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HomeMy WebLinkAbout2006 06-05 FCAAGENDA CITY COUNCIL FINANCIAL COMMISSION JOINT WORK SESSION June 5, 2006 6:30 P.M. City Hall Council Chambers 1. Presentation by Auditor of 2005 Audit of Comprehensive Annual Financial Report 2. Miscellaneous 3. Adjourn • 0 AGENDA O CITY COUNCIL FINANCIAL COMMISSION JOINT WORK SESSION June 5, 2006 6:30 P.M. City Hall Council Chambers 1. Presentation by Auditor of 2005 Audit of Comprehensive Annual Financial Report 2. Miscellaneous 3. Adjourn The 2005 Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2005, was delivered with your weekly update last Friday, May 26, • 2006. Please bring your copy of the 2005 CAFR with you to Monday night's meeting. Thank you. I 2006 Cities in Compensation Policy Comparison for City Council Salaries • 2005 2006 Population* Mayor Council Mayor Council Golden Valley 20,736 $11,619 $8,696 $11,619 $8,696 Maplewood 35,763 $10,983 $9,666 $11,752 $10,343 Fridley 27,480 $9,893 $8,074 $9,926 $8,153 Richfield 34,502 $9,042 $7,019 $9,313 $7,230 New Hope 20,908 $10,672 $7,553 $10,672 $7,553 Roseville 34,080 $9,300 $7,020 $9,300 $7,020 Crystal 23,012 $9,410 $7,239 $9,410 $7,239 White Bear Lake 24,909 $7,680 $5,400 $7,680 $5,400 Brooklyn Center 29,174 $10,522 $8,056 $10,732 $8,217 Shoreview 26,475 $8,376 $6,204 $8,376 $6,204 Average $9,750 $7,493 $9,878 $7,606 Median $9,652 $7,396 $9,668 $7,396 Brooklyn Center as per cent of: Average 107.92% 107.52% 108.65% 108.04% Median 109.02% 108.92% 111.01% 111.10% Fridley Council salary listed above is for Council At-Large Council by ward is$7,208 for 2006 • Provides laptop computers Provides basic cable services Golden Valley Pays per diem of$50 per extra meeting to a maximum of$150 per month Maplewood Provides laptop computers New Hope Pays per diem of$25 for EDA meetings DSL line at residence for laptop computers Provides laptop computers Population* As listed in the 2005 LMC Directory of Minnesota City Officials Office of the Mayor illr"City of Brooklyn Center A Millennium Community Myrna Kragness • Mayor May 22, 2006 Mr. Gene Maze 3000 Thurber Road Brooklyn Center, MN 55429 RE: Appointment to Financial Commission Dear Mr. Maze: Thank you for volunteering to serve on the City's Financial Commission! At its May 22,2006,meeting, the Brooklyn Center City Council appointed you to serve on the Financial Commission. You were appointed to fill the vacancy of Samuel Tweah and your term expires December 31, 2008, at which time you are eligible for reappointment. The commission meetings are held at City Hall on an as-needed basis. An agenda packet will be mailed to you prior to each meeting. Enclosed for your information is a roster of the members of the Financial Commission. Councilmember Kay Lasman serves as the City Council liaison and Director of Fiscal and Support Services Dan Jordet serves as the City staff liaison. Should you have any questions regarding the Financial Commission, please feel free to call Mr. Jordet. Sincerely, W2r7r)fieL- 724,-"A-e44 Myrna Kragness Mayor enc. cc: Council Members Dan Jordet, Director of Fiscal and Support Services • 6301 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 www.cityofbrooklyncenter.org NY4 City of BROOKLYN Application For Appointment CENTER to Advisory Commission • , PLEASE PRINT CITY USE ONLY: Date Received I 4 pp 9 7._9 ri n g Financial _ NW Hennepin Hunan-Services, Check Which Commission Housing _ NW Suburbs Cable You Are Applying: _Park &Recreation _ Shingle Creek/West Mississippi Planning River Watersheds PERSONAL Last Name ryi rt�l__ First Name c (14.7 Date of Application v...... 7...... i Street Address :S 0,-,_ 0 TJ 1)C b e c .(2 _d� Apt.No. Date Available `_�,,�j l,l(� S�-�1C 5 fj City,State,Zip /�� � r � \ Home Phone 1f 0,c \ t v\ ( ��, Gt 73 5� -7/ l E-Mail Address c Q el e)(3 (Yl LL'Z V e©pI-ef)C,CO Work Phone ‘Ci ---5-3-- ' How many years have you lived in Brooklyn Center? El May we call at work? ,/Yes No Occupation/Employer Ji'Vi (7 Co 0S C.,('f'a?/') Are you currently or have you been previously employed by the City? _Yes !/No • If yes,dates: Position: I have ad the City Enabling Resolution or Joint Powers Agreement,which defines the purpose,authority,and responsibility of this advisory commission. I/Yes No I have received and read the City's Business Ethics Policy. s —No I wish to disclose the following potential conflicts of interest that may or will arise if I become a member of this advisory commission. Are you aware of the importance of regular commission meeting attendanc nd participation,and do you feel you have the time available to be an active participant? _Cires _No PROFESSIONAL DESIGNATIONS List relevant current professional memberships, registrations, or licenses applicable to appointment to this commission. Include dates first issued(use additional sheets if necessary). • SUPPLEMENTAL INFORMATION Briefly describe why you are interested in being appointed to a commission for the City of Brooklyn Center and check which commission you are interested in serving and describe why(use additional sheets if necessary). • /Financial Commission Northwest Hennepin Human Services Council Advisory Commission Housing Commission Northwest Suburbs Cable Communications Commission Park&Recreation Commission Shingle Creek/West Mississippi River Watersheds Planning Commission Jr• etk"-e_ Ik-C-S t 0 j_ e9 .te-01/7 > 11"kj- s Qscr GtM�- U Le Le.--.A7c d - Describe any additional education,experience,or skills that qualify you for appointment to this commission. Include remarks concerning your ideas or observations on the role of this commission(use additional sheets if necessary). 