HomeMy WebLinkAbout1996 04-18 FCA•
AGENDA
BROOKLYN CENTER FINANCIAL COMMISSION
April 18, 1996
City Hall
Conference Room B
1. Call to Order: 7:00 P.M.
2. Roll call.
3. Approval of Minutes: March 17, 1996
4. Requests for Proposals for Professional Services.
5. Mayor and Council Member Total Compensation.
a. Memo to City Council "Requested Analysis of Compensation Issues."
i b. Mayor and Council Salary Survey.
6. Special Assessment and Internal Loan Interest Rate Policy.
7. Purchasing Policy.
8. Set Date of Next Meeting.
9. Adjournment: 9:00 P.M.
0
MINUTES OF THE PROCEEDINGS OF THE FINANCIAL COMMISSION
OF THE CITY OF BROOKLYN CENTER
MARCH 17, 1996
CITY HALL, CONFERENCE ROOM B
CALL TO ORDER
Chair Donn Escher called the meeting to order at 7:00 P.M. in the Conference Room B.
ROLL CALL
Present at roll call were Chair Donn Escher, Commissioners: Ned Storla, Lee Anderson, Jay
Hruska and Council member Kathleen Carmody. Also present were City Manager Michael
McCauley and Assistant Finance Director Tim Johnson.
AAnroval of Minutes
A motion was made by Commissioner Ned Storla to approve the minutes of the February 1, 1996
meeting. Commissioner Lee Anderson seconded the motion and all members voted in its favor.
Ric uests for Proposals for Professiongll Services
Mike McCauley reviewed the Policy and Procedures on Requests for Proposals for Professional
Services draft document. Concerning the attached schedule for intervals between planned RFP's,
Mike McCauley explained the need to maintain a reasonable length of time between RFP's, but
• still have the professional service reviewed on a periodic basis. An extensive discussion followed
concerning the timing of the various professional services and the reasons behind the schedule.
Chair Donn Escher suggested the policy clarify who appoints Financial Commission and City
Council members to review the proposals for professional services. He also recommended the
Financial Commission be involved in the review of the professional service specifications.
Commissioner Jay Hruska asked how service levels for various professional services will be
monitored and if there will be a formal evaluation process. Mike McCauley noted that
professional services will be monitored for quality service on a regular basis and anticipates no
formal evaluation process. Chair Donn Escher surveyed the Financial Commission Members,
who were comfortable with the direction of the draft policy and wished to proceed with further
refinement by staff and a report at the next Financial Commission meeting.
Mavor and Counci . Member Total Condensation
Chair Donn Escher introduced and reviewed the background concerning the letter prepared by the
city manager on the topic of mayor and council member compensation. Chair Donn Escher
recommended the memo prepared by the city manager be changed to appear that the memo is
written by the Financial Commission addressed to the Council. After discussion, Mike McCauley
reviewed the changes with the Commission and dictated a draft of the new memo.
0
t Re iiort on Citv Tax Base and Fiscal Disparities Pool
Mike McCauley reviewed the report on Brooklyn Center's tax base and past contributions to the
fiscal disparities pool for the Metro Area. Commissioner Ned Storla commented on Brooklyn
Park's tax capacity value experience and provided insight on tax capacity trends in the Metro
Area. An extensive discussion followed concerning Brookdale Mall and tax capacity issues as it
related to the mall and the surrounding retail area.
Next Meeting
The next meeting will be Thursday, April 11, 1996 at 7:00 P.M.
AD.TOURNMENT
The Financial Commission adjourned the meeting at 8:00 P.M.
•
•
2
• POLICY AND PROCEDURE ON
REQUESTS FOR PROPOSALS FOR PROFESSIONAL SERVICES
I. NEED FOR POLICY:
The City needs a policy and procedure to provide for the orderly conduct of requesting proposals
for professional services for handling financial affairs, to ensure that all services will be
periodically reviewed, and that the proper balance will be maintained between cost and quality of
services.
II. POLICY:
1. All professional services in the area of city finances will be periodically let out for
request for proposals according to an established schedule.
2. Service levels will be monitored by the City Council and Staff and if unsatisfactory
service is received, that contract will be re-advertised prior to the year set in the
schedule.
3. Quality of service will be the primary factor in awarding a contract for professional
service, but cost will also be a determinant.
III. PROCEDURE:
1. A schedule shall be established for the conduct of R.F.P.s. The schedule should
be adhered to unless there is a performance problem or other justification for an
earlier R.F.P. Going to the market too frequently with R.F.P.s expends staff time,
requires extensive orientation of new professionals, and discourages quality firms
from submitting proposals at their most attractive price since they will expect to
only have the contract for a short time.
2. Specifications tailored to the professional service to be advertised will be prepared
by staff, reviewed by the Financial Commission, and approved by the City
Council.
3. A review committee made up of the City Manager and Finance Director shall
• review proposals for Banking Services, Insurance Agent, Risk Management
Consultant, and Custodian for investment securities. Proposals for Auditor and
Financial Advisor shall be initially screened by staff, and then reviewed by a
3
• committee of City Council members and financial commission members appointed
by the Mayor with the approval of the City Council, which committee shall also
include the City Manager and Finance Director.
4. The specifications will emphasize the abilities, qualifications, and experience of the
applicant firms to provide high quality service to the City. Price will be
considered after one or more applicants have been identified as providing the
desired quality of service. When appropriate, the specification shall require prices
to be submitted in a separate, sealed envelope to be opened after applicants have
been ranked according to quality.
