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HomeMy WebLinkAbout1997 10-02 FCAAGENDA BROOKLYN CENTER FINANCIAL COMMISSION October 2, 1997 City Hall Conference Room B 1. Call to Order at 7:00 P.M. 2. Roll call. 3. Approval of Minutes: September 4, 1997 4. Approval of the Agenda. 5. Policy and Procedure Relating to City Contractual Services For Nonprofit Organizations. 6. Update on City Council actions relating to the proposed building bonds. 7. Set date of next meeting. • 8. Adjournment. The Financial Commission asked to receive copies of monthly financial reports submitted to the City Council. The following reports are attached for your review. General Fund Summary Budget Report - August 31, 1997 Lodging Tax Collection and Distribution Report - August 31, 1997 Liquor Stores Financial Statements - August 31, 1997 Earle Brown Heritage Center Statements - August 31, 1997 Centerbrook Golf Course - August 31, 1997 • • MINUTES OF THE PROCEEDINGS OF THE FINANCIAL COMMISSION OF THE CITY OF BROOKLYN CENTER SEPTEMBER 4, 1997 CITY HALL, CONFERENCE ROOM B CALL TO ORDER Vice Chair Ned Storla called the meeting to order at 7:25 P.M. in Conference Room B. ROLL CALL Present at roll call were, Commissioners: Ned Storla, Ron Christensen, Jerry Blamey and Michael Weidner. Also present were Council Liaison Debra Hilstrom, Assistant City Manager Jane Chambers, and Finance Director Charlie Hansen. Chair Donn Escher and Commissioners Jay Hruska and Larry Peterson were absent and excused. Annroval of Minutes A motion was made by Commissioner Jerry Blamey to approve the minutes of the August 14, 1997 meeting. Commissioner Ned Storla seconded the motion and all members voted in its favor. Commissioners Ron Christensen and Michael Weidner abstained. Agenda The proposed agenda was approved by consensus. • Discussion of City Council request for the Financial Commission to examine whether contracts with social service agencies should decline to zero over a over a five vear neriod as a nolicv. Charlie Hansen explained that this issue was previously dealt with in 1994 when the Financial Commission and the Human Rights Commission jointly developed the policy and procedure enclosed in the agenda packet. That document is stronger on the procedure end and the City Council is interested in revisiting the policy end at this time. Jane Chambers presented a memo outlining points to be considered and in an extensive discussion the following issues were identified: • How should applications from new organizations be handled. • What sources of funds should the City use (taxes, CDBG,etc.) • Joint powers agreements grew out of groups asking the City to be part of a more efficient delivery of services. • How do we know which agencies really deliver worthwhile & efficient services. • How much City and agency staff time is spent on the application process. • What is the goal of the policy; to provide services on an ongoing basis or to develop seed money for organizations. • The purpose is to buy a service which the City wants for its citizens. • Does a given service match up with current City priorities. • Should applications be reviewed within set categories: housing, mediation, recreation, transportation, etc. 2 • Is a given service something the City would feel compelled to provide in the absence of the non-profit agency or is it discretionary. • Before applications come in, the City Council should decide goals for the year. It was concluded that additional information and discussion are needed. Ron Christensen asked for the staff to assemble the following information: 1. A copy of the state law prohibiting cities from making gifts. 2. A history of past contracts and applicant organizations. 3. Sample policies of other cities. Next Meeting The next meeting of the Financial Commission will be Thursday, October 2, 1997 at 7:00 P.M. ADJOURNMENT Commissioner Michael Weidner moved to adjourn the meeting at 8:26 P.M. Commissioner Jerry Blamey seconded the motion and all members voted in its favor. • • 3 • MEMORANDUM TO: Financial Commission Chair Donn Escher, Members Ned Storla, Ron Christensen, Lawrence Peterson, Jay Hruska, Jerald Blamey, Michael Weidner, Council Liaison Debra Hilstrom, and City Manager Michael J. McCauley FROM: Charlie Hansen, Finance Director G H DATE: September 25, 1997 SUBJECT: State Law Prohibiting Cities From Making Contributions One of the requests for additional information was for a copy of the State Law prohibiting cities from making contributions to non-profit organizations. I called City Attorney Charles LeFevere to local this law. He explained that the prohibition isn't in the State Statutes, but rather is in a common law doctrine know as the Public Trust Doctrine. This doctrine establishes that cities hold the funds of the city in trust for the public. The city has a fiduciary responsibility to assure that the funds aren't disposed of in providently. No matter how worthy a charitable cause may be, the general