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HomeMy WebLinkAbout2004 07-15 FCAAGENDA Brooklyn Center Financial Commission Thursday, 15 July 2004 7:00 PM Council Commission Conference Room I. Call to Order II. Roll Call III. Approval of Agenda IV. Meeting Minutes 24 April 2004 V. Comprehensive Annual Financial Report for the year ended 31 December 2003 and report of the Independent Auditor VI. Council Member Carmody Liaison Report: - Council referral to Financial Commission of Council Member Niesen's request to review request to include additional cities in the biennial Council salary review VII. 2005 Budget Calendar and Process VIII. Request for Proposals for Financial Advisory Services IX. Reports X. Other Business XI. Adjournment • • AGENDA Brooklyn Center Financial Commission Thursday, 15 July 2004 7:00 PM Council Commission Conference Room I. Call to Order II. Roll Call III. Approval of Agenda IV. Meeting Minutes 24 April 2004 V. Comprehensive Annual Financial Report for the year ended 31 December 2003 and report of the Independent Auditor VI. Council Member Carmody Liaison Report: - Council referral to Financial Commission of Council Member Niesen's request to review request to include additional cities in the biennial Council salary review VII. 2005 Budget Calendar and Process VIII. Request for Proposals for Financial Advisory Services IX. Reports X. Other Business • XI. Adjournment BROOKLYN CENTER FINANCIAL COMMISSION Chairperson and six members • Donn Escher, Chairperson Mark Nemec 3107 65th Avenue North 5538 Camden Avenue North Brooklyn Center, MN 55429 Brooklyn Center, MN 55430 nickie73@comcast.net Mark.Nemec@State.MN.US (763) 561-4533 (763) 566-1415 (h); (651) 297-1944 Appointed: 7/13/92 Appointed: 6/14/99 Appointed Chair: 8/17/92 Term expires: 12/31/06 Term expires: 12/31/05 Lawrence Peterson Timothy Elftmann 5830 June Avenue North 5301 Howe Lane Brooklyn Center, MN 55429 Brooklyn Center, MN 55429 Ipeterson@strategicequipment.com TElftmann@Compuserve.com (763) 537-7022 (h); (612) 871-2727 (w) (763) 537-2279 Appointed: 10/25/93 Appointed: 7/13/98 Term expires: 12/31/04 Term expires: 12/31/05 Susan Shogren Smith Jay Hruska, Vice Chairperson 600 62nd Avenue North • 5012 North Lilac Drive Brooklyn Center, MN 55430 Brooklyn Center, MN 55429 sssmith2@stthomas.edu jhruska©visi.com (612) 812-8160 (763) 535-4637 Appointed: 1/26/04 Appointed: 3/13/95 Term expires: 12/31/05 Term expires: 12/31/04 One Open Position 2004 City Council Liaison Kathleen Carmody (h) (763) 566-3114 councilmembercarmody@ci.brooklyn-center.mn.us City Manager Michael McCauley (w) (763) 569-3309 mmccauley@ci.brooklyn-center.mn.us Director of Fiscal and Support Services Daniel Jordet (w) (763) 569-3345 djordet@ci.brooklyn-center.mn.us • [July 8, 2004] • Financial Commission Regular Meeting Minutes 29 April 2004 1. Call to Order The meeting was called to order at 7:02 PM 2. Roll Call Members Present: Chair Escher and Commissioners Hruska, Elftmann, Nemec, Milne, Smith and Councilmember Carmody. Commissioner Peterson was excused. Others Present: City Manager McCauley and Director of Fiscal & Support Services Jordet 3. Agenda • Mr. Nemec proposed and Mr. Hruska seconded a motion to adopt the agenda. With all voting in favor, the motion was adopted. 4. Minutes Mr. Elftmann proposed and Mr. Nemec seconded a motion adopting the minutes of the 19 February meeting as presented. With all voting in favor, the motion was adopted. 5. City Council Compensation Mr. Hruska presented the deliberations and recommendation of the Subcommittee on City Council Compensation. He reviewed the discussion at the meeting and reiterated the three reasons for the Subcommittee's recommendation to keep the Council compensation at the same level for 2005 and raise it 2% for 2006. The inclusion of the original computer allowance in base compensation in 2000 was explained. In the ensuing discussion, Mr. Milne suggested consideration of some type of increase for 2005 as recognition of the Council's efforts since all other employees would likely receive pay increases. Mr. Hruska proposed and Mr. Nemec seconded a motion adopting the Subcommittee's recommendation of 0.0% increase in 2005 and 2% increase in • 2006. With alivoting in favor, the motion was adopted. 1 6. Update on Development Projects . City Manager McCauley reviewed for the Commission some of the things the City does and does not do when buildings or property are vacant. Filling vacant land or space that is marketable and under control of private interests is left to the private sector. The City steps in and works on plans and strategies for areas that need to be radically redeveloped, including acquisition, demolition and pollution cleanup. These efforts are funded through such sources as tax increment financing, grant dollars, low interest loans and regular infrastructure construction. Examples of these types of development include the Mazda dealership, the 69th & Brooklyn Boulevard development, the Northbrook Shopping Center, and the Wickes/Caribou industrial project. In some cases development includes cooperative efforts with other government entities. The new bus shelter on 57th Avenue is an example. 7. 2005 Budget Calendar Mr. Jordet reiterated the list of joint meetings with the City Council that will be held in 2004 to work on the 2005 budget. Ms. Carmody asked about the restoration of LGA being considered in the current legislative session. Mr. McCauley indicated that although some restoration has been proposed, it is unlikely that any LGA will be restored. The issue of public safety dispatching was • also discussed and the issues explained by Mr. McCauley. 8. RFP for Financial Advisory Services Mr. Jordet reviewed the process that will be followed for requesting proposals for financial advisory services. Mr. McCauley reiterated that the Financial Commission and the City Council would be involved in the interview process. 