Loading...
HomeMy WebLinkAbout1991 12-09 FTFAPU 9 MEETING NOTICE FINANCIAL TASK FORCE MONDAY, DECEMBER 9, 1991 7 P.M. CITY COUNCIL CHAMBERS BROOKLYN CENTER CITY HALL • 1. Financial Management Policy 2. Financial-and Service Prioritization Process ENCLOSURES: Minutes of November 12, 1991, meeting Minutes of November 18, 1991, meeting Financial and Service Prioritization Process NOTE: Please bring your copy of the draft financial management policy. An updated version will be handed out at the meeting on Monday evening. 0 DRAFT 12/5/91 CITY OF BROOKLYN CENTER FINANCIAL AND SERVICE PRIORITIZATION PROCESS The Brooklyn Center City Council has appointed a Financial Task Force to review the city's financial planning, budget and service provision and report to the City Council. The Financial Task Force has presented to the City Council the attached interim report which was received by the City Council on November 25, 1991. As a part of that report the Task Force recommended the establishment of a financial and service prioritizing process to commence in January or February of 1992, the purpose of which is to establish budgetary priorities to suggest to the City Council should further budget reductions be necessary. While the Task Force is focusing on the financial problems of the city we may also have opportunities come available to us. Present and past City Councils, management and employees should be proud of their track record and look forward to improving upon it. If the City Council is to make informed and intelligent decisions regarding the future of the city's finances and its services they will need a citizen involved priority process which is being suggested in the following document. BACKGROUND The opportunity of challenge facing us is to set a tone and direction for Brooklyn Center city • services in the 1990's. As we think about our future we need to keep in mind our past, and understand it thoroughly. Brooklyn Center has always had a positive attitude and we believe we should continue our "can do attitude" as it relates to city services and finances. Whatever problems we encounter the City Council and staff, working with citizens, should be able to figure a way to solve those problems. Over the years Brooklyn Center has enjoyed the availability of necessary resources to take care of citizen's needs. These resources were provided through small tax increases and sustained property tax base growth which created additional revenues for the city. In addition to these sources we have received local government aids from the State of Minnesota. The city's rate of growth peaked in the mid 1980's and has slowly declined since. The decline is not necessarily a result of anything negative but rather was controlled primarily by the fact that the city was beginning to reach full development, both commercially and residentially. The newest comprehensive plan figures indicate Brooklyn Center is 98% developed. Brooklyn Center has basically changed in the 1980's from a "growth" to a "maintenance" mode. Redevelopment rather than development will be our future focus. We are and will be facing issues such as redevelopment, an increased emphasis on maintenance, and changing demands for services. As we enter into the 90's we have trends and issues which will be impacting upon Lis which may well be beyond our influence and control. However we can choose to react to these trends and issues in a positive and proactive manner. Some of these issues and trends include the following: • -1- DRAFT 12/5/91 • 1. A leveling of development activity. 2. Continuing inflation. 3. A slowing of the economy on a local, state and national level. 4. Credit restrictions and changes in the banking industry have contributed in a slowed development and redevelopment market. 5. There have been changes in tax incentives for commercial and apartment property owners. 6. State property tax levy limits. 7. Private developers have "overbuilt" office and commercial property in the metro area. 8. Rental apartment market is depressed. 9. Unfunded state and federal mandates. 10. Changing demographics involving population, age and culture. The options facing local government policy makers seem to be to raise taxes, reduce services, create new revenue sources, and provide service at reduced cost. In an effort to bring together the thinking of the City Council, city staff and our citizens it is necessary to develop a financial and service prioritization process. The goal of this process is to provide a plan which allows systematic and phased cost reductions and/or revenue enhancements which result in permanent budget impacts of approximately $1,000,000 for 1993. While it may not be necessary to implement all of the proposed reductions it is prudent to develop a plan given our current • financial environment. One of the most difficult aspects of developing cost reduction strategies is the realization there are not always ways to reduce cost and yet maintain the same level of service. The City Councils and staff have traditionally worked very hard over the past years to keep tax increases to a minimum. We now find ourselves at a point where insignificant reduction in the future will impact service levels. PURPOSE AND OBJECTIVE The purpose of this process is to provide options for the City Council to consider as a means to reduce and/or contain costs in 1992 and subsequent budgets. It is further intended to set the direction for service levels throughout the 1990's. The objectives identified for this process are as follows: 1. Opportunity for City Council, staff and community to examine municipal services for the 1990's. 2. Provide information to staff, citizens and Council on why we are facing these challenges and opportunities. • -2- DRAFT 12/5/91 • 3. Opportunity to involve employees in the organization to create innovative ideas for service delivery and cost reductions. 4. Evaluate everything we do and how we do it. 5. Prioritize work functions and services. 6. Provide a variety of options for costs reductions. 7. Review all fees, and determine ranking and market. 