7 s -2}"1 t .n . Z Pr • �-`- ex \Prij VOLUNTEER EXPERIENCE List relevant volunteer work experience applicable to appointment to this commission. VOLUNTEER WORK PERFORMED No. From To ACTIVITY Hrs/Month Month/Yr Month/Yr d a_ • %,.) 1v1- —Cc k- a-o6k,c c� eL q 5 (t 5-, co(12.c, — -7- 3 Y-z n 5 IMPORTANT FACTS FOR YOU TO KNOW CONCERNING YOUR APPLICATION Minnesota law requires that you be informed of the purposes and intended uses of the information you• provide to the City of Brooklyn Center during the application process. Any information about yourself that you provide to the City of Brooklyn Center during the application process will be used to identify you as an applicant;to distinguish you from all other applicants;to enable us to contact you when additional information is required; send you notices; and to assess your qualifications for appointment to a City advisory commission. If you wish to be considered for appointment,you are required to provide the information requested in this application. If you refuse to supply information requested by the City, it may mean that your application will not be considered. You are hereby advised that,under Minnesota law,the information contained in this application about you must be made available to any member of the public who requests it. Materials submitted in support of an application are normally not returned. You should not submit an original document if it is your only copy. I authorize investigation of all statements contained in this application for appointment as may be necessary to arrive at an appointment decision. I certify that all answers to the questions are true and understand that any false information on or omission of information from this application will be cause • for rejection of this application or termination from a commission without notice. Applicant's Sign re ate SUBMIT APPLICATION TO: City Clerk City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 • • AGENDA Brooklyn Center Financial Commission Monday, 5 June 2006 following Council/Commission Work Session City Council Chambers I. Call to Order II. Roll Call III. Approval of Agenda IV. Meeting Minutes • 26 January 2006 6 April 2006 (Subcommittee) V. Election of Chairperson for remainder of 2006 a. Chairperson shall appoint Vice Chariperson VI. Council Compensation VII. Centerbrook Golf Course Restructuring Recommendation VIII. 2007 Budget Overview and Calendar IX. Other Business X. Adjournment • • Financial Commission Work Session Meeting Minutes 26 January 2006 1. Call to Order The meeting was called to order by Mr. Escher at 6:35 PM 2. Roll Call Members Present: Commissioners Escher, Nemec, Paulson, Anderson and Shogren- Smith. Council Member Lasman was excused. Staff present were City Manager McCauley and Director of Fiscal & Support Services Jordet. 3. Adoption of the Agenda Mr. Paulson proposed and Mr. Anderson seconded a motion to adopt the agenda as presented. With all voting in favor, the motion was adopted. 4. Minutes Mr. Paulson proposed and Mr. Anderson seconded a motion to adopt the minutes of the 28 July 2005 meeting as presented. With all voting in favor, the motion was adopted. Mr. Paulson proposed and Mr. Anderson seconded a motion to adopt the minutes of the City Council as minutes for the Financial Commission regarding the proceedings of the 15 August 2005 and 21 November 2005 joint work sessions on the 2006 Budget. With all voting in favor, the motion was adopted. (said City Council minutes are included with the permanent records of the Financial Commission in the Finance Department) 5. Selection of Chair for 2006 Mr. Anderson nominated Mr. Escher as Chair of the Commission for 2006. Ms. Shogren-Smith seconded the nomination. Mr. Nemec then proposed and Mr. Anderson seconded a motion to close the nominations and cast a unanimous ballot for the nominee. With all voting in favor the motion was adopted, making Mr. Escher Chair of the Commission. Mr. Escher then named Mr. Nemec as Vice Chair of the Commission. • 1 6. City Council Compensation 2006 is a year in which the Financial Commission is charged with reviewing City • Council compensation. Mr. Escher related some of the recent history of the process and the basic assumptions of placing the Brooklyn Center Council at or near the median compensation for the selected comparison cities. Mr. McCauley will arrange to have the comparative information updated and passed on to the Commission. Mr. Escher appointed a subcommittee to be chaired by Mr. Anderson with Mr. Paulson and Ms. Shogren-Smith to review the comparative information and present the Commission with options. 7. Update on Commissioner Appointments Mr. Jordet informed the Commissioners that with the departure of Mr. Simons and Mr. Tweah there are two openings on the Commission. Applications will be taken by the City Clerk through 31 January 2006 for the pending appointments. 8. Update on Development Activities Mr. McCauley reviewed some history and recent developments concerning the Opportunity Site, the Northbrook Shopping Center and Brookdale Center. 9. Utility Rate Study A study of the factors affecting utility rates for water and sanitary sewer was • initiated in 2005. Preliminary results indicate that further discussion is needed in order to develop a sound basis for application of new rates. The City Council and Financial Commission will hold a joint work session on 6 March 2006 to discuss the results of this study and its potential impact on Brooklyn Center's utility rates. 10. RFP for Investment Securities Custodian An RFP for Investment Securities Custodian, currently held by Wells Fargo, is being developed for a spring 2006 distribution. It will be reviewed by the Commission at its next regular meeting. 