Loading...
HomeMy WebLinkAbout2023 09.11 CCM REGULAR SESSION9/11 /23 -1- 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 SEPTEMBER 11, 2023 CITY HALL – COUNCIL CHAMBERS 1. INFORMAL OPEN FORUM WITH CITY COUNCIL CALL TO ORDER INFORMAL OPEN FORUM The Brooklyn Center City Council met in an Informal Open Forum called to order by Mayor April Graves at 6:44 p.m. ROLL CALL Mayor April Graves and Councilmembers Marquita Butler, Kris Lawrence-Anderson, Dan Jerzak, and Teneshia Kragness. Also present were City Manager Reggie Edwards, Director of Fiscal & Support Services Angela Holm, Community Development Director Jesse Anderson, Assistant City Manager/City Clerk Barb Suciu, and City Attorney Jason Hill. Mayor April Graves opened the meeting for the purpose of an Informal Open Forum. Julie B. stated that several community members are interested in bringing back fireworks. She asked what was previously spent on fireworks. It can be extremely expensive. Also, fireworks harm the environment, such as the bees. Julie B. added she would like the Council to receive formal education about grants and how they work. The Council needs a concrete understanding regarding grants to make informed financial decisions. Diane S. asked for the previous year's random acts of kindness nominations to be reflected in some minutes. Also, the nominees were not given details of if their nomination went through, nor did the nominees receive details about why they were nominated. Councilmember Lawrence- Anderson stated that the Council plans to discuss the event in the near future. Randy C. reminded everyone the budget went up 5.9 percent and the levy was 6.9 percent. It is unclear what happened to the one percent difference. Councilmember Jerzak moved, and Councilmember Kragness seconded to close the Informal Open Forum at 6:59 p.m. Motion passed unanimously. 9/11/23 -2- Recess and Reconvene Mayor Graves called for a brief recess at 6:55 p.m. She reconvened the meeting to order at 7:02 p.m. 2. INVOCATION Mayor Graves stated it has been nine months since being elected as Mayor. It has been hard. She has often felt frustrated in her role, but many circumstances have given her joy and hope. She has felt very underappreciated between her full-time job doing violence prevention and serving as Mayor. She explained she is grateful for the Staff, fellow Councilmembers, and community of Brooklyn Center. She asked everyone to put aside their differences to consider what is best for the whole community. Mayor Graves explained her full-time role has been pushed out of the Public Health Department, and her team feels unsupported and discouraged. She has felt similarly regarding the work the Council has been doing. It takes a toll for her to put her best into the role, and she has sacrificed countless times with her family to better Brooklyn Center. Mayor Graves stated she found some poetry she wrote ten years ago. She read the two poems for her invocation. 3. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in a Regular Session called to order by Mayor April Graves at 7:13 p.m. 4. ROLL CALL Mayor April Graves and Councilmembers Marquita Butler, Kris Lawrence-Anderson, Dan Jerzak, and Teneshia Kragness. Also present were City Manager Reggie Edwards, Director of Fiscal & Support Services Angela Holm, Community Development Director Jesse Anderson, Assistant City Manager/City Clerk Barb Suciu, and City Attorney Jason Hill. 5. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 6. APPROVAL OF AGENDA AND CONSENT AGENDA Mayor Graves moved, and Councilmember Jerzak seconded to approve the Agenda and Consent Agenda, as amended, and the following consent items were approved: 6b. LICENSES 9/11/23 -3- MECHANICAL Action Heating & A/C 8140 Arthur Street NE Spring Lake Park 55432 Metro Heating, Cooling, 16890 Welcome Avenue SE, Plumbing & Electrical LLC Prior Lake 55372 O'Boys Heating & Air 12328 Peony Lane, Rogers 55374 Recher HVAC 1125 Mississippi Drive N, Champlin 55316 Top Tier Heating and Air 16015 Central Avenue NE, Conditioning Ham Lake 55304 RENTAL INITIAL (TYPE IV – six-month license) 5956 Beard Avenue N Hp Minnesota I Llc INITIAL (TYPE III – one-year license) 4224 Winchester Lane Estherra Properties INITIAL (TYPE II – two-year license) 7219 Girard Avenue N R & M Real Estate RENEWAL (TYPE IV – six-month license) 3513 47th Avenue N 6939 Baird Llc 5500 Bryant Avenue N N Mejia-morales & V Idrovo 4201 Lakeside Avenue N, #104 Jmg Property Llc 2618 64th Avenue N SFR II BORROWER 2021-3 LLC 3701 66th Avenue N Victor O Ogunbanwo 4213 63rd Avenue N Buster F Fallah 6424 Marlin Drive CJ Bright & QK Fank 6937 Palmer Lake Drive W Michael T Brooks RENEWAL (TYPE III – one-year license) 5200 63rd Avenue N Smc Real Estate Llc 9/11/23 -4- 