5. The City Manager shall make a recommendation to the City Council of a provider
to be appointed to a multi-year engagement. It shall be written in the engagement
that the appointment may be terminated earlier.
This policy was adopted by the City Council on
•
•
H
City of Brooklyn Center
A great place to start. A great place to stay.
•
MEMORANDUM
TO: Mayor Myrna Kragness
Councilmember Kathleen Carmody
Councilmember Debra Hilstrom
Councilmember Kristen Mann
FROM: Financial Commission
DATE: April 11, 1995
SUBJECT: Requested Analysis of Compensation Issues
This memo will summarize the Financial Commission discussion from its February and March
meetings. In these discussions, the commission reviewed the issues referred to them by the City
Council whether changes in the method of providing compensation to City Council Members
should be considered to relate compensation to meeting attendance. Among the options were:
-payment on a per diem basis for meetings attended
-reductions in compensation for non-attendance.
The discussion of these options dealt with a number of implications of trying to tie compensation
to attendance. Those issues included:
-the nature of Council service
-being unprepared at a meeting
-enforcement issues related to determining compensation on some basis other than general
performance of duties or attendance
-not attending an entire meeting
-whether to include commission and special meetings
Generally, the nature of public service by a Council Member is a complex set of activities that
goes well beyond attendance at City Council meetings. The number and length of meetings
varies. If a compensation plan was tied to meeting attendance, apportionment of compensation
would be difficult. For example, if the Council had two meetings in one month and four in the
next, would Council Members be paid 50% of their monthly compensation for each of the two
meetings in the one month and 25% of their monthly compensation for each of the meetings in the
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430-2199 e City Hall & TDD Number (612) 569-3300
Recreation and Community Center Phone & TDD Number (612) 569-3400 - FAX (612) 569-3494
An Affirmative Action /Equal Opportunities Employer
.s
t
i Memorandum to City Council
Page 2
April 11, 1996
following month. Payment per meeting would result in a fluctuating compensation that could be
increased or decreased by calling meetings. Similarly, if meetings were the basis of compensation,
issues would arise in terms of being late or leaving a meeting early. If a meeting lasted one hour,
would it be worth less than a meeting that lasted three hours?` But then, if a person missed ten
minutes of a three-hour meeting, would the reduction in compensation be the same as if she/he
missed ten minutes of a one-hour meeting! To tie compensation to meeting attendance in this
fashion would be unworkable.
As part of the Financial Commission discussion, there was discussion regarding experiences at
other cities in trying to deal with this situation. In looking at whether a Council Member should
be disciplined in some fashion, this is generally a matter best left to the City's Charter or City
Council. It would not be a financial issue. Other cities have struggled with trying to devise a
formula dealing with the failure of a Council Member to perform duties and found that quantifying
this for purposes of removing or penalizing a Council Member was too difficult an issue to
resolve. Many issues are raised in this regard relative to illness and fairness in removal of a person
for circumstances beyond the control of the individual Council Member. Also, since Council
Members are elected, it would be particularly inappropriate to void the electorate's choice except
under the most egregious circumstances. In reviewing this, the Financial Commission would not
be able to identify criteria upon which it would believe a reasonable consensus could be achieved
on providing for a process to deal with failure of a Council Member to perform duties. In any
event an issue relating to removal or censure would best be left to a Charter Commission or City
Council, itself, to define. We would not, however, anticipate that this would be easily
accomplished by either group.
The commission believes that the potential "cure" of trying to fix compensation to attendance is
probably worse than the problem. Also, attendance is generally not a problem and seeking to
structure a formula to address attendance is not responding to a recurring problem in cities. In
the final analysis, Council Member compensation is not intended to provide them with a salary so
much as a recognition of the demands on their time that go well beyond regularly scheduled
Council meetings. Tying payment to attendance of meetings raises all of-the issues detailed above
and creates a whole host of issues that would bog us down trying to answer that question, rather
than using that effort and time to deal with the issues of operating the city.
6
0
City of Brooklyn Center
• A great place to start. A great place to stay.
MEMORANDUM
TO: Financial Commission Members
FROM: Michael J. McCauley, City Manager
DATE: April 15, 1996
SUBJECT: Salary Survey
Attached please find the salary survey that was conducted by the Association of Metropolitan
Municipalities. This survey will serve to comply with the policy requirement to provide a salary
survey by June 1 of even numbered years.
Attachment
•
•
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430-2199 • City Hall & TDD Number (612) 569-3300
Recreation and Community Center Phone & TDD Number (612) 569-3400 • FAX (612) 569-3494
An Affirmative Action /Equal Opportunities Employer
7
•
MEMO
To: Michael I McCauley, City Manager ~
From: Nancy Gohman, Asst. City Manager/Personnel Coor .
Subject: Mayor and Council Salary Y
Date: March 14, 1996
Attached is a salary survey for Mayor and Council for 1996 and 1997. The survey is
of metro suburbs over 25,000 in population as listed in group V of the Stanton
survey. Also included are our neighboring cities of New Hope, Golden Valley and
Robbinsdale who have populations lower then 25,000.
AMM completes a elected officials salary survey which is published in May each
year. Attached is the AMM 1995 survey for elected officials. Please inform me if
you you need additional information on this matter.