8. Position the organization to provide services for the 90's given Brooklyn Center's and the State of Minnesota's financial environment. As a part of this process the City Manager will meet with all department heads and discuss this process. The following will be the directions given to each department head: 1. Develop employee involvement process to generate ideas on cost reductions and revenue enhancements. 2. Review all areas of the budget to reduce total tax dollars and costs. 3. Review how we operate and look at our processes and operation creatively in light of the need to cut costs. 4. Reduce overtime whenever and wherever possible. 5. Review training, schools, and conference costs for possible savings. 6. Charge fees wherever possible and Brooklyn Center fees should be in the third quartile of the market. • 7. Recover all costs whenever and wherever possible. 8. Service reductions: a. Only if it results in cost reduction. b. Only if it creates staff time saved to be spent on higher priorities. 9. Departmental strategies will be submitted with prioritized cost reductions and/or revenue enhancements which reduce each department budget by at least 10 % (all cost reductions will be accompanied by a service impact statement). METHODOLOGY An important element in this process is that department heads make every effort to involve as many employees as possible in developing strategies to deal with the necessary cost reductions. Once staff ideas are generated, clarified and reviewed they are to be included in department strategies. Strategies developed will be received from each of the city departments and are to be reviewed by the department heads, City Manager and Finance Director. In some instances additional strategies will be identified and added as appropriate. The information will then be placed in a report format. The Financial Task Force will review, comment, make recommendations and monitor the process. They will make a final recommendation and report to the City Council. • -3- • 11/18/91 Brooklyn Center Financial Task Force Interim Report The Task Force wants to take this opportunity to thank the council for giving us this opportunity to serve on this Task Force and for your efforts in encouraging this citizen involvement in the operation of Brooklyn Center. We also want to thank all of the staff for their willing acceptance of the committee. Jerry Splinter and Paul Holmlund have been very helpful to us during these meetings. They have attended all or most of the meetings and portions of every meeting. Jerry Pedlar has attended most of the meetings. Other council members have also attended meetings. The committee has met seven times between the dates of August 19 and November 18. Presentations were received from: Jerry Splinter Paul Holmlund Geralyn Barone Phil Cohen Deloitte & Touche Police Department These presentations included information on the following topics: Budget Preparation Process 1992 Budget Auditors Report and Evaluation Proposed Financial Management Policy Operation of the Police Department Personnel and Compensation Plan Comparable Worth Plan and Affirmative Action Plan Local Government Aid Information We will be scheduling other department presentations in the future. Finance Committee Report to the City Council The committee believes it needs additional time to gather information and to evaluate what has been presented before making specific recommendations. However, we feel a need to offer these comments to the council at this time. The budget setting process seems to be well organized. • • Brooklyn Center Financial Task Force Interim Report November 18, 1991 page two The City's financial managers seem to be willing to make the decisions that are needed to maintain the budget within the resources that are available. The auditor; Cliff Hoffman of Deloitte & Touche, agrees the financial operations of Brooklyn Center, is well managed and that the present financial condition is very good. We are currently considering a comprehensive Financial Management policy for Brooklyn Center. Concerns have been expressed by members regarding the use of fund balances. We may be making specific recommendations on this policy in the near future. Reserve funds have been used for the last three years to preserve programs and personnel. Financial and political considerations need to be evaluated to determine how much longer these reserve funds should be used. Because of a concern over current revenue shortfalls a city program and service prioritization process, in conjunction with the Task' Force, for budget reductions should be developed beginning in January or February. The reductions may not have to be implemented. However, the planning should occur in case the state legislature further reduces the resources available to cities. The Task Force will continue its activity into next year and is willing to have work sessions with the city council to discuss financial issues. Thank you again for providing for this citizen involvement. 0 ' DATE: December 9, 1991 T4: Denis Kelly, Chair, B.C, Financial Task Force FROM: Gregg Peppin • RE: Thoughts and suggestions on the Financial and Service Prioritization Process draft dated 12/5/91 The document is a well written directive which appropriately includes city staff and those "on the front lines" in requesting input and suggestions as to how services can be efficiently and effectively provided in the coming years. While the "methodology" section of the report on page three discusses the involvement of the financial task force, I believe some clarification of our role may be necessary. In this regard it must be communicated to city employees that the B.C. Financial 'T'ask Force seeks to work jointly and cooperatively with city employees. We must snake sure we are not viewed as adversaries in the event budget cutting is necessary, which given the state's $291 million upcoming budget shortfall, is highly probable. The employee involvement process is vital to ensure any potential changes are accepted without creating morale problems. The task force is receptive and open to their ideas. Every suggestion to save the city and its taxpayers money will be analyzed, no cost-saving idea is too small. Personally, I have questions and need clarification about the fee structure items discussed on page three, number six, including a possible ranking of where Brooklyn Center now stands in relation to other cities, especially on various park and recreation programs. • 0