5510 France Avenue N Iasis I LLC 6620 Bryant Avenue N Vera Dixon RENEWAL (TYPE II – two-year license) 6212 Chowen Avenue N Doreen Kalema RENEWAL (TYPE I – three -year license) 3614 50th Avenue N Devlin Wubbena 5006 Howe Lane AUX FUNDING LLC 6009 Aldrich Avenue N RRE Ventures LLC 6325 Brooklyn Boulevard Obafemi Oladeji & Olajumoke Oladeji 6512 Indiana Avenue N Carlos Bunay 7225 Kyle Avenue N Bikona Ontime Service 6c. AN ORDINANCE NO. 2023-07; AMENDING CHAPTER 35 OF THE CITY CODE OF ORDINANCE REGARDING APPLICATION REQUIREMENTS FOR LAND DISTURBANCE PERMITS 6d. RESOLUTION NO: 2023-83; REQUESTING AN AMENDMENT TO THE BYLAWS OF THE CITY OF BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION TO INCREASE THE LUMP SUM BENEFIT TO $12,000 PER YEAR Motion passed unanimously. 7. PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS 7a. NORTHWEST TOURISM PRESENTATION Dr. Edwards introduced the item and invited Cyd Haynes, the Interim CEO of Minneapolis Northwest Tourism, to continue the presentation. Ms. Haynes explained the mission is to support the community's economy by promoting its unique attributes to attract visitors and create meaningful experiences in Minneapolis Northwest. Visitors spend about 30 percent on lodging. Brooklyn Center has a lodging tax revenue of six percent, three of which go to the general fund and three percent to Minneapolis Northwest Tourism. In Brooklyn Center, there are ten hotels with 1,075 rooms. In Brooklyn Park, there are four hotels with 559 rooms. However, the average daily rate in Brooklyn Park is somewhat higher. Therefore, about half the funding for Minneapolis Northwest comes from each City. 9/11/23 -5- Ms. Haynes showed a graph depicting the occupancy rates from 2019 through 2022. 2022 ended within 5 percent of the 2019 rates. 2023 occupancy rates are expected to increase by ten percent on average. Ms. Haynes stated Northwest Tourism has completed a number of marketing actions through the website, social media, media coverage, visitor guides, hotel placement, and local business support. She showed samples of email newsletters, native ads, blogs, and television coverage. There was a culinary tour that successfully showcased the area's diversity. Ms. Haynes noted Northwest Tourism continues to work closely with hotels to promote local restaurants. The Google profiles project and Google transformations are ongoing to improve impressions of visitor-facing businesses. Ms. Haynes stated they attend conventions year-round. There was a focus on sports with the conventions. They also awarded nine event assistance fund awards. It only cost the Tourism group $10,000, resulting in $446,000 in economic impact. Ms. Haynes explained that 74 leads were sent to hotels. The economic impact was $6.85 million. The 2023 focus is less on sports and more on cultural tourism. Ms. Haynes pointed out 202 organizational action highlights, including stakeholder assessment, new bylaws, strengthened relationships with member cities, Culinary Tour event, hospitality rockstar, and visitor analytics data. Ms. Haynes explained visitor analytics focused on mapping visitors outside the Twin Cities. About 75 percent of visitors to Edinburgh stayed in a hotel within Minneapolis Northwest. However, only 37 percent of Topgolf visitors stayed in Minneapolis or Bloomington. Analytics were used to track visitor behavior, deliver proofs for initiatives, create new initiatives, crime deterrence, and assist businesses in understanding customer reach. Ms. Haynes showed the progression of the budget from 2022 to the present. The budgets ranged from $1.2 million to $1.4 million. Staffing varied from 3 to 4.5 full-time positions. The expected 2024 budget is $1.437 million. Highlights include organizational stability, strategic planning, content development, Mississippi River highlights, local business partnerships, hotel partner support, GPS analytics, event creation, connector programming, and increased prospecting of cultural tourism. Councilmember Lawrence-Anderson thanked Ms. Haynes for the presentation and noted she has done a great job to support both Brooklyn Center and Brooklyn Park. Mayor Graves asked for an overview of the revisioning process. Ms. Haynes stated three major themes from the process: rebranding the area to be seen as one entity, highlighting cultural diversity, and restructuring some governance groups. Councilmember Kragness agreed the Minneapolis Northwest Tourism Group has done a great job. 9/11/23 -6- 7b. 2024 PRELIMINARY BUDGET Dr. Edwards presented a budget overview in the August 30, 2023, City Council-Financial Commission Joint Work Session that included operating budget policies, revenue policies, budget goals and outcomes, market value trends, and property