11. Calendar of Joint Meeting A revised calendar of joint meetings of the City Council and Financial Commission was distributed. The dates ofr joint working sessions with the two groups include 6 March 2006, 5 June 2006, 21 August 2006, 16 October 2006 and 20 November 2006. 12. Adjournment With no other business to transact, the meeting was adjourned at 7:52 PM. 411 0414 tot 11. Financial Commission Subcommittee on City Council Compensation Meeting Minutes 6 April 2006 Call to Order The meeting was called to order by Mr. Anderson at 6:36 PM Roll Call Subcommittee Members Present: Commissioners Anderson (Chair), Paulson and Shogren-Smith. Staff present: Director of Fiscal & Support Services Jordet. Discussion Mr. Anderson paid tribute to Donn Escher, longtime Chairman of the Financial Commission, who passed away in March. The difference between ward council members and at-large council members was • clarified, as in the case of Fridley. Materials prepared for the meeting were reviewed. The Financial Policy sets the comparison cities at those metropolitan within 10,000 population of Brooklyn Center and which are generally fully developed. The previous report to the Financial Commission in 2004 indicated that past Subcommittees have used the benchmark of the median of the comparison cities as a goal for compensation of the Brooklyn Center City Council. Compensation relationships between the last study and the current study were examined. The current compensation for the City Council relative to the other comparison cities is much the same as it was during the last study; about 110% above the average for the comparison cities. Given that the current compensation is about 10% higher than the stated goal for compensation of the City Council the subcommittee, by consensus, recommended no increase for City Council compensation in 2007. For 2008, the subcommittee recommended, again by consensus, a 2% increase in wages for both the Mayor and each City Council member. The meeting was adjourned at 6:58 PM • 3 Memorandum • Date: 3 April 2006 To: Financial Commission Subcommittee on City Council Compensation From: Daniel Jordet Director of Fiscal & Support Services Re: Compensation Discussion for 2007 & 2008 Attached to this cover memorandum are materials that may be used to consider the Subcommittee's recommendation to the full Commission on City Council compensation for the 2007 and 2008 calendar years. These materials include: • The section of the financial policies dealing with City Council compensation • The 2004 memorandum from the subcommittee to the Commission • The 2004 comparison data • • The most recent comparative data (2005 and 2006) • Graphic representations of the 2006 data Again, the Subcommittee is scheduled to meet in the Shingle Creek Room (conference room next to the City Council Chambers) on Thursday, 6 April 2006 at 6:30 PM. Please contact me if you are unable to attend. • 4 City of Brooklyn Center 2.2 Policy and Procedure on Mayor and Council Member Total Compensation • 1. Need for Policy The community is entitled to a clearly articulated, written description of the policy and procedure for establishing the total compensation of local elected officials. 2. Policy A. Service on the City Council is a civic obligation and an honor. The total compensation of the Mayor and Council Members should, therefore, not encourage candidacies based on monetary rather than public service objectives. However, the compensation of Brooklyn Center elected officials shall be fair and equitable in order to attract qualified candidates for local elective office. B. The propriety of the compensation levels of the Mayor and Council Members shall be evaluated through comparisons with compensation paid to similar officials within the seven county metropolitan area. C. The compensation levels of elected officials should be regularly reviewed and adjusted to ensure compliance with the objectives of this policy and to avoid the need for drastic or sudden compensation adjustments. 110 D. Compensation set pursuant to this policy and procedure shall be deemed to be the total compensation for elected officials of the City with the exception of expense reimbursement which shall be the same as provided all other City employees. 3. Procedure A. The City Manager shall biennially prepare a compensation report that contains an analysis of the compensation paid to elected officials of Minneapolis-St. Paul Area Metropolitan cities having a population within 10,000 of the City of Brooklyn Center that are generally fully developed {Such grouping shall include the cities of Richfield, Roseville, Maplewood, Fridley, Shoreview, White Bear Lake, Crystal, New Hope, and Golden Valley, in addition to the City of Brooklyn Center} The report shall compute the average and median amounts paid to Mayors and Council Members and correlate survey results to the current compensation of Brooklyn Center elected City officials. The City Manager shall assemble such additional information on compensation of City elected officials as may be requested to assist the Commission and Council in their review of elected official's compensation. B. The City Manager shall submit the compensation report to the City Council and the Financial Commission prior to June 1, for information pertaining to the applicable calendar year. • C. The Financial Commission shall bienniallyreview the CityManager's pager s compensation report and discuss possible budgetary and public perception Financial Policies Secti$n 11 Page 21 City of Brooklyn Center impacts of the indicated changes. Prior to July 1 of the same year, the Commission shall recommend to the City Council that the compensation of the • Mayor and Council Members either remain the same or be changed to some specific amount in the manner prescribed by law. D. Consistent with the City Charter, Section 2.07, the Mayor and Council Members may, after conducting public hearings, set their compensation by ordinance. No change in compensation shall be in effect until January 1, following the next succeeding general election. 