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HomeMy WebLinkAbout2005 07-28 FCA• AGENDA Brooklyn Center Financial Commission Thursday, 28 July 2005 7:00 PM Council Commission Conference Room I. Call to Order II. Roll Call III. Approval of Agenda IV. Meeting Minutes 16 March 2005 16 May 2005 - Joint work session with City Council V. General Update on Development Activities VI. Legislative Impacts on City from 2005 Regular and Special Sessions VII. Review of final 2004 Comprehensive Annual Financial Report VIII. Review of the Budget Development and Adoption process IX. Other Business X. Adjournment 0 • Financial Commission Work Session Meeting Minutes 28 July 2005 1. Call to Order The meeting was called to order by Chair Escher at 7:00 PM 2. Roll Call Members Present: Chair Escher, Commissioners Nemec, Paulson, and Anderson. Commissioner Shogren Smith arrived at 7:10. Commissioner Simons and Council Memebr Niesen were excused. Commissioner Tweah was absent. Staff present were City Manager McCauley and Director of Fiscal & Support Services Jordet. 3. Adoption of the Agenda Mr. Anderdson proposed and Mr. Nemec seconded a motion to adopt the agenda as presented. With all voting in favor, the motion was adopted. • 4. Minutes Mr. Anderson proposed and Mr. Paulson seconded a motion to adopt the minutes of the 16 March 2005 meeting as presented. With all voting in favor, the motion was adopted. Mr. Anderson proposed and Mr. Paulson seconded a motion to adopt the minutes of the City Council as minutes for the Financial Commission regarding the proceedings of the16 May 2005 joint work session on the 2004 annual financial report. 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. General Update on Development Activities Mr. McCauley presented information concerning development projects around the City. The housing project on 57th Avenue across from Northbrook is not being pursued any further. The "Opportunity Site" plans are moving forward with the City Council authorizing acquisitions of property. The first two 110 properties targeted for acquisition are Brookdale Square and Brookdale Ford. Northbrook Shopping Center has been acquired by eminent domain and will be • demolished in August. Mr. Anderson and Mr. Escher also updated the Commission on work being done by the Task Force on the Opportunity Site. Mr. McCauley suggested that the Task Force may be asked to expand their vision and efforts to the Northbrook site. 6. Legislative Impacts on City from 2005 Sessions Mr. McCauley reviewed several pieces of legislation adopted during the 2005 session and their impact on the City of Brooklyn Center. Special TIF legislation was adopted to allow expenditure of cash proceeds. The recalculation of LGA distribution netted and additional $ 121,000 for Brooklyn Center. PERA pension rates will increase for both employer and employee contributions having a long term affect in excess of $ 25,000 per year. 7. Review of Final 2004 CAFR Mr. Jordet reviewed the final copy of the Comprehensive Annual Financial Statement for the year ended 31 December 2004. By means of the Audit Management letter the highlights of the City's financial condition were pointed • out to the Commission. 8. Review of Budget Process Mr. McCauley distributed a handout reviewing the process for the development, discussion and adoption of the annual budget by the City of Brooklyn Center. 9. Other Business Ms. Niesen, through Mr. Escher, asked that the table of contents for the Financial Policies be made more complete and more useful. Staff took note of the request and will improve the table with the 2006 edition. 10. Adjournment With no other business to transact, the meeting adjourned at 8:17 PM. • MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL • OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA JOINT WORK SESSION WITH FINANCIAL COMMISSION AUGUST 15, 2005 CITY HALL - COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Work Session and was called to order by Mayor Myrna Kragness at 6:30 p.m. ROLL CALL Mayor Myrna Kragness and Councilmembers Kathleen Carmody,Kay Lasman,Diane Niesen,and Mary O'Connor. Also present: City Manager Michael McCauley,Assistant City Manager/Director of Operations Curt Boganey, Fiscal and Support Services Director Dan Jordet, and Deputy City Clerk Maria Rosenbaum. Others present were Financial Commissioners Robert Anderson,Robert Paulson,and Earl Simons. Chair Donn Escher and Mark Nemec were absent and excused. Susan Shogren Smith arrived at 6:49 • p.m. Commissioner Samuel Tweah was absent and unexcused. REVIEW OF 2006 ROUGH DRAFT GENERAL FUND BUDGET REVIEW OF DEBT SERVICE FUNDS FOR 2006 REVIEW OF EDA AND HRA City Manager Michael McCauley reviewed the draft General Fund Budget that reflects revenue targets that had been developed at the May 16, 2005, Joint Work Session. The overall combined increase is 2.91 percent for the General Fund, Debt Service, and Housing and Redevelopment Authority(HRA)levies. The General Fund levy increases 3 percent plus.94 percent,representing a 3 percent increase,plus the 1995 improvement bond levy amount;with the 1995 improvement bonds retiring in 2005. Mr. McCauley discussed the major expense items in the draft budget that are being reviewed. One item is the requirement to purchase new election equipment for the Help America Vote Act. The budget contains$40,000 to purchase special election equipment to