 June 30, 2018 0.1194% 6,623,822 217.244 6,841,066 Jwie30,2017 0.1201% 7,667,105 96,388 7,763,493 Jwie 30, 2016 O.IJ72% 9,516,060 124,251 9,640,311 June 30, 2015 0.1243% 6,441,872 6,441,872 • This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015. •• For purposes ofthis schedule, covered payroll is defined as "pensionable wagesM. 2020 Changes in Plan Provisions Employe,'s Proportionate Share PlanFicb:iary oftheNetPension Net Position as a Employ,n Llability(Asset)as -,..or Covered a Percentage of its the Total Pension ~ Covered Payroll ~ $ 8,843,J95 84.07% 79.10% 8,411,938 78.15% 80.23% 7,892,915 83.92% 79.50% 7,735,587 99.11% 75.90% 7,269,667 130.90% 68.91% 7,303,595 88.20% 78.20% Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.()% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2020 Changes in Actuarial Assumptions The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assmnption was decreased from 3.25% to 3.00'%. Assumed salary increase rates were changed as reconunendcd in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of retirement were changed as recommended in the June 30, 2019 experiem::e study. The changes resuh in more unreduced (normal) retirements and slightly fewer Rule of90 and early retirements. Assumed rates oftennination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previow rates for years 2-5 and slightly higher thereafter. Asswned rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-20 IO General Mortality table, with adjustments. The base mortality table for disabled aMuitants was changed from the RP-2014 disabled annuitant mortality table to the Pub-2010 General/I'eachcr disabled annuitant mortality table, with adjustments. The mortality improvement scaJe was changed from Scale MPM2018 to Scale MPM2019. The assumed spouse age difference was changed from two years older for females to one year older. The assumed number ofmarried male new retirees electing the lOOVo Joint & Survivor option changed from J5%to4S%. The assumed number of manied female new retirees electing the I 00% Joint & Survivor option changed from I 5% to 30%. The corresponding mnnber of manied new retirees electing the Llfe annuity option was adjusted accordingly, 20] 9 Chanses in P1an Proyjsjons The employer supplementaJ contribution was changed prospectively, decreasing from SJ 1.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2019 Chanve, in Actuarial Assumption, The morta1ity projection scale was changed from MP-2017 to MP-2018 2018 Changes in Plan Prpyjsjons The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30,2024. Interest credited on member contributions decreased from4.00 percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective January I, 2019. Augmentation that has already accrued fro deferred members will still apply. Contribution stabilizer provisions were repealed Postretirement benefit increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment of90.00 percent funding ratio to 50.00 percent ofthe Social Security CostofLlvingAdjustment, not less than 1.00 percent and not more than I.SO percent, beginning January I, 2019. For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of90 retirees, disability bencfitrccipients,orsurvivors. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 201 R Chanpes in Actuarial Assumptions The mortality projection scale was changed fromMP-2015 to MP-2017 The assumed benefit increase was changed from 1.00 pen:ent per year through 2~ and 2.50 percent per year thereafter to 1.25 percent per year. 2017 Changes in Plan Pmvi!Uons The State's oontn'bution for the Minneaplis Employees Retirement Fund equals $16 million in 2017 and 2018 and $6 miUion thereafter The Employer Supplementa1 Contnlrution for the Minneapolis Fmployees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state's contribution changed from S 16,000,000 to $6,000,000 in calendar years 2019 to 203 I • 2017 Changes in Actuarial Assunmtjons The Combined Service Amruity (CSA) loads were changed from 0.8 percent for active membc:n and 60.0 percent for vested and nonvested deferred members. The revised CSA loads arc now zen, percent for active member liability, 15.0 pCl'CCl1t for vested defencd member liability, and 3.0 percent for nonvested defmed member lioruHty. The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044, and 2.5 percent per year thereafter. 2016 Changes in Actuprial Assmnptions The assumed post-retirement benefit increase rate was changed from 1.0 pm:errt per year through 2035, and 2.5 percent per year thereafter, to 1.0 percent per year forallyears. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 pen:ent. Other assumptions were changed pursuant to the experience study dated Jwte 30, 2015. The asswned future salary increases, payroll growth, and inflation were decreased by 25 percent to 3.25 percent for payroll growth, and 2.5 percent for inflation. 2015 Chamres in Plan Prowions On January I, 2015, the Minneapolis Employees Retirement Fund was merged in the Genera.I Employees Retirement Fund, which increased the total pension liability by SI.I bWkm and increased the fiduciary plan net position by $892 million. Up:m consolidation, state and employer contributions were revi!Cd; the state's contn'bution of$6.0 million, which meets the special fimding situation definition, was due September 2015. 20 IS Changes in Actuarial Assumptions The assumedpost-mirementbenefit increase rate was changed from 1.0 percentperyearthrough2030, and 2.5 percent per year thereafter, to 1.0 percent per year through 2035, and 2.:5 percent per year thereafter. IV-42 CITY OF BROOKLYN CENTER, MINNESOTA SCHEDULE OF CITY CONTRIBUTIONS PUBLIC EMPWYEES POLICE AND FIRE FUND Required Supplementary Information (Last Ten Years•) Statutorily Contributions in Relation Required to the Statuto~ly Required Contribution Deficieney Covered Fiscal Year Ending Contributions (a) Contributions (b) (Excessl (a-b) Payroll .. (d) December 31, 2020 $ 887,315 $ 887,315 $ $ December 31, 2019 818,676 818,676 December 31, 2018 761,952 761,952 December 31, 2017 720,865 720,865 December 31, 2016 689,601 689,601 December 31, 2015 687,935 687,935 • This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015. ** For purposes ofthis schedule. covered payroll is defined as "pensionable wages". 5,013,084 4,829,945 4,703,405 4,449,784 4,256,796 4,246,511 Contributions as a Percentage of Covered Payroll (bid) 17.70% 16.95% 16.20% 16.20% 16.20% 16.20% CITY OJ' BROOKLYN CENTER, MINNESOTA SCHEDULE OF CITY'S AND NONEMPLOYER PROPORTIONATE SHARE OF NET PENSION LIABILITY PUBUC EMPLOYEES POLICE& FIRE FUND RequlredSupplementarylDformation(LutTenYears•) -·-oftheNetPention Employer'aproportionne Liabll~andthe sllln=of'theStaleof Employa'sshaRofthe Employer'1Proporticmale Shul!oftheNetPenslOll PlenFiduciuyNet Employer'aPropartim ,_, Eq,loyer'sPropanionate Share{Arnount)oflhi NctPensionLiabilil)' Mime,ota'spn,portionate StateofMi-ia'll Employer's Liability(Ass«)ua Positlooas1 oflhe-NlltPension Uabll~ shaRoftheNet Shm,oftheNet Covered Pen:entqeofits Percen!a&eoflhe _Fi~J.Yel!!:l;!:td.!!!i, -PfflslonLlabillty PensionLlabllity ~ CovendPyroll Total Pension Liability June30.2020 J-30.2019 Jm=30.2018 June30,2017 hne30,2016 J1111e30,201!1 0.440!1% S , ....... 0.4330% 0.4410% 0.4290% ,....,,. S,806,261 $. 4,m,607 4,615,334 S,9S4,026 17,216,517 S,()67,604 136.792 S S,943,0SJ 4,m,607 4,615,334 5,954,026 17,216.!117 S,()67,604 $ 4,970,710 •This&eheduJeispresentedprospec1ivelybegimringwiththefiscalyearendedDecanber31,201!1. ••FIH'purposesofthisschedule,ooveredpayrolllsdeftned1111"pensioruiblewages". WDCheeemin4ctPedel4mPJPlkn TllemortalityJmiei:lianKUl!-chmpfiunMP.20\IIOMP-2019. 2019C:,-..,.lnN!JEiflAI.._.,.. ThemoNlllyp,qcctjanlmlc-chmpllanMP.20\710MMGII. ?OJIOw!e:c,io""11'P&lkmt ~baidlillonmawm:~lol.OOpe,cemilrllllym,s.vrilhnotrigaer. Anlllddlleoflulyl,21M3-..:lcledto11>e01islmgS9.0miUian-Ollllllbudoll. 4,729,530 4,549,4$3 4,529,519 4,121,855 4,031,138 New.....i1111ealclwlUequalS4.5millloniafbcal,-.20191111d2020.llldS9.(lm101onlhmaloruntillbcplmreaches100pac:ent8""1ng.~Ju1y1.204R.ifanler MemberconlrlbulioDSweiedloaFlton.lO.IOpen:enttoll.30pe,w,11ofpt:y,ellh:Uve.,.._,.l,2Dl9andll.lOpo=:nlofpt:y,ct'll,i,liveJon...,.1.202D. 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Themumedinu~Mleryinaases.payrollsrowdi,llldlnflallmw=docrelledt,y.25p(ftlllll.l0].2!i~lbrplynlllp,wth,and2.Spercattblnflldon. 29110!rwi'1'1Ntl'!md,,..,, Thcpast-n:tilemenlbenefilincraM1obeplidaftc:r-..mencofllle90pm:m,tfimdintllln:shald-dlanted,fiuninfllltianupto2.5pc:rcart.to1fimlmcof2.5 -20J50eosainAfll!ldelA._llkn The11111111911pOSHetlrlmenlbtllofitinCltlloellh!-ohlllpllfl'orlil.(lpallBllperyelll'dimuaJ,:Z030,ond2.5peroeatporym>thert,alm, tol.0....-,lpar,-.dmluah2037,md2.Spcr*'1pcr,-lhaalh:r. 116.81% 100.91% 101AS% 131.45% 416.98% 125.71% """' "·"" 88.80% "·""" "·"" 86.60% IV-43 CrrYOFBROOKLYNCENTER,MINNESOTA SCHEDULE OF CHANGES IN NET PENSION ASSET AND RELATED RATIO FIRE RELIEF ASSOCIATION Required Supplementary Infonnation (Last Teo Years•) ~~___2!!!!._~--1.2!,!__--2_0_15 __ Total Pndon LllblHty Service Cost 1.