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HomeMy WebLinkAbout2007 12-10 HRAP HRA MEETING City of Brooklyn Center December 10, 2007 AGENDA 1. Call to Order —The HRA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including HRA (Housing and Redevelopment Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Housing and Redevelopment Authority (HRA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes —Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. 1. September 10, 2007 Regular Session 4. Commission Consideration Items a. Resolution Establishing a Final Market Value Levy for the Purpose of Defraying the Cost of Operation, Providing Information Services and Relocation Assistance Pursuant to the Provisions of Minnesota Statutes Chapter 469.033 for the City of Brooklyn Center Housing and Redevelopment Authority for Fiscal Year 2008 •Requested Commission Action: —Motion to adopt resolution. b. Resolution Approving the Final budget for the City of Brooklyn Center Housing and Redevelopment Authority Pursuant to Minnesota Statutes Chapter 469 •Requested Commission Action: —Motion to adopt resolution. 5. Adjournment MINUTES OF THE PROCEEDINGS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF T'I� CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION SEPTEMBER 10, 2007 CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Housing and Redevelopment Authority (HRA) met in Regular Session called to order by Chair Tim Willson at 7:04 p.m. 2. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 3. ROLL CALL Chair Tim Willson and Commissioners Kay Lasman, Mary O'Connor, Dan Ryan, and Mark Yelich. Also present were Executive Director/City Manager Curt Boganey, Public Works Director/City Engineer Todd Blomstrom, Community Development Director Gary Eitel, Director of Fiscal and Support Services Dan Jordet, City Attorney Charlie LeFevere, and DepuTy City Clerk Camille Worley. 4. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lasman moved and Commissioner Yelich seconded approval of the agenda and consent agenda, and the following item was approved: 4a. APPROVAL OF MINUTES 1. July 23, 2007 Regular Session Motion passed unanimously. 5. COIVIMISSION CONSIDERATION ITEMS Sa. RESOLUTION NO. 2007-02 ESTABLISHING A PRELIMINARY MARKET VALUE LEVY FOR THE PURPOSE OF DEFRAYING THE COST OF OPERATION, PROVIDING INFORMATIONAL SERVICES AND RELOCATION ASSISTANCE PURSUANT TO THE PROVISIONS OF MINNESOTA STATUTES CHAPTER 469.033 FOR THE CITY OF BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY FOR FISCAL YEAR 2008 Executive Director/City Manager Curt Boganey introduced the item, discussed the history, and stated the 9/10/07 -1- DRAFT purpose of the proposed resolution. Commissioner Lasman moved and Commissioner Ryan seconded adoption of RESOLUTION NO. 2007-02 Establishing a Preliminary Market Value Levy for the Purpose of Defraying the Cost of Operation, Providing Informational Services and Relocation Assistance Pursuant to the Provisions of Minnesota Statutes Chapter 469.033 for the City of Brooklyn Center Housing and Redevelopment Authority for Fiscal Year 2008. Commissioner O'Connor voted against the same. Motion passed. Sb. RESOLUTION NO. 2007-03 APPROVING THE PRELIMINARY BUDGET FOR THE CITY OF BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY PURSUANT TO MINNESOTA STATUTES CHAPTER 469 Commissioner Ryan moved and Commissioner Lasman seconded adoption of RESOLUTION NO. 2007-03 Approving the Preliminary Budget for the City of Brooklyn Center Housing and Redevelopment Authority Pursuant to Minnesota Statutes Chapter 469. Commissioner O Connor voted a ainst the same. Motion assed. g P 6. ADJOURNMENT Commissioner Yelich moved and Commissioner O'Connor seconded adjournment of the Housing and Redevelopment Authority meeting at 7:07 p.m. I Motion passed unanimously. Chair 9/10/07 -2- DRAFT i City of Brooklyn Center A lllillennium Community To: Mayor Willson and Council members, Lasman, O'Connor, Ryan and Yelich From: Cornelius L. Boganey, City Manager Date: December 6, 2007 RE: 2008 Budget Adoption All Funds Tax Capacity General and Debt Service Fund Levies HRA Mazket Va1ue Levy for property taxes payable in 2008 On September 10�', 2007 the City Council adopted the 2008 preliminary budget and maximum tax levies. The proposed levy is at the same level adopted at the September 10�' 2008 meeting and developed in joint work sessions with the City Council and Financial Commission. There �re three funds that require a tax levy; the General Fund, the Debt Service Fund and the Housing and Redevelopment Authority Fund. The proposed final levy is as follows: Tax Levy: General Fund 11,404,750 Housing and Redevelopment Authority 302,191 