tax implications. Subsequent Joint Work Sessions held on July 22 and August 19 were dedicated to budget request presentations by department directors. Dr. Edwards noted the preliminary review of the 2024 budget, based on departmental requests, would have required a levy increase of approximately $3,800,000, which is 19.22 percent. Since then, Staff worked to reduce the preliminary levy by $1,871,493, resulting in a preliminary levy increase of 8.5 percent. The levy can be reduced, but it cannot be increased. Dr. Edwards pointed out there are a number of considerations going into the budget process. The community is still healing from previous years' unprecedented events. Also, the market and economy are difficult. Staff also heavily relies on the strategic priorities and direction of the Council. The budget must also consider the context; Brooklyn Center is a very dense community with a high concentration of poverty. Dr. Edwards stated the proposed budget was developed to balance the needs for economic growth, health and well-being of people, longer-term fiscal stability, pursuit of City Council direction, and providing City services at an affordable cost for residents. Dr. Edwards stated the vision for Brooklyn Center is as a thriving, diverse community with a full range of housing, business, cultural, and recreational offerings while being a safe and inclusive place that people of all ages love to call home and visitors enjoy due its convenient location and commitment to health development. The mission of Brooklyn Center is to ensure an attractive, clean, safe, and inclusive community that enhances the quality of life for all people and preserves the public trust. Dr. Edwards stated Brooklyn Center has values of customer intimacy, meaning a commitment to serving each customer with dignity and respect, which requires seeking to understand the needs of each customer and deliver quality service that will be understood and appreciated, and operational excellence, which is a commitment to delivering quality services cost-effectively and efficiently and to be good stewards of the limited resources made available by the citizens. Dr. Edwards explained City outcomes include the existence of a healthy and safe residence, a healthy and safe youth and their environment for seven generations to come, equitable and diverse businesses, an equitable, stable, and diverse tax base, a public trust, people feeling welcomed, residents feeling a sense of community pride, equitably diverse housing without gentrification or displacement, an increased household median income without harm, and a clean and safe human environment. Dr. Edwards added the strategic priorities of the City are an enhanced community image, resident economic stability, inclusive community engagement, inclusive community engagement, targeted 9/11/23 -7- redevelopment, safe, secure, and stable community, and key transportation investments. Dr. Edwards pointed out the 2024 budget strategies include balanced strategic direction and fiscal capacity, fulfillment of State Statutes, maintaining and sustaining current operations, staff stability, public safety, and advancing strategic priorities and operational opportunities. Dr. Edwards noted priorities shared by the participants in a recent joint City Council/Financial Commission meeting. The top four were a three percent increase in staff wages, a 24-hour duty crew, fleet maintenance replacement, and the addition of a Police Sergeant. Other priorities included adding two police officers, winter salt and sand, a Deputy City Manager, crime prevention and intervention programming, and a 0.75 Litter/Public Art position. Dr. Edwards stated the operational increase for 2024 is proposed at $1.12 million, which is a 4.98 percent increase. This amount is the minimum requirement to maintain services. The new proposed levy increase is $2.68 million, an 11.9 percent levy. In 2024, the total requested levy increase is 16.88 percent, combined with the operational cost increase and the new proposed levy increase. The proposed 2024 levy increase is 8.5 percent, reflecting $1.9 million. The total requested levy increase in 2023 was 17.2 percent, but the actual levy increase was 6.9 percent. Dr. Edwards stated there are a number of factors influencing the 2024 budget. There are lower revenue calculations with a decrease of $1.2 million due to permit fees. There is a lower employee vacancy rate, which results in an excess of only $200,000. Lastly, the decreased lodging tax results in a loss of revenue of $200,000. Overall, there is a lower fiscal capacity of the City. Dr. Edwards pointed out there are a number of proposed 2024 budget highlights. $197,000 is allocated for two full-time firefighters