-st Changes in Benefit Terms Differences Between Expected and Actual Experience Changes of A.Humptions 99,907 $ 137,983 164,525 107,405 $ 98,240 171,057 191,790 18,251 (141,409) 52,746 44,974 $ 120,802 s 88,266 $ 85,904 174,191 173,219 178,242 26,709 (75,613) (50,396) 358,422 Benefit Payments ~~~~~~ 52,193 (536,161) 203,396 59,525 560,891 (353J9S) Net Change in Total Pension Liability Total Pension Liability • Beginning of Year Total Pension Liability -End ofYear 2,703,445 ~ 3,036,210 2,976,685 2.415,794 ~ ~ 2,703,445 3,239,606 3,036,210 2,976,685 ~794 PIH Fldaelary Net Potltlon Contributions -State and Local Net Investment Income Benefit Payments Administrative Expenses 165,652 503,214 (350,222) (21,707) 164,147 (236,910) (744,211) (15,708) 154,366 147,002 143,061 158,545 557,117 275,625 (181,185) 149,635 (131,608) {136,168) (59,016) {617,541) (15,024) {9,495) (14~60) (10.080) ()the, 581 • • • • - Net Change in Plan Fiduciary Net Position ~ (832,682) ~~-----mT.?OOf~ Plan FJduciaryNet Position· Beginning of Year Plan Fiduciary Net Position· End of Year 3,405,643 4,238,325 3,673,474 3,3~10 3,508,210 3,827,651 3,703,161 3,405,643 4,238.,325 3,673,474 3,396,510 3,5()8.2:10 Net Pension Liability (Asset) -End of Year Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Payroll Net Pension Liability as a Percentage of Covered Payroll (947,523) 134.4% "'' ,1, (702,198) 126.0% ,1, ,1, • 'J1i.is schedule is presented prospectively begiMing with the fiscal year ended December 31, 2015 (using a December 31, 2014 measurement date). 2020 Changes in Jkneflt Ierma The lwnp sum distribution upon retirement per year of service was changed from $7,700 to $8,500 2019 Changes in Actuarial Assumptions The discount rate was changed from 5.75% to 5.25% to reflect updated capital market assumptions. (998,719) (637,264) (419,825) 130.8% 121.0% 114.1% ,J, "1, ,1, ,1, "1, ,1, The mortality and withdrawel assumptions were updated from the rates used in the July I, 2016 Minnesota PERAPollce & Fire Plan actuarial valuation to the rates used in the July t, 2018 Minnesota PERA Police & Fire Plan actuarial valuation. The inflation assumption was u))Cl*d from 2. 75% to 2.50%. 2019 Changes In Benefit Tenns The lump sum distribution upon retirement per year of service was changed from $7,600 to $7,700 2018 Changes in Actuarial Assumptions The discount rate was changed from 6.25% to 5.75% to reflect updated capital market assumptions. 2017 Chanm in Actwujal Aswmptlgns The discount rate was changed from 5.75% to 6.25% to reflect updated capital market assumptions. 2011 Chanm m Beoefit Tenm The lwnp sum distribution upon retirement per year of service was changed from $7 ,SOO to $7,600 2016 Changes in Actuarial Agumptions The discount rate was changed from 7.oo% to 5. 75% to reflect updated capital market assumptions. (1,092,416) 145.2% ,1, ,1, CITYOFBROOKLYNCENTER.MINNESOTA SCHEDULE OF CITY CONTRIBUTIONS FIRE REUEf' ASSOCIATION Required Suppbni:mary lnfurmation (Last Ten Ye&r11) 2020 Actuariall;yDcterminedCoatribution s 67.m ContributionsinRelationtothe ActuariallyDetermmcdContribution 170,652 ContributionDdiciency{Excess) (102.879) Covered Payroll "" ContnbutionsasaPerocntageof CovcredPayroll "" NotestoScbcdule Vahiationdalc: 2019 2018 2017 Si 85,089 S 85.089 S 71.203 159,147 154.366 147,002 (74,058) (69:Z.77) (75.799) "'' .,. "'' "' "'' "'' 2016 2015 2014 ~~---1!!!.!.._ S 101,453 $ IOl.453 S 111,463 S 111,463 Si 135,929 S 183,928 143,061 ISB,S4S 134,340 151,503 101,119 165,697 (41.608) (S7.092) (22,877) (40,040) 34,810 18,231 "" "'' "'' "' "'' "'' "" "'' .,, "' "'' ,1, ActuarilJ,y detcnrilal contribution rates ie calculated as of June 3-0, two )'l'llr8 prior to the end of the fiscal year in which oontn"butions ie reported. Methods and aaumptions used to determini= oontributioo rates: Actuariiil cost method Entty age nonnal cost method Amortimtionm:lbod Straight-lineamortizatioooveraclosedS-yearperlod Ranainingamortiutiooperiod Syears Allld~omcthod Fair value Inflation 2.50% samymc:rases lnvestmentmteofretmn ............ M- Notapplicabjc S.2S%coqx:,undedannually Menlbeniareassmnedtordireatthi:lldel'ofaseSOor20yearsofservice BaedooRP-2014.AnnultantMortalityTable IV-44 PROPOSAL SALE DATE: August 23, 2021 ________________________________ Phone: 651-223-3000 * Preliminary; subject to change. Email: bondservice@bakertilly.com City of Brooklyn Center, Minnesota $8,950,000* General Obligation Improvement and Utility Revenue Bonds, Series 2021A For the Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow, we offer a price of $_________________ (which may not be less than $8,878,400) plus accrued interest, if any, to the date of delivery. Year Interest Rate (%) Yield (%) Dollar Price Year Interest Rate (%) Yield (%) Dollar Price 2023 % % % 2028 % % % 2024 % % % 2029 % % % 2025 % % % 2030 % % % 2026 % % % 2031 % % % 2027 % % % 2032 % % % Designation of Term Maturities Years of Term Maturities In making this offer on the sale date of August 23, 2021 we accept all of the terms and conditions of the Terms of Proposal published in the Preliminary Official Statement dated August 3, 2021 including the City’s right to modify the principal amount of the Bonds. (See “Terms of Proposal” herein.) In the event of failure to deliver these Bonds in accordance with said Terms of Proposal, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All blank spaces of this offer are intentional and are not to be construed as an omission. By submitting this proposal, we confirm that we have an established industry reputation for underwriting municipal bonds such as the Bonds. Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the following computations: NET INTEREST COST: $____________________________ TRUE INTEREST RATE: ______________ % The Bidder  will not  will purchase municipal bond insurance from . Account Members ______________________________ Account Manager By: ___________________________ Phone: ________________________ ........................................................................................................................................................................................................................... The foregoing proposal has been accepted by the City. Attest: _______________________________ Date: ________________________________ ........................................................................................................................................................................................................................... BR291-412-734065.v1 Extract of Minutes of Meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Brooklyn Center, Minnesota, was duly called and held by teleconference in said City on Monday, the 23rd day of August, 2021, at 7:00 o’clock P.M. The teleconference was held in accordance with Minnesota Statutes, Section 13D.021. The following members were present: and the following were absent: * * * * * * * * * The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City’s approximately $8,950,000 General Obligation Improvement and Utility Revenue Bonds, Series 2021A. The City Manager presented a tabulation of the proposals that had been received in the manner specified in the Official Terms of Proposal for the Bonds. The proposals were as set forth in Exhibit A attached. After due consideration of the proposals, Member ________ then introduced the following resolution, and moved its adoption: 2 BR291-412-734065.v1 RESOLUTION _______ RESOLUTION AWARDING THE SALE OF $8,950,000 GENERAL OBLIGATION IMPROVEMENT AND UTILITY REVENUE BONDS, SERIES 2021A FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT. BE IT RESOLVED By the City Council of the City of Brooklyn Center, Hennepin County, Minnesota (the “City”) in regular meeting assembled as follows: Section 1. Background. 1.01 The City is authorized by Minnesota Statutes, Chapters 429 and Minnesota Statutes, Chapter 475, as amended (collectively, the “Improvement Act”) to provide financing for various public street improvements in the City (the “Improvements”). 1.02 The City is authorized by Minnesota Statutes, Section 444.075 and Minnesota Statutes, Chapter 475, as amended (collectively, the “Utility Act”), to finance all or a portion of the cost of certain utility improvements of the City (the “Utility Improvements”) by the issuance of general obligation bonds of the City payable from the net revenues of the water, sanitary sewer, and storm drainage utility systems of the City. 1.03 The City is authorized by Minnesota Statutes, Section 475.60, subdivision 2(9) to negotiate the sale of the Bonds, it being determined that the City has retained an independent municipal advisor in connection with such sale. The actions of the City staff and the City’s municipal advisor in negotiating the sale of the Bonds are ratified and confirmed in all aspects. Section 2. Sale of Bonds. 2.01 Authorization. It is hereby determined that it is necessary to provide financing for the Improvements and the Utility Improvements and to finance those improvements through the issuance of the City’s $8,950,000 General Obligation Improvement and Utility Revenue Bonds, Series 2021A (the “Bonds”). 2.02. Acceptance of Offer. The proposal of ____________, __________, ________ (the “Purchaser”) to purchase the Bonds is hereby found and determined to be the most favorable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $____________ ($8,950,000.00 par amount, plus original issue premium of $____________, less underwriter’s discount of $___________), for Bonds bearing interest as follows: BR291-412-734065.v1 3 Year of Maturity Interest Rate Year of Maturity Interest Rate 2023 % 2028 % 2024 2029 2025 2030 2026 2031 2027 2032 2.03. Purchase Contract. Any amount paid by the Purchaser over the minimum purchase price shall be credited to the Debt Service Fund hereinafter created, or deposited in the accounts in the Construction Fund hereinafter created, as determined by the City Finance Director after consultation with the City’s municipal advisor. The City Finance Director is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds. The Mayor and City Manager are authorized to execute a contract with the Purchaser on behalf of the City, if requested by the Purchaser. 