4. Authority The authority for establishing compensation for the Mayor and Council Members is found in Minnesota Statutes 415.11 and the City of Brooklyn Center Charter, Section 2.07. Reference: • City Council Minutes 1/10/94 • City Council Resolution No. 98-91 • 4111 Financial Policies Seciion 11 Page 22 • Memorandum Date: 9 April 2004 To: Donn Escher, Chair Members of the Financial Commission From: Jay Hruska, Subcommittee Chair Re: City Council Compensation for 2005 and 2006 The Financial Commission Subcommittee on City Council Compensation met on Thursday evening, 8 April 2004, at 6:30 PM at City Hall. Present were, Jay Hruska, Subcommittee Chair and Mark Nemec, Subcommittee Member. Also present was Daniel Jordet, Director of Fiscal & Support Services. The members reviewed the materials prepared by Mr. Jordet on behalf of the Subcommittee. Mr. Hruska asked about the inclusion of computer expenses in Council compensation. Mr. Jordet replied that the computer allowance was rolled into the overa ll Council co mpensation amount in 2000. • Mr. Hruska reviewed the goals used by compensation subcommittees in the past. It has been the goal of the group to keep City Council compensation at or above the median of the comparison cities. For 2004, the chart shows Brooklyn Center at 110% to 111% of the median for comparison cities. Both Mr. Hruska and Mr. Nemec pointed out that compensation consideration should also be viewed in light of the budget constraints currently being experienced by the City. The Subcommittee recommends that City Council compensation be left at the 2004 levels for 2005 and that no additional amounts be paid. For 2006 the Subcommittee recommends an increase of 2% in the base wage of City Council members. Total cost of the increase should be about $ 1,000 for 2006. The three main reasons for this recommendation are: • Budget constraints • Sensitivity to citizens concerns expressed about prioritization of expenses • Council's current status in terms of position above the median compensation of comparison cities This recommendation will be forwarded to the Financial Commission for consideration at their 29 April 2004 meeting. • 2004 Annual Salary for Elected Officials 2004 2005 • Population Mayor Council Mayor Council Golden Valley 20,391 $11,619 $8,696 $11,619 $8,696 Maplewood 35,080 $10,983 $9,666 Fridley 27,469 $9,637 $7,916 Richfield 34,876 $8,779 $6,815 New Hope 20,910 $10,672 $7,553 Roseville 33,949 $9,300 $7,020 Crystal 22,748 $9,136 $7,028 $9,410 $7,239 White Bear Lake 24,606 $7,680 $5,760 $7,680 $5,760 Brooklyn Center 29,180 $10,522 $8,056 Shoreview 36,374 $8,208 $6,084 Fridley Council salary listed above is for Council At-Large Council by ward is $6,998 Provides laptop computers Golden Valley Pays per diem of$50 per extra meeting to a maximum of$150 per month New Hope Pays per diem of$25 for EDA meetings DSL line at residence for laptop computers Provides laptop computers • • 8 • 2006 Cities in Compensation Policy Comparison for City Council Salaries 2005 2006 Population* Mayor Council Mayor Council Golden Valley 20,736 $11,619 $8,696 $11,619 $8,696 Maplewood 35,763 $10,983 $9,666 $11,752 $10,343 Fridley 27,480 $9,893 $8,074 $9,926 $8,153 Richfield 34,502 $9,042 $7,019 $9,313 $7,230 New Hope 20,908 $10,672 $7,553 $10,672 $7,553 Roseville 34,080 $9,300 $7,020 $9,300 $7,020 Crystal 23,012 $9,410 $7,239 $9,410 $7,239 White Bear Lake 24,909 $7,680 $5,400 $7,680 $5,400 Brooklyn Center 29,174 $10,522 $8,056 $10,732 $8,217 Shoreview 26,475 $8,376 $6,204 $8,376 $6,204 Average $9,750 $7,493 $9,878 $7,606 Median $9,652 $7,396 $9,668 $7,396 Brooklyn Center as per cent of: Average 107.92% 107.52% 108.65% 108.04% Median 109.02% 108.92% 111.01% 111.10% Fridley Council salary listed above is for Council At-Large Council by ward is $7,208 for 2006 • Provides laptop computers Provides basic cable services Golden Valley Pays per diem of$50 per extra meeting to a maximum of$150 per month Maplewood Provides laptop computers New Hope Pays per diem of$25 for EDA meetings DSL line at residence for laptop computers Provides laptop computers Population* As listed in the 2005 LMC Directory of Minnesota City Officials • 9 0 Co o c a) • co o o- m 2 C CO CD N Cn CO (B O CO 0 > C T N N O N 00 `- U CO M a) T CO- 0 Q coO (13 L Cl) I N- CD A= 1 Z E o III O N V (o iii T • U C O i V CD I O O O co _C O o N , f� CC N O N O O N 1 ti O I CC I a) d' > 1 O N N O CO- L U) (0 O m N I O �c V O (6 L L i . r co co co co coO O . O O O O co O ' N O CO- O V CV- 1 0 O • O co Q • co 2 • O N A r, - Q) co O > • C ` N >' a) Co Y C N O a)o 2 U a) Cl N 0 I,- _ O a) Z • O co a) co rn Ll.. • 4) i Q • E • • 0 O cs U L', LO orn U a co 2 CO o 00 (T C) V- - N CO 0 E m O j O a) co u) 0) O I I r a) co > N.