HomeMy WebLinkAbout1991 09-16 FTFMMINUTES OF THE PROCEEDINGS OF THE FINANCIAL TASK FORCE
OF THE CITY OF BROOKLYN CENTER
• SEPTEMBER 16, 1991
CITY HALL
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The Brooklyn Center Financial Task Force met in regular session and
was called to order by Chairperson Kelly at 7.01 p.m. Chairperson
Kelly introduced Mayor Paulson.
Mayor Paulson stated he was visiting all of the commissions and
task forces in September to thank membership for their time and
energies and encourage the commission to keep up the good work.
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Chairperson Kelly, members Escher, Boyd, Kanatz, Boran, Pepin, and
Christensen. Also present were Mayor Paulson, Councilmember Cohen,
Manager Splinter, Finance Director Holmlund, and Cliff Hoffman
representing Deloitte Touche (city auditor).
Chairperson Kelly asked Finance Director Holmlund to introduce the
representative of the city audit firm, Deloitte Touche for a
presentation. Finance Director Holmlund introduced Mr. Cliff
Hoffman from the firm of Deloitte Touche and he presented a review
of the city's financial condition and practices. He stated the
city was in excellent condition and that whatever changes, remarks
or suggestions he might have should be taken in that light. He
stated the fund balance situation was very good and Brooklyn Center
was one of the few communities which had a fund balance policy and
explained the need for a fund balance for operating capital. He
stated sanitary sewer utility operating costs were composed of a
local maintenance cost of 10%, and 90% of the total cost was
charges from the Metropolitan Waste Control Commission. He stated
the City ought to develop a rate system which had an escalation
clause in it tied directly to Metro Waste Control Commission rates
so when they make an adjustment there is an automatic adjustment to
the sanitary sewer customer. He also believed the city should give
credit where credit is due and make sure the rate payer customer
knows who is causing the rate increase in costs and not have it
totally attributable to the City. He stated it is his observation
the City of Brooklyn center made some exceptionally sound,
financial decisions over the previous ten to twenty years and his
concern would be if he were with the City of Brooklyn Center - how
do we assure the same sound, financial management for the next ten
to twenty years. Currently the city is not mortgaging its future
by deferring costs and is meeting all government reporting
standards and operating on a fiscally responsible basis. He
further stated the future could be problematic due to three
factors: first, a number of senior department heads will be
retiring in the next five years; second, it is possible for the
turn over of experienced council members and the election of an
inexperienced city council; and third, the current state financial
crisis. Considering these three factors Brooklyn Center may not be
• in a position to continue the sound, financial management in the
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future in the same way it has in the past. He stated his
recommendation would be the city develop a financial management
policy or program to articulate, in writing-, principles which have
served the community well in the past so they can be used to guide
the future. After answering a number of questions, and discussion
by the membership, Mr. Hoffman closed his presentation.
chairperson Kelly introduced councilmember Cohen as a second
presentation for the evening. Councilmmeber Cohen presented
statistics: and analysis by state and metropolitan agencies which
projected and explained the demographics of Brooklyn Center and
inner ring suburbs. Councilmember Cohen stated if we don't spend
and tax for consistent improvement to municipal infrastructure we
are, as is the case in many national programs such as social
security, deferring costs to future generations. Given the increase
in elderly and the population wave in the next ten years, there is
a glut of people in the wags earning prime of life in Brooklyn
Center and the United States. As we go past the year 2000 there
will be more and more elderly and fewer in the wage earning
population ages. This will produce fewer opportunities for
financing infrastructure improvements. If we don't move now to
keep investing in our infrastructure we may not have the financial
capability to catch up ten or twenty years from now. He stated
Brooklyn center has just completed two market studies, one on
housing and one on the commercial/industrial area and what has come
out loud and clear from these analyses is we must foster
neighborhood revitalization as that is the basis for continued
commercial prosperity. He stated he believed the state legislation
49 was de-emphasizing the property tax and in the last session
encouraged cities to pass franchise taxes on utilities. It would
be his proposal the city consider passing franchise taxes on
utilities and dedicating them to neighborhood revitalization and
housing. He presented a packet of materials supporting some of his
presentation and encouraged members to read them as they had time.
The Task Force members discussed the agenda and presentations for
the next meeting and they concurred and Manager Splinter offered to
provide information on the 1992 preliminary proposed budget and
review the personnel processes and plan for the City of Brooklyn
Center.
The Task Force discussed generally the processes and upcoming
meetings and asked about the availability of department heads to
discuss specific departmental processes and organization. Manager
Splinter stated that would be available and acceptable. They also
discussed public hearings and employee involvement processes and
decided to defer consideration of these processes until future
meetings. Manager Splinter suggested the Task Force may find
sections of the Communications Audit review useful in assessing
certain employee suggestions and would provide that document to
them.
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• Chairperson Kelly adjourned the meeting at 9:12 p.m.
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