2.04. Terms and Principal Amounts of Bonds. The City will forthwith issue and sell the Bonds pursuant to the Improvement Act and the Utility Act (collectively, the “Act”), in the total principal amount of $8,950,000, originally dated the date of delivery, the Bonds being in fully registered form in the denominations of $5,000 each or any integral multiple thereof, numbered No. R-1 and upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: Year Amount Year Amount 2023 $870,000 2028 $895,000 2024 895,000 2029 895,000 2025 890,000 2030 905,000 2026 885,000 2031 905,000 2027 890,000 2032 920,000 $3,355,000 of the Bonds (the “Improvement Bonds”) maturing in the amounts and on the dates set forth below are being issued to finance the cost of the Improvements: Year Amount Year Amount 2023 $345,000 2028 $335,000 2024 345,000 2029 330,000 2025 340,000 2030 330,000 2026 335,000 2031 330,000 2027 335,000 2032 330,000 BR291-412-734065.v1 4 $5,595,000 of the Bonds (the “Utility Bonds”) maturing in the amounts and on the dates set forth below are being issued to finance the cost of the Utility Improvements: Year Amount Year Amount 2023 $525,000 2028 $560,000 2024 550,000 2029 565,000 2025 550,000 2030 575,000 2026 550,000 2031 575,000 2027 555,000 2032 590,000 As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory sinking fund redemption and final maturity amounts conforming to the foregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). 2.05. Optional Redemption. The City may elect on February 1, 2030, and on any day thereafter to prepay Bonds maturing on or after February 1, 2031. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant’s interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. Section 3. Registration and Payment. 3.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof is payable by check or draft issued by the Registrar described herein. 3.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing August 1, 2022, to the registered owners of record as of the close of business on the 15th day of the immediately preceding month, whether or not that day is a business day. 3.03. Registration. The City will appoint, and will maintain, a bond registrar, transfer agent, authenticating agent and paying agent (the “Registrar”). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar will keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds BR291-412-734065.v1 5 and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the 15th day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. Whenever any Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner’s attorney in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is at any time registered in the bond register as the absolute owner of such Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner’s order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds, sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the BR291-412-734065.v1 6 ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to the Registrar and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not be necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, written notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) in accordance with the requirements of DTC to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 3.04. Appointment of Initial Registrar. The City appoints Zions Bancorporation, National Association, Chicago, Illinois, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days’ notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar money sufficient for the payment of all principal and interest then due. 3.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Finance Director and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on a Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Finance Director will deliver the same to the Purchaser thereof upon payment of the purchase price in accordance with the BR291-412-734065.v1 7 contract of sale heretofore made and executed, and the Purchaser will not be obligated to see to the application of the purchase price. 3.07. Form of Bonds. The Bonds will be printed or typewritten in substantially the form set forth in Exhibit B attached hereto. 3.08. Approving Legal Opinion. The City Finance Director is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which will be complete except as to dating thereof and will cause the opinion to be printed on or accompany each Bond. Section 4. Funds and Accounts; Security; Payment. 4.01. Debt Service Fund and Accounts Maintained Therein. For the convenience and proper administration of the moneys to be borrowed and repaid on the Bonds, and to provide adequate and specific security for the Purchaser and holders from time to time of the Bonds, there is hereby created a special fund to be designated the “General Obligation Improvement and Utility Revenue Bonds, Series 2021A Debt Service Fund” (the “Debt Service Fund”). The Debt Service Fund shall be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Debt Service Fund will be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. The City will maintain the following accounts in the Debt Service Fund: the “Assessable Improvements Account” and the “Utility Improvements Account.” Amounts in the Assessable Improvements Account are irrevocably pledged to the Improvement Bonds and amounts in the Utility Improvements Account are irrevocably pledged to the Utility Bonds. (a) Assessable Improvements Account. To the Assessable Improvements Account in the Debt Service Fund there is hereby pledged and irrevocably appropriated and there will be credited: (i) proceeds of the ad valorem taxes levied under Section 4.03(a) or hereafter levied (the “Taxes”), which ad valorem taxes are pledged to the Assessable Improvements Account; (ii) capitalized interest financed from Improvement Bond proceeds, if any; (iii) a pro rata portion of the amount over the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 2.03 hereof; (iv) all investment earnings on amounts in the Improvements Account of the Debt Service Fund; and (v) any other funds appropriated for the payment of principal or interest on the Improvement Bonds. (b) Utility Improvements Account. The City will continue to maintain and operate its water, sanitary sewer, and storm drainage utility fund or funds, to which will be credited all gross revenues of the water, sanitary sewer, and storm drainage utility systems (the “Utility Systems”), and out of which will be paid all normal and reasonable expenses of current operations of such systems. Any balances therein are deemed net revenues (the “Net Revenues”) and will be transferred, from time to time, to the Utility Improvement Account of the Debt Service Fund in an amount sufficient to pay the principal of and interest on the Utility Bonds, which Utility Improvements Account will be used only to pay principal of and interest on the Utility Bonds, and any other bonds similarly authorized. There is also BR291-412-734065.v1 8 appropriated to the Utility Improvements Account (i) any collections of taxes hereafter levied for the payment of the Utility Bonds and interest thereon, (ii) a pro rata portion of any amount over the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 2.03 hereof, (iii) all investment earnings on funds in the Utility Improvements Account of the Debt Service Fund; and (iv) any other funds appropriated for the payment of principal or interest on the Utility Bonds. The Finance Director must report to the City Council any current or anticipated deficiency in the Utility Improvements Account or in the availability of Net Revenues to pay principal of and interest on the Utility Bonds and any other bonds similarly authorized. If a payment of principal or interest on the Utility Bonds becomes due when there is not sufficient money in the Utility Improvements Account in the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for the advances out of the proceeds of Net Revenues and taxes when collected. 