9. Joint Session with the City Council on the 2003 CAFR The joint meeting session to review the 2003 Comprehensive Annual Financial Report (CAFR) with the City Council was announced for Monday, 21 June 2004, at 6:30 PM. 10.Recognition of Commission Members City Manager McCauley asked commission members about how the City could best recognize the commissioners for their service. The question about a distinction between recognition as an appreciation for service rendered and recognition in order to bring this service to the wider community's attention was asked. It was suggested that a listing of commissioners in the City Watch newsletter could be a good solution. 2 • 11.Other Business No additional business was brought before the Commission. 12.Adjournment Mr. Hruska proposed and Mr. Nemec seconded adjournment of the meeting. Chair Escher adjourned the meting at 8:30 PM. Donn Escher, Chairperson ATTEST: Daniel Jordet, Director of F & SS • i 3 • • This page has been left blank intentionally. i 4 • Memorandum Date: 8 July 2004 To: Financial Commission From: Daniel Jordet 1 itOlk Director of Fiscal & Support Services k Re: Background for Agenda Items 15 July 2004 Item V. Comprehensive Annual Financial Report for the year ended 31 December 2003 and report of the Independent Auditor Enclosed with this packet are a copy of the Comprehensive Annual Financial Report for the year ended 31 December 2003, the Audit Management Letter from the same period, and two supplemental opinions, the Legal Compliance opinion and the Internal Control opinion. Representatives of HLB Tautges • Redpath, LLC, the City's independent auditor, will be present at the 15 July 2004 meeting to review these documents with the Commission. Questions prior to the meeting may be directed to either the City Manager or the Director of Fiscal & Support Services. Item VI. Council Member Carmody Liaison Report Please review the attached materials Item VII. 2005 Budget Calendar and Process Mr. McCauley will give an overview of the expected process of budget development, review and approval. Item VIII. Request for Proposals for Financial Advisory Services Mr. Jordet will update the Commission on this scheduled process for taking proposals and awarding a contract for the City's independent municipal financial advisor. Item IX. Reports • Two items are included in general reports: 5 1. Robert Milne has resigned from the Financial Commission. Recruitment for a replacement is underway through the City Clerk's • Office. Applications will be taken through 28 July 2004 for the open position. The term of the open position expires on 31 December 2005. 2. With the resignation of Assistant Finance Director Robert Sundberg, Staff Accountant Sharon Kutzke has been promoted to the Assistant Finance Director position effective 21 June 2004. A new staff member to fill the open Accountant position is being recruited at this time. Applications are due by 9 July 2004 with an appointment expected in early August. Item X. Other Business If there is other business or other information the Commission would like to discuss this time is made available on the agenda. Additional Items Also attached is: • A packet of policies and procedures adopted by the City Council for the management of the City's finances. • 6 • Memorandum Date: 8 July 2004 To: Financial Commission From: Daniel Jordet Director of Fiscal & Support Services Re: City Council Compensation Following this memorandum are the pages giving some background on the matter of setting a comparison pool of cities for the Commission's biannual review of the topic. Council Member Carmody will present the information from the City Council and frame the issue on Thursday evening. If you have questions prior to the meeting please contact the City Manager. • 7 • Regular Session Minutes: Council discussed the issue,the manageable risks involved, and • the suggested solution. Councilmember Carmody expressed that she had some reservations regarding this matter. Councilmember Peppe expressed that he would like to have more information on the position responsibilities and would like to look at the Police Department as a whole. Councilmember Niesen suggested job descriptions be provided so that she can understand the responsibilities. Councilmember Lasman asked that the Work Session minutes from May 10, 2004,be amended to read the following with regards to the rental housing matter: • Councilmember Lasman expressed she believes with the trend of rental housing in the City something needs to be done to maintain the quality of our housing and neighborhoods. It was the consensus of the Council to approve the minutes as amended. MISCELLANEOUS There were no miscellaneous items discussed. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS 4, DISCUSSION OF WHO REVIEWS/RECOMMENDS COUNCIL SALARIES; WHO REVIEWS/RECOMMENDS CITY MANAGER SALARY; AND THE SALARY • SETTING PROCESSES PAST AND FUTURE Councilmember Niesen asked if these were the normal procedures used for setting Council salaries and how the cities listed in the salary report are chosen to be comparable cities. Mayor Kragness responded that this has been the procedure used for many years. City Manager Michael McCauley discussed that the Financial Commission had selected the comparable cities for the salary report and that the City Clerk completes the survey that he uses to develop a report for the Financial Commission's review. Councilmember Carmody discussed that the comparable cities are those that are populated within approximately 10,000 less or 10,000 more. Councilmember Niesen informed that she would like to have more cities added to the list of comparable cities for the salary report; and expressed her concern with the zero percent salary increase for the Brooklyn Center City Council as felt it showed a vote of no confidence. She believes that if the Council received a zero percent increase,then City staff should also not receive an increase in 2005. Mayor Kragness outlined the average/median ranges from the salary report and expressed that she believes the Financial Commission is in order to keep the Council's salaries competitive. Councilmember Carmody expressed that the need to be competitive with City staff salaries is necessary in order to keep good staff. • 05/24/04 — Ck -QSS I 0;w 8 Mayor Kragness asked Councilmember Niesen what cities she would