•
•
8
0 Salary Survey - Mayor & Council Mar 96
•
9
1996
1997
City
Population Mayor Co
uncil Mayor Council
Bloomington I
86,918 1 $
16,000 1 $
10,000 1 $ 16,000 $ 10,000
Coon Rapids 1
58,833 1 $ 12,000 1 $
9,000 1 $ 16,000 $ 9,000
Brooklyn Park 1
58,125 I $ 13,356 I $
8,904 I unknown at this time
Plymouth 1
55,137 I $
8,600 $
6,300 1 $ 8,600 $ 6,300
Burnsville 1
53,363 I $
9,240 $
6,540 1 $ 9,240 $ 6,540
Eagan 1
53,004 I $
9,000 I $
6,480 I $ 9,000 $ 6,480
Minnetonka 1
49,285 1 $
8,400 1 $
5,6041 8400 5604
Edina I
46,948 I $
7,000 1 $
5,100 I $ 7,000 $ 5,100
St. Louis Pk 1
43,764 I $ 10,790 1 $
7,202 I unknown at this time
Maple Grove 1
42,6821$
8,5001$
6,500 1 no change proposed at this time
Eden Prairie 1
42,4421$
7,2001$
6,000 1 unknown at this time
Blaine 1
40,8141$
9,5761$
7,008 1 $ 9,864 $ 7,224
Apple Valley 1
38,261 1 $
8,4001$
6,000 1 $ 8,400 $ 6,000
Richfield 1
35,538 I $
7,7621 $
6,025 1 unknown at this time
Roseville 1
33,4871$
7,8001$
6,000 1 unknown at this time
Maplewood 1
32,3941$
9,1531$
8,054 1 unknown at this time
Lakeville 1
30,1491$
9,1801$
7,956 1 $ 9,444 $ 8,184
Brooklyn Ctr 1
30,1491$
7,7001$
5,700 1 unknown at this time
Fridley 1
28,2871$
8,4001$
6,100 1 $ 6,900 for councilmember at large, no change 97
Woodbury 1
28,2871$
5,6001$
4,200 I $ 5,600 $ 4,200
Cottage Grove 1
25,7521$
7,8001$
6,000 1 unknown at this time
Shoreview 1
25,7301$
7,7401$
5,736 1 unknown at this time
Crystal 1
23,8071$
7,6101$
5,813 I $ 7,800 $ 6,000
New Hope
21,7581$
8,9601$
6,341 I $ 9,219 $ 6,525
Golden Valley 1
21,0291$
9,1051$
6,815 1 no change proposed at this time
Robbinsdale
14,4101$
7,5901$
6,072 unknown at this time
Average $
8,941 $
6,694
Z
0
0
all ary
survey
Compiled by the Association of Metropolitan Municipalities
•
CITIES
WITHOPULATION UNDER
2,500
POPULATION 1993
REG.
SP.
ANNUAL
SALARY
OF MAYOR ANNUAL
SALARY OF
CNCLMBRS.
ESTIMATE PER
MTG/
MTG
MUNICIPALITY
METRO COUNCIL
MO.
1995
1994
1993
1995
1994
1993
Bethel
430
0
$ 0
$ 960
$960
$ 0
$720
$720
Birchwood Village
1,024
1
800
*
400
Carver
773
1
50/30
900
900
900
600
600
600
Coates
184
1
500
500
500
300
300
300
Cologne
567
2
20
600
600
600
480
480
480
Dellwood
896
1
2
0
0
$1
$1
0
Excelsior
2,377
2
11200
11200
11200
600
600
600
Elko
246
1
1,080
720
720
540
*
480
Gem Lake
446
1
1,700
1,700
11700
728
728
728
Greenfield
1,564
2+
35
1,200
1,200
1,200
600
600
600
-Greenwood
643
1
3,600
*
*
2,400
Grey Cloud Island
Twnshp.
414
1
600
480
Hamburg
503
1
25
600
600
600
480
480
480
Hampton
383
1
190
720
740
*
540
*
540
Hanover
329
2
30
11200
*
1,200
900
*
900
Hilltop
749
2
3,000.
31000
3,000
2,400
21400
2,400
Lakeland
2,006
1
*
3,000
3,000
*
2000
2,300
Lakeland.Shores
320
1-2
none
none
920
none
none
none
Lake St. Croix Beach
11127
1
10
960
960
960
720
720
720
Landfall
624
1
4,200
*
*
2,100
Lilydale
542
1
2,700
*
21400
10,200
*
1,020
(1)
CITIES WITO
OPULATION UNDER
2,500
'
POPULATION 1993
REG
. SP.
ANNUAL SALARY
OF MAYOR ANNUAL
,SALARY OF
CNCLMBRS.
ESTIMATE PER
MTG
/ MTG.