4.02. Construction Fund. The City hereby creates the “General Obligation Improvement and Utility Revenue Bonds, Series 2021A Construction Fund” (the “Construction Fund”) to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The City will maintain the following accounts in the Construction Fund: the “Assessable Improvements Account” and the “Utility Improvements Account.” Amounts in the Assessable Improvements Account will be used to construct the Improvements and amounts in the Utility Improvements Account will be used to construct the Utility Improvements. (a) Assessable Improvements Account. Proceeds of the Improvement Bonds, less the appropriations made in Section 4.01(a) hereof, together with any other funds appropriated for the Improvements and the Taxes collected during the construction of the Assessable Improvements, will be deposited in the Assessable Improvements Account of the Construction Fund to be used solely to defray expenses of the Improvements and the payment of principal of and interest on the Improvement Bonds prior to the completion and payment of all costs of the Improvements. Any balance remaining in the Assessable Improvements Account after the Improvements are completed and the cost thereof have been paid may be used as provided in Minnesota Statutes, section 475.65, under the direction of the City Council. Thereafter, the Assessable Improvements Account of the Construction Fund is to be closed and any balance remaining therein and any subsequent collections of the Taxes for the Improvements are to be deposited in the Assessable Improvements Account of the Debt Service Fund. (b) Utility Improvements Account. Proceeds of the Utility Improvements Bonds, less the appropriations made in Section 4.01(b) hereof, will be deposited in the Utility Improvements Account of the Construction Fund to be used solely to defray expenses of the Utility Improvements. Any balance remaining in the Utility Improvements Account after the Utility Improvements are completed and the cost thereof have been paid may be used as provided in Minnesota Statutes, section 475.65, under the direction of the City Council. Thereafter, the Utility Improvements Account of the Construction Fund is to be closed and BR291-412-734065.v1 9 any balance remaining therein is to be deposited in the Utility Improvements Account of the Debt Service Fund. 4.03. Tax Levy for Improvement Bonds. For the purpose of paying the principal of and interest on the Improvement Bonds, there is hereby levied a direct annual irrepealable ad valorem tax upon all of the taxable property in the City, which Taxes will be spread upon the tax rolls and collected with and as part of other general taxes of the City. Such Taxes will be credited to the Assessable Improvements Account of the Debt Service Fund above provided and will be in the years and amounts as set forth in Exhibit C. The tax levy herein provided will be irrepealable until all of the Improvement Bonds are paid, provided that the City Finance Director may annually, at the time the City makes its tax levies, certify to the Taxpayer Services Division Manager the amount available in the Assessable Improvements Account of the Debt Service Fund to pay principal and interest due during the ensuing year on the Improvement Bonds, and the Taxpayer Services Division Manager will thereupon reduce the levy collectible during such year by the amount so certified. 4.04. City Covenants with Respect to the Improvement Bonds. It is hereby determined that the Improvements will directly and indirectly benefit certain property in the City, and the City hereby covenants with the holders from time to time of the Bonds as follows: (a) The City has caused or will cause and special assessments levied or to be levied against the property specially benefited by the Improvements (the “Assessments”) to be promptly levied so that the first installment will be collectible not later than 2022 and will take all steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The City Council will cause to be taken with due diligence all further actions that are required for the construction of each Improvement financed wholly or partly from the proceeds of the Bonds, and will take all further actions necessary for the final and valid levy of the Assessments and the appropriation of any other funds needed to pay the Improvement Bonds and interest thereon when due. (b) In the event of any current or anticipated deficiency in the Assessments and Taxes, the City Council will levy additional ad valorem taxes in the amount of the current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing: receipts and disbursements in connection with the Improvements, Assessments and Taxes levied therefor and other funds appropriated for their payment, collections thereof and disbursements therefrom, monies on hand and, the balance of unpaid Assessments. (d) The City will cause its books and records to be audited at least annually and will furnish copies of such audit reports to any interested person upon request. (e) At least 20% of the cost to the City of the Improvements described herein has been or will be specially assessed against benefited properties. BR291-412-734065.v1 10 (f) In lieu of pledging the Assessments to the payment of the principal of and interest on the Bonds, the City will pay costs of the Improvements, and thereby reduce the cost thereof financed by the Bonds, from its Special Assessment Construction Fund in an amount equal to the amount of the Assessments and will utilize the Assessments, when received to replenish Special Assessment Construction Fund in such amount. 4.05 City Covenants with Respect to the Utility Bonds. The City Council covenants and agrees with the holders of the Bonds that so long as any of the Utility Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: (a) The City will continue to maintain and efficiently operate the Utility Systems as public utilities and conveniences free from competition of other like municipal utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the accounts of the Utility Systems as hereinabove provided, and will make no expenditures from those accounts except for a duly authorized purpose and in accordance with this resolution. (b) The City will also maintain the Debt Service Fund as a separate account in the Utility Improvements Account and will cause money to be credited thereto from time to time, out of Net Revenues from the Utility Systems in sums sufficient to pay principal of and interest on the Utility Improvements Bonds when due. (c) The City will keep and maintain proper and adequate books of records and accounts separate from all other records of the City in which will be complete and correct entries as to all transactions relating to the Utility Systems and which will be open to inspection and copying by any bondholder, or the bondholder's agent or attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to all bondholders upon request. (d) The City Council will cause persons handling revenues of the Utility Systems to be bonded in reasonable amounts for the protection of the City and the bondholders and will cause the funds collected on account of the operations of the Utility Systems to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. (e) The Council will keep the Utility Systems insured at all times against loss by fire, tornado and other risks customarily insured against with an insurer or insurers in good standing, in such amounts as are customary for like plants, to protect the holders, from time to time, of the Utility Bonds and the City from any loss due to any such casualty and will apply the proceeds of such insurance to make good any such loss. (f) The City and each and all of its officers will punctually perform all duties with reference to the Utility Systems as required by law. BR291-412-734065.v1 11 (g) The City will impose and collect charges of the nature authorized by Minnesota Statutes, Section 444.075 at the times and in the amounts required to produce Net Revenues adequate to pay all principal and interest when due on the Utility Bonds and to create and maintain such reserves securing said payments as may be provided in this resolution. (h) The City Council will levy general ad valorem taxes on all taxable property in the City, when required to meet any deficiency in pledged Net Revenues. (i) The City hereby determines that the estimated collection of net revenues herein pledged for the payment of principal and interest on the Utility Bonds will produce at least 5% in excess of the amount needed to meet, when due, the principal and interest payments on such portion of the Bonds. 4.06 Registration of Resolution. The City Clerk is directed to file a certified copy of this resolution with the Taxpayer Services Division Manager of Hennepin County and to obtain the certificate required by Section 475.63 of the Act. 4.07. Debt Service Coverage. It is hereby determined that the estimated collection of the foregoing Taxes and Assessments will produce at least 5% in excess of the amount needed to pay when due, the principal and interest payments on the Improvement Bonds and the Net Revenues herein pledged will produce at least 5% in excess of the amount needed to pay when due the principal and interest payments on the Utility Bonds. 4.08. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which are available for such purpose, and such general fund may be reimbursed with or without interest from the Debt Service Fund when a sufficient balance is available therein. Section 5. Authentication of Transcript. 5.01. City Proceedings and Records. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds and such instruments, including any heretofore furnished, will be deemed representations of the City as to the facts stated therein. 5.02. Certification as to Official Statement. The Mayor, City Manager and Finance Director, or any of them, are hereby authorized and directed to certify that they have examined the Official Statement, prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is, as of the date thereof, BR291-412-734065.v1 12 a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 5.03. Other Certificates. The Mayor, City Manager, and Finance Director, or any of them, are hereby authorized and directed to furnish to the Purchaser at the closing such certificates as are required as a condition of sale. Unless litigation shall have been commenced and be pending questioning the Bonds or the organization of the City or incumbency of its officers, at the closing the Mayor, City Manager, and Finance Director, or any of them, shall also execute and deliver to the Purchaser a suitable certificate as to absence of material litigation, and the Finance Director shall also execute and deliver a certificate as to payment for and delivery of the Bonds. 