like added to the comparable list for the salary report. Councilmember Niesen asked that Brooklyn Park, Columbia Heights, Robbinsdale, St. Louis Park, and Maple Grove be considered. Councilmember Carmody suggested that she discuss this matter with the Financial Commission and inform them of the request for the additional cities for the salary report. It was the consensus of the Council to have Councilmember Carmody discuss this matter with the Financial Commission. COUNCIL DIRECTION ON SALARY RECOMMENDATION FROM FINANCIAL COMMISSION Mr. McCauley requested direction from the Council on the recommendation for Council salaries. Councilmember Carmody,Councilmember Lasman,and Mayor Kragness suggested moving forward with the Financial Commissions recommendation. ADJOURNMENT A motion by Councilmember Carmody,seconded by Councilmember Lasman to adjourn the Study . Session at 6:45 p.m. City Clerk Mayor • 9 05/24/04 — <S;-iA EJ2-SS Mr. McCauley affirmed that the dangerous dog ordinance would be an additional way ofII dealing with such a situation. Councilmember Carmody arrived at 6:10 p.m. • 7a, Approval of Minutes for May 24, 2004, Study Session; Councilmember Niesen informed that she would like to have the following amendments made to the May 24, 2004, Study Session minutes: > Councilmember Niesen informed that she would like to have more cities added to the list of comparable cities for the salary report;and expressed her concern with the zero percent salary increase for the Brooklyn Center City Council as felt it showed a vote of no confidence. She believes that if the Council received a zero percent increase, then City staff should also not receive an increase in 2005. > Mayor Kragness asked Councilmember Niesen what cities she would like added to the comparable list for the salary report. Councilmember Niesen asked that Brooklyn Park, Columbia Heights, Robbinsdale, St. Louis Park, and Maple Grove be considered. iti)It was the consensus of the Council to approve the minutes with the above amendments. • 8e, Consideration of Application for Commercial Kennel License Submitted by Gentle Touch Animal Sanctuary, 4900 France Avenue North; Councilmember Niesen questioned if this establishment was operating before applying for this license. Mr. McCauley discussed he believes that they have been in operation for approximately two and a half years; however,he is not aware if that operation took place in Brooklyn Center for two and half years. Councilmember Layman questioned if there is a limit on the number of animals for commercial kennels. Mr. McCauley discussed that there is no maximum on the number of animals for commercial kennels. He explained that the sketch submitted would indicate how many animals would be accommodated. Councilmember Niesen questioned if the license could be sold. Mr. McCauley responded that the license would have to be transferred and that the issue would come before the City Council for approval. MISCELLANEOUS Councilmember Lasman informed that she was contacted regarding a recent fire at 5233 Twin Lake Boulevard and questioned how lakeshore property could be classed as Section 8. • 06/14/04 54-t,,c,t.. S►0 10 • RESOLUTION EXPRESSING APPRECIATION FOR FIRE RELIEF ASSOCIATION SPONSORSHIP AND FIRE DEPARTMENT PARTICIPATION IN OPEN HOUSES The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 9b. RESOLUTION EXPRESSING APPRECIATION FOR THE DONATION OF THE HONEYWELL FEDERAL CREDIT UNION IN SUPPORT OF SUMMER PROGRAMS Mayor Kragness read the resolution expressing appreciation for the donation of$1,000 from the Honeywell Federal Credit Union in support of summer programs. RESOLUTION NO. 2004-81 Councilmember Carmody introduced the amended resolution and moved its adoption: RESOLUTION EXPRESSING APPRECIATION FOR THE DONATION OF THE HONEYWELL FEDERAL CREDIT UNION IN SUPPORT OF SUMMER PROGRAMS The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Niesen. Motion passed unanimously. • 9c. RESOLUTION EXPRESSING APPRECIATION FOR THE GIFT OF THE TWINWEST CHAMBER OF COMMERCE IN SUPPORT OF THE NATIONAL NIGHT OUT ACTIVITIES Mayor Kragness read the resolution expressing appreciation for the gift of$250 from the TwinWest Chamber of Commerce in support of the National Night Out activities. RESOLUTION NO. 2004-82 Councilmember Carmody introduced the following resolution and moved its adoption: RESOLUTION EXPRESSING APPRECIATION FOR THE GIFT OF THE TWINWEST CHAMBER OF COMMERCE IN SUPPORT OF THE NATIONAL NIGHT OUT ACTIVITIES The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Niesen. Motion passed unanimously. ,qT9d. AN ORDINANCE AMENDING ORDINANCE NO. 2002-11 REGARDING COUNCIL SALARIES FOR 2005-2006 Mr. McCauley discussed that the Financial Commission recommended salaries for 2005 and 2006 411 and that this ordinance amendment requires a public hearing. 06/14/04 ��� cL&( (- 11 A motion by Councilmember Lasman, seconded by Councilmember Peppe to approve first reading • and set second reading and public hearing on July 12, 2004. Councilmember Niesen questioned if all Council salaries are set every two years. Mr. McCauley informed that all City Councils have to approve salaries by ordinance before a General Election to be effective on January 1 after the election and that all cities have the same requirement. Councilmember Niesen expressed that she believes that a zero percent increase seems to be more symbolism over substance,that she has worked hard,and is disappointed however,will support the Council. She asked that the Council continue with her request to add more comparable cities when discussing future salaries. Councilmember Carmody discussed that the Financial Commission Chair discussed the serious cuts in Local Government Aid(LGA) and that the reason for the zero percent increase was the response of the cuts in LGA. She believes this sends the correct message to residents and that the reasoning for the zero percent increase is valid. Mayor Kragness expressed that she believes the salary issue is difficult and that she is thankful that the Financial Commission has taken over the responsibility. She informed that she does not have a problem with the recommendation made by the Financial Commission. Councilmember Lasman expressed that she believes the Financial Commission knows the City Council works hard, that they did what they had to for a recommendation on the Council salaries, • and that the recommendation is appropriate. A second motion was made by Councilmember Lasman, seconded by Councilmember Niesen to approve the first reading and set second reading and public hearing on July 12,2004. Motion passed unanimously. 