MUNICIPALITY
METRO COUNCIL
MO
1995
1994
1993
1995
1994
1993
Long Lake
11980
2
3,000
3,600
31600
2,400
3,000
3,000
Loretto
477
1
65/50
800
800
800
600
600
600
Maple Plain
2,117
2
3,600
2,400
2,400
1,200
1,200
1,200
Marine on St. Croix 608
1
480
*
1,250
480
*
500
Mayer
513
1
15
600
600
600
480
480
480
Minnetonka Beach
575
1
0
0
*
0
0
New Germany
367
1
15
600
480
480
480
360
360
New Market
227
1
15
1,200
*
11200
600
*
600
Norwood
1,377
1
20
720
720
720
480
480
480
Pine Springs
435
1
0
0
0
0
0
0
- St. Bonifacius
1,195
2
10
1,500
1,500
10,500
1,200
1,200
1,200
N
Spring Park
11757
2
20,400
21400
2,400
14,800
1,800
11800
Tonka Bay
1,466
2
100/75
2,400
1,800
1,800
11800
11800
1,200
Vermillion
510
1
200 -
780
600
720
600
540
540
by attendees
Watertown
21495
2
M45;
1,170
1,215
1,080
1,040
1,080
960
cc40
Woodland
484
1
40
40
40
20
20
20
Young America
1,427
1
60
720
1,320
1,320
720
720
720
~2~
`
POPULATION 1993
ESTIMATE PER
MUNICIPALITY
METRO COUNCIL
Afton
2,829
Arden Hills
91493
Bayport
3,195
Circle Pines
4,779
Dayton
4,740
Deephaven
3,646
East Bethel
8,471
Falcon Heights
5,348
Farmington
6,574
Forest Lake
6,242
Z^ Forest Lake Twnshp. 71164
Ham Lake
9,462
Hugo
5,030
Independence
2,951
Jordan
3,003
Lake Elmo
6,057
Lauderdale
21.710
Little Canada
9,134
0
H
CITIES
POPULATI
ON FROM
2,500 TO
10,000
REG.
SP. ANNUAL SALARY OF
MAYOR
ANNUAL SALARY OF CNCLMBRS.
MTG/
MTG.
MO.
1995
1994
1993
1995
1994
1993
1
900
$1,800
$1,800
600
$1,200 $
1,200
2
3,600
3,600
3,600
3,180
3,180
3,180
1
3,300
. 2,700
21700
2,700
2,100
2,100
2
2,500
2,000
1,500
1,450
1,450
1,125
2
1,750
1,750
1,750
1,250
1,250
1,250
2
3,600
21400
2,400
2,400
.600
600
2
3,300
2,700
2,700
2,700
2,400
2,400
2
4,500
41500
41500
3,600
3,600
3,600
2
3,000
3,000
3,000
3,000
3,000
3,000
2
3,600
1,200
1,500
3,000
1,000
1,200
2 35
2
4,700
4,000
4,000
4,000
3,200
3,200
2
*
2,160
21160
*
1,800
1,800
2
1,800
1,800
1,800
1,200
11200
11200
2
3,696
3,300
31300
2,496
11800
1,800
2
2,400
2,400
21400
1,800
11800
1,800
2
2,456
2,456
*
1,376
*
1,376
2
4,080
4,080
4,080
3,180
3,180
3,180
(3)
•
CITIES WITH POPULAT* FROM 2,500
TO 10,000
'
POPULATION 1993
REG. SP.
ANNUAL SALARY OF
MAYOR
ANNUAL SALARY OF
CNCLMBRS.
ESTIMATE PER
MTG/ MTG
MUNICIPALITY
METRO COUNCIL
MO.
1995
1994
1993
1995
1994
1993
Mahtomedi.
51966
2
1,800
11800
11800
11500
11500
1,500
Medina
31534
2
2,700
21700
*
1,800
11800
11800
Minnetrista
3,574
2
2,400
2,400
2,400
1,800
1,840
840
Mound
9,643
3
4,500
1,800
1,800
3,000
1,200
1,200
Newport
31756
2
3,000
3,000
3,000
2,400
21400
2,400
New Prague
2,520
2
1,800
2,400
21400
1,500
1,800
11200
North Oaks
3,602
1
180
180
180
120
120
120
Oak Grove
5,924
2
300
*
*
250
Oak Park Heights
3,701
2
3,000
3,000
3,000
2,400
2,400
2,400
Orono
7,323
2
3,600
31600
3,600
2,900
2,900
2,900
.r Osseo
2,638
2
1,200
1,200
1,800
1,020
1,020
1,200
St. Anthony
81019
2
51040
41680
41500
31360
31120
3,000
St. Francis
2,727
2
1,800
1,800
1,800
1,200
1,200
1,200
St. Paul Park
5,091
2
31300
31300
3,300
21700
2,700
2,700
Shorewood
6,430
2
3,000
3,000
3,000
2,400
2,400
2,400
Spring Lake Park 61523
2
41200
41200
41200
31600
31600
3,600
Victoria
2,833
2
21275
2,275
2,275
1,635
1,635
1,635
Waconia
3,920
2
21400
2,400
20,400
21000
21000
2,000
Wayzata
3,830
2
31600
3,600
31600
21400
2,400
2,400
(4)
•
POPULATION 1993
. ESTIMATE PER
MUNICIPALITY
METRO COUNCIL
Andover
18,304
Anoka
17,481
Champlin
18,565
Chanhassen
13,388
Chaska
13,012
Columbia Heights
18,999
Hastings
16,143
Hopkins
16,406
Lino Lakes
11,193
Mendota Heights
10,466
Mounds View
12,611
Z; North St. Paul
12,730
Prior Lake
12,072
Ramsey
14,081
Robbinsdale
14,410
Rosemount
10,478
Savage
12,889
Shakopee
12,732
Stillwater
15,001
Vadnais Heights
11,638
West St. Paul
19,304
CITIES
WITH POPUL*ON
FROM 10,000 TO
20,000
i
REG.