5.04 Electronic Signatures. The electronic signature of the Mayor and/or the City Administrator to this resolution and to any certificate authorized to be executed hereunder shall be as valid as an original signature of such party and shall be effective to bind the City thereto. For purposes hereof, (i) “electronic signature” means (a) a manually signed original signature that is then transmitted by electronic means or (b) a signature obtained through DocuSign or Adobe or a similarly digitally auditable signature gathering process; and (ii) “transmitted by electronic means” means sent in the form of a facsimile or sent via the internet as a portable document format (“pdf”) or other replicating image attached to an electronic mail or internet message. Section 6. Tax Covenants. 6.01 Tax-Exempt Bonds. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees, or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. To that end, the City will comply with all requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments and limitations on amounts invested at a yield greater than the yield on the Bonds. 6.02. Rebate. The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States unless the Bonds qualify for an exception to the rebate requirement under the Code and related Treasury Regulations. 6.03. Not Private Activity Bonds. The City further covenants not to use the proceeds of the bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be “private activity bonds” within the meaning of Sections 103 and 141 through 150 of the Code. BR291-412-734065.v1 13 6.04. Procedural Requirements. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 7. Book-Entry System; Limited Obligation of City. 7.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 2.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (DTC). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. 7.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the “Participants”) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Registrar,) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City’s obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words “Cede & Co.,” will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Registrar and Paying Agent. 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the “Representation Letter”) which will govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Registrar subsequently appointed by the City with respect to the Bonds will BR291-412-734065.v1 14 agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC’s Operational Arrangements, as set forth in the Representation Letter. Section 8. Continuing Disclosure. 8.01. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 8.02. Execution of Continuing Disclosure Certificate. “Continuing Disclosure Certificate” means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. Section 9. Defeasance. When all Bonds (or all of either the Improvement Bonds or Utility Bonds portion thereof) and all accrued interest thereon have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution (with respect to the Improvement Bonds or Utility Bonds portion of the Bonds, as the case may be) to holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds (or all of either the Improvement Bonds or Utility Bonds portion thereof) which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full or by depositing irrevocably in escrow, with a suitable institution qualified by law as an escrow agent for this purpose, cash or securities which are backed BR291-412-734065.v1 15 by the full faith and credit of the United States of America, or any other security authorized under Minnesota law for such purpose, bearing interest payable at such times and at such rates and maturing on such dates and in such amounts as shall be required and sufficient, subject to sale and/or reinvestment in like securities, to pay said obligation(s), which may include any interest payment on such Bond and/or principal amount due thereon at a stated maturity (or if irrevocable provision shall have been made for permitted prior redemption of such principal amount, at such earlier redemption date). If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The motion for adoption of the foregoing resolution was duly seconded by Member _______, and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. BR291-412-734065.v1 16 STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) SS. ) CITY OF BROOKLYN CENTER ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Brooklyn Center, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council held on Monday, August 23, 2021, with the original minutes on file in my office on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $8,950,000 General Obligation Improvement and Utility Revenue Bonds, Series 2021A of the City. WITNESS My hand officially as such City Clerk of the City this _____ day of ___________, 2021. City Clerk City of Brooklyn Center, Minnesota A-1 BR291-412-734065.v1 EXHIBIT A PROPOSALS BR291-412-734065.v1 B-1 EXHIBIT B FORM OF BOND No. R-_____ UNITED STATES OF AMERICA $__________ STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF BROOKLYN CENTER GENERAL OBLIGATION IMPROVEMENT AND UTILITY REVENUE BOND, SERIES 2021A Rate Maturity Date Date of Original Issue CUSIP February 1, 20____ September 22, 2021 Registered Owner: Cede & Co. The City of Brooklyn Center, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (the “City”), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum set forth above on the Maturity Date specified above, unless called for earlier redemption, with interest thereon from the date hereof at the annual Rate specified above (calculated on the basis of a 360-day year of twelve 30-day months), payable February 1 and August 1 in each year, commencing August 1, 2022, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by Zions Bancorporation, National Association, Chicago, Illinois, as Registrar, Authenticating Agent and Paying Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue in the aggregate principal amount of $8,950,000, all of like original issue date and tenor, except as to number, maturity date, denomination, redemption privilege, and interest rate, issued pursuant to a resolution adopted by the City Council on August 23, 2021 (the “Resolution”), for the purpose of providing monies in part for various street improvements and various utility improvements and pursuant to and in full conformity with its home rule charter, the Constitution, and the laws of the State of Minnesota, including Minnesota Statutes, Chapters 429, 444 and 475. The principal hereof and interest hereon are payable from certain special assessments against property specially benefited by local improvements, net revenues of the water, sanitary sewer, and storm drainage utility systems and from ad valorem taxes, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and BR291-412-734065.v1 B-2 the City Council has obligated itself to levy additional ad valorem taxes on all taxable property in the City in the event of any deficiency in special assessments, net revenues and ad valorem taxes pledged, which additional taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. The City may elect on February 1, 2030, and on any date thereafter to prepay Bonds maturing on or after February 1, 2031. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify The Depository Trust Company (“DTC”) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant’s interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. IT IS HEREBY CERTIFIED AND RECITED that in and by the Resolution, the City has covenanted and agreed that it will continue to own and operate the water, sanitary sewer, and storm drainage utility systems free from competition by other like municipal utilities; that adequate insurance on said systems and suitable fidelity bonds on employees will be carried; that proper and adequate books of account will be kept showing all receipts and disbursements relating to the Utility Systems fund, into which it will pay all of the gross revenues from the water, sanitary sewer, and storm drainage utility systems; that it will also create and maintain a Utility Improvements Account within the General Obligation Improvement and Utility Revenue Bonds, Series 2021A Debt Service Fund, into which it will pay, out of the net revenues from the water, sanitary sewer, and storm drainage utility systems, a sum sufficient to pay principal of and interest on the Utility Revenue Bonds when due; and that it will provide, by ad valorem tax levies, for any deficiency in required net revenues of the water, sanitary sewer, and storm drainage utility systems. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner’s attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner’s attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Registrar will be affected by any notice to the contrary. The City has not designated the Bonds as “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. BR291-412-734065.v1 B-3 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, have happened and have been performed in regular and due form, time and manner, that prior to the issuance of this bond the City Council of the City has provided funds for the payment of principal and interest on the bonds of this issue as the same become due, but the full faith and credit of the City is pledged for their payment and additional taxes will be levied, if required for such purpose, without limitation as to the rate of amount; and that this bond, together with all other indebtedness of the City outstanding on the date of its issuance, does not exceed any constitutional or statutory limitation thereon. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Brooklyn Center, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated: ___________, 2021 CITY OF BROOKLYN CENTER, MINNESOTA City Manager Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. ZIONS BANCORPORATION, NATIONAL ASSOCIATION By Authorized Representative BR291-412-734065.v1 B-4 ________________________ ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants in common UNIF GIFT MIN ACT _____ Custodian _______ (Cust) (Minor) under Uniform Gift or Transfer to Minors Act of…………………….. (State) TEN ENT -- as tenants by entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used though not in the above list. _______________________ ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto _______________________________________ the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint ____________________ attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor’s signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: BR291-412-734065.v1 B-5 NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signatures Program (“MSP”) or other such “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Registered Owner Signature of Registrar __________, 2021 Cede & Co. Federal ID #13-2555119 BR291-412-734065.v1 C-1 EXHIBIT C IMPROVEMENT BONDS TAX LEVY BR291-412-734065.v1 STATE OF MINNESOTA TAXPAYER SERVICES DIVISION MANAGER’S CERTIFICATE AS TO COUNTY OF HENNEPIN TAX LEVY AND REGISTRATION I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a certified copy of a resolution adopted by the governing body of the City of Brooklyn Center, Minnesota, on August 23, 2021, levying taxes for the payment of $8,950,000 General Obligation Improvement and Utility Revenue Bonds, Series 2021A, of said municipality dated September 22 , 2021 has been filed in my office and said bonds have been entered on the register of obligations in my office and that such tax has been levied as required by law. WITNESS My hand and official seal this _____ day of _______, 2021. Taxpayer Services Division Manager Hennepin County, Minnesota (SEAL) Deputy C ouncil R egular M eeng DAT E:8/23/2021 TO :C ity C ouncil F R O M:D r. Reggie Edwards, A c#ng City Manager T H R O U G H :N/A BY:D r. Reginald Edw ards , C ity M anager S U B J E C T:Res olu#on A ppoin#ng Repres enta#ves and A lternates to Par#cipate in the Joint A irport Zoning Board (JA Z B) Requested Council A con: - A ppoint tw o individuals to the Metropolitan A irports C ommission J oint A irport Zoning Board (JA Z B) and idenfy up to two individuals as alternate members. B ackground: The M etropolitan A irports C ommis s ion (M A C ) intends to es tablish a Joint A irport Zoning Board (JA Z B) to develop and implement an A irport S afety and L and U s e Zoning O rdinance (A irport Zoning O rdinance) for the C rys tal A irport, as the exis#ng ordinance is from 1983. G iven the age of said ordinance, updates to s tate s tatute, C rys tal A irport development, and M A C airport compliance requirements from M nD O T, M A C is reques #ng tat all affected ci#es appoint two repres enta#ves to par#cipate in a new ly formed JA Z B, with an opinion to appoint two other individuals as alternate members . M innesota s tate s tatute requires an affected municipality to join the JA Z B by adop#on of an ordinance or resolu#on. The intent is to hold the firs t JA Z B mee#ng in S eptember or O ctober 2021. A ddi#onal mee#ngs w ould follow ing in O ctober/November 2021 (Mee#ng 2), and another JA Z B mee#ng s ome#me in early 2022. I f the City does not elect to join the JA Z B w ithin 60 days of receipt of the request le?er, the City w ould not be able to have a vote on the revised z oning overlay language, w hich the board will be crea#ng. A ll affected ci#es are required to adopt an airport s afety overlay ordinance, regardles s of their par#cipa#on in the overlay board. The JA Z B w ill cons is t of tw o repres enta#ves from each affected community and two representa#ves from M A C . The communi#es par#cipa#ng are C rys tal, Brooklyn Park, Brooklyn Center, New H ope, Robbins dale and M inneapolis . Tonight, s taff is asking that the C ity C ouncil iden#fy two representa#ves to par#cipate in the JA Z B. A ls o, you can iden#fy up to tw o individuals as alternate members who can s erve in the event that a primary member is absent. Becaus e this is a z oning overlay for the City of Brooklyn Center, staff is reques #ng G inny McI ntos h s erve as one of the individual on the board and O livia Boers chinger serve as an alternate. B udget I ssues: None. I nclusive C ommunity Engagement: None A nracist/Equity Policy Effect: None S trategic Priories and Values: S afe, S ecure, S table C ommunity, O pera#onal Excellence AT TA C H M E N TS : D escrip#on U pload D ate Type Res olu#on 8/17/2021 Resolu#on Le?er M etropolitan A irport C ommis s ion 8/17/2021 Backup M aterial Member introduced the following resolution and moved its adoption: CITY OF BROOKLYN CENTER RESOLUTION NO. _______________ AUTHORIZING THE CREATION OF A JOINT AIRPORT ZONING BOARD WHEREAS, The City of Crystal, hereinafter called the Municipality, owns and controls the Crystal airport; and WHEREAS, Portions of the airport hazard area adjacent to the airport are located outside the territorial limits of said Municipality but within the territorial limits of this City of Brooklyn Center; and WHEREAS, The above Municipality has requested in writing that we join with them in the creation of a Joint Airport Zoning Board; and WHEREAS, This City deems it necessary and expedient to create a Joint Airport Zoning Board in cooperation with the above Municipality pursuant to Minnesota Statutes Section 360.063, Subdivision 3, and other applicable laws for the purpose of establishing, administering and enforcing zoning laws for the areas surrounding the airport and for the protection of the airport and the public; and WHEREAS, The above statute provides that this City has the right to appoint two (2) persons to said Board (said persons should not be members of this Board); and WHEREAS, Subdivision. 3 of Section 32 of the Appropriations Bill passed by the Minnesota Legislature effective July 1, 1973, provides that no moneys shall be expended by the Commissioner of Transportation of the State of Minnesota to improve and maintain an airport unless the governmental unit owning the airport has or is establishing a zoning authority for the airport. NOW, THEREFORE, BE IT RESOLVED By the undersigned City as follows: 1. That there is hereby created in cooperation with the above Municipality a Joint Airport Zoning Board to be composed of representatives of the undersigned City and representatives of the above Municipality pursuant to Minnesota Statutes Section 360.063, Subdivision 3. 2. That the undersigned City hereby appoints (said persons should not be members of this Board) ________________________ and ________________________ to be its representatives on said Board, said persons to serve for an indefinite term until they resign or are replaced by the undersigned City. RESOLUTION NO. _______________ August 23, 2021 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Member introduced the following resolution and moved its adoption: RESOLUTION NO. _______________ RESOLUTION BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1. 2. July 25, 2009 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. C ouncil R egular M eeng DAT E:8/23/2021 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :N/A BY:M ayor M ike Ellio* S U B J E C T:A ppoint a P roject Manager for C ommunity S afety & V iolence P reven5on I mplementa5on C ommi*ee Requested Council A con: B ackground: B udget I ssues: I nclusive C ommunity Engagement: A nracist/Equity Policy Effect: AT TA C H M E N TS : D escrip5on U pload D ate Type J ob D es crip5on 8/20/2021 Backup M aterial Res olu5on 8/20/2021 Resolu5on Le*er M O U 8/20/2021 Backup M aterial Exhibit A Project Coordinator to Assist In The Implementation of the Public Safety Act Position Description This position reports directly to the Mayor and will coordinate projects for the Implementation Process for the Daunte Wright and Kobe Dimock-Heisler Community Safety & Violence Prevention Act. The position will help develop the scope of work and timelines for the Implementation Committee and its subcommittees, serve a coordinating role with partners, and build relationships with stakeholders, to help ensure the resolution is fully implemented in a timely manner. A selection of duties include: Manage and coordinate a community oriented public safety resolution implementation process that includes all related stakeholders. This will include activities such as community participation, public information sessions, technical assistance, and communication. Provide information and technical expertise, advice, and service to individuals, groups, and organizations serving on the Implementation Committee and its subcommittees. Lead partners in