public shouldn't be taxed for it. There are a few instances in State Statute where the State has given very limited authority for a city to contribute to organizations such as a community band or a historical society. The fact that the State went to the trouble of inserting such authority in State Statutes further proves the point that cities are generally prohibited from making contributions. The prohibition on contributions doesn't prevent all partnerships with non-profit organizations. If the city decides that it wants to provide a given service to its citizens, estimates the cost of providing the service itself, and finds that a non-profit organization could provide the service at a lower cost for reasons such as using volunteer labor rather than paid staff, then it is cost effective to contract with the non-profit organization as long as conditions such as non-discrimination are met. 4 • CITY OF BROOKLYN CENTER HISTORY OF PAYMENTS TO NON-PROFIT ORGANIZATIONS 1995 1996 1997 1998 Actual Actual Budget Request Five Cities Senior Transportation $11,010 $10,181 $8,843 $11,819 North Hennepin Mediation Program $5,000 $5,000 $4,000 $5,000 Northwest Hennepin Human Services Council $14,850 $15,413 $16,663 $16,936 Project Peace $49,234 $47,953 $43,994 $41,849 Brooklyn Center Youth Football $2,000 $2,000 Brooklyn Center Youth Hockey $2,500 Brooklyn Center Community Band $2,612 $3,11.1 $2,000 $2,000 Brooklyn Peacemaker $10,000 $15,000 CEAP $5,000 $500 $92,706 $81,658 $80,000 $100,104 • s 9/25/97 1:35 PM f August 28, 1997 MEMO: TO: Michael J. McCauley, City Manager FRO Jane Chambers, Assistant City Manager/HR Director SLWECTI~_j Exploration of Issues Related to General Fund Contributions to Charitable and other Community Organizations The City Council has previously expressed interest in having the Financial Commission review several issues related to the City's practice of making contributions from the City's General Fund to a variety of community related services. It is anticipated that the Council will approve some funding for groups at the 1997 level, or close thereto, in the 1998 budget. However, the Council would like to have a review of these matters in place for the 1999 budget review process. The Council has identified areas to be examined. These are: 1) Should the City limit general fund contributions only for those activities under current and future joint powers agreements? Joint powers agreements generally accomplish City service delivery objectives. Before the City enters into such an agreement, there is extensive discussion with the City Council on the purpose, cost, and intent of such agreements. 2) A key question for the Council is if it should continue funding of groups not included in joint powers agreements, and if so, what policies should be followed fof the granting of general fund support? • Should the City Council adopt specific criteria on which to evaluate funding requests? Criteria could be to fund only services which help the City achieve its specific goals and objectives, or which enhance services provided by the City. • Should limits of contributions be placed for individual groups, so that long term funding support is avoided? Such limits could take the form of limiting the number of consecutive years the Council would fund a given group, or reduction of the amount of support per year over a given time frame. • Should the process of applying for funding be open, so that new groups have access to the funding, with a limit placed on number of years and/or amount of General Fund support? Such a process could include consideration for start-up costs of new programs only, support limited to a certain number of years, and/or support contingent upon matching funds from other resources. 6 • What application and approval process would make the most effective use of valuable City Council and City staff time and effort, as well as the time and energy of non-profit groups? Attached, please find a copy of the 1998 funding requests that the City Council is currently considering. Although these specific requests are not to be considered by the Finance Commission ( the City Council is already in the process of doing so), they provide a listing of the current type of requests received through the Social Services budget code 435, program 1821. s • 7 AGENCY North Hennepin Mediation Program, Inc Brooklyn Peacemaker Center, Inc Brooklyn Center Youth Football Five Cities Senior J 1 Transportation Brooklyn Community Band 98 Social Services Requests 1998 Request Funding History $ 5,1000.00 $4,000'97 Funded since 1984 $ 15,000.00 No '97 Funding $ 2,000.00 $2,000-97 $ 11,819.00 $8,843'97 less than 1/5 share of joint agreement $ 2,000.00 $2,000'97 CONTRACT/ AGREEMENTS Annual Agreement No current agreement Pay on Invoice Agreement with 5 cities current contract through April, 1998 Pay through Brooklyn Park year-end invoice Is . CEAP $ 5,000.00 No'97 Funding No current agreement Heritage Festival $ 500.00 No '97 Funding No current Agreement NON-INTERVIEW REQUESTS Northwest Hennepin, Human Services Council J I $ 16,936.00 $16,663 '97 Share $10,532.00 CO-OP NW $ 6,404.00 Project Peace J $ 41,849.00 $43,994 $ 100,104.00 Current On-going Agreement since 1976 Current On-going Agreement since '93, must give notice by Aug 1 of each year if withdrawing at year end (Dec) TOTAL REQUESTS **Five Cities Application requests $11,561. City is requested to pay full 1/5 share in 98. ***Project Peace application states 97 funding at $47,953. This was requested amount, but awarded amount is as shown. 