SP. ANNUAL SALARY OF
MAYOR ANNUAL SALARY OF
CNCLMBRS.
MTG.'
MTG
MO.
1995
1994
1993
1995
1994
1993
2
$4,200
$4,200
$4,200
$3,600
$3,600
$3,600
2
20 4,200
4,200
4,200
3,570
3,570
3,570
2
4,976
4,976
4,976
31971
3,971
3,971
2
6,000
3,600
3,600
4,800
2,400
2,400
2-
3 4,500
3,600
3,600
3,600
31000
3,000
2
9,000
9,000
13,800
7,800
71800
7,800
2
400
4,800
4,800
300
3,600
3,600
3
5,200
51200
51200
41000
4,000
4,000
2
40max 4,500
4,500
3,500
.3,600
3,600
2,600
2/month
2
3,600
*
*
21400
2 reg/1 sp. *
5,100
3,600
*
41500
3,300
2
4,200
5,400
4,200
3,000
4,200
3,000
2
4,200
4,200
41200
3,000
3,000
3,000
2
6,000
61000
61000
4,500
41500
4,500
2
7,590
61600
61600
6,072
5,280
51280
2
20 41200
*
*
3,600
2
5,100
5,100
5,100
41200
41200
4,200
2
61120
6,120
61120
51100
5,100
51100
2
7,200
7,200
7,200
61,000
6,000
6,000
2
4,800
3,600
3,600
3,600
2,400
2,400
2
41620
4,200
4,200
3,960
31600
31600
(5)
•
POPULATION 1993
ESTIMATE PER-
MUNICIPALITY
METRO COUNCIL
Apple Valley
38,261
Blaine
40,814
Bloomington
86,918
Brooklyn Center
28,533
Brooklyn Park
58,125
Burnsville
53,363
Coon Rapids
58,833
Cottage Grove
25,752
Crystal
23,807
Eagan
53,004
_ Eden Prairie
42,442.
o-•
Edina
46,984
Fridley
28,287
Golden Valley
21,029
Inver Grove Heights 24,332
Lakeville
30,149
Maple Grove
42,682
Maplewood
32,394
Minnetonka
49,285
New Brighton
22,355
CITIES V& POPULATION
OVER 20,000
REG
. SP.
ANNUAL
SALARY OF
MAYOR
ANNUAL
SALARY OF
CNCLMBRS.
MTG
/ MTG
MO.
1995
1994
1993
1995
1994
1993
2
8,400
$8,400
$8,400
6,000
61000
6,000
2
9,250.
9,024
81724
6,765
61600
6,372
3
*
16,000
15,000
10,000
10,000
10,000
2
7,500
7,300
71150
5,500
5,300
5,150
4
13,224
13,140
12,900
8,820
8,760
8,580
4
9,120
91000
8,700
61480
6,420
6,180
2
10,000
10,000
10,000
9,000
9,000
9,000
2
6,600
6,600
61600
41800
41800
4,800
2
71421
7,421
7,421
5,626
5,626
5,626
2
91000
9,000
71200
6,480
6,480
5,400
2
2hrs25
71200
7,200
7,200
6,000
6,000
6,000
+2, 50
2
71050
7,050
71100
5,100
5,100
5,100
2
8,400
8,400
8,400
6,100
6,900
61100
2
50/mo
91105
9,105
9,105
60815
6,815
6,815
2
max/150
7,500
7,500
7,000
61000
6,000
6,000
2
25(HRA)
91000
8,400
71800
7,800
7,200
6,600
2
8,500
8,000
8,000
6,500
6,000
6,000
2
8,921
8,686
8,458
71850
7,644
7,644
4
8,400
8,400
8,400
51604
51604
5,604
2
7,200
71200
71200
51500
5,580
51580
(6)
000
CITIES WITH POPULATIOOVER 20
,
'
POPULATION 1993
REG.
SP. ANNUAL
SALARY OF
MAYOR
ANNUAL
SALARY OF
CNCLMBRS.
ESTIMATE PER
MTGJ
MTG
MUNICIPALITY
METRO COUNCIL
MO.
1995
1994
1993
1995
1994
1993
New Hope
21,758
2
25 81720
8,280
8,078
6,171
6,006
5,860
Oakdale
22,192
2
6,000
6,000
61000
51820
5,820
5,820
Plymouth
55,137
2
81600
81600
81600
6,300
6,300
61300
Richfield
35,538
2
7,762
7,573
7,573
6,025
5,878
5,878
Roseville
33,487
2
7,800
7,800
7,200
6,000
6,000
5,400
St. Louis Park
43,764
2
10,000
9,000
9,601
7,200
7,200
7,202
Shoreview
25,730
2
6,492
6,492
6,492
4,872
4,872
4,872
South St. Paul
20,235
2
8,400
7,200
7,200
5,400
4,200
4,200
White Bear Lake
24,979
2
4,800
4,800
4,800
3,600
3,600
3,600
Woodbury
25,875
2
5,600
4,920
4,920
4,200
3,600
3,600
*No Response
J
h)
MEMORANDUM
0 TO: Michael J. McCauley, City Manager
FROM: Charlie Hansen, Finance Director
DATE: April 15, 1996
SUBJECT: Interest Rates for Special Assessments
Last month, you asked me to develop a draft policy for the setting of interest rates on
special assessments. Our past practice has been to have the City Council set an interest
rate for internal loans between funds. Interest rates for special assessments were officially
set as each assessment was passed, but almost always were the same as the rate adopted
for internal loans. These rates were 7% in 1980, 10% in 1981, 12% from 1982 through
1989, 10% from 1990 through 1991, 8% from 1992 through 1993, and 7% from 1994
through 1995. A copy of Resolution 94-08 is attached showing the last adjustment.