Police and Fire Bonds 730,152 Total Levy $12,437,093 The proposed budgets reflect the revenues and expenditures developed in joint work sessions with the Financial Commission during the months of June, July, August, October and November. The expenditure levels are focused on maintaining services and on the achievement of the eight goals adopted by the City Council on February 26�`, 2007. The targeted maximum levy increase established in the joint work sessions with the Financial Commission is four percen� As indicated in those meetings the fmal budget presented herein provides for an overall combined levy increase in 2008 of 4%. The General Fund Levy is proposed to increase 4.25% while the Debt Service levy will decrease 3.16%. The HRA levy is set at the statutory limit of .0144 of the estimated taxable market value and if estima.tes hold true may increase 14.03% over the 2007 levy. The actual HRA levy amount will be determined by final valuations set by Hennepin County. If necessary the Housing and Redevelopment 630I Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430-2199 (763) 569-3400 City Hall TDD Number (763) 569-3300 FAX (763) 569-3434 FAX (763) 569-3494 w w w. cityo f brook lyncenter. org Authority budget amount may be reduced when the final value numbers are developed by the County. As previously stated the combined maximum increase is estimated at four percent. GENERAL FUND REVENUES: Total estimated revenue for 2008 is $15,518,836 compared to 2007 budgeted revenue of $14,544,372. With a maximum levy increase of 4 percent net, property taac collections in the general fund increases from $10,720,993 to 11,898,679. Licenses and Permits are estimated at $723,845 compared to $771,443 in 2007. Most of this decrease is in the area of estimated Rental Dwelling Licenses which were over estimated in the 2007 budget. Intergovernmental Revenue inereases to $1,652,008 compared to $1,290,030 in 2007. Most of tlus increase $345,578 occurs in the use of Local Government Aid. In 2007 the City received $1,229,388 in Local Government Aid, but elected to budget only a portion ($767,665) of it in the General Fund. The balance ($461,723) was used in the Sanitary Sewer Fund. Chazges for Services remain relatively flat in this preliminary budget. They are estimated to increase slrghtly from $670,791 to $694,104. This increase is based on a sma11 increase in demand for some recreational programs and inflationary fee adjustments. As policy requires,. revenues are budgeted using conservative assumptions so we ha.ve not include any revenue that might be expected from the implementa.tion of a planned administrative fines program. We ha.ve not included revenue increases in the area. of rental licenses that we expect to occur due to increased enforcement or rate adjustments that may be recommended in this area. GENERAL FUND EXPENDITURES The 200? budget was adopted as a sta#us quo budget. The proposed preliminary 2008 budget is intended to address some of the growing needs discussed in previous yeazs and as articulated by the City Council in its Annual Goa1s for the City. At previous meetings consensus was reached around eight budget outcome goals. These goals relate to the areas of Demographic Diversity, Neighborhood Code Enforcement, Infrastructure Maintenance, Crime Reduction, Redevelopment, Financial Stability, Housing Improvement, and Taxation. The General Fund budget provides the financing for many government services that address several of the goals mentioned above. In this summary I will not discuss a11 of these activities but I will highlight proposed budget changes that are directed toward the achievement of these stated goals. 2 Staffing: To improve organizational effectiveness and to support the goals established by the City Council, several City Departments were reorganized in 2007. This change in organization alignment will be reflected in the 2008 budgeted departmental costs and personnel compliment. The principal reorganization changes in 2007 resulted in the conversion of the Assistant City Manager in the Human Resources Department into Assistant to the City Manager in the City Manager Department, the relocation of the Payroll Clerk from the Fiscal Services Department to the Human Resources Department, the reassignment of the Human Resources Administrative Specialist from the Central Supplies Department to the Human Resources Department, the reassignment of the Customer Services Representative from the City Manager Department to the City Clerk Department, reassignment of one Neighborhood Liaison Officer from the Police Patrol to Code Enforcement in the Community Development Department and the relocation of the Assessors Division to