HomeMy WebLinkAbout1996 04-18 FCMMINUTES OF THE PROCEEDINGS OF THE FINANCIAL COMMISSION
OF THE CITY OF BROOKLYN CENTER
APRIL 18, 1996
CITY HALL, CONFERENCE ROOM B
CALL TO ORDER
Chair Donn Escher called the meeting to order at 7:13 P.M. in the Conference Room B.
ROLL CALL
Present at roll call were Chair Donn Escher, Commissioners: Ned Storla, Larry Peterson, Jay
Hruska and Council member Kathleen Carmody. Also present were City Manager Michael
McCauley and Finance Director Charlie Hansen. Commissioner Ron Christensen arrived at 8:00
P.M. Commissioner Lee Anderson was excused.
Approval of Minutes
A motion was made by Commissioner Jay Hruska to approve the minutes of the March 17, 1996
meeting. Commissioner Ned Storla seconded the motion and all members voted in its favor.
0yests for Proposals for Professional Services
Donn Escher noted this was reviewed at the March 17th meeting and that the suggested
modifications had been incorporated. He suggested one additional modification to Section III.
• PROCEDURE, Paragraph 3. The last sentence would now read appointed by the Mayor in
consultation with the Chair of the Financial Commission, with the approval of the City Council,".
Donn Escher asked Charlie Hansen for his impressions of the policy. He responded that as we
gain experience with doing the RFP for each professional service, we may suggest changes in the
interval before that service came up again for review.
Commissioner Larry Peterson moved that the policy be approved as amended and forwarded to
the City Council with the recommendation of the Financial Commission. Commissioner Jay
Hruska seconded the motion and all voted in its favor.
Mavor and Council Member S,v Survev
Donn Escher spoke on the salary survey data in the packet. He had computed some median values
but found it difficult to do a good statistical comparison due to the dissimilarity of cities in the
survey. Mike McCauley advised targeting an average of several surrounding cities as a method
of analysis. After extensive discussion, it was recommended that staff do computations with a
selected group of comparable cities and report back at the May meeting.
Mavor and Council Member Total CorWensation
Chair Donn Escher reviewed how the issue came before the Financial Commission. The major
issues raised at the previous meeting were discussed again and a consensus reached that the draft
• letter in the packet reflected the commission's views. Commissioner Ned Storla moved that the
letter be approved and forwarded to the City Council. Commissioner Jay Hruska seconded the
motion and all voted in its favor.
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Special Assessment and Internal Loan IpteresL&te Policy
Charlie Hansen presented the policy and explained that it is an effort to develop a formal process
for setting interest rates based on an available market rate and protect the city from future swings
in interest rates. The rate proposed is based on the average interest rate from the city's most
recent bond sale or the recent bond sale of a comparable city. To this a factor of 2 % would be
added to cover administration costs, protect the city from large special assessment prepayments,
and make the rate suitable for use on internal loans. Ron Christensen asked for further
clarification on internal loans.
Commissioner Ned Storla moved that the policy be approved and forwarded to the City Council
with the recommendation of the Financial Commission. Commissioner Larry Peterson seconded
the motion and all voted in its favor.
Purchasing Policy
Mike McCauley presented the purchasing policy. One of the primary objectives is to have the
policy state that it will follow Minnesota Statutes instead repeating the specific provisions of the
statutes in the policy. This way it won't be necessary to readopt our policy each time the state
changes some provision of the statutes. Ned Storla noted that the policy is really in the resolution
and suggested revisions to clarify the policy.
Commissioner Ron Christensen moved that the policy be approved as revised and forwarded to
• the City Council with the recommendation of the Financial Commission. Commissioner Jay
Hruska seconded the motion and all voted in its favor.
Next Meeting
The next meeting will be Wednesday, May 15, 1996 at 7:00 P.M.
ADJOURNMENT
The Financial Commission adjourned the meeting at 8:45 P.M.
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