9e. AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTION 3.10 OF THE BROOKLYN CENTER CITY CHARTER Mr. McCauley discussed that the Charter Commission was asked to recommend an amendment to Section 3.10 of the Brooklyn Center City Charter for using strikethrough rather than brackets for matter to be deleted in ordinance amendments. The amendment would make it easier to identify which language was being removed in an ordinance amendment. A motion by Councilmember Carmody,seconded by Councilmember Niesen to approve first reading and set second reading and public hearing on July 12, 2004. Motion passed unanimously. 9f. AN ORDINANCE RELATING TO THE LICENSING OF TAXICABS; AMENDING BROOKLYN CENTER CITY CODE SECTIONS 23-702,23-703, AND 23-704 AND ADDING NEW SECTIONS 23-706,23-708,23-709,23-710, 23-711 AND 23-712 • 06/14/04 - i cnti. 0 12 AGENDA 411 CITY COUNCIL WORK SESSION May 24, 2004 Immediately Following Regular City Council Meeting at 7:00 P.M City Council Chambers 1. Stan Leino, Chair of the Charter Commission: a. Discussion of Charter Commission review of potential changes to City Charter 1---- 2. Council Member Niesen: Discussion of: a. Who reviews/recommends council salaries b. Who reviews/recommends city manager salary c. Salary setting processes past and future 3. Council Direction on salary recommendation from Financial Commssion 4. Miscellaneous 5. Adjourn S • 13 City of Brooklyn Center A Millennium Community 4110 MEMORANDUM TO: Mayor Kragness, Councilmembers Carmody, Lasman, Niesen, and Peppe FROM: Michael J. McCauley DATE: May 19, 2004 SUBJECT: Work Session Agenda ems • Agenda Item 1. Stan Leino requested an opportunity to discuss the Charter Commission's review of several Charter proposals with the City Council at a work session. Agenda Item 2. Council Member Niesen requested information on the last date at which Council salaries were set,the amounts and percentages of increases,and report on which those increases were recommended by the Commission. She wanted to discuss: - Who reviews/recommends Council salaries • - Who reviews/recommends city manager salary - Salary setting processes: past and future Council salaries were last set by Ordinance No.2002-l 1 on October 14,2002 for the years 2003 and 2004. The increases: 2003 Mayor $296 per year 3% Council $227 per year 3% 2004 Mayor $356 per year 3.5% Council $272 per year 3.5% Attached is a copy of the Ordinance and Financial Commission minutes and the survey from 2002 of comparable cities, along with the materials distributed on Mayl 7th. Agenda Item 3: Council direction on the Financial Commission recommendations for Council salaries is requested regarding introduction of an ordinance for Council salaries in 2005 and 2006. 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 14 FAX(763) 569-3434 FAX(763) 569-3494 www.cityofbrooklyncenter.org • CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 14th day of October, 2002, at 7 p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek Parkway; to consider An Ordinance Amending Ordinance 2000-10 Regarding Council Salaries for 2003 - 2004. Auxiliary aids for persons with disabilities are available upon request at least 96 hours in advance. Please contact the City Clerk at 763-569-3300 to make arrangements. ORDINANCE NO. 2002-11 AN ORDINANCE AMENDING ORDINANCE NO. 2000-10 REGARDING COUNCIL SALARIES FOR 2003- 2004 THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. City of Brooklyn Center Ordinance 2000-10, which amended the amount of the annual salaries to be paid to the Mayor and Council Members to become effective January 1, 2001, is hereby amended. • Section 2. Effective January 1, 2003, the annual salary for Mayor shall be $10,166 and the annual salary for Council Members shall be $7,784. Section 3. Effective January 1, 2004, the annual salary for Mayor shall be $10,522 and the annual salary for Council Members shall be $8,056. Section 4. This ordinance shall be effective after adoption and thirty days following its legal publication. Adopted this 14`h day of October 2002. Mayor AT PEST:' ,S l AlAA City Clerk Date of Publication: October 24, 2002 Effective Date: November 23, :2002 15 • Financial Commission • Meeting Minutes August 15, 2002 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 Elftmann, Blarney, Nemec and Peterson. Members absent and excused: Commissioners Hruska and Wilkinson Others Present: Fiscal and Support Services Director Douglas Sell. 3. Meeting Minutes of June 17 2002 Meeting Minutes of the June 17, 2002 were reviewed. Motion by Commissioner Peterson, Second by Commissioner Nemec to approve as amended. Motion carried. 4. Approve Agenda Motion by Commissioner Blarney, Second by Commissioner Elftmann to approve the agenda. Motion carried. P 5. City Council Member Compensation • Commissioner Elftmann and Commissioner Peterson reported on their assignment regarding City Council Member compensation. Commissioner Elftmann identified the various options considered by the sub-committee including a range of increases from 3.0% to 4.0%. Commissioner Elftmann calculated the increases on an annual basis for Mayor and Council Members and presented the sub-committees findings for consideration.. Commissioners discussed the impact on the salary structure and compared the City's current rates with surrounding communities. It was noted that the City of Brooklyn • Center has traditionally been in the "middle of the pack" as it relates to compensation for Mayor and Council Members. The CPI increase for the twin cities metropolitan area for the past twenty-four months has averaged 3.96% based on the most current data from the Bureau of Labor Statistics. Motion by