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HomeMy WebLinkAbout1991 09-30 FTFM. MINUTES OF THE PROCEEDINGS OF THE FINANCIAL, TASK FORCE OF THE CITY OF BROOKLYN CENTER SEPTEMBER 30, 1991 CITY HALL CALL QRM Vice Chair Boran called the meeting to order at 7 p.m. RQ~ CALL Boran, Boyd, Kanatz,-Escher, and Peppin. Also present were Manager Splinter, Finance Director Holmlund, Personnei Coordinator Barone and Councilmember Pedlar. Absents Kelly and Christensen. APPROVAL:aF MIMUmES - ,~Z H 16. 1991 Thera was a motion by Kanatz and seconded by Escher to approve the minutes of the September 16, 1991, Financial Task Force meeting. The motion passed unanimously. Member Escher commented on the quality of the minutes and thanked the staff. Ms. Barone presented tables indicating the department staffing history for the past ten years of all the city departments financed through the general fund. Members asked various questions regarding various departments and asked whether similar tables . could be developed for the enterprise fund areas. Member Peppin and others expressed an interest in a history of the park and rec programs and their growth over the years and percentage of cost recovery through fees. There was also an interest in the program budget aspects of the recreation department. Manager Splinter stated he would have that information available during the sessions with department heads. Ms. Barone presented a review of the city's pay plan. Manager Splinter stated Vice Chair Boran has been reviewing a copy of the Stanton Municipal Salary Survey which surveys metropolitan municipalities and covers approximately 90% of the positions in the city of Brooklyn Center and 99% of the employees. This survey gives detailed, comparative information about salaries in the metropolitan area municipalities and also compares them to state, county and some private industry data. The report is a rather large document and the particular report Vice Chair Boran has been reviewing has tabs on all positions in Brooklyn Center. Manager Splinter stated this report could be viewed by any of the members and it was taken for review by Member Peppin. Vice Chair Boran stated there was a great volume of detailed, comparative information available and encouraged members to review the document. Ms. Barone presented an overview of the impact and content of pay equity or comp worth legislation. She stated in 1990 the cost for complying with pay equity legislation for Brooklyn Center was 9-30-91 -1- $300,000. In response to questions she stated in 1991 that cost would be estimated at $312,000. She further stated recent changes • in the law require an additional review and updating of the pay equity system for all municipalities and while the costs of meeting the new requirements are at this time unknown they certainly shouldn't be as significant or problematic as the original process. Manager splinter reviewed with the Task Force the 1992 preliminary proposed budget. He stated the preliminary proposed 1952 budget calls for a total increase in expenditures of .64% and an increase in the tax levy of slightly more than 9%. He stated the larger roperty tax levy increase when compared to the total budget ncrease is caused by a loss of state aid. The legislature has allowed for no growth in the property tax except to replace the state aid cut. If there had not been a cut in state aid and the same budget proposal had been submitted there would be little, if any, property tax increase. He further pointed out despite holding the budget to a .64% increase the budget as proposed remains $450,000 out of balance. This deficit figure does not contemplates the use of any fund balance from previous years. He stated the preliminary proposed 1992 budget calls for the elimination of three staff positions, one in the City Manager's office and two in the streets and park division. To make up for the additional $450,000 deficit additional staffing cuts would probably have to be made and some prudent use of fund balance would be recommended. Member Boyd asked if it was possible to use revenue from water and sewer utilities to finance additional funding for police and other i services. Manager Splinter stated the use of utilities funds for any non-utility purpose is specifically prohibited by the City Charter. Vice Chair Horan stated he would like some information on the use of fund balance as his review of financial reports seems to indicate the city has been going into a deficit position for the last couple of years and he is concerned about the trend. Finance Director Holmlund stated he would prepare such a review. He added some of the audit and report figures are misleading because portions of the fund balance reductions were planned and specifically designed to reduce the fund balance. Vice Chair Horan also expressed the interest in the Task Farce recommending a financial plan and policy as was suggested by the auditor and the city staff at the last meeting. Members agreed and Manager Splinter stated he would be developing a policy for review by the Task Force. Vice Chair Horan and the membership agreed the next meeting - October 16, 1991 - would be the start of the process to review with individual department heads their operations. Manager Splinter suggested either the police or public works department lead off the review and that only one of these rather large departments be handled per meeting. The membership agreed that one of the departments would be reviewed at their next meeting. aotnW= Vice Chair Horan adjourned the meeting at 9:18 p.m. 9-30-91 -2-