We have never had a formal policy for determining what the rate should be. The analysis
done at the time of each rate change also wasn't very extensive. We basically tried to
avoid any loss compared to what we could have earned if that money had been available
to the City's investment portfolio.
I asked several other cities how they set their rates and got the following responses:
Golden Valley:
"We have nothing in writing but usually go about 2 % over what we sell bonds for
except we haven't ever gone over 7 We use the same number all year."
Shakopee:
"We go 1.5% over the rate on the bonds issued to finance the project or, if no
bonds, we have been staying at 8 % for internal financing. No one has questioned
the 8 % issue so far even though it is substantially higher than the rate for bonded
projects."
These responses don't appear to be of great help. You instructed that we develop a policy
which would tie the special assessment interest rate to some rate available in the open
• market. We have no obligation to lend out money at the rate we borrow it at. This would
be quite a bargain for the home owner. Neither should we gouge them by having the
highest rates around.
13
Our interest rate could be set based on a single market rate, or the average of a couple of
• market rates. There are several available. When we issue improvement bonds, or levy
special assessments, it is most often for ten years. We should pick a comparable
benchmark. The most recent bond rate plus some preset factor is a viable option. The
home owner's cost of borrowing would be another approach. Our rate could be tied to the
fifteen year conventional fixed rate mortgage. Another benchmark could be our rate of
return on investments, basically what we have been following.
Our most recent special assessment bond issue on November 1, 1995, had an average
interest rate of 4.7734%. If we didn't have a recent bond issue, we could select a
comparable sale from the listing in the League of Minnesota Cities magazine. We would
then add a preset interest factor to the bond interest rate to arrive at our special assessment
rate.
Our average rate of return on our investment portfolio for February and March 1996 was
just over 6 Fifteen year fixed conventional mortgages have been running about 7.25 %
I am recommending the attached policy which would base the special assessment interest
rate on the interest rate of our most recent bond sale, or a comparable bond sale of another
city, plus 2
• Interest rates for internal loans between funds would be set at the same interest rate with
the exception of the loan from the Capital Improvements Fund to the Golf Course, which
would stay at 5%. The loan from the Capital Improvements Fund to the Liquor Fund
would be reduced from the current 8.5 % to the rate set annually by this policy.
•
19
0 fmcomm\po1icies\specass2
CITY OF BROOKLYN CENTER
SPECIAL ASSESSMENT AND INTERNAL LOAN INTEREST RATE POLICY
POLICY ORWCTIW,,:
The objective of this policy is to establish equitable interest rate charges for special assessments
levied against private property and for internal loans between funds. In the case of special
assessments, the goal is to not unfairly burden the property owner, but yet recover the cost of
borrowing from outside sources, recover the cost of administering the special assessment, and
protect the city from the possibility that special assessment prepayments might impair the city's
ability to service the bonds. In the case of internal loans, the goal is to prevent the loss of interest
income to city funds which would otherwise invest their money.
PROCEDURE:
1. In January of each year, the staff shall review the previous year's interest rate against the
current market and recommend to the City Council an interest rate to be adopted and used
for all special assessments levied and all internal loans outstanding for that year. The
internal loan from the Capital Improvements Fund to the Golf Course shall continue at the
interest rate approved for it by the City Council at the time it was set up.
2. a. The interest rate which will be used as a standard for setting the special assessment
and internal loan interest rates shall be the interest rate from the City's most recent
sale of improvement bonds with a ten year final maturity.
b. If interest rates have changed substantially since that last bond sale, a comparable
city's bond sale will be used from the listing in the League of Minnesota Cities
magazine. Factors in determining comparability shall include: final maturity of the
bonds, that they were issued by a city, that they were G.O. improvement bonds,
and the city's bond rating.
3. To the interest rate from the most recent bond sale, 2 % shall be added to cover the city's
cost of administration and protect the city from changes in market interest rates. The
resulting interest rate shall be rounded to the nearest half percent.
This policy was adopted by the City Council by motion on
•
10
Member Celia Scott introduced the following resolution and
moved its adoption:
i
RESOLUTION NO. 94-08
RESOLUTION ESTABLISHING AN INTEREST RATE ON LOANS FROM
THE INVESTMENT TRUST FUND TO OTHER FUNDS OF THE CITY OF
BROOKLYN CENTER
WHEREAS, the City Council passed Resolution 90-03 on January
8, 1990 which established an annual interest rate of 10$ to be charged
on loans made by the Investment Trust Fund to other City Funds; and
WHEREAS, the City Council passed Resolution 92-09 on January
13, 1992 which established an annual interest rate of 8% to be charged
on loans made by the Investment Trust fund to other City Funds; and
WHEREAS, because of current economic conditions the interest
rate of 8% is excessive; and
WHEREAS, the City Council has determined that an annual
interest rate of 7% sufficient and equitable for all loans.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Brooklyn Center, Minnesota, that the annual rate of interest to be
charged by the Investment Trust Fund on loans to all other City funds be
set at 7%, effective January 1, 1994.