0 CITY OF BROOKLYN CENTER Policy And Procedure Relating To City Contractual Services For Nonprofit Organizations . General The City of Brooklyn Center is aware that there are many worthwhile nonprofit organizations serving Brooklyn Center residents, and that such organizations are supported primarily through public and private funding. Contractual services between such organizations and the City of Brooklyn Center, when made, will be distributed in accordance with this policy. Purpose ✓ To develop an effective method for receiving and considering requests made to the City of Brooklyn Center from nonprofit organizations. ✓ To maximize the benefits to the citizens of Brooklyn Center from the limited resources available. ✓ To maintain objectivity and equity in granting contractual service requests. ✓ To provide a means of monitoring and responding to community needs and interests that may change from year to year. General Policy Guidelines The Brooklyn Center City Council is responsible for determining whether financial or in-kind contractual services will be.made by the City to assist nonprofit organizations. The City Council will consider the following guidelines in determining which nonprofit organization(s), if any, receive contractual services from the City. This policy should not be construed to obligate the City Council to provide financial or in-kind contractual services. 1. The City Council shall offer contractual services to nonprofit organizations for one year, with the option for contractual services after review and approval by the City Council on an annual basis. All requests for contractual services must be submitted to the City by June 1 for consideration for the following fiscal year (January 1 to December 31). 2. The City Council will give high priority to contractual services to organizations which can demonstrate that the contractual services are used to provide services to Brooklyn Center residents. 3. Contractual service requests will normally be considered in relation to existing City commitments and the target populations served. Approved by Council 3/14/94. 4. The City Council may request proposals from a variety of alternative sources. 5. Preference will be given to organizations which: a. Have taken affirmative efforts to raise funds to support their efforts. b. Demonstrate in their budgets that there is a continuing concentration on minimization of administrative and overhead costs. c. Cannot be effectively or fully funded through other sources. d. Sponsor programs which have verifiable benefits to the community at large; for example, programs that enhance the effectiveness of City programs. e. Make effective use of volunteer skills and in-kind contributions to reduce the cost of program/service delivery. 6. Final approval of requests are subject to the City's public hearing and budget approval process. Contractual Service Request Guidelines • The completion of the following procedures is the responsibility of the City Council. 1. A letter specifying the required information for consideration for contractual services and the deadline for application will be sent to the organizations which have previously provided contractual services to the City. This information will be available to other interested parties upon request. 2. All written requests for contractual services must be submitted prior to June 1 for consideration for the following fiscal year (January 1 to December 31). An application for contractual services form must be filled out completely and submitted as part of the written request. 3. The City Council may request an oral explanation of the written request from each applicant. 4. The City Council may designate an appropriate City advisory commission to research and monitor groups requesting and/or receiving City contractual services. At the request of the City Council, the designated commission shall monitor and/or evaluate the requesting organization by methods available at the time of assessment. 5. City staff may make contractual service recommendations to the City Council based upon use of the evaluation form for requests. Approved by Council 3/14194. APPLICATION FOR CONTRACTUAL SERVICES CITY OF BROOKLYN CENTER (FOR NONPROFIT ORGANIZATION/PROGRAWAGENCY) Date Submitted! (Deadline is June 1 for consideration for the following fiscal year, January 1 to December 31.) Applicant Organization/Program/Agency Name: Address- City, State, Zip- Phone Number- Contact Person- PROGRAM OVERVIEW 1. Generally describe the organization, including its mission, date established, services, and goals. i 2. Explain the areas of expertise of the organization, including a description of the range of staff capability. 