- Q) co c O I U) •• I43 a) O m a) CO Y CO a) ca L • O O CD O O O O O O C. O O O O O O N 0 CO V N 11 City of Brooklyn Center A Millennium Community • MEMORANDUM DATE: May 25, 2006 TO: Dan Jordet, Director of Fiscal and Support Services Financial Commission Members FROM: Jim Glasoe, Director of Community Activities, Recreation and Services SUBJECT: Recommendation- Centerbrook Finances At the joint meeting of the City Council and Financial Commission on March 6, 2006 regarding Centerbrook golf course, there was significant agreement on keeping the golf course as a recreational amenity for the community, but less agreement on how to address the long term debt. After considerable discussion, it was decided that staff would develop a capital plan for the golf • course along with a recommendation regarding the debt. These items would be brought back to the Park & Recreation Commission and the Financial Commission for consideration and a recommendation. Also of note at the meeting, was the discussion of the golf course and its relationship to the Storm Sewer Utility Fund as a regional storm water detention facility. It was reported that the golf course had lost approximately $49,000 in net revenues in 1998, as the golf course was not opened until July 1 S`of that year to accommodate completion of the storm water pond construction. Additionally, the Council and Commissioners discussed the fact that the golf course is routinely closed, for varying periods of time, as a result of flooding related to storm water. Attached, please find a copy of the proposed Capital Plan for Centerbrook. It is a ten year plan that schedules yearly capital projects and expenditures according to need. Similar to the larger Capital Improvements Plan for the city, this plan would be reevaluated each year, and presented along with the golf course budget. The Capital Fund is established with an initial contribution of$49,000 from the Storm Sewer Utility Fund, and an annual contribution of$17,500 from operating revenues. You will note that the capital reserve maintains a positive balance throughout the duration of the plan. • 6301 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 12 FAX(763) 569-3434 FAX(763) 569-3494 www.cityofbrooklyncenter.org In addition to the funding of capital projects and purchases, the staff recommendation also • includes a reserve for early season expenditures. During the first quarter of each year, the golf course produces limited revenues until the course opens for business. The annual net revenues through the end of March are typically ($25,000). Staff recommends that sufficient cash reserves be held in reserve annually to accommodate for this deficit. As a result, staff recommends that a revised loan repayment policy be adopted that calls for loan payments according to a set formula, rather than a predetermined schedule. Staff proposes that the formula direct any year-end cash reserves in excess of$50,000, plus any Capital Reserve balance, be directed to the Capital Improvements Fund. Again, this reserve would accommodate funding of capital projects and early season expenditures. Staff further recommends that revenues lost as a result of golf course closures related to storm water be reimbursed by the Storm Sewer Utility Fund. This reimbursement would be for actual league rounds cancelled, and an average of daily non-league rounds played during the same period, over the past three years. Lastly, staff recommends that all principal payments made continue to be tracked, until such time the original loan is repaid. At their May meeting, the Park and Recreation Commission met to consider this issue. After due consideration, they passed a unanimous motion affirming the staff recommendation and recommending the same to the City Council. • Please let me know if you have any questions regarding the recommendation or would like additional information. • 13 Capital Improvement Plan 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 • Clubhouse Roof Replacement Refrigerator $1,500 Freezer $2,000 Carpet Replacement $7,000 Hot Water Heater $1,000 Tables&Chairs $5,000 Ice Cube Maker $3,000 Window Treatments $2,000 Paint interior $1,000 Air Conditioner $2,000 Furnace $3,000 Management Software/Hardware $5,000 Cash Registers $1,500 Copier • $1,000 Office furnishings Pro shop furnishings $3,000 Bathrooms Remodel $12,000 Surveillance Cameras $3,000 Window Replacement $8,000 Door Replacement $2.000 New Picnic Shelter $15,000 Flagpole $2,000 Grounds Pond Erosion Storm Water Utility • Irrigation controls $28,000 Irrigation Heads/Gate Valves $28,000 Overlay/Repave Paths $10,000 Wood Bridges $5.000 Garage Doors Replace $5,000 Parking Lot Overlay $15,000 Benches $2,000 Signs $3,000 Parking lot lights $12,000 Pull Carts $1,000 Equipment Aerator Pond Fountains Golf Carts Fertilizer Spreader $4,500 Top Dresser $11,000 Utility Cart $4,400 Golf Carts $10,000 $10,000 $5,000 _ _ Sprayer $11,000 Yearly Totals $29 500 $28,000 $18,500 $16,000 $23,000 $16,000 $15,500 $26,000 $17,000 $15,000' Annual Capital Allocation$17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 Stormwater Contribution to Reserve $49,000 Capital Reserve Balance $37,000 $26,500 $25,500 $27,000 $21,500 $23,000 $25,000 $16,500 $17,000 $19,500 Year-end Cash Balance Reserve $87,000 $76,500 $75,500 $77,000 $71,500 $73,000 $75,000 $66,500 $67,000 $69,500 • (Any Remaining Funds Directed to the Capital Improvements Fund) 14 • This packet of information will be used during discussion of the • 2007 Budget Overview I City of Brooklyn Center A Millennium Community • To: Mayor and Council Members Financial Commission From: Michael J. McCauley City Manager Date: May 10, 2005 Re: Initial Budget Discussio for 2007 Budget 2007 BUDGET DISCUSSION In May, the City Council and Financial Commission are asked to provide general direction on the development of the draft General Fund budget documents. The draft budget is developed to address priorities that have been developed. A general sense of the goals for the 2007 budget and the rough parameters of operational targets