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HomeMy WebLinkAbout2003 08-04 FCA• Financial Commission Meeting Minutes August 4, 2003 1. Call to Order The meeting was called to order by Chair Escher at 7:02 PM 2. Roll Call Members Present: Chair Escher, Commissioners Elftmann, Wilkinson, Blamey and Hruska. Commissioner Peterson arrived at 7:30 PM City Council Liaison: Council Member Bob Peppe Others Present: City Manager Michael McCauley, Fiscal and Support Services Director Douglas Sell and Assistant City Manager Curt Boganey, Council Members Kay Lasman and Kathleen Carmody. Members absent and excused: Commissioner Nemec. 3. Meeting Minutes Motion by Commissioner Blamey, Second by Commissioner Elftmann to approve the meeting minutes of July 10, 2003. Motion carried. • 4. Approve Aeenda Motion by Commissioner Elftmann, Second by Commissioner Blamey to approve the agenda as presented. Motion carried. 5. Budeet Discussion Chair Escher suggested beginning at page 5 of the agenda materials with a discussion of items relating to Requested Financial Commission directions. Mr. McCauley reviewed the impact of the Five Cities Senior Transportation program at $11,500 for 2004 and PRISM at $10,000 for 2004. In the agenda materials, he has added these amounts to the basic levy for Commission consideration. Property Tax Levy Chair Escher reviewed the impact of levying more than the one-third of the 2004 projected shortfall in taxes at the preliminary tax levy setting in September then paring the levy back following further budget discussion and consideration. The final levy must be set by the City Council in late December. City Manager McCauley indicated that the additional levy, as noted in the agenda materials and the franchise fee would provide the same level of revenue as a levy to the maximum permitted under the most recent legislation. • Commissioner Blamey asked about the impact of higher gas and electric prices, as predicted by the federal government, on the franchise fees. Mr. McCauley indicated that the City would realize additional income from higher utility costs. The current revenue • projections are predicated on current rates and charges as identified by the utility companies. Chair Escher asked about the specifics of the senior transportation proposals. City Manager McCauley indicated that the Five Cities receives funding from cities and other grants. Service is provided by a private vendor. PRISM receives funds from cities, donations and other grants. Services appear to be provided by a private vendor. Commissioner Hruska indicated that costs are somewhat high as services are used by a limited number of residents. He believes this places are greater burden on the remainder of the community. As an option, Mr. McCauley reviewed the taxi options with the Commission. Motion by Commissioner Wilkinson, second by Commissioner Hruska to recommend a preliminary tax levy of $9,184,978 to the City Council for consideration. Motion passes. Following review of the senior transportation issue, the Council would be in a position to make a policy decision to fund or not fund the senior transportation budget for 2004. If the Council determines that funding the item for 2004 is appropriate, the levy would provide for continuing the service. If not, the levy could be reduced in December. Franchise Fees Chair Escher asked why the 3% rate was identified. City Manager McCauley indicated that this seemed to be a rate that was comparable with surrounding communities that had adopted or are looking to adopt franchise fee ordinances. Several communities had adopted fees at 3% while others were looking at a flat charge or fees up to 4%. He indicated that the 3% was for discussion purposes and provided a dollar target for the Commission to work from. It has been recommended that these fees be used as a funding source street improvement/replacement projects. Commissioner Wilkinson indicated that spreading the shortfall to all affected parties seems to be a fairer way such that all customers pay something. Motion by Commissioner Wilkinson, Second by Commissioner Elftmann to recommend a franchise fee to the City Council at 3% to be applied to all customers with the proceeds of the franchise fees dedicated to street reconstruction projects. Motion passes. Chair Escher reviewed the "Budget Assumptions" as contained in the agenda materials. These items are identified as Budget Assumptions items a through v on pages 6 through 8 of the materials. Motion by Commissioner Peterson, Second by Commissioner Hruska to recommend to the City Council that the number of newsletters prepared and distributed to residents be reduced to four per year. Motion passes. Following discussion of all other items, there was consensus among Commission Members that all other items identified in the list of Budget Assumptions be recommended to the City Council for consideration as part of the 2004 Budget discussions. . City Manager McCauley indicated that the City is participating in a study for dispatch services. Several other communities and Hennepin County are involved. City Manager McCauley reviewed the administrative penalties program identifying activities by other communities in this regard. This is a program whereby the City would impose an administrative penalty for traffic, code and other violations and collect a fee in lieu of the matter being referred for prosecution through the court system. City Manager McCauley reviewed the post retirement benefit program currently in place. With health care costs increasing at a significant rate, it seems apparent that this is an area that should be reviewed to determine if the City can continue to afford providing this as a benefit. It is increasingly difficult to determine liability when costs increase as they are. Motion by Commissioner Peterson, Second by Commissioner Wilkinson to recommend all Budget Assumptions to the City Council for consideration as part of the 2004 Budget discussions. City Manager McCauley reviewed the potential for transferring $100,000 from Liquor Operations to the General Fund as a source of additional funding and to make the General Fund healthier. One of the proposed uses to which that money would be placed would be some additional breathing room in the Police budget. • Motion by Commissioner Blamey, Second by Commissioner Elftmann to recommend to the City Council that the $100,000 transfer from Liquor Operations be directed to the General Fund and to support the City Manager's proposed use of some of these funds to increase Police funding. Motion passes. 6. Next Meeting The next Financial Commission meting is scheduled for Monday, August 18, 2003 beginning at 6:00 PM in the Council/Commission Conference Room at City Hall. This will be a joint Council/Commission meeting. Mr. McCauley will ask Council to change the meeting time from 6:00 PM to 6:30 PM. City Manager McCauley asked if a change to the October joint meeting would work for Commission Members. He has asked Council to move the joint meeting from October 6, 2003 to October 20, 2003. There was consensus that this date change would work for Commission Members. 7. Adjournment Motion by Commissioner Wilkinson, Second by Commissioner Hruska to adjourn the meeting. Meeting adjourned at 8:40 PM. 0 AGENDA Brooklyn Center Financial Commission Monday, August 4, 2003 7:00 PM Council/Commission Conference Room, City Hall Agenda Item 1. Call to Order 2. Roll Call 3. Meeting Minutes July 10, 2003 4. Approval of Agenda 5. Next Meeting 6. Budget Discussions 7. Adjourn • 0