3. Describe the target group for services of the organization. 0 4. Describe how the organization is marketed, and to what geographical and demographical areas. 5. Discuss the methodology employed in measuring the effectiveness of the organization. s BUDGET Current Budget Yr. Requested Year Actual Budget Year DOLLAR AMOUNT REQUESTED FROM CITY $ $ TOTAL ORGANIZATION BUDGET $ CITY AMOUNT AS % OF TOTAL BUDGET %v % % OF TOTAL BUDGET FOR OVERHEAD AND ADMINISTRATION COSTS % % 6. List specific secured and anticipated sources of contributions available to the applicant. SECURED (S) OR SOURCE AMOUNT ANTICIPATED (A) 7. List all other funding organizations explored and the outcome. 0 12. • • • 8. List in-kind items requested from the City. 9. Describe use of all in-kind contributions, and include estimated value of each in-kind contribution. 10. a. Describe use of volunteers. b. Describe how the use of volunteers affects or reduces your budget. CONrv UNITY NEED 11. Explain the community need for the proposed service. 12. Explain the community benefits including what you do for groups with special needs in the proposed service (if applicable). 13 • 13. Describe how Brooklyn Center benefits from the services provided. 14. a. Discuss possible alternative sources for those services available within the community. b. Describe why those alternative services are not fulfilling the current needs. • • 15. State the total numbers of people from all communities who participate or receive direct benefits, and describe how these numbers were determined. TOTAL SERVED LAST YEAR PROJECTED TOTAL TO BE SERVED NEXT YEAR 16. a. State the numbers of residents from Brooklyn Center only who are served, and describe how these numbers were determined. TOTAL SERVED LAST YEAR PROJECTED TOTAL TO BE SERVED NEXT YEAR b. What percent of the total residents served are from Brooklyn Center? 14 ORGANIZATION NEED • 17. What would be the consequences to your organization of not receiving the amount requested? The following supporting documentation must accompany this application. If any item is not enclosed, please explain why not. 1. Financial statement for the preceding fiscal year. 2. Proposed budget for the upcoming fiscal year. 3. Data (backup documentation) substantiating the need for this service in Brooklyn Center. 4. Proof of nonprofit status. • 5. List of current Board of Directors. 6. Job descriptions and resumes of key personnel. 7. Statistical or other data measuring effectiveness of the organization. Signature Title • Date is- EVALUATION FORM FOR CONTRACTUAL SERVICES CITY OF BROOKLYN CENTER 0 City Commission Conducting Evaluation: Date of Evaluation: Applicant Organization/Program/Agency Name: Address- City, State, Zip- Contact Person- Phone Number- Date Application Submitted- Budget Year Requested- Score each statement based on the maximum points listed in parentheses next to each item. The higher the score, the more the actual request is equated to the statement. A total of • 100 points is possible. For Y/N responses, select Y for yes or N for no. A. PROGRAM OVERVIEW (20) (Y/N) 1. The application and supporting documents were submitted in a timely fashion for inclusion in the annual budget. (5) 2. The applicant has a realistic view of its resources and the organization is limited to its level of competence. The applicant indicates the availability of an effective staff, if applicable. (5) 3. The applicant has demonstrated the ability effectively to reach its target/demographical and geographical areas. (5) 4. The methodology employed to measure the organization's effectiveness is effective, clear, and concise. B. BUDGET (30) (10) 1. The total amount requested from the City of Brooklyn Center is reasonable given the overall organization's budget. (10) 2. The budget request is reasonable given the objectives of the proposal for the contractual services. (10) 3. The administrative and program service `c~sts are in reasonable balance. (Y/1) 4. The use of volunteers is reasonable and cost effective. (Y/1) 5. Other funding sources have been explored. i C. COND&UN[TY NEED (35) (10) 1. The applicant is meeting an important community need. (10) 2. The extent of this service does not overlap with services provided elsewhere in the community. (15) 3. The number of Brooklyn Center residents served is high in relation to the amount requested. D. ORGANIZATION NEED (20) (10) 1. The program is not viable without local government support. (5) 2. There are few, if any, alternate sources of funding available to the applicant. • (5) 3. The organization's request does not create an ongoing demand for funding in future budgets. TOTALSCORE • 1-7