Commissioner Peterson and Second by Commissioner Blarney to recommend to the City Council adjustments for Mayor and Council Member annual salaries for the period 2003 and 2004 as follows: Calendar'Year 2003 Calendar Year 2004 • Mayor S 10,166 Mayor S10,522 Council Members $ 7,784 Council Members 5 8,056 • 16 • Motion carried. The Chair thanked the sub-committee for their work and report. gamilmmir 6. Next Meeting The next meeting has been scheduled for Monday, August 19, 2002 at 6:00 PM to discuss budget in a joint meeting with the City Council at City Hall, Council/Commission Conference Room. 7. Adjournment Motion by Commissioner Blarney, Second by Commissioner Elftmann to adjourn the meeting at 7:55 PM. Motion carried. • 17 • 2002 Cities in Compensation Policy Comparison for City Council Salaries Mayor Council Population Mayor Council 2003 Mayor 2003 Council %Increase %Increase Golden Valley 20,281 $10,910 $8,165 Maplewood 34,947 $10,561 $9,294 • Fridley 27,449 $9,448 $7,760 Richfield 34,439 $8,235 $6,392 $8,523 $6,616 3.50% 3.50% New Hope 20,873 $10,672 $7,553 Roseville 33,690 $9,300 $7,020 Crystal 22,698 $8,612 $6,624 $8,870 $6,823 3.00% 3.00% White Bear Lake 24,325 $7,800 $5.400 $7,800 $5,400 0.00% 0.00% Brooklyn Center 29,172 $9,870 $7,557 Shoreview 25,924 $7,968 $5,904 $8,208 $6,084 3.01"/" 3.05% Average $9,338 $7,167 $8,350 $6,231 Median $9,374 $7,287 $8,366 $6,350 Brooklyn Center as per cent of Average 105.70% 105.44% 0.00% 0.00% Median 105.29% 103.71% 0.00% 0.00% Fridley is for council at large Fridley council by ward is$6,861 Golden Valley pays per diem of$50 per-meeting to a maximum of$150 per month New Hope per diem of$25 for EDA meetings AT&T broadband service$46 per month provides laptops Fridley provides laptops Brooklyn Center Technology reimbursement was eliminated in 2000 and replaced with Other cities do not provide any extras to the salary ill 2002 Cities in Compensation Policy Comparison for City Council Salaries ALTERNATE With per diem or AT&T\ Mayor Council Population Mayor Council 2003 Mayor 2003 Council % Increase % Increase Golden Valley 20,281 $12,710 $9,965 Maplewood 34,947 $10,561 $9,294 Fridley 27,449 $9,448 $7,760 Richfield 34,439 $8,235 $6,392 $8,523 $6,616 3.50% 3.50% New Hope 20,873 $1 1,224 $8,105 Roseville 33,690 $9,300 $7,020 Crystal 22,698 $8,612 $6,624 $8,870 $6,823 3.00% 3.00% White Bear Lake 24,325 $7,800 _ $5,400 $7,800 $5,400 0.00% 0.00% Brooklyn Center 29,172 $9,870 $7,557 Shoreview 25,924 $7,968 $5,904 $8,208 $6,084 3.01% 3.05% Average $9,573 $7,402 $8,350 $6,231 Median $9,374 $7,289 $8,366 $6,350 Brooklyn Center as per cent of: Average 103.10% 102.09% 0.00% 0.00% Median 105.29% 103.68% 0.00% 0.00% Fridley is for council at large Fridley council by ward is$6,861 Golden Valley pays per diem of$50 per meeting to a maximum of$150 per month New Hope per diem of$25 for EDA meetings • AT&T broadband service$46 per month provides laptops Fridley provides laptops Other cities do not provide any extras to the salary 18 • City of Brooklyn Center A Millennium Community • To: Mayor Kragness and Council Members Carmody, Lasman, Niesen, and Peppe From: Michael J. McCaul City Manager Date: May 17, 2004 Re: Council Salary Recommendation from Financial Commission Council Member Niesen requested that the materials from the Financial Commission be supplied this evening. Attached is a copy of Mr. Escher's remarks to the City Council on May 10th and the April 29th Financial Commission packet materials related to City Council salaries. - • 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 19FAX(763) 569-3434 FAX(763) 569-3494 www.cityofbrooklyncenter.org MAYOR/COUNCIL SALARY PRESENTATION MONDAY, MAY 10,2004 Madam Mayor, Council Members and Mr. Mc Cauley: My name is Donn Escher and I appear before you this evening as the Chair of Financial Commission of the City of Brooklyn Center. City Council Policy No. 98-91 requires the Financial Commission to review the salaries of the Brooklyn Center Mayor and Council members every two years. 2004 is the year that the Financial Commission is required to act pursuant to that policy. Earlier this year,I, as Chair of the Financial Commission, appointed a sub-committee to review the compensation report of elected city officials of the Minneapolis-St. Paul area. Pursuant to the policy directive, comparisons were made between the City of Brooklyn Center and metropolitan cities having a population within 10,000 of the City of Brooklyn Center that are generally fully developed. Included in the survey were nine cities - mostly first ring suburbs. The subcommittee computed the average and the median amounts paid to mayors and council members and correlated the survey results to the current compensation of the Brooklyn Center elected City officials. Based on their study, the sub-committee recommended to the full Financial Committee at its meeting on April 29, 2004 that the compensation be left at the 2004 levels for 2005 and that no additional amounts be paid. For 2006, the sub-committee recommended an • increase of 2% in the base wage of the Mayor and Council members. Total cost of the 2006 increase would be $917. The three main reasons for this recommendation to the full committee are: • Budget constraints • Sensitivity to citizen concerns expressed about prioritization of expense • Mayor and Council current status in terms of position above the median compensation of comparison cities. • The full committee received and discussed these recommendations noting that at the present time the Mayor's salary is 7.37% above the median and Council salaries are 6.98% above the median of comparable cities. Following considerable discussion, the full committee moved to adopt the sub-committee recommendation and forward it to the full Council at its meeting on May 10, 2004. If the Council wishes,I can review the policy adopted by past Councils and/or answer any questions you may have. Respectfully Submitted, Donn H. Escher, Chair Brooklyn Center Financial Commission May 4, 2004 • 20 • 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 overall Council compensation 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. 