the Community Development Department. The proposed 2008 budget also includes several position reassignments next year. Those changes include the reassignment of the Police Administrative Assistant in Police Administration Division to Analyst in the Police Patrol Division, the reassignment of the Drug Taskforce Officer from the Police Investigation Division to the Police Patrol Division. In addition to reassignments there are several new positions identified in the preliminary 2008 budget. New Positions 1- One Patrol Officer in the Patrol Division ofthe General Fund 2- One Additional Code Enforcement officer in the Community Development Departrnent 3- Two Patrol Officers in the COPS Grant Special Revenue Fund 4- One Additional Patrol Officer in the Auto Theft Grant Fund Targeted Outcomes: The proposed budget is intended to at a minimum, maintain current service levels in most areas and improve service levels in a few key areas identified as a priority by the City Council. Some of the improvement areas will be funded through the use of temporary grant funding rather than the more reliable general fund sources of revenue. Given this fact, we should view many of these programs as pilot or demonstration projects. Should these efforts prove successful, then more predictable sources of revenue should be provided. 3 Goal #1 Chan�ng demographics and increasing diversity will be a community asset The Recreation Department has received grant funding that in part will be used to identify the recreational need.s of our diverse communities. This information will be used to tailor some of our resources towazd addressing those needs. The Police Department will continue to participate in the Joint Community/Policing Program with Hennepin County and Brooklyn Park with the goal of building bridges across cultural boundaries. The staff will be exploring ways to use the resources and lessons of this ei�ort ta expand the program beyond Police Department activities. The Human Resources Department and Staff will review our recruitment, selection and employee development programs to assure that we aze providing optimal opportunities for employment with the City by all segments of the community. Goal #2 Enforcement of neighborhood city codea will improve The proposed budget includes funding for two full time Code Enforcement Officers. This will allow for continued progress in the azea of neighborhood revitalization. The Community Development Department will manage and coordinate the weed abateme�t, and graffiti removal program next year to provide a single point of contact for the neighborhood nuisance issues. The hope is that an administrative fines program will be implemented in 2008. This will expedite resolution of non-compliance issues and should do so at a reduced cost to the City. In 2008 we will fine tune and expand a program that will allow the abatement of nuisances when no other remedy is available. Goal #3 City infrastructures will be maintained and upgraded as needed. The City will continue the°previously established street reconstruction program in 2008. The principal City funding for this program is the franchise fee. The City has prioritized and scheduled this program using a condition based formula in order to use the limited resources available in the most cost effective mariner. In addition the City has a capital replacement plan for storm water, sanitary sewer and water system improvements. In addition the City has a park improvement plan and an improvement funding program for the Eazle Brown Heritage Center. Each of these programs is detailed in the Capital Improvement Program which have been reviewed during the budget development process and will be presented for Council approval. In 2007 the City compieted a comprehensive study of the structural components of General Buildings i.e. City Hall, Coxnmunity Activities Center, Fire Stations and Police Buildings. With information collected from the report, the staff will develop an infrastructure improvement plan for these critical facilities. The recommendations from this study have been incorporated into the 4 ro sed ca ital ro'ects bud et. The identified fundin source for th P 1� P P.1 g g ese improvements in 2008 is an equity transfer of 204,000 plus an increase in the liquor fund contribution from $125,000 to 135,000. It is assumed that this program can be funded in this manner for the first three to five years. After this period other sources of funding will be necessary. The City Council has also committed to reviewing the long range General Buildings Plan in early 2008 as a way to assure that future investments will best serve the long term building needs for the community. Goal #4 Community members will feel safe and secure as crime is being reduced As previously discussed the proposed budget includes four additional employees in the Police Department. Two of the positioris will be funded through a two yeaz COPS grant; one will be added to the General Fund because of availability of an auto theft grant to fund it and will be added to the general fund without the use of any outside resources. The police chief requested one additional position (civilian youth specialist) that is not included in the preliminary budget. The purpose of these four positions is to fund the establishment of the Community Services Unit that includes Community Response Officers, crime analysis, crime prevention and youth intervention. This is a unit consisting of both sworn and unsworn personnel carrying out proactive problem solving initiatives. The Unit will consist of one Lieutenant who will manage the five sworn Community Response Officers, an Analyst, and a Crime Prevention Specialist. The unfunded Youth Intervention Specialist duties will be absorbed by other members of the Team. Based on recent unsustainable experience of the past, it is our view that adding this unit to the existing divisions af the Department will allow the Department to do wha.t it has needed to do for many years. We believe that proactive, fact based, focused and coordinated efforts of a unit that is not spending nearly a11 of its time responding to calls for service will produce results tha.t will lead to crime reduction. As previously stated, grant funds will support a significant portion of the added costs of this unit in 2008 and 2009. If the unit is continued in 2010 it is likely that more of the funding will need to come from general fund sources. The City recently completed a violent crimes study prepared by the Police Executive Research Forum in partnership the City of Brooklyn Park. It is expected that many of the recommendations from this study will be incorporated in the City Department work plans as a way to fiurther affect a reduction in violent crimes especially those committed by young adults and adolescents. Of course it is equally important that the City continue to provide funding that will provide patrol, emergency response, investigation and administration, while the new unit focuses on probiem areas and prevention activities. 5 Goal 5 City redevelopment plans will proceed aggressively The funding for redevelopment is generally funded in the EDA and Tax Increment Funds which will be reviewed at future work sessions. I believe it is fair to say that 2008 is expected to be a significant period for redevelopment. The Embassy Suites will be under construction. The Wal- Mart Super Center construction should be underway. The marketing of the 57�` and Logan project is likely. The marketing of the I-694/Hwy 100 property should be underway. These are just a few of the significant projects that we believe will be on course for redevelopment in 2008. Staff has prepared a Bass Lake Road Streetscape /Trail Enhancement study which is plan to significantly improve the Bass Lake Corridor making it an attractive, pedestrian friendly environment supportive commercial redevelopment. It is expected that the first phase of the plan will be ready for implementation in 2008. Goal 6 Financial stability of the city government will be ensured. The Fiscal and Support Services Department ret.a.ins responsibility for sound fiscal management of City fiscal resources. In 2007 the department began producing a summarized monthly statement for a11 City Funds per Council direction. The City recently converted to a new utility billing program. This new system should provide improved capability and flexibility for the department and customers. In 2008 we expect to implement credit card acceptance in house and on-line for utility, license and permit payments. In 2007 the Finance Director assumed oversight responsihilities for the Liquor Operations and the City Safety Program. Payroll preparation responsibilities were transferred from Fiscal Services to the Human Resources Division in 2007. Goal #7 Quality of the ezisting housing stock will improve Staff will be reviewin and reformin our rental housin ro am for 200$. The ex cta.tion is g Pe gP increased licensing, rental inspection compliance and impraved renta.l housing stock. Staff will be developing housing improvement programs using TIF funding as a source for 2008. Staff will complete its review of a point of sale program for consideration in 2008. New strategies for the improvement of neighborhoods and rental housing will be implemented in 2008 with the goal of assuring that all neighborhoods are clean, safe and