for a 24-hour duty crew. Staff cost of living and market adjustment wage increases require $1 million. The fleet vehicle replacements and Central Garage projects would cost $219,000. Also, the necessary winter salt and sand increase is $62,000. Dr. Edwards showed a list of unfunded proposed items—the first couple allowed for savings. First, $750,000 was for 2024 operational budget increases due to maintained 2023 expenditures and $97,000 for a frozen Performance Analyst position. However, unfunded proposed items included a $100,000 asphalt recycler, $81,000 for an Administrative Assistant, $167,000 for a Deputy City Manager, $40,000 for a 0.50 full-time Utility Tech, $75,000 in crime prevention and intervention funding, two additional full-time police officers at $216,000, one full-time Police Sergeant at $162,000, one full-time Police Evidence Technician at $80,000, $80,000 for a 0.75 Litter/Public Art position, a part-time seasonal worker wage increase, and a City celebration for $50,000, which an enterprise fund would fund. Director of Fiscal and Support Services Angela Holm explained that the City's current budget policies provide a basic framework and assist in the decision-making process. Policies include a balanced budget; current revenue should pay for current expenses, contingency of up to five percent of the budget, providing adequate funding for capital replacement & maintenance, budget should describe goals, services, and programs, and a targeted unassigned General Fund balance of 50 to 52 percent of the next year's General Fund budget. 9/11/23 -8- Mayor Graves asked why the audit process has been slower this year. Ms. Holm stated that a new auditor was brought on, a standard change within the accounting world. The new auditor started the process about two months later than an auditor normally would. Also, the Department lost a valued Staff member with a lot of institutional knowledge and provided a significant amount of Staff time. Audit firms are also struggling with finding employees, so Brooklyn Center is in a somewhat positive position for even having an auditor. Ms. Holm noted revenue policies also direct how the City maintains its ability to pay for its cus- tomers' services. The policies include maintaining a diversified and stable revenue system, annual revenue estimates completed through an objective conservative analytical process, user fees should be reviewed and revised on an annual basis, fees and user charges for Enterprise Funds should fully support total direct and indirect costs, and user fees for City services will generally be estab- lished at a level which will recover the total cost of providing the service. Ms. Holm showed a graph of the median value of homes in the City over the years. The value has been steadily increasing since 2014. The median home value in 2024 is $264,800, a slight increase from 2023's median home value of $259,000. She also showed a list of median home values compared to other cities. Brooklyn Center has a lower median home value than Golden Valley, New Hope, Richfield, Crystal, and Robbinsdale. The median home values in nearby neighborhoods in Minneapolis are slightly lower than in Brooklyn Center. Ms. Holm showed a table of taxable market values based on class. Classes vary from commercial and industrial to residential and apartment. The overall change in taxable market value is 3.87 percent. The most significant increase was for industrial properties at 16.8 percent. Ms. Holm showed a table reflecting tax capacity. The net change in tax capacity is estimated at 4.8 percent, just about $2 million. She showed pie charts of tax capacity estimates comparing payable tax capacity in 2023 and 2024. Industrial has somewhat increased, allowing the residential tax capacity to decrease and carry less burden. Ms. Holm pointed out that a one percent property tax levy increase or decrease is approximately $225,000 in revenue. The total payable levy from 2023 was just under $23 million. The estimated total levy for 2024 is $24,732,206, which is an 8.5 percent increase. The County dictates the Housing and Redevelopment Authority (HRA) maximum levy. Ms. Holm showed a table reflecting General Fund revenues by source. Categories include property tax, excess tax increment, lodging tax, intergovernmental revenue such as state aid, charges for services, fines and forfeitures, and other revenues. The 2023 budget estimated $27,678,297 in total revenue, while the 2024 projected revenue is $27,895,595, a 0.79 percent increase. She showed two pie charts of the same information. Ms. Holm showed a table with General Fund expenses by function. Categories include general government, Office of Prevention, Health and Safety, Police, Fire, Public