21 • Lo c) c)I (Yi Olb CN CD• N U V .0 v ejL3 o 0 0 0 • O O C) N O M O 0 0 0 0 0 0 0 0 0 M O U)U co O O O O M O N co O O O a) O V c (O V O 0-56 O Mcc; M( O O O 7 O o E a) N U° E T c.)0 0 0 O O LC) ino OOO O M 0 0 M �- r j p v) a) M (OD U(V ^ o_ C U - N'UI— CD �» 69 a) io C) o o U CO_ r CO U v (0 11— L a) Z Z cn U 69 a) c 64 64 _> 0 -J a) E coO CO• CO CO M O O CO V o o U `- 0 U Q) (0 r r In N N CO Q) r '- Q) C COCB 0 ID (D m CO 0 0 h O O O) O O n C co- 0) N- co-N. N. N. co- co- co- ti 0 UO r E '-- o _N 0�' 6964696463696964 � 69 r a) 64 O 63 64 0_ o 0 N ,- co co N. N. O co co N CO � O o o C 8 C • (0 f� CO CO r N O O CO 0 C0 N (D �T c .r- O O) co O co- co- N- O 00 0) Q) o) .- 0 E ° CD w69 64 69 64 64 b4 64 64 64 64 e3 63CU O r co�� 3 — CO O (O N O CO O co o -> Ca ` lC) U LO O N O CO co(D o O .0 V p C r N 0 CO LO O CO .V N O N N '— CO C) a) C O p 7 co C) N- (0 r` N co- co `: O ET ` N O N. (D N. I� CO al C C1 C Va U O O _) • O cri C" % 0 69 69 69 64 69 64 69 64 64 69 63 (.� r r (II Q) a I E N L. O T (O M N 0 0 000 0 o Q) a) `— N. O CO O CO CO .o-- \ a) ` ac) � c) • 0) COlD COCD LC) CO CO N OOO r (V v_ v v ram) E E 0 c ro o ' ooaic000io5r� om CD- tiff a) ¢ E 0 o E 0. W (p 64 64 64 64 64 69 64 64 64 69 63 64 r r C O `1 m • U m >, o ' c� o � oQNm � vcom �NI U 6�9 L CL o CO (`0 (,...7 Q) N. (D r M ` O N O Q NO CO N CO N M N N N M • E 6.4 L _ •a_) 0 U U • -D Eo N U U ii a • a) a) o a a) `° E >, a`) �° CO 0_ a) c a cn L • �+ .. Co- E ?. d d a) co_° c -c- a) E >. M w E 11111 m ° > m o C) o o m c� Um = U o a a) C U a o U a) a) a)m a�i _ '> m m > > m e c a) c o > co t' °.a -c 3 cn o a) (° Y CO co vi m aci 2 Y 3 C� � 1izcr° c3m` cLn > �2 ° ' of 0 3 c Q m Q Z Z 7 m o U • City of Brooklyn Center • 4.2 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. 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. 23 City Council Policies December 2003 City of Brooklyn Center •C. The Financial ,Commission shall biennially review the City Manager's compensation report and discuss possible budgetary and public perception 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 • • 24 City Council Policies 2004 Population Mayor Council 2005 Mayor 2005 Council • Golden Valley 20,636 $11,619 $8,696 $11,619 $8,696 Maplewood 35,600 $10,983 $9,666 Fridley 27,460 $9,637 $7,916 Richfield 34,575 $8,779 $6,815 New Hope 20,910 $10,672 $7,553 Roseville 34,100 $9,300 $7,020 Crystal 22,840 $9,136 $7,028 $9,410 $7,239 White Bear Lake 24,874 $7,680 $5,760 $7,680 $5,760 Brooklyn Center 29,185 $10,522 $8,056 Shoreview 26,478 $8,208 $6,084 Maple Grove 54,000 $12,000 $10,100 Brooklyn Park 68,600 $16,116 $10,740 St.Louis Park 44,744 $9,760 $6,365 Robbinsdale 14,077 $9,522 $7,595 Columbia Heights 18,698 $9,000 $7,800 Average $10,196 $7,813 $9,570 $7,232 Median $9,637 $7,595 $9,410 $7,239 Brooklyn Center as per cent of Average 103.20% 103.11% 0.00% 0.00% Median 109.18% 106.07% 0.00% 0.00% 0 Cities in Compensation Policy Comparison for City Council Salaries Population Mayor Council 2005 Mayor 2005 Council Golden Valley 20,636 $11,619 $8,696 $11,619 $8,696 Maplewood 35,600 $10,983 $9,666 Fridley 27,460 $9,637 $7,916 Richfield 34,575 $8,779 $6,815 New Hope 20,910 $10,672 $7,553 Roseville 34,100 $9,300 $7,020 Crystal 22,840 $9,136 $7,028 $9,410 $7,239 White Bear Lake 24,874 $7,680 $5,760 $7,680 $5,760 Brooklyn Center 29,185 $10,522 $8,056 Shoreview 26,478 $8,208 $6,084 Average $9,654 $7,459 $9,570 $7,232 Median $9,469 $7,291 $9,410 $7,239 Brooklyn Center as per cent of Average 109.00% 108.00% 0.00% 0.00% Median 111.13% 110.50% 0.00% 0.00% III 25 • This page has been left blank intentionally. • 26 *tip,, p ' ; ' . -� .� '� . j� \ 1 As � x z: �a�� � x'��� ui $� �. �� �� � � � � ` G. S : ,y, �.. sS...; r !�:^.` . a.;4'' x 4 -.1. iia+i't,,,'';i*m a xA ,.G.,,.t•,•;..x yv-,i '?F x a ,,,,'t >' „Ax • . ?• A*•< .,s,' Cityof Brooklyn Center Minnesotil s 2003 Audit Review June 28, 2004 0 HLB Taut es Red ath Ltd. it 9 p 4 Reports Issued Comprehensive Audit Annual • • Management Financial Letter Report • State Report on Legal Internal Compliance Controls Report Member of HLB International 2 Tautges Redpath, Ltd. ix i• + � � vs Y � r ay s ��3 � fie: t� • • Comprehensive Annual Financial Report + financial statements are the responsibility of management • Independent auditor reports on the fair presentation of the • financial statements + "Clean opinion" on the 2003 financial statements ♦ Received award from GFOA for "Excellence in Financial Reporting" ♦ GASB 34 compliant O . Member of HLB International HLB Tautges Redpath, Ltd. 3 i‘sr •v •;»aa'`x,.A y n'c ro '�x Cy 5 �- @ v�' ye..v v a x W va �; � �'{.�Z ��' �a `�` �' 5� w• �,: •'%x's tx `c s '�a� t � $$ ' y • 4e4 • ri � �� � � �s� � �i •� � � Y. `rh i�Yaa a c �\ FA 3�����a�`� �t������'\f��a av�va��w,aaa� ,?v � Comprehensive Annual Financial Report • GAS B 34: — The most significant changes to the financial statements are as follows: • Government-wide financial statements (Statements 1 and 2 of the Comprehensive Annual Financial Report) are prepared using full accrual accounting for all of the City's activities. • Fund Financial Statements (Statements 3 through 8 and the Notes) focus on major funds rather than fund types. • Budgetary comparisons (Statements 9 through 11 for major funds, 20 through 25 for nonmajor funds) include both original and amended budgets. • All capital assets (including streets, trails, etc.) are depreciated on the government- wide financial statements. • A Management's Discussion and Analysis (MD&A) is included in the financial statements. This provides an overview and analysis of the basic financial statements. Member of HLB International HLBTautges Redpath, Ltd. 4 • State Legal Compliance Report ♦ Required by Minnesota Statute §6 .65 ♦ OSA established a task force to develop audit guide for legal • compliance + Audit guide covers six categories 1 ) contracting and bidding 2) deposits and investments 3) conflicts of interest 4) public indebtedness 5) claims and disbursement 6) Other miscellaneous provisions ♦ No compliance findings • Member of HLB International 5 HLB Tautges Redpath, Ltd. • Report on Internal Control ♦ Required by audit standards ♦ Based on inquiries and observations ♦ Identifies reportable conditions • ♦ Reportable condition defined as "significant deficiencies in the design or operation of the internal control over financial reporting that would adversely affect the City's ability to record, process, summarize, and report financial data" ♦ no reportable conditions noted • Member of HLB International 6 HLB Tautges Redpath, Ltd. t«^�- 0 1 i . & 1 der _ _ h �$ s ° 1-' `,4 ti t Management Letter • AII funds summary. Increase Fund Balance (decrease)in (Deficit) Transfers Fund Balance/ Net Assets Fund Revenue Expenditures (Net) Net Assets 12/31/03 General $14,902,910 $12,620,949 ($2,194,655) $87,306 $8,017,080 Special Revenue: Housing and Redevelopment Authority 207,854 - (207,854) - - Economic Development Authority 370,984 363,418 207,854 215,420 1,488,766 Earle Brown TIF District 838,056 55,969 (653,000) 129,087 (1,685,368) TIF District No.3 2,390,004 579,559 (548,000) 1,262,445 6,119,290 TIF District No.4 246,968 205,425 - 41,543 106,765 Police Drug Forfeiture 28,677 13,379 - 15,298 74,168 CDBG 201,000 201,000 - - - City Initiatives Grant 482,338 388,991 - 93,347 107,398 • Debt Service: General Obligation 300,715 1,036,913 771,937 35,739 907,709 Tax Increment 10,360 1,987,128 1,201,000 (775,768) 1,436,694 Special Assessment 1,188,592 1,127,556 259,079 320,115 2,976,874 Capital Projects: Capital Reserve Emergency 31,439 24,356 - 7,083 1,336,573 Capital Improvements 139,802 368,047 225,000 (3,245) 1,757,730 Municipal State Aid for Construction 145,459 335,609 - (190,150) 430,581 Infrastructure Construction 1,651,877 1,454,747 480,000 677,130 229,179 Earle Brown Heritage Center Improvements 1,358 93,195 (91,837) 8,163 Street Reconstruction 252 - 283,639 283,891 283,891 Technology - - 275,000 275,000 275,000 Enterprise: Municipal Liquor 3,430,062 3,278,029 (100,000) 52,033 1,218,552 Golf Course 295,450 287,983 - 7,467 949,312 Earle Brown Heritage Center 3,406,413 3,752,816 - (346,403) 9,632,799 Recycling and Refuse 217,747 223,679 - (5,932) 93,937 Street Light Utility 209,319 147,293 - 62,026 123,344 Water Utility 1,577,309 1,639,691 - (62,382) 10,517,661 Sanitary Sewer 2,947,464 2,556,224 - 391,240 10,400,265 Storm Drainage 1,413,366 834,965 - 578,401 11,453,075 Internal Service: Central Garage 1,125,893 1,247,662 - (121,769) 6,775,737 Retirement 25,537 38,615 - (13,078) 17,140 Compensated Absences 12,191 26,124 - (13,933) 12,191 Total $37,799,396 $34,889,322 $0 $2,910,074 $75,064,506 i* PIA 0311 HLB y Member of HLB International 7 Tautges Redpath, Ltd. ;a t a f a s ,a, + a � � " F z ,. �,,, �. •as ter, $° 3��'`�� , °o �» � e > �'�* ' ' e l 'Y. • 4 `s " < z as s` h- 3 Management Letter General Fund : • Fund balance increased $87 , 000 during 2003 . Budget Actual Variance Revenue $15,408,271 $14,902,910 ($505,361) Expenditures 14,543,861 13,228,170 1,315,691 Increase(decrease)before other financing sources 864,410 1,674,740 810,330 • Other financing sources(uses): Transfers from other funds 784,084 607,221 (176,863) Transfers to other funds (1,648,494) (2,194,655) (546,161) Increase(decrease)in General Fund balance $0 $87,306 $87,306 • Revenue budget variances are as follows : Over (Under) Budget Property taxes $261,600 Licenses and permits 214,965 Intergovernmental (1,050,728) All other 68,802 Total ($505,361) HLBMember of HLB International Tautges Redpath, Ltd. .7'; ":„":) 1h�. q ��..,a� j \ � ..Y,. ' ' y `g i �. ;�` � a a tSe,.y a �. �� r " i yea '" .. a " 2''., �'��i � _ ci 1'. ' '".°c a y's � a � \: v � T Management Letter • Fund balance at December 31 , 2003 was $8, 017 , 000 General Fund Balance Component 12/31/2001 12/31/2002 12/31/2003 Reserved for advances to other funds $105,074 $105,074 $105,074 Designated for working capital 6,437,653 6,527,973 6,031,077 Subtotal 6,542,727 6,633,047 6,136,151 Reserved for prepaids - 68,279 5,309 Undesignated 891,145 1,228,448 1,875,620 • Total $7,433,872 $7,929,774 $8,017,080 • Working Capital Reserve 2001 2002 2003 1. Items not readily convertible to cash: a. Accounts receivable $67,160 $53,489 $57,908 b. Advances to other funds 105,074 105,074 105,074 c. Restricted assets - - 131,153 2. Amount appropriated to the ensuing year's budget 19,305 - - 3. Amounts reserved to working capital (45%of current year budget less debt service) 6,351,188 6,474,484 5,842,016 $6,542,727 $6,633,047 $6,136,151 111111. T Member of HLB International HLB Tautges Redpath, Ltd. 9 +'� * <.. c`e a kxti •*ga,,,,' a , ' '; 'a €h �€ a'+mw° ,r 1, is a�za < �ac•r . "� ay. . 4 . ' a ,�* p t � � a€ y � z `a: e �.e ` , -y ��h�a ' ,. �ti,. � y I: a� � �� � , a 9� � 1. . :e-3 a ..,�; ilkl 0 Management Letter • The current fund balance policy addresses working capital . Cities may have additional fund balance reserve needs. Examples include — Intergovernmental revenue cutbacks • — Emergency or unanticipated expenditures — Special projects — Capital outlay replacement • We suggest the City review it's current policy and determine if additional reserves are appropriate . III ii HLB Taut es Red ath Ltd. Member o 1 O f HLB International 3 p aS ✓ ', !PT 4T S YR MT 4XA ` y. " , � 1agcA a% .7777 !74 , T�� S v' ''a ; 3 * * €x , i -' z q ,3 s ' ` a v k fi s i § 1 <4 y,t ,'.a4+ t �14i;t : n u : 2 , � '• ..a a ",k z d v a • � . .�� r ##1` a, wtwt t bs3 ..im `V w .S . Management Letter Special Revenue F unds : Fund Balance (Deficit) December 31, Increase Fund 2002 2003 (Decrease) $ - $ - $ - Housing and Redevelopment Authority Economic Development Authority 1,273,346 1,488,766 215,420 Earle Brown TIF (1,814,455) (1,685,368) 129,087 TIF District No. 3 4,856,845 6,119,290 1,262,445 TIF District No. 4 65,222 106,765 41,543 • Police and Drug Forfeiture 58,870 74,168 15,298 CDBG - - City Initiatives Grant 14,051 107,398 93,347 Totals $4,453,879 $6,211,019 $1,757,140 c Member of HLB International HLB Trdutc�es Redpath, Ltd. 11 l } s *� e g a t r y n a i• yx x � .