attractive places for residents and neighbors. Goal Property tazes will be lowered or maintained The proposed overall levy increase is 4%. There is some evidence that a 4% levy increase will be a low relative to other communities. Based on the proposed levy and no increase in voted school referenda, it is estimated that 50.37% of single family residential property owners will pay lower property taxes in 2008 than in 2007. It is estimated that 42.85 of commercial and industrial property owners will pay lower property ta�ces and 67.9% of apartment owners will pay property taxes next year. On the other hand all other property owners will experience I 6 property taxes increases ranging from .1% to more than 20% in some cases. A major factor affecting significant tax increases for some property owners is the elimination limited market value protection per Sate Law. Other General Fund Budget Issues Since the adoption of the preliminary budget the general fund contingency was increased from 41,104 to 110,970, resulting from reduced budget requirements in the area of anticipated health insurance costs. Even at 110,970. The contingency is well below the policy maximum of 5% of the total operating costs. As indicated during the budget work sessions there is a continuing need to improve the commercial building fire inspections program, The Fire Chief has prepared a proposal currently under review. If financially feasible this plan will be implement during the 2008 budget year. The Charter Commission recently recommended a charter amendment to implement an administrative fines program; with the ultimate approval of a Cha.rter amendment and appropriate ordinance adoption this program will provide significant assistance to the staff as it addresses many of the quality of life neighborhood issues of the City. THE HOUSING AND REDEVLOPMENT AUTHORITY LEVY State law establishing an Housing Redevelopment Authorities provides for an operating levy of up to .0144 of the taxable market value within the jurisdiction to carry out the purposes of the authority. In Brooklyn Center after forming an HRA the City established an EDA which assumed and expanded the HRA responsibilities into the areas of economic development. To fund the activities of the BDA, the HRA levy is required. The EDA fund provides for the operating budget for the EDA and the costs are expected to exceed $320,000. This budget includes funding two full time positions, the Community Development Director and the Community Development Specialists position. The estimated revenue from this proposed levy is $302,191 THE DEBT SERVICE FUND LEVY The current outstanding exclusively tax supported General Obligation Bond Debt of the City is composed of a single issue; the 2004A Police and Fire Bonds. The outstanding principal balance due on these 14 year bonds as of December 31, 2007 will be $3,875,000. The debt service due in 2008 will be $716,190. The proposed levy should generate $730,152 ta pay principal, interest, fees and required excess coverage for these referendum approved bonds. 7 SPECIAL REVENUE FUNDS Economic Development Authority Fund This fund provides for the management and administration of City Development efforts. The purpose of this fund is to preserve and improve City neighborhoods by fostering housing stock preservation, commercial and industrial development and redevelopment creating job opporiunities, tax base stability and growth. The activities of this fund directly support City Goals 3,5,7 and 8. Projects included in the 2008 work plan are the 57�' and Logan redevelopment project, Hvcry 100 and James Circle project, Embassy Suites Hotel, Bass Lake Road Streetscape project, Shingle Creek Redevelopment Plan, The Super Walmart Center project, and the Opportunity Site Redevelopment Project. 2008 programmed expenditures; 324,144. Police Forfeiture Fund In support of goal 4, a safe and secure community, this fund provides for receipt and disbursement of proceeds from police forfeited property. The funds use is reshicted to police related costs. 2008 programmed expenditures; 29,000. TIF District #2 I support of goal #5 aggressive redevelopment, this Fund accounts for a11 TIF revenue and expenditures from t�us Downtown Redevelopment District. This fmancing tool was primarily responsibie for redevelopment of the Earle Brown Terrace and Earle Brown Commons Senior residential projects. The District must be decertified by the year 2010. The City Council may wish to consider a plan amendment in 2008, so that�funds available in the district may be used for other high priority redevelopment projects. 