January 10, 1994
Date
ATTEST : Jvm 't„
Deputy Clerk
l
Todd Paulson, Mayor
The motion for the adoption of the foregoing resolution was duly
seconded by member Barb Kalligher , and upon vote being taken
thereon, the following voted in favor thereof:
Todd Paulson, Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann;
and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted.
0
Ii
•
M-EMO
To: Michael I McCauley, City Manager
From: Nancy Gohman, Assistant City Manager/Personnel Coordinator "
Subject: Update of Purchasing Policy
Date: April 16, 1996
The City of Brooklyn Center adopted a purchasing policy in 1983. Many of the limits set in the
`83 policy fall below the State of Minnesota Uniform Municipal Contracting Law. After research
of policies from other cities along with discussions with Finance, Department Heads, and our
Attorney, a revised purchasing resolution and policy have been drafted.
Attached is a copy of the resolution amending and re-establishing city purchasing policy and the
administrative purchasing procedures document. The resolution authorizes the city to comply
with the MN Uniform Municipal Contracting Law, and directs the City Manager to establish an
administrative purchasing policy for implementation of purchasing procedures. The administrative
purchasing policy outlines day to day operational purchasing procedures for our organization.
This policy is a working document which will be updated as needed to ensure the City Manager
has adequate controls over purchasing functions for efficient operations within our organization.
• It is recommended that the policy be reviewed by the Financial Commission then forwarded to
City Council for adoption of the resolution. If you have questions, or need additional materials,
please ask me.
cc: Charlie Hansen, Finance Director
•
17.
DRAFT
Member introduced the following resolution and moved
its adoption:
RESOLUTION NO.
RESOLUTION AMENDING AND RE-ESTABLISHING CITY PURCHASING
POLICY
WHEREAS, Section 6.05 of the City Charter of the City of Brooklyn Center
directs the Council to establish and maintain a purchasing policy; and
WHEREAS, the City established a purchasing policy pursuant to City Resolution
No. 83-172, and such policy appears to have been based on Minnesota Statutes Section 471.345
as it existed in 1983; and
WHEREAS, the State of Minnesota has amended the uniform municipal
contracting law found in Section 471.345 of the State Statutes, and the City of Brooklyn Center
wishes to follow the structure set forth in the uniform municipal contracting law found in
Minnesota Statutes Section 471.345.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of
Brooklyn Center that the purchasing policy established by City Council Resolution No. 83-172
S be and hereby is rescinded and that the following policy be and hereby is adopted. The policy of
the City of Brooklyn Center will be to follow the uniform municipal contracting law set forth in
Minnesota Statutes Section 471.345 as the same may be amended or renumbered from time to
time. Also, the City Manager shall be the chief purchasing agent for the city; all purchases for
the city and all contracts shall be made or let by the City Manager for which state law does not
require solicitation of bids.
BE IT FURTHER RESOLVED by the City Council of the City of Brooklyn Center
that the City Manager be, and hereby is, directed to establish an administrative purchasing policy
to implement the provisions of the uniform municipal contracting law.
Date
ATTEST:
City Clerk
Mayor
The motion for the adoption of the foregoing resolution was duly seconded by member
• and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
23
0 City of Brooklyn Center Administrative Purchasing Policy 4/96
1. Purpose
Assure that all purchases are made in accordance with the laws of the State of Minnesota, the
City Charter, City ordinance, and other policies of the City of Brooklyn Center. To provide
uniform purchasing procedures within the City's departments. Also to allow the City
Manager adequate controls over purchasing functions which are well established and adhered
to, and which also may be modified by the City Manager as needed for efficient operations
within the organization.
2. Minnesota State Statute 471.345 Uniform Municipal Contracting Law
Section 2 is the MN Statute on the Uniform Municipal Contracting Law. The Council of the
City of Brooklyn Center has adopted, and will comply with, State Statute 471.345 Uniform
Municipal Contracting law as follows:
Subdivision 1. Municipality defined, For purposes of this section, "municipality" means the
City of Brooklyn Center.
Subdivision 2. Contract defined. A "contract" means an agreement entered into by a
municipality for the sale or purchase of supplies, materials, equipment or the rental thereof,
or the construction, alteration, repair or maintenance of real or personal property.
• Subdivision 3. Contracts over 325.000_ If the amount of the contract is estimated to exceed
$25,000, sealed bids will be solicited by public notice in the manner and subject to the
requirements of law.
Subdivision 4. Contracts from $10.000 t.$25.000. If the amount of the contract is
estimated to exceed $10,000 but not to exceed $25,000, the contract may be made either
upon sealed bids or by direct negotiation, by obtaining two or more quotations for the
purchase or sale when possible, and without advertising for bids or otherwise complying with
the requirements of competitive bidding. All quotations obtained will be kept on file for a
period of at least one year after receipt thereof.
Subdivision 5. Contracts less than $10.000_ If the amount of the contract is estimated to
be $10,000 or less, the contract may be made either upon quotation or in the open market,
at the discretion of the city. If the contract is made upon quotation, it will be based, so far
as practicable, on at least two quotations which will be kept on file for a period of at least one
year after their receipt.