� . �5s4�- l+q � Management Letter Special Revenue Funds : • Housing and Redevelopment Authority fund — Property tax revenue of $208,000 — Transfer to EDA of $208,000 • TIF District #2 — Earl Brown Farm • TIF fund — Deficit fund balance at December 31 , 2003 of $1 ,685,000 — Anticipated future tax increment collections will finance the deficit • HLBTautges Redpath, Ltd. 12 Member of HLB International • ter{ e j .. y a,1• . r .Ac.5•"i bR M %- .. c 1 F* • `- N y vim, ', r a+'x r �''_ h k"z. § w. a� e ti 't .Y. a� o:y • F ,� x i,+,u""am $; ,F� ,�.� n J,F,�' z . as :.•; i• '�* 4 '"5: „ir k a t x.- S i + F41 iv4Vtf. ,� 4 �y v$�u sp y r, T ' 0 VN‘Nic,•• �, '� a � �t �. ��'��^�§� �... '�• parr �� ce �4R.4...� ... � ��� ..�� �v •� Management Letter Debt Service Funds : • 13 bond issues outstanding : Assets Pledged for Debt Retirement 12/31/2003 Scheduled Final Fund Deferred Outstanding Property Maturity Fund Description Balance Revenue(') Totals Principal Taxes Date Tax Increment Debt. Tax Increment Bonds of 1991(TIF 2) $592,398 S - $592,398 $1,425,000 nt 02/01/04 Refunding Tax Increment Bonds of 1992(TIF 2) 263,027 - 263,027 - OI 02/01/03 Taxable Tax Increment Bonds of 1995(TIF 3) 581,269 - 581,269 3,080,000 OI 02/01/1l Total tax increment debt 1 436,694 0 1,436,694 4,505 000 0 Special Assessment Debt: • Street Improvement Bonds of 1994(301) 178,007 11,362 189,369 185,000 69,536 02/01/05 Street Improvement Bonds of 1995(302) 119,090 22,880 141,970 260,000 144,621 02/01/06 Street Improvement Bonds of 1996(303) 464,764 139,803 604,567 620,000 359,236 02/01/07 Street Improvement Bonds of 1997(304) 243,781 253,682 497,463 510,000 - 02/01/08 Street Improvement Bonds of 1998(307) 420,390 308,435 728,825 615,000 - 02/01/09 Street Improvement Bonds of 1999(308) 421,874 721,175 1,143,049 1,090,000 - 02/01/10 Street Improvement Bonds of 2000(309) 516,839 350,895 867,734 575,000 - 02/01/I I Street Improvement Bonds of 2001(310) 356,881 403,542 760,423 645,000 - 02/01/12 Street Improvement Bonds of 2003(311) 255,248 890,740 1,145,988 1,205,000 - 02/01/13 Total special assessment debt 2,976,874 3,102,514 6,079,388 5,705 000 573,393 General Obligation Debt: Refunding State-Aid Street Bonds(306) - - - 845,000 - 04/01/06 Police and Fire Building Bonds(305) 907,709 30,789 938,498 5,875,000 - 02/01/13 Total general obligation debt 907,709 30,789 938,498 6,720,000 0 Total-All Debt Service Funds $5,321,277 $3,133,303 S8,454,580 $16,930,000 $573,393 t 0Future tax increment amounts subject to valuation and tax capacity rate fluctuations. t'IDeferred revenue primarily consists of uncollected special assessments410 1 3 Member of HLB International HLB Tautges Redpath, Ltd. 13 T\ • K � � Management Letter J Capital Project Funds : • A comparison of fund balance of all Capital Project Funds is as follows: Fund Balance(Deficit) December 31, Increase/ Fund 2002 2003 (Decrease) Capital Reserve Emergency $1,329,490 $1,336,573 $7,083 • Capital Improvements 1,760,975 1,757,730 (3,245) Municipal State Aid for Construction 620,731 430,581 (190,150) Infrastructure Construction (447,951) 229,179 677,130 Earle Brown Heritage Center Improvements 100,000 8,163 (91,837) Street Reconstruction 283,891 283,891 Technology 275,000 275,000 Totals $3,363,245 $4,321,117 $957,872 Member of HLB International H LB Tautges Redpath, Ltd. 14 a sus d v m A ',. .7; a` ' a .a^ 'g. Air, ,� '''''w'''' 0 :.''vo 1,,C1,,,16, ttc § 3'`� � � �a ,, as�•� �` '' - ' �` ;�^� r t 2'".�i l'A.4 4.1g;-7+ m 5, :m . f- a :4, I : a �iIteetf*Igt fir. a,"t*'z L-_ � � �T.. L} � z. ,. .._ ��, .a _.a. Management - Enterprise Funds : Earle Brown Golf Heritage Sanitary Storm Street Liquor Course Center Water Sewer Drainage Refuse Light Cash flows from operations $280,000 $38,000 $172,000 $628,000 $848,000 $1,115,000 ($9,000) $48,000 Transfer out/repayment of advance (100,000) (15,000) - - - - - - Capital asset acquisitions - - - (310,000) (417,000) (323,000) - - Debt service - - - - (236,000) - - Investment income 15,000 1,000 17,000 31,000 26,000 14,000 2,000 1,000 Net increase in cash 195,000 24,000 189,000 349,000 457,000 570,000 (7,000) 49,000 0 Cash balance-January 1 802,000 37,000 666,000 1,541,000 682,000 343,000 54,000 30,000 Cash balance-December 31 $997,000 $61,000 $855,000 $1,890,000 $1,139,000 $913,000 $47,000 $79,000 ii^ t' HLB Member of HLB International Tautges Redpath, Ltd. 15 `� ° `� �t`. c ,` • a``l 1 3a:�ac�'a � �C as w e » > t a ,r ,, "' �'":' 3, .-,z ,. - `,,,i,l, A ,.1 i.e�,�': .. a \ .v ��, s; s x� 3" �a xt a k c � �°c � t+ade'* e y, ` q 41, ' ' , Management — Internal Service Funds: Internal Service Funds Cash and Investment Balance December 31, Fund 2001 2002 2003 Compensated Absences $733,221 $741,038 $795,418 Retirement(Post Employment • Insurance Benefits) 1,543,554 1,574,666 1,564,375 Central Garage 4,089,161 4,198,486 4,541,395 Total $6,365,936 $6,514,190 $6,901,188 i n I HLB Tautges Redpath, Ltd. Member of HLB Internat o a 6 Y 3 \ 1:: a 1 ? 4 Yt3 ., % �, . \ .� ` S.�n��eo� � �vs ��a vv@•� .'pv �, �t aft‘va .�n'A� �4^ w< . '' *� ,��A���,�� a��' ;a� ni$. a3 . R. ye �a au ` :t:::fix•1'. 'Ya,w''''':�� �.. ;" �sE Z a'iltT'" �, ,''' 14 S { !v��,, ���a vv 4 i +� "s` &r vih �i wa+�3Ra� ,�3 q,,,s�' :\�a�" area.+ s„"., `�`a e��ti e •�yy� i ' „' •,, . 4'a :y ..,, '' � ', a ' a � ixc'' , ', r . q`' .fi ��i' as '2. ,•h S' l+ . > ,�y-Sr. . ,, 2 '''' g^^ �� 4�3 va'! li`4 ' .A+4,,< i^1.. 2 ,j Y�0 a,� ,.�`�. �. E "a• a�u� 3s �� � ��• t a, u� x- �a�^ w�`w}r 4 S& � � a g'�.. - >: �ya',-�� •'LYv S �; a�a �`a �a*��'�s j,,., �,a` �� � \. ` a ��.u�" s,r � �� Via �ay..�.� > �°F ",,'',' �'i 'a 'a ` ', °., Cg�x^ ' �•' 1 ,° a ''• �' � fix. s r`a� Management Letter Interfund Loans : • Two types — Advances to Other Funds — Due to Other Funds • Advances to other funds: Fund Receivable I'avable General Fund $105,074 $ - • MSA Construction Fund 593,069 - Earle Brown TIF Fund 698,143 Capital Improvements Fund 885,000 - Golf Course Fund - 885,000 Capital Reserve Emergency Fund 709,969 - Infrastructure Construction Fund - 709,969 Total $2,293,112 $2,293,112 • Due to other funds: Receivable Payable Tax Increment No.3 Fund $1,043,323 $ - Earle Brown Farm TIF Fund - 1,043,323 Capital Reserve Emergency Fund 158,933 - MSA for Construction Fund - 158,933 Total $1,202,256 $1,202,256 • Statutory requirements when TIF funds involved • z International HLB Tautges Redpath, Ltd. 1 Member of HLB �7