2008 programmed expenditures; $22,000. TIF District #3 In support of goal #5, this fund accounts for a11 revenues and expenditures for District 3. Major redevelopment projects within this district include 69�' and Brooklyn Boulevard, 66�' and 252 Highway including the theater and townhomes as well as the area in and around Brookdale Mal. T'he district also includes portions of the Opportunity Site, and the pazcels along hwy 694lhwy 100 and James Circle. After May 18�` 2008 expenditures from this fund may only be used for debt service payments and limited expenditures up to 25% of the increment collected. Included in this 25% cap is a requirement that 15% of all increments collected during the life the district must be used in support of moderate and low income housing projects. 2008 programmed expenditures; $2,118,491. TIF District #4 In support of goal #5 this fund accounts for all revenues and expenditures from District 4. Funds from this were used to clean up a contaminated site for redevelopment. The resulting redevelopment includes, Wickes Wazehouse, Toro Distributing, Caribou Coffee corporate headquarters and other projects with an estimated market value of $20,000,004 with more than 400 jobs. Prior to redevelopment the property had a$2,000,000 assessed market value. The expected decertification date for this pay-as-you go district is 2020.2008 programmed expenditures; 249,813. Grants Fund This fund accounts for a variety of special purpose grants. The grants include, Miscellaneous Police Grants, Auto Theft Grants, COPS Crrants and Recreation Grants. 2008 programmed expenditure from the fund, Crrants from this fiund will be used to support the newly created community services unit within the police department. The Recreation grants include a first time capacity building grant directed at meeting the recrea.tional needs of underserved populations. DEBT 5ERVICE FUNDS The debt service fund tracks revenues and processed payments for bonds issued to the City for various purposes. The outstantling bonds include Street Improvement Bonds, Police and Fire Building Refunding Bonds, and Taac Increment Bonds. The 1997 Street Improvement Bonds will mature on February 1, 2008. 2008 programmed expenditures for all debt service is $3,690,5 i4. PUBLIC UTILTY FUNDS Water Utility Fund This fund provides for the distribution of potable water to customers. It includes funding for the operations, administration and water utility billing. In 2007 new utility billing software was installed. The City approved a revised policy and water shut offs to customers that did provide quarterly readings. In 2008 bids will be taken on an automated meter reading� system with the expectation that a transition will be rnade not later than 2009. The 2008 rate per 1004 gallons will increase from $1.19 to $1.25 to provide for the ongoing coast of operations and capital needs. Substantial water main improvements are expected to be completed in association with the neighborhood street project of 2008. 2008 programmed expenditures; $2,693,146. Sanitary Sewer Utility Fund This fund provides funding for the collection and conveyance of wastewater through a system of mains and lift stations. This fund also provides for routine and preventive maintenance of the system. The 2008 rates will increase from $61.10 to $62.63 per quarter to provide for the going a 9 maintenance and capital needs of the system. Significant system improvements are expected as part of the neighborhood reconstruction program of 2008.2008 programmed expenditures; $4,186,512. Storm Drainage Utility Fund This fund provides for the collections and management of storm water throughout the city in compliance with State and Federal regulatory requirements. In 2007 the city installed a major area-wide storm water facility on the site of the Regal Theater. As part of the 2008 neighborhood street reconstruction program significant storm drainage improvements are planned. The Storm drainage fees for 2008 will be $13.76 compared to $12.86 in 2007.This project will provide improved storm water treatment and facilitate new development in this region of the City. The 2008 programmed expenditures for this activity is $2,208,746. ENTERPRISE FUNDS Liquor Fund In support of goal 4, public safety and 8 reduce property taxes, the City manages a municipal liquor operation. This fund accounts for all revenues and expenditures related to the operation of two municipal liquor stores. Revenue growth and profitability is expected to continue in 2008. One additional full time (Assistant Manager) position is included in the 2008 budget. This position will provide needed management oversight at both stores in the evenings and weekends. A fund equity transfer of $200,000 will be made into the Capital Projects Fund in 2008 to jump start the implementation of the recently completed General Buildings maintenance and repair plan. In addition the operating transfer into the Capital Projects Fund has been increased from $125,000 to $135,000 so that the General Building Maintenance Plan can be funded for at least three years. After three yeazs additional sources of funding will be required if to continue the plan without modification. 