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HomeMy WebLinkAbout1991 11-12 FTFM0 MINUTES OF THE PROCEEDINGS OF THE FINANCIAL TASK FORCE OF THE CITY OF BROOKLYN C = NOVffi!MM 121 1991 CITY HALL CALL TQ MAR Chair Kelly opened the meeting at 7:01 p.m. in the Brooklyn Center City Council Chambers. ROLL CaL~ Chair Kelly, Members Horan, Lecher, Peppin, Christenson, Kanatz and Boyd. Also present were Councilmembers Pedlar and Cohen, City Manager Splinter, and Finance Director Holmlund. Chair Kelly requested members discuss the proposed 1992 City Manager's budget and asked the City Manager to review some of the interest and activity from the initial City Council budget work session. City Manager Splinter stated three of five members were present and the Council went through approximately 65% of the budget. The major items of interest or contention were the proposal to cut the canine program and request by the hockey boosters for additional funding of $10,350 for their program. Some members expressed concern the council not react to citizen pressure in a way that would jeopardize the financial well being of the community. Other members stated the Council would certainly have to react to the political aspects of some program cuts and balance political and financial interests. Members discussed the questions of using approximately $300,000 of fund balance to bring the 1992 budget into balance. Some members believed they needed more information and understanding on how the fund balance system works. They expressed an interest and comfort in the current budget proposal if a financial policy similar to the one presented with their agenda was in affect. Member Kanatz believed it was not possible to go into detail parts of the budget at this time as the committee did not have sufficient understanding. She wanted to see how the public reacted to the current proposed budget, receive further information from the staff and also attend the City Council hearings and talk to Council members. Member Christensen believed the Council would be interested in some interim or short term comments and/or recommendations prior to its November 25, 1991, budget hearing. Chair Kelly asked the membership how they wanted to approach the recommendation, either short or long term. There followed a general discussion in which members reviewed various options including no recommendation to the Council at this time and a short term recommendation on the 1992 budget containing certain "general observations" regarding the 1992 budget development process with comments on "the use of fund balance issue"; the proposed financial management policy and the length or term of the current state fiscal problem. Chair Kelly asked Manager Splinter what kind of process could be used to allow the committee to make informed recommendations on future budget cuts if the state • 11-1291 ..1.. . financial problems continue beyond 1992. Manager Splinter and Finance Director Holmlund described the process they have used in the past and with the 1992 budget in requesting the department heads to submit department by department their recommendations of cuts at various percent levels. Manager Splinter asked Councilmember Pedlar if he concurred in his view that the Financial Task Force should be working with the staff and given the information in detail as if it were another City Council so as to accomplish the goal of the Task Force. Councilmember Pedlar agreed the Task Force would have to get into the detail of the budget and assist the Council in prioritizing the process. Member Christensen suggested the "long term recommendation" process could start in January and February with the Task Force giving some general comments and suggestions along with the City Council as to a prioritizing process. Manager Splinter and Finance Director Holmlund stated at the same time department heads could develop a series of cuts or fall back positions depending upon the severity of future financial problems. These cuts or fall back positions could possibly be 3%, 6% and 9%. The chief task of the Financial Task Force during January and February 1992 could be to assist in preparing the general guidelines for the 1993 budget. Chair Kelly asked members Kanatz and Christensen if they would prepare a draft statement for the full committee's review which states the Task Forces' observations and recommendations regarding the 1992 budget development process, the proposed financial policy statement and the recommended process for the 1993 budget. Members Xanatz and Christensen agreed they would prepare a draft if the full committee would meet to review and concur in that draft prior to submittal to the City Council. Members discussed various times and dates when they would be available to meet to review the draft and concurred most all the members could make a meeting at 5:15 p.m. on Monday, November 18, 1991, in the Brooklyn Center City Hall. Manager Splinter was asked to distribute the draft copy by fax or hand delivery to members on Monday, as soon as it is available to him. Chair Kelly requested Finance Director Holmlund to review briefly the purpose, objectives, and policies contained in the Brooklyn center proposed financial management policies. Finance Director Holmlund stated part of the policies and content of the proposed management policies are already in existence in the areas of fund balance, ethics and investments but this is a rounding out and completion of a comprehensive financial policy with additional elements added. He stated it was a very rough draft and it had been reviewed by our auditors and comments and suggestions by them have been included in the current draft. We have also submitted this draft for review by our financial consultant and we would expect comment shortly. Members Boran, Peppin, Escher and others, after the presentation by Finance Director Holmlund, had specific comments and suggestions in the areas of objectives, financial management policies, revenue policies, investment policies, • 11-1291 -2- operating budget policies and the role of the, auditors. After discussion, members asked Manager Splinter regarding the distribution of the current policy and he stated the City Council had received a copy of the draft policy at the same time the Task Force members received it. Members discussed they would hope to in the their next meetings to focus their attention on finalizing and approving a final, draft of the financial management policy for City council referral.. 0 M Chair Kelly adjourned the meeting at 9:05 P.m- 0 0 11-12-91 -3-