assist persons with disabilities in voting. The Federal Regulations have yet to be finally adopted. The City may receive reimbursement for all or part of the cost of the equipment from the State of Minnesota. • 08/15/05 • The State will be receiving the Federal Funds and it will be up the State to determine what portion of those funds may be distributed to local governments to reimburse the cost of complying with the Act. Another item being evaluated in the continued budget review are requests for capital equipment for grounds keeping equipment replacement. The draft budget contains some larger computer equipment replacement items. Staff is reviewing whether those items more properly belong in the Technology Fund, but until a plan is developed for consideration in the Technology Fund, these equipment purchases are being shown in the draft General Fund Budget. At the current time there are Dispatch Funds that are not anticipated to be spent;however,there may be a request for an additional position in the Police Department. Dispatch is budgeted for a full year of operations in 2006,though it will not operate a full year. Staff does not know how many months dispatch will operate. This creates some contingency funding as there is no amount in contingency in the draft budget. Another item not included in the budget at this point would be the replacement of the equipment used in connection with the message board for the cable access channel. The City receives$22,000 from the cable commission annually that is placed in the Capital Projects Fund. Those funds would be sufficient to cover approximately$6,000 to acquire a new system that would result in improved technology for a similarly static informational display. There was discussion regarding the money that is received,subscribers,and the forms of communications used for communicating to residents. Councilmember Niesen expressed that she believes$6,000 would not be too much to spend on this form of communication and that she would like to continue discussing this since communication is • an important area. Council and Financial Commissioners continued discussions with comments and questions regarding cumulative increases; lodging taxes, license/permit fees, General Fund transfers, General Fund revenues, real estate taxes, interest earnings, Debt levy, old and new bonds, special assessments, General Fund expenditures, and preliminary property tax levy totals for all sources. Fiscal and Support Services Director Dan Jordet discussed the issuance of refunding of bonds in 2004. In 2005 the old bonds for which the refunding bonds were issued will be retired. That results in a substantial drop in the total indebtedness of 2005. The tax payments received in 2005 will be used to service the refunding bonds. The proceeds of the refunding bonds will have been used to retire the original bonds. On the issue of interest earnings, there was discussion with respect to historical interest earnings that have been lower than the proposed 2006 Budget. Mr. Jordet reviewed the interest rate being earned on City money at this time and will review these projections further. There was also discussion regarding the issuance of$17 Million of tax increment bonds in 2005. Those bonds are repaid through tax increments received and are not part of the General Fund. At 8:27 p.m. the meeting recessed and was reconvened at 8:37 p.m. Mayor Kragness outlined the scheduled budget dates which are as follows: • 08/15/05 a. September 12 - Preliminary General Fund Levy and Budget Adoption b. October 3 - Review of Utilities and Enterprises Budgets c. November 21 - Review of General Fund Budget and Capital Improvement Plan d. December 5 - Truth in Taxation Hearing e. December 12 - Budget Adoption Mr. McCauley discussed that the HRA levy goes into the Economic Development Authority(EDA) budget and that staff will continue with the preliminary numbers from May 16, 2005. Councilmember Carmody asked if future discussions could include averages on the cumulative budget amounts, and if better estimates could be provided regarding the time spent on inspecting single family dwellings and duplexes versus other inspections, along with information as to who is doing the inspections and how much it costs. MISCELLANEOUS Council discussed the office building proposal that will be going before the Planning Commission. ADJOURNMENT A motion by Councilmember Lasman, seconded by Councilmember Carmody to adjourn the Work Session at 9:05 p.m. Motion passed unanimously. • /61/){-64 City Clerk *1-)1rMayor • 08/15/05 MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY 1111 OF HENNEPIN AND THE STATE OF MINNESOTA JOINT WORK SESSION WITH FINANCIAL COMMISSION NOVEMBER 21, 2005 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Work Session with the Financial Commission at City Hall and was called to order by City Manager Michael McCauley at 6:30 p.m. ROLL CALL Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present: City Manager Michael McCauley, Assistant City Manager/Director of Operations Curt Boganey, Director of Public Works Todd Blomstrom, and Director of Fiscal and Support Services Daniel Jordet. Mayor Myrna Kragness was absent and excused. Financial Commission Members present were Commission Chair Donn Escher and Commissioners Robert Anderson, Robert Paulson (arrived at 6:40 p.m. and left at 7:40 p.m.), Susan Shogren Smith, and Earl