2008 programmed net income; $175,343. Centerbrook Golf Course Operating Fund This fund accounts for the revenues and expenditures of the nine- hole golf course owned and operated by the City of Brooklyn Center. 2008 estimate approximately 26,000 rounds of golf which is less than peak yeazs of the past. The 2008 budget includes $28,000 for upgrade and replacement of the irrigation system controls. 2008 programmed net income after capital outlay and depreciation; 30,966). 2008 estimated annual cash flow; $513.00 10 Earle Brown Heritage Center Operating Fund The Earle Brown Herita.ge Conference Center provides a community resource for events and meetings while preserving an historical landmark of the community. This Fund accounts for all revenues and expenses asso�iated with conference and meeting and leasing activities hosted by the Center including the maintenance repair of the facility itself. Next year revenues and profitability ar.e expected to continue to grow and a moderate pace. In addition, staff is negotiating with our current tenants and with a possible new tenant, the operators of the planned Embassy Suite Hotel. If negotiations are successful and approved by the EDA our current tenants will relocate to the Inn and a Spa will be located in the D barn. This should have a very positive impact on future revenues and profitability for the facility as a whole. Is eazlier mentioned 2008 promises to be year of significant change as the new Hotel is built and a connecting walkway is added to the Center. In future years we expect additional revenue enhance as customers will be attracted to the facility because the attached hotel. 2008 programmed net income after depreciation and capital outlay; ($508,671).2008 estimated annual cash flow; $74,821. CAPITA.L FUNDS Capital Improvement Fund In support of City Goal #3 Infrastructure Maintenance and improvement, the Capital Improvements Fund accounts for the monies available from many sources i.e. general fund, enterprise funds and utility fuuds to pay for government build, park improvements and to purchase land for public use such as parks and public facilities. The CIP includes a five year f�reca�t of capital needs in the park system. The 2008 program includes Shingle Creek Trail improvements, Arboretum parking lot improvements, West Central Park Trail Rehabilitation and 68�` avenue Sidewalk replacemen� 2008 Programmed expenditures; $286,500. MSA Fund Also in support of goal #3 the MSA fund accounts for the use of State shaze gasoline tax revenue used for maintenance and reconshuction MSA designated thoroughfazes. 2008 programmed expenditures; 867,300. Infrastructure Construction Fund Also in support of goal #3, the Infrastructure Construction Fund, formerly the Special Assessment Construction Fund accounts for the financing of improvernents funded all in part by special assessments and transfers from public utility funds. The 2008 program includes the Mazanatha Neighborhood Reconstructions, Lift Station No 2 force main, Northway Drive 11 Reconstruction, West Palmer Lake Drive Resurfacing, June Avenue, Resurfacing 57�' avenue to 63� Avenue) Shingle Creek Trail Rehabilitation, Arboretum South Parking Lot, West Central Pazk Trail reconstruction, 69�' Avenue Side/Trail replacement and Xeraces Avenue Reconstruction. 2008 Programmed expenditures 7,550,500. Street Reconstruction Fund In support of goal #3, the Street Reconstruction Fund accounts for revenue used for reconst�uction of streets. A majority of these funds are derived from Franchise Fees. The estimated &anchise fee revenue in 2008 is $660,000. 2408 programmed expenditure; $1,050,000. Earle Brown Heritage Center Capital Fund In support of goal #3, the EBHC capital fund provides for the, repair and replacement of depreciated and or obsolete capital items. As part of a thirty year plan, 2008 programmed expenditures include Rotunda Roof and Carriage Ha11 Metalwork, Energy Management System improvement, Inn Carpet Replacement, Compactor Replacement, Telephone System Replacement and Mazquis Replacement. In addition projects included in the 2007 program year, document imaging, water tower repair and fire alarm updates should be completed in 2008. Technology Capital Fund In support of goal #3, the technology Fund serves as a mechanism to fund and plan for capital projects related to communication and electronic technology acquisition and replacement. Revenue to this fund in 2008 is $70,000 general fund transfer plus $9,000 of interest earnings. Projects included in the 2008 program are Server upgrades, network hardware, Fire Wireless, Community Center Wireless, Digital Imaging, Security Card Access for City Ha11 and Community Center, Telephone and Voicemail System replacement, Network Cabling at Public Works Garage, Fiber Optic Connections to East and West Fire Stations. 