are needed to give departments direction on the development of budget requests. If the City Council has general or specific matters that it wants reviewed and analyzed for the budget, identification of those issues at the beginning of the budget development 411, process aids in that process and allows staff time to develop appropriate scenarios for Council and Commission review. As indicated in the agenda,the meeting will review the general directions taken last year. The 2006 budget was essentially a continuation of the 2005 budget which reflected the reduction strategies employed in 2004 & 2003. The underlying principle guiding the reduction in service was to eliminate whole activities and to reduce core operations at the margins so as to retain effective core services,rather than to cut all services/activities across the board.A sense of doing what is done at an effective level was seen as more beneficial/effective than doing more things poorly. Review of 2006 Budget Dates: The budget meeting dates were established with the 2006 City Council calendar adoption. We have generally started with the General Fund and done the Enterprise and Capital Funds at the end of the process. State law requires adoption of a preliminary tax levy by the 2nd week of September. The final levy adopted in December may be lower than the preliminary levy adopted in September. The final levy may not be higher than the preliminary levy. The preliminary levy is sent out with the Truth in Taxation notices. The meeting dates for budget meetings/actions are: - May 22nd (re-scheduled from May 15th) - June 5th(review with Financial Commissiony May nd m eetiAg due toto cancellation of May 15th joint meeting) p • - August 21S`—focus on General Fund and preliminary levy 6301 Shingle Creek Parkway Recreation and Community Center Phone & 11)11 N,,moer Brooklyn Center, MN 55430-2199 (763)569-3400 City Hall & TDD Number (763) 569-3300 FAX(763) 569-3434 FAX(763) 569-3494 www.cityofbrooklyncenter.org - September 11 th—adoption of preliminary levy and General Fund Budget • - October 16th— focus on Enterprise Funds & Capital Improvement Plan - November 20`h—finalize all budgets for hearings - December 4th Truth in Taxation Hearing - December 11th Budget Hearing and Adoption With the exception of the September 11 th,December 4th, and December 11 th meetings,all meetings are joint work sessions of the City Council and Financial Commission at 6:30 p.m. If there are any changes that should be made to the schedule,they can be proposed at any point in the budget process. OVERVIEW OF 2006 BUDGET PRIORITIZATION 2006 REVENUE OVERVIEW For 2006, the General Fund budget increased$470,181.Major influences included increased pension contribution rates due to State changes in contribution rates for public employee pensions.Taxes and State Aids in 2006 are below the level of combined resources budgeted for 2003 and 2002. Total taxes levied by the City and its Housing and Redevelopment Authority increased 2.72% in 2006. Real Estate taxes provide 73+% of the funding for the General Fund. There was a slight increase, after consecutive years of substantial decreases, in Local Government Aid in 2006. At this point in the budget process it is too soon to have an indication of aid amounts for 2007 until after the Legislature completes its session and notices are sent in August on preliminary aid distributions. • Revenues Without Debt $14 $12 $10 o $a ❑ Taxes $6 ■ State Aids $4 $2611111111111111111.11111 $0 2001 2002 2003 2004 2005 2006 • 05/18/2006 Page 2 of 11 • Operating, Debt & HRA Levies + State Aids 2002 • ii 2003 II • Operating Levy 111 ® State Aids 2004 ■ HRA Levy 2005 i . ❑ Debt Service Levy imosimminnimi 2006 ..', $0 $5 $10 $15 Millions General Fund Revenues 2006 +_. a r Reel Estate Matti cv.-:,, ,.� 73.6% Y rh ;bra y . r-.- 1 ,ea ts ilit:`tom�''•,,,g6:�. ��h , „,.. ..,, ,, ,,,. 4-,';',% - r-':"% ',"•7!.,.r, , 'we,i t'4,141,,,,*1' -'- X, L nfereet Caut Fines 1.6% tr-74} 3'4 ,ti Rec.&Corrn.Center Fees �^'.'1 41 t - N 4.4% V . 191 Y+�, R Chargefor SefMce +a ''''''r bike` i 0.2% 9a7 ' a'. Slate 9.0%ds 4ar Ucers es&Permits Public Safety Charges 4.9% 0.1% Misc.Reenue Misc.Taos 0.4% 4.7% • 05/18/2006 Page 3 of 11 • Property Tax Levy Total levy All Sources 2005 to 2006 2005 to 2006 Pay 2004 Pay 2005 Pay 2006 $ Change %Change General Fund Operations $9,497,064 $10,117,000 $10,494,126 $377,126 3.73% 1994 Bonds $69,536 1995 Bonds $70,995 $73,626 ($73,626) -100.00% 1996 Bonds $122,383 $118,023 $118,830 $807 0.68% Police&Fire Bonds $786,584 $759,074 $757,394 ($1,680) -0.22% Housing&Redevelopment Authority $232,395 $251,295 $257,065 $5,770 2.30% Total of All Levies $10,778,957 $11,319,018 $11,627,415 $308,397 2.72% 2006 EXPENDITURE OVERVIEW The 2006 budget continued the reductions implemented in 2004 after a lengthy prioritization process. The continuation of the 2004 cuts and priorities reflected in the 2006 budget were: • • The budget for all operations provides for 151 full time positions in all funds, a decrease of 9 full time positions from the 2002 budget, a total of 15 fewer full time positions than in 2000. This number of 151 full time positions was an increase of 1 position over the 2005 budget with the change from a part to full time support position for Fire/Emergency Management. The mix of full time and part-time employees is an ongoing process of balancing needs and the best mechanisms to meet those needs through personnel configurations. o Maintain Police Patrol at full strength o Maintain Fire Operations o Maintain general operations as reduced in 2004 o Continue reductions in: • Street and Park maintenance • Reduced seasonal hiring • Not replacing positions vacated in 2003 • Reduced use of portable toliets o Retain • Senior Transportation ■ Staffing for Earle Brown Days committee • Support for Earle Brown Days parade • Funding for REACH added to the 2005 budget o Provide no funding for: • • PRISM medical transportation funding in the 2004 budget (service may be continued in 2004 through an additional transfer in 2003) 05/18/2006 Page 4 of 11 • DARE • o Restoration of funding for North Hennepin Mediation Services that was restored in 2006 budget o Reduced levels in the following areas are continued: • Pool hours • Programming for • Seniors • Youth after school • Recreation programs • Ice Rinks • Reduced to 5 rinks • Eliminates warming houses altogether • City Watch newsletters from 6 to 4 issues annually • Entertainment in the parks and fireworks are held to the extent donations are received 2000-2006 General Government Public Safety ---- Community Development',III' Public Works Social Services ®2000• Parks&Recreation"'" ■ 2006 Convention&Tourism a Risk Management; Unallocated Dept. Transfers to Technology Fund I $0 $1 $2 $3 $4 $5 $6 $7 Millions • 05/18/2006 Page 5 of 11 0 General Fund 2006 Mayor&Counci 0.9% _City Manager ( �!�',t. , :,,', )' •6—.i (xL.L„i al Other Financing 1.4% V 0.5% City Clerk Convention&Tourism 1.3% , 2.2% Finance Park Maint 4.9°/0 g.g°/, Legal toy...y.V t i 2.0% Recreation Admin '' ' " r Human Res. 't" 1.6%• 7.6% Mr e-H4 CARS Admin. 3 t" ;, .:,`i' 1.2% { Other Gen.Gov't. R>- 7.7% Social Services . ; 0.6% } 4R: Maintenance Streets u sir: ._ 9.2% • s <r Public Works Admin. 3.6% Y Ff Emergency Prep. 0.4% Inspections 2.5% Fire 5.3% • • Police 41.3% 0 05/18/2006 Page 6 of 11 • General Fund Expenditures by Type 2006 Pers69.2%onnel Costs Capital Outlay_ 0 4 ,,�,,:;'.:'i, 4i:;�7ransfers to Other Funds t 0.5% i t, Contingency ' t,f,. ; w�, Utilities %Il Insurance 1.2 I '' iffy `Central Garage :r i 9 w- zi i �• i_,.'' , ;NkS- ,' v.` �CostofSales ! s z. /,r Y I ry^. Other Contractual 6.5% Suppliei 3.5% 9 Repair,rental 1.9 S2 % Communications 2. % 1.7% Overview of 2007 Issues a. The most significant influence on the General Fund continues to be the reduction in Local Government Aid.After losing$1.68 Million in Local Government Aid in 2004 with the ability to levy back only 60% of that lost aid and no levy for inflation, the City lost an additional$310,422 in Local Government Aid in 2005.In 2006 there was a modest increase in Local Government Aid of $125,000. The City also lost $1.38Million in HACA in 2002 that shifted costs to real estate taxes from State aids. b. Revenues i. Real estate taxes are the largest source of revenue in the General Fund(73%) and the only significant source of new revenue to meet future cost increases. Many of our license fees are limited by State statute such as liquor licenses and amusement devices.Building permit revenues are cyclical and may need Ill to be adjusted downward in the budget projections. We have increased fees at the Community Center and for programs. Interest earnings have been very 05/18/2006 Page 7 of 11 modest over the past years due to low interest rates. Interest earnings have • begun to increase recently. ii. A 3%increase in real estate taxes generates approximately 315,000 or a 2.3% r. . increase in General Fund revenues. iii. In 2007, the 1996 Street bonds will be retired. This is the last issue that included a levy for the City's portion of street reconstruction prior to the City 8 . Council's acceptance of the recommendation to discontinue the use of general obligation debt. The debt service levy in 2006 for the 1996 bonds is $118,830. The levy for operations could increase by$118,830 without itself increasing total taxes. This would help offset the total levy needed to maintain General Fund operations or provide additional funding for street 3 reconstruction. c. Expenditures i. Personnel v , 1. For 2007 we are projecting the cost for increased wages and insurance A contributions in a rough range of$300,000 to$350,000 in the General • Fund,which may be lower with the final configuration after dispatch v r. transfer to Hennepin County.As mentioned earlier,increased pension contribution rates are magnifying the increases in personnel costs. ii. Utilities and fuel • 1. Utilities and fuel costs have increased due to increased energy costs. The impact of these costs will impact the 2007 budget. Projects in 2006 and 2007 Impacting Budget and Staff Resources The following are current projects and projects for 2007 that will have major impacts on staff time and/or fiscal resources: 1. Utility Rate Study a. Basis of Billing discussion i. Concept proposal to shift to actual use categories ii. Fall 2006 into 2007 discussion 2. Stormwater Utility Study a. Develop maintenance schedule and costs b. Capital needs schedule and costs c. Develop rate structure/plan to support maintenance and capital needs 3. Capital Improvement Plan a. Expansion to include all remaining neighborhoods working plan out from 5 to 15 years • b. Scheduling water tower painting c. Compliance with recent mandates for NPDES and TMDL 05/18/2006 Page 8 of 11 d. Better cash flow analysis • i. For utility rates ii. Generally iii. Out to 2020 and 2025 for better forecasting 4. General mandates for storm water and other items a. New NPDES plan due end of June b. Water Conservation plan mandate from State 5. Golf Course a. Loan structure b. Storm water charges for flooding and past lost use during construction of detention ponds 6. Watershed a. There have been increasing demands on staff time related to watershed issues i. May not be a priority given magnitude of funds v. other issues b. Capital projects with partial funding from Watershed 7. Central Garage a. Revise replacement funding plan to reflect new emission requirements b. Revise fire replacement funding need estimates based on more current replacement • costs 8. Communications a. Working on proposal for new character generator i. Should be ready for Council consideration to approve new equipment at June 12th meeting b. Tim Gaffron preparing inventory of equipment in Council Chambers i. Issue of replacement plan and funding c. Studying digital recording and a service to allow digital taping of Council meetings that could place meeting on City's website with ability to go to individual agenda items with click of a mouse. 