Works, Community Development, Recreation Services, and other services. The overall percent change in expenditures 9/11/23 -9- is 1.75 percent, largely due to necessary increases in the cost of living. The decrease in expenditures for the Office of Prevention, Health, and Safety is due to handling grant funding in a more effective accounting manner. She showed two pie charts of the same information. Ms. Holm showed a pie chart reflecting General Fund expenses by object, where personal services such as salary and benefits account for about 71 percent of the General Fund. She also showed a pie chart for the annual cost of government in Brooklyn Center for the median home. For example, the Police Department costs the median household $523.00, and the Fire Department costs $116. Ms. Holm showed a graph of City property tax rates, including the General Fund revenue, debt service, and the HRA. She then showed a slide with projected property tax impacts for 2024. With an 8.5 percent levy, the median single-family household would see an increase of $87 in the City portion of taxes for the year. Each percent of the levy would add or decrease $12 for the average single-family household. Ms. Holm stated at the September 25, 2023, Council meeting the Council must adopt a preliminary budget and levy. Two Joint City Council and Financial Commission Work Sessions will be held in October to address revenue and enterprise funds. Lastly, a Public Hearing scheduled and planned adoption of a budget and levy at the December 4, 2023, meeting. Councilmember Kragness stated the average household in Brooklyn Center would have an increase of $87 with the proposed levy due to City taxes. There may be additional tax increases due to the School district or County. Councilmember Kragness asked about the ramifications of setting the levy and what would happen if the auditors returned with a material difference. Ms. Holm stated a difference would require an explanation due to City policy, but there aren't larger legal ramifications. Councilmember Kragness stated the General Fund balance may not be enough. At that point, what could the City do about the levy to make up for the difference? Dr. Edwards stated the Council establishes the fund balance policy, so the solution to a lower fund balance would require strategic thinking by Staff. Ultimately, there wouldn't be any legal repercussions. Councilmember Kragness asked why the grant accounting methods changed without a recommendation from the auditor. Ms. Holm stated the recommendation came from her professional experience. The change allows for better tracking and more accurate application of the grants according to their purpose. The goal is to be the best steward of the grant dollars. Councilmember Kragness asked if the change impacts what is reported to the auditors. Ms. Holm stated the finances remain the same. The change is just the column in which the finances are tracked. Councilmember Kragness noted the top four priorities from the recent Joint Financial Commission and City Council meeting were reported as a three percent increase in staff wages, a 24-hour duty crew, fleet maintenance replacement, and adding a Police Sergeant. Other priorities included 9/11/23 -10- adding two police officers, winter salt and sand, a Deputy City Manager, crime prevention and intervention programming, and a 0.75 Litter/Public Art position. However, Councilmember Kragness stated she recalls a different top four priorities. The exercise was flawed because the participants didn't know the cost of various initiatives. Dr. Edwards stated that the list of the top four combines the exercise done with the Financial Commission and City Council and from the input of Directors and other Staff. The intent is to balance the Council's desire and the functional opportunities. Councilmember Kragness stated the priority list is misleading. Councilmember Butler stated that she is unavailable to attend the December 7 budget hearing and questioned the need for a unanimous vote. Dr. Edwards stated he would verify the legal requirements for passing a budget and prepare the information for the Council prior to any votes. Councilmember Lawrence-Anderson requested a paper copy of the budget. Dr. Edwards confirmed he would get her a paper copy of the budget. Councilmember Lawrence-Anderson pointed out a 68 percent increase for the Recreation Department. Also, in many Departments, she requested more details on personal/professional services, referring to code 6307. She asked where Community Interveners are within the budget. Ms. Holm stated professional services for assessors is the fee the County charges the City to do property tax assessments. It is more or less a fixed cost. The professional