collecting, organizing, analyzing, and reporting performance measurement data, information, and research results. Prepare and make presentations on the work of the Implementation Committee for and to a variety of audiences. This includes elected officials, senior management, and community groups. Supervision: This position will supervise assigned staff such as the two Fuse fellows. Prepare and manage all aspects of the assigned Implementation Committee budget. Additional background info: Contacts for this position include: Implementation Committee members, senior management staff, City staff at all organizational levels, elected officials, community members and groups, boards, commissions, interagency groups, volunteers, and the general public. Contacts are established and maintained for short and long range planning, communication of program activities and services, project coordination, effective teamwork, policy development, and information exchange. Member Mayor Mike Elliott introduced the following resolution and moved its adoption: RESOLUTION NO. 2021-______ RESOLUTION ESTABLISHING THE POSITION OF PROJECT COORDINATOR TO ASSIST IN THE IMPLEMENTATION OF THE PUBLIC SAFETY ACT WHEREAS, the Brooklyn Center City Council adopted Resolution No. 2021-___ establishing the Public Safety Act (“Act”) to direct the development and implementation of various reforms to improve the delivery of public safety services in the community; and WHEREAS, the Act provides for the establishment of an Implementation Committee (“Committee”) to assist in the development of the safety measures and appoints the Mayor to serve as chair of the Committee; and WHEREAS, coordinating the work of the Committee, and the implementation of the Act generally, will be a significant undertaking that the City Manager reports will exceed the workload capacity of the City’s current staff members; and WHEREAS, the City Council determines it is in the best interests of the City to establish the position of Project Coordinator to work with the Committee and coordinate the implementation of the Act; and WHEREAS, the duties of the Project Coordinator are set out in the attached Exhibit A; and WHEREAS, the City Manager has worked with the City Attorney to prepare the memorandum of understanding (“MOU”) attached hereto as Exhibit B to address the establishment of legislative aide positions in the City that are assigned to particular elected official to assist in the performance of their legislative functions as described in the resolution establishing the position; and WHEREAS, the City Council determines that establishing a process to provide for and manage legislative aide positions as provided in the MOU is consistent with City Charter as it provides direct assistance to elected officials as the City Council determines is appropriate without interfering with City operations as directed by the City Manager; and WHEREAS, the Project Coordinator is a legislative aide position that will work directly with the Committee, shall be assigned to the Mayor’s Office, and shall be managed in accordance with the terms of the MOU. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brooklyn Center as follows: 1. The MOU is approved for the establishment and management of legislative aide positions in the City. The Mayor is authorized to execute the MOU on behalf of the City Council. 2. The position of Project Coordinator is hereby established for the City effective immediately and the position shall be assigned to the Mayor’s Office. 3. The description for the Project Coordinator position attached hereto as Exhibit A is approved. 4. The starting salary for the position shall be commensurate with the person’s experience and consistent with the City’s policies, but shall not exceed $______________. 5. The position shall be hired and managed in accordance with the MOU. 6. The position shall be posted in a manner that promotes equity and invites applicants of diverse backgrounds. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 1 4\726755.v5 MEMORANDUM OF UNDERSTANDING REGARDING CITY LEGISLATIVE AIDE POSITIONS This Memorandum of Understanding (“MOU”) is entered into this ___ day of ___________ 2021 by and between the Brooklyn Center City Manager (“Manager”) and the Brooklyn Center City Council (“Council”). RECITALS A. The City Council recognizes the need to provide for the establishment of positions as needed to assist in the legislative functions of the members of the City Council. B. The Council recognizes legislative or policy aide positions are political in nature and do not operate in a traditional City employee role. C. The Council determines it is in the best interests of the City and its operations to set out a process for the establishment, selection, and management of City employees assigned to assist one or more elected officials of the City (“Elected Officials”) in the performance of their duties for the City. For the purpose of this MOU, all such position shall be referred to generally and collectively as a legislative aide (“Legislative Aide”) position. D. The City Charter does not expressly address Legislative Aide positions established to directly support Elected Officials, or how they are to operate within the City. E. The Council acknowledges that Section 6.02, Subdivision 3 of the City Charter indicates the Manager appointments and removes all City employees, and Section 2.09 prohibits the Council from interfering with the Manager’s administration of the City’s affairs. F. The Council also recognizes the person serving in a Legislative Aide position works directly with the assigned Elected Officials and so input from the Elected Officials in the selection of the person to fulfill that role is necessary to achieve a successful working relationship. G. The purpose of this MOU is to set out how Legislative Aide positions are established, selected, and managed so they can fulfill their duties while not interfering with the management of City operations. AGREEMENT The Council and the Manager hereby agree as follows: 1. Establishment. The Council establishes a Legislative Aide position by resolution. The resolution shall include a position description, specifically identify the Elected Officials to which the position is assigned, the duties of the position, the maximum starting salary, and such other information as the Council determines is necessary to describe the role and duties of the Legislative Aide position being established. All Legislative Aide positions established 2 4\726755.v5 by the Council shall be selected and managed as provided in this MOU, are at-will employees of the City, and are subject to the City’s employment policies and practices. 2. Selection. The Elected Officials to which a Legislative Aide position is assigned shall have the opportunity to participate in the interview of candidates for the position along with the Manager. The assigned Elected Officials may provide their comments and recommendations on candidates to the Manager. The Manager hires the Legislative Aide, but agrees to hire the person selected by the assigned Elected Officials, provided such hiring is consistent with the City’s employment policies and applicable laws. If the Legislative Aide position is assigned to more than one Councilmember, the person recommended by the majority of such Elected Officials shall be selected for the position. 3. Management. Legislative Aides report to and are managed by the Elected Officials to which they are assigned. Legislative Aides are subject to the City’s personnel policies, except that such positions are not managed by the Manager or other City staff. The assigned Councilmember shall conduct performance reviews of the Legislative Aide and report the outcomes of such reviews to the Manager for inclusion in the person’s personnel file. The assigned Elected Officials are responsible for managing the position consistent with the City’s employment policies and applicable federal and state laws. Any questions regarding the management of a position may be directed to the Manager, City Attorney, or the director of Human Resources. Legislative Aides shall be classified as non-represented City employees and are entitled to the same benefits and pay increases as the City’s other non- represented employees. 4. Discipline or Removal. If, for any lawful reason, the assigned Elected Officials determine the person serving as their Legislative Aide needs to be disciplined or removed as a result of not fulfilling the duties or expectations of the position, the assigned Elected Officials shall direct the discipline or dismissal of the person if deemed appropriate and consistent with the City’s personnel policy by the City Manager. The Elected Officials and the City Manager may consult with the City Manager, Director of Human Resources, and the City Attorney as needed regarding matters of discipline and removal. 5. Non-Interference. The role of a Legislative Aide is to work directly with and assist the Elected Officials to which they are assigned. A Legislative Aide shall comply with all of the following in carrying out the duties of the position. The assigned Elected Officials agree not assign duties or direct the Legislative Aide in a way that would violate any of the following. (a) Legislative Aides shall not interfere with the Manager’s management of City operations or City staff. (b) Legislative Aides shall not direct or attempt to direct City staff. Legislative Aides may request information from staff, but only to the extent such information is readily available to staff, does not require a signification amount of effort on the part of staff to provide the information, and does not require the creation of data to fulfill the request. Any request for information that exceeds the limits of this provision shall be made to the Manager. 