Simons. Commissioner Mark Nemec was absent and excused. • Commissioner Samuel Tweah was absent and unexcused. UTILITY STUDY PRESENTATION City Manager Michael McCauley introduced Naeem Qureshi, P.E. and Brian Zinnel from Progressive Consulting Engineers, Inc. and stated they will present a Utility Study. Mr. Qureshi introduced himself and discussed the analysis of utility billing. He recommended that the City change the billing method to increase profits. Mr. Zinnel presented a PowerPoint Presentation, outlining the following information: • Historic and Projected Water and Sewer and Operating & Maintenance Expenses • Capital Improvement Plan for Water and Sewer Account • Water and Sewer Revenues and Expenses: Current Charges • Water and Sewer Account Cash Balance: Current Charges • Current Water and Sewer Charge Structure • Total Revenue Requirement • Proposed Water and Sewer Charges • Residential and Commercial Quarterly Water Charges for 2007: Current Charges vs. Proposed Charges • Water and Sewer Account Cash Balance: Current Charges vs. Proposed Charges. • Staff, Councilmembers, and the Financial Commission discussed the information presented. 11/21/2005 UTILITY RATES AND BUDGETS a. Water b. Sanitary Sewer • Mr. McCauley stated a proposed increase of 4%to the Water and Sanitary Sewer Rates, which is less than the projected increase of 5%. c. Stormwater Mr. McCauley stated the Storm Water Utility Rates are being studied to ensure maintenance of storm water retention ponds. d. Recycling Mr. McCauley stated a proposed 5% increase in the Recycling Rates e. Street Light Utility Mr. McCauley stated a proposed 3% increase in Street Light Utility Rates. He summarized the increase by stating the average total annual increase per household will be $13.55 and $9.21 for seniors. Staff, Councilmembers, and the Financial Commission discussed the Utility Rates and Budgets. EARLE BROWN HERITAGE CENTER • Mr. McCauley stated the Earle Brown Heritage Center fund is on track and on budget for 2006 and continues to meet goals. Staff, Councilmembers, and the Financial Commission discussed the Earle Brown Heritage Center Budget. LIQUOR STORES Mr. McCauley stated projection of a lower budget than 2005 due to decreased sales. He explained that the 2005 actual sales are an increase from 2004. He stated short term requirements will be met, however considering long term, if profits do not increase, the store is not worth keeping open. Staff, Councilmembers, and the Financial Commission discussed the Liquor Stores Budget. CENTERBROOK GOLF COURSE Mr. McCauley discussed the 2006 plans for Centerbrook Golf Course and stated the City has been successful covering operations due to the warm weather. Staff, Councilmembers, and the Financial Committee discussed the Centerbrook Golf Course • budget. 11/21/2005 CAPITAL IMPROVEMENT PLAN • Mr. McCauley stated there are two projects in 2008 that may exceed fiscal capacity; therefore, • the budget shown is a 2008 primary. Director of Public Works/City Engineer Todd Blomstrom discussed the Capital Improvement Program. Staff, Councilmembers, and the Financial Commission discussed the Capital Improvement Plan. TECHNOLOGY FUND Mr. McCauley stated funding for the Fiber Installation from City Hall to Police, Public Works Garage, and Earle Brown Heritage Center will come from the Technology Fund, as a General Fund transfer and out of the Fund Balance. Staff, Councilmembers, and the Financial Commission discussed needed technological upgrades. REPORT ON ASSESSING Mr. McCauley explained the preliminary cost review of Hennepin County Assessing and the terms set forth by Hennepin County. He stated presently, the City has the Staff to perform the required duties. He explained that if the City did not have someone qualified as an assessor, the County would assume the responsibility. • Staff, Councilmembers, and the Financial Commission discussed the Report on Assessing. Councilmember Niesen indicated that she was not interested in doing anything with regard to changing assessing in 2006 and stated she wanted to further study the materials that were prepared and may wish to review it further in the future. Councilmember O'Connor stated that she was not interested in having the County undertake the assessing functions. The consensus of the Council was to not pursue having Hennepin County take over the assessing functions. GENERAL FUND UPDATE Mr. McCauley explained the Preliminary Property Tax Levy. He explained that the funding for Police Dispatch in 2006 has been reduced to balance the budget. He stated that originally the full annual cost of dispatch was budgeted as a form of contingency. He stated in the current budget draft, some of the savings of converting to Hennepin County Dispatch has been incorporated in the budget. Staff, Councilmembers, and the Financial Commission discussed the activities of the General Fund. Councilmember Niesen stated salaries should be reviewed next year to insure that the City is not paying beyond its means. • 11/21/2005 ADJOURNMENT 0 The meeting was adjourned at 10:00 p.m. City Clerk Mayor • S 11/21/2005 0 \ , 2 2 2 = e a 9 ) ± x x x x 0 @ 0 % x x x x x 2 0 \ x x x x x 1 • / x x E x x u ■ «2 L. g CD / E x x x E Ili o ) % \ E o 13 0 U § 0 \ x x x In 0 ccn > m 3 q ƒ q = a) \ / » a . 0 » 2 m § § D w D f- 0 0 0 � O O O / c / 2 \ \ \ \ \ $ `Am % £ E { f I < < \ \ \ \ \ \\ \ E x E 2 G © © CO © § \ \ w \ %