services for the other mentioned Departments would require her to do some more digging and report back to the Council. Ms. Holm explained the Community Interveners are under the Office of Community Prevention, Health, and Safety for other contract services, code 6449. It is listed for $100,000. Ms. Holm stated the increase in funding for the Recreation Department administration is due to a realignment of manager positions and salaries into the administrative line item. There are equal incremental decreases in the other line items from which the salaries were pulled. Councilmember Lawrence-Anderson stated the changes are confusing. Councilmember Jerzak noted permit fees were down 64.33 percent. The current budget is misleading in comparison to what the Council has prioritized. The City had a lot of expansion in developments and employees in 2023. The investment earnings are down. He asked if that was due to cashing out investments too early. Ms. Holm stated the 2023 cash flow issues necessitated early cashing out investments. The 2024 estimate is based on what the City has invested rather than the amounts pulled out. The estimate is very conservative. Dr. Edwards stated the City added one Staff in 2022. In 2023, there were no new Staff positions. There was some rearranging of existing Staff and filling open positions. Councilmember Jerzak 9/11/23 -11- asked how the Community Interveners were added. Dr. Edwards stated some part-time staff were added. Councilmember Jerzak stated that a very low percentage of residents use the Community Center, and the membership continues to decrease. However, each household still pays about $121 yearly for the Recreation Department. Councilmember Jerzak stated the Council has operational concerns regarding continuity, so the Council wants to prioritize the Deputy City Manager. The Council hasn't received any reports about the effectiveness of the Community Interveners, which is an important factor in determining the budget for that effort. Councilmember Jerzak added that $35,000 was the cost of small tools. He asked how those costs could have gone up. The Office of Prevention, Health, and Safety had $500,000, but it is unclear where the funding comes from now. There is a lack of clarity under Building and Community Standards for professional services. Also, the budget doesn't reveal if Mr. Anderson's previous position will be replaced. Dr. Edwards stated he would listen to the recording and create a response for each of the questions posed by the Council. Councilmember Jerzak asked why there was a transfer under the general fund for redevelopment of negative $2.3 million and where the funds came from. Ms. Holm stated the transfer is primarily an administrative service transfer to see how much of her and other salaries contribute to utility funds. The other portion is engineering service fees that are transferred to large capital projects to allocate salary and Staff time properly. Mayor Graves asked what percentage of the targeted unassigned General Fund balance of 50 to 52 percent is in the proposed General Fund budget. Dr. Edwards stated that the staff would look up the specific number. Mayor Graves asked how much money each percentage would equate to. Ms. Holm stated the equation would depend on the fund balance and the final budget number. Staff can do some calculations. Mayor Graves asked why there was a dependence on permits and intergovernmental revenue for the operational budget. Dr. Edwards stated there are different philosophies for best practices, and the change was made to suit the current staff's skill sets. If the estimation is under, Mayor Graves stated what would happen to the excess revenue. Dr. Edwards stated they anticipate excess revenue, which would require a greater conversation. The idea is that excess funds related to development would be reused for development. However, Staff will create policy options to present to the Council for final determination. 9/11/23 -12- Mayor Graves pointed out that the City has increased its total taxable market value by 3.78 percent. If the Council decided to implement a levy of 0 percent, current services would have to be cut, and the City's portion taxes would like to decrease. The 3.78 percent allows the levy some leeway because more taxable funds are available to the City. Councilmember Kragness noted a goal of running for Council was to promote stability in the City. That is part of the reason she has been prioritizing a Deputy City Manager. She asked if the fleet replacement should be part of the Capital Improvement Plan. Dr. Edwards stated the capital improvement plan doesn't cover vehicles. The proposed budget allows $219,000 to be set aside for replacing vehicles as they