9. Election a. The City Clerk and Deputy Clerk will start the election season shortly and be fully engaged with that process until mid-November. b. HAVA (Help America Vote Act) implementation requires new plan and additional training requirements for staff and election judges 10. Emergency Preparedness a. City staff being trained/updated on NIMS (National Incident Management System) b. Department heads to be updated c. Planning for potential Avian flu • 05/18/2006 Page 9 of 11 11. Code Enforcement• a. Improving process and coordination b. Preparation of mailing/materials to educate on requirements with multiple language resources 12. Major Personnel Recruitments a. City Manager recruitment and hiring b. Community Development Director retirement and replacement in 1st half of 2007 13. Technology a. Document Imaging System in 2007 b. Conversion to new software for utility billing which will have major staff implications for training and data conversion 14. Fire Department a. Continuing issue of day time fire coverage i. Exploration of options 1. additional public works employees required to be fire fighters 2. small full-time day staff with additional duties 3. other 15. Franchise Fee • a. Need to review for Council Report and possible increase to assist in street reconstruction funding—has been unchanged since implementation in 2004 16. Comprehensive Plan Update in 2007 a. Possible task force i. Last time used Council, Planning Commission, Community members, and staff b. Hire consultant 17. 57th & Logan a. Review proposals and select developer for negotiations in June 2006 b. Negotiate contract in summer of 2006 c. Construction in 2007 18. Opportunity Site a. Comprehensive Plan modifications b. Financial modeling 19. Dispatch conversion a. Occurring now into rest of summer with implementation of new configurations • 05/18/2006 Page 10 of 11 20. Fire Pension request • a. Springsted is reviewing annual request from Fire Relief Association to increase pension benefit 21. Salt Storage facility a. Construction of new salt storage facility 22. Street reconstruction projects a. 2006 construction going on now b. Field work for 2007 projects and design 23. Finance a. Implementation of Government Accounting Standards 43 & 45 Staff resources are stretched at this point and focus on main projects and issues is required to accomplish the planning and projects described above.Additional projects should be considered in the context of what can be deferred or dropped to make capacity for additional projects or studies.In looking at the 2007 budget process,the question for the Council is whether it wants to consider/study any changes in basic operations/services provided.If not,then the process can proceed on an iterative basis to develop a budget proposal that maintains current services and operations,seeking additional funding for street reconstruction while saving staff time to work on the major studies and planning for capital and utilities. If the Council wishes to explore changes in operations or services, then the • question to be answered is what does the Council wish to have evaluated and calculated in the budget process and what of the identified current projects should be deferred? With the additional undertaking of a recruitment and selection process,I would recommend that the Council seriously consider deferring non-essential studies and compilations of information to facilitate focus on ongoing operations and the budget/capital planning in place. Unless a clear majority of the City Council is very interested in obtaining information in addition to the usual compilation for budget development and the additional work will have a very clear impact on decisions made by the City Council, I would suggest the staff not be asked to undertake additional compilations or analysis.The staff certainly wants to provide the City Council with the information and analysis that the Council needs to fulfill its responsibilities, but the staff does not have the capacity to compile a lot of additional data and perform additional analysis and still deliver on the long range planning outlined. One of the major responsibilities that I have is the budget process, analysis, and assembly. My absence during the 2007 budget process will require a further prioritization of staff resources and a focus on what is truly important and needed by the City Council at this time. The City Engineer is currently overloaded with the increased mandates for storm water and water, finalization of storm clean-up, street and other construction projects, and undertaking a major revision of our long range planning for capital needs and funding with Finance. This long range planning is of major importance and we have been working to be in a position to undertake this expansion. It can only happen with the assistance of the City Council to free up time and staff resources to focus on these planning and analysis projects. • 05/18/2006 Page 11 of 11