3 4\726755.v5 (c) All request for assistance from City staff, other than the request for information addressed above, shall be made through the Manager. 6. Budget. Each Legislative Aide position established by the Council shall be included as part of the Mayor/Council portion of the City’s budget. 7. Dispute Resolution. This MOU establishes an understanding between the Council and the Manager for how Legislative Aides are selected and managed, which depends on an on-going cooperative relationship between the assigned Elected Officials and the Manager. However, if concerns arise in the relationship, they shall be reported and managed in accordance with the following. Nothing in this section limits the ability of a Legislative Aide to report any suspected violation law or policy with respect to their position in accordance with the personnel policy or applicable laws. (a) Legislative Aide Report. If a Legislative Aide believes the Manager or other staff are attempting to mange or direct them, the person shall report any such incidences to the assigned Elected Officials. The assigned Elected Officials shall discuss the issue with the Manager in an attempt to seek resolution. If the issue is not resolved, the assigned Elected Officials may report the matter to the Council for review and direction. (b) Manager Report. If the Manager believes the assigned Elected Officials or the Legislative Aide are engaged in any activities that violate this MOU, the Manager shall discuss such concerns with the assigned Elected Officials in an attempt to seek resolution. If the issue is not resolved, the Manager may report the matter to the Council for review and direction. 8. Review of MOU. The Manger and Council agree it is important to review this MOU periodically to ensure its terms are being complied with and to identify the need for any amendments. Either the Manager or the Council may submit this MOU for review and discussion at a Council work session. 9. Amendments. This MOU may be amended in writing by mutual agreement of the Council and the Manager. This MOU is entered into and is effective as of the date first indicated above. BY THE CITY COUNCIL BY THE CITY MANAGER ______________________________ __________________________________ Mike Elliott, Mayor Dr. Reggie Edwards, Acting City Manager Date:_______________________ Date:__________________________ C ouncil R egular M eeng DAT E:8/23/2021 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :N/A BY:M ayor M ike Ellio* S U B J E C T:Res olu-on Establis hing The Pos i-on of Policy A ide to P rovide H igh L evel A dminis tra-ve S upport to the M ayor Requested Council A con: - A pprove Resolu on Establishing The Posi on of Policy A ide to P rovide H igh Level A dministra ve S upport to the M ayor B ackground: B udget I ssues: I nclusive C ommunity Engagement: A nracist/Equity Policy Effect: AT TA C H M E N TS : D escrip-on U pload D ate Type J ob D es crip-on 8/20/2021 Backup M aterial resolu-on 8/20/2021 Resolu-on Le*er Exhibit A Policy and Administrative Aide Provide High Level Support To The Office of Mayor Position Description: This position provides high-level administrative support to the Mayor. The position conducts research, scheduling, provides constituent services and other related duties. Supervision: This position reports directly to the Mayor and supervise interns to the Mayor’s office. A selection of duties include: Conduct required research and provide documentation that is needed for decisions on critical issues. Provide critical information and documentation to inform the Mayor and City Council in their decisions by conducting topical research as required. Manage the Mayor's calendar, including overseeing intake of all event and meeting requests for the Mayor. Prepare the schedule and scheduling materials for the Mayor. Manage and respond to all constituent inquiries. Oversee the Mayor’s media and non- media communications including, print and television, official Mayoral letters, proclamations, and thank you notes. Manage the Mayor's office expenses, ensure proper coding, and coordinate processing with the Finance Department. Review all documents for the Mayor’s signature. Additional responsibilities: Maintain a strong working knowledge of City programs, functions, and services in order to expeditiously respond to public inquiries. Communicate effectively with persons who may not speak English and are from a variety of different cultures. Deal tactfully and effectively with all City personnel, outside agencies, vendors, and the general public. Establish and maintain relationships with other employees and positive public service relationships with members of the general public. Effectively represent the Mayor’s office when in meetings with governmental agencies; community groups; various business, professional, and regulatory organizations; and in meetings with individuals. Member Mayor Mike Elliott introduced the following resolution and moved its adoption: RESOLUTION NO. 2021-______ RESOLUTION ESTABLISHING THE POSITION OF POLICY AIDE TO PROVIDE HIGH LEVEL ADMINISTRATIVE SUPPORT TO THE MAYOR WHEREAS, the Mayor serves as the official elected head of the City, presides over City Council meetings, and is the primary point of contact for constituents, organizations, stakeholders, and governmental entities; and WHEREAS, the Mayor is responsible to constituents and is a primary point of contact for citizens seeking city government assistance; and WHEREAS, the needs of constituents experiencing hardship due to difficulties posed by the pandemic has amplified this need and increased pressures/demands on the Office of Mayor; and WHEREAS, the Mayor is paid at a part time rate for an unspecified amount of hours, but approximately 5 to 10 hours per week, when the actual workload is more than 40 hours per week, additional support is needed to fulfill the duties of the Office of Mayor; and WHEREAS, the City Council determines establishing a Policy and Administrative Aide (“Policy Aide”) position is in the best interests of the City; and WHEREAS, the Policy Aide position will: (a) Improve constituent services by assisting the Mayor’s Office to help citizens obtain specific benefits or resolve their problems with city departments and external government agencies; (b) Help to manage the workload of the Mayor’s Office by taking responsibility for the calendar and scheduling critical meetings with internal and external partners, stakeholders, as well as external regional, state, and federal governmental entities; and review documents requiring the Mayor’s signature in order to facilitate a more expedited process; (c) Improve flow of Council meetings by helping the Mayor prepare, with support in coordinating the logistics, flow, and timing of presiding over Council meetings; and provide support in tracking concerns raised at Council meetings for follow up; (d) Improve policy development by conducting required research and providing documentation on critical issues; and provide information and documentation to inform the Mayor and Council in their decisions by conducting topical research as required; and (e) Provide increased capacity to maintain relations with external governmental units and help secure resources for Brooklyn Center by providing critical support for communication with regional, state and federal governments agencies; and, provide critical support in identifying Metropolitan Council, County, and State legislative agenda items aligned with city priorities for securing funds, including state bonding bills; and WHEREAS, the Policy Aide position is an extension of the Mayor’s Office and so can be managed directly by the Mayor, but still within and consistent with applicable laws and the City’s personnel and other employment policies. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brooklyn Center as follows: 1. The position of Policy Aide is hereby established for the City effective immediately. 2. The description for the Policy Aid position attached hereto as Exhibit A is approved. 3. The starting salary for the position shall be commensurate with the person’s experience and consistent with the City’s policies, but shall not exceed $______________. 4. The position shall be hired and managed in accordance with the Memorandum of Understanding entered into between the City Council and the City Manager. 5. The position shall be posted in a manner that promotes equity and invites applicants of diverse backgrounds. 6. Council members will have access to this position for policy research and preparations for interviews or responses to media inquiries through the Mayor, in accordance with best management practices. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Council/E D A Work S ession V I RT UA L meeting being conducted by electronic means in accordance with Minnesota S tatutes, section 13D.021 P ublic portion available for connection via telephone Dial: 1-312-626- 6799 Meeting I D: 86505454202# Passcode: 830981## A ugust 23, 2021 AGE NDA AC T I V E D I S C US S IO N I T E M S P E ND I NG L I S T F O R F UT URE WO RK S E S S IO NS