expire. Councilmember Kragness asked if replacing a firetruck would be part of the CIP. Ms. Holm explained that a firetruck would be one of the vehicles that could be up for replacement as the CIP doesn't cover vehicles. Previously, no inflation factor was built into the replacement cost, so the budgetary ask is the start of working toward a savings account for replacement costs. The $219,000 is playing catch-up for previous years. Councilmember Kragness asked why the $219,000 is pressing now when other things could be prioritized. Ms. Holm stated the recommendations change as new skill sets come into the City. When she started with the City, they implemented an inflation factor to build up funds. The $219,000 is less than what is needed for replacement funds. Councilmember Kragness noted the budget for vehicle replacement funds accounts for one percent of the levy. Dr. Edwards noted Staff follows a decision tree in the budget process to weigh the priorities of the Council, the strategies of the City, and input from Staff. Councilmember Kragness stated the joint City Council and Financial Commission meeting showed four votes for a Deputy City Manager and only two votes for vehicle replacement funding. Dr. Edwards stated staff provides an operational perspective, which increased the priorities for vehicle replacement. Councilmember Jerzak pointed out the City has been fortunate with the most recent Police Chief. The City spent $100,000 on a labor study that showed a need for twelve more positions in the Police Department. The Council needs to support the Department, especially as they are looking for a new Police Chief. It is unfair for a new Chief to inherit a deficit from day one. Councilmember Lawrence-Anderson stated the joint City Council and Financial Commission meeting exercise showed a high priority for a Deputy City Manager and two additional police officers. As it stands, she cannot support the proposed budget. Mayor Graves noted her agreement to hire a Deputy City Manager. The additional officer roles aren't necessary for 2024, as nine are already open. She also noted her agreement with Councilmember Kragness' assessment of the vehicle replacement fund. Mayor Graves asked about the history of the Deputy City Manager role. Community Development Director Jesse Anderson explained when Vicki was with the City, she was the Assistant City 9/11/23 -13- Manager and Director of Building and Community Standards. She also handled communications. Community Development was two separate departments. One was Community Standards, and the other was Building and Development, where Gary was the Director of the Building and Development portion. When they left, the two roles were combined for Meg. 8. PUBLIC HEARINGS 8a. AN ORDINANCE NO. 2023-06; AMENDING CHAPTER 23 OF THE BROOKLYN CENTER CITY CODE REGARDING THE LICENSING OF THE SALE OF EDIBLE CANNABINOID PRODUCTS WITHIN THE CITY City Manager Reggie Edwards introduced the item and invited City Attorney Jason Hill to continue the Staff presentation. City Attorney Jason Hill explained the proposed licensing ordinance requires a business to obtain a city-issued license prior to offering edible cannabinoids for sale, establishes one licensing period effective from the date of issuance until March 1, 2025, or until the state issues a license for the sale of lower-potency hemp edibles, whichever occurs first, and exempts edible cannabinoid products that only contain cannabinoid from the license requirement. On-site consumption may only occur at businesses licensed for on-sale liquor consumption. Lastly, the business cannot be within 500 feet of a "Youth Oriented Facility," defined as "a public or private elementary, middle, or high school, a state-licensed child or daycare program with more than ten children, and any City park." Councilmember Jerzak moved, and Councilmember Butler seconded to open the Public Hearing. Motion passed unanimously. No one appeared to address this item. Councilmember Jerzak moved, and Councilmember Lawrence-Anderson seconded to close the Public Hearing. Motion passed unanimously. Mayor Graves moved, and Councilmember Lawrence-Anderson seconded to adopt ORDINANCE NO. 2023-06, an Ordinance amending Chapter 23 of the Brooklyn Center City Code regarding the licensing of the sale of edible cannabinoid products. Motion passed unanimously. Mayor Graves moved, and Councilmember Jerzak seconded to approve a summary publication resolution. Motion passed unanimously. 9/11/23 -14- 9. PLANNING COMMISSION ITEMS None. 10. COUNCIL CONSIDERATION ITEMS None. 11. COUNCIL REPORT None. 12. ADJOURNMENT Councilmember Butler moved, and Councilmember Jerzak seconded adjournment of the City Council meeting at 9:12 p.m. Motion passed unanimously.