2008 programmed expenditures; $377,617. INTERNAL SERVICE FUNDS Central Garage Fund The Central Garage Fund accounts for the expense associated with providing services and fuel for a wide range of City velucles such as fire trucks, squad cars, dump trucks, mowers, loaders, pickups and staff cars. In addition the Garage services minor equipment such as chain saws, trailer pumps and generators. When the gazage provides these services the direct and indirect costs are allocated to the department benefiting from the service. All revenue into this fund comes from other City sources. So revenues and expenditures in this operation do not represent additional income or additional expenses to the City. The fund is strictly used to keep tra.ck of the 12 costs so that the appropriate City agency is charged. 2008 programmed net operating income; $117,028. Post Employment Retirement Benefit In support of goal 6 assuring financial stability, The Post Employment Retirement Fund has been established as a sinking fund used to fund health insurance for eligible retired employees. On January 1, 2005, the limited the number of employees eligible for certain post retirement benefits. In 2008 the City will hire a consultant to perform an actuarial study as a way of more precisely determining potendal liability for the Post Retirement Benefits and provide assurance that funding for this program is adequa.te. 2008 programmed expenditures; 84,500. Employee Compensated Absences Fund This fund accounts for employees' compensated absences and the resulti.ng liability to the City. Compensated absences include accrued vacation and sick time earned in accordance with City policy. 2008 programmed expenditures; $35,000. I 13 I Member introduced the following resolution and moved its adoption: HRA RESOLUTION NO. RESOLUTION ESTABLISHING A FINAL MARKET VALUE LEVY FOR THE PURPOSE OF DEFRAYING THE C�ST OF OPERATION, PROVIDING INFORMATIONAL SERVICES AND RELOCATION ASSISTANCE PURSUANT TO THE PROVISIONS OF MINNESOTA STATUTES CHAPTER 469.033 FOR THE CITY OF BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORIT Y FOR FISCAL YEAR 2008 WHEREAS, Minnesota. Statutes require that the final property tax levy be provided to the Hennepin County Auditor no later than December 28, 2007, for taxes payable in calendar year 2008. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Brooklyn Center, Minnesota that a speeial tax is hereby levied on all taxable real and personal property within the City of Brooklyn Center at the rate of 0.0144% of the total mazket value of real and personal property situated within the corporate limits of the City of Brooklyn Center that is not exempted by law. BE IT FURTHER RESOLVED that the roperty tax levied under this P resolution be used for the operations and activities of the Housing and Redevelopment Authority of the City of Brooklyn Center pursuant to Minnesota Statutes Chapter 469.001 to 469.047. December 10, 2007 Date Chair T'he motion for adoption of the forgoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against same: whereupon said resolution was declared duly passed and adopted. Member introduced the following resolution and rnoved its adoption: HRA RESOLUTION NO. RESOLUTION APPROVING THE FINAL BUDGET FOR THE CITY OF BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY PURSUANT TO MINNESOTA STATUTES CHAPTER 469 WHEREAS, the Housing and Redevelopment Authority of City of Brooklyn Center has considered the final budget for Fiscal Year 2008. NOW, THEREFORE, BE IT RESOLVED by the Housing and Development Authority of the City of Brooklyn Center, Minnesota that revenues and appropriations for the Housing and Redevelopment Authority are hereby adopted as follows: Housin¢ and Redevelonment Authoritv Revenues Property Taxes 302,191 Total Housing and Redevelopment Authority 302.191 Ap�ropriations Transfer to EDA Fund 302,191 Total Housing and Redevelopment Authority 302.191 December 10. 2007 Date Chair The motion for adoption of the forgoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereaf and the following voted against same: whereupon said resolution was declared duly passed and adopted.