City employees will comply with the requirements of both the Uniform Municipal Contracting Law
as described in Section 2 of this policy and the requirements of Sections 3 through 14 .
0 1 Purchasing Procedures
Contracts over $25.000 All purchases covered by the Uniform Municipal Contracting Law,
over $25,000 require preparation of formal bids and specifications. Bids must be advertised
in the City's legal newspaper at least 10 days in advance of the last day for the submission for
the bids. Advertising for bids must be coordinated with the City Clerk.
The contract is awarded by Council resolution upon recommendation by City Manager. With
limited exceptions, all contracts for the purchase of supplies, materials or equipment must be
rewarded to the lowest responsible bidder.
When supplies or equipment are competitive in nature, specifications cannot exclude all but
one type of equipment or supplies (Minnesota Statutes 471.35 to 471.36). Proposals and
specifications must allow free and full competition.
Bidding requirements cannot, and shall not, be avoided by splitting a contract into several
contracts, each of which is below the minimum amount requiring bids. For example, the City
cannot purchase $30,000 of lumber in several transactions, each involving an expenditure of
less than $25,000. If there are questions about whether a contract may be split into several
contracts, the City Manager must be consulted.
• Contracts or purchases from $5.000 to $24.999 All purchases $5,000 and over must be
pre-approved by the City Manager, by recommendation from the Department Head. Such
purchases should be based on two (2) written quotations unless it can be shown that the
product or service is only available from one source, or purchased through a cooperative
purchasing program.
Contracts or purchases less than S5.000 Purchases of $4,999 or lower may be approved
by the Department Head or authorized assigned staff member. Such purchases must fall
within the approved budget. Purchases over $1,000 must have two quotes or, must be
purchased from a cooperative purchasing program.
4. Cooperative Purchasing Programs
The City of Brooklyn Center encourages participation with the State of Minnesota, Hennepin
County or other governmental agencies in cooperative purchasing where the result of the
purchase is in the best interest of the City.
5. Purchase Orders
Purchases must be made in accordance with the adopted budget. All departments, divisions
and operations of the City of Brooklyn Center must follow purchase order procedures as
directed by the City Manager. Changes or expenditures which may be in excess of the
. appropriate account in your budget must have prior approval by the City Manager.
2
• Purchase orders are required for all purchases in excess of $25 prior to the placement of any
order for goods, services, training, repairs, service call, etc. It is acceptable to use an estimate
of the cost of goods and services when filling out a purchase order. You may also need to
obtain quotes from vendors for service or goods prior to ordering repairs or purchasing.
Again, purchase orders are required to be completed prior to placing an order. Field-order
books or petty cash may be used for purchases under $25. A purchase order will be issued
by the Department Head or assigned authorized personnel for purchases up to $4,999.
Purchases from one invoice over $5,000 must comply with the Administrative Purchasing
Policy and be approved by the City Manager.
Before accepting delivery, the department receiving the goods or services must determine that
the purchase received reflects the order, that they are in a good, usable condition and that the
correct quantity is present. If a receiving slip is included, it must be reviewed for these factors
before it is signed.
6. Invoices
Finance will forward the invoices to the Department Head or authorized staff member for
approval of final payment. Original invoice with approval must be returned to the Finance
Department. Routine transactions such as utility bills, insurance benefits, progress payments
for construction projects, sales tax payments, liquor store inventory purchases, maintenance
contracts, police booking fees, mileage reimbursement, membership fees, park/recreation
• refunds, and umpire/referee voucher checks do not need purchase orders, but must be
forwarded to the City Manager for approval of payments in excess of $5,000 for one invoice.
The City Manager must also approve invoices if the cost exceeds the purchase order by $500.
Invoices must be processed and submitted to Finance to be paid within 30 days of the invoice
date, in compliance with state statutes, unless the invoice is in dispute.
7. Payment of Bills
Payment of all bills will be on a schedule and procedure established by the Finance Director.
8. Bonds
The City will follow state law for contractors bonds which are required for projects as stated
in MN Statutes 574.26.
The City Manager may require performance bonds for purchase of equipment such as a fire
truck, where there is an extended length of time between the order and completion and
delivery of the equipment.
9. Capital Outlay
Capital outlay items purchased are items reflected in the current budget. The City Manager
must approve all purchase orders for Capital Outlay prior to such purchase. If a capital item
. is not within the current budget or additional funds are needed for such purchase, such
request must be placed in writing to the City Manager.
A fixed asset number is assigned to all capital equipment with a value of $1,000 or more.
You must obtain a fixed asset number from the Finance Department upon receipt of capital
equipment. If a fixed asset from your department is being transferred, auctioned, exchanged
or eliminated, you must contact finance to inform them of the status of this fixed asset.
10. Consulting Services
The City may use a consultant for such services as architect, engineer, accountant or person
with technical, scientific, or professional training. It is not necessary to advertise for bids for
consultants. It is reasonable to request bids from several consultants prior to making a
recommendation to the City Manager to enter into such contracts.
11. Emergency Purchases
In the event of an emergency, where there are extenuating conditions that need to be
addressed immediately, the City Manager must be informed, and will make the determination
on how to proceed.
12. Liquor Store
The City will enter into agreements for purchase of merchandise for resale in our off-sale
liquor operations. Such agreement must have approval of the City Manager.
13. Petty Cash
i The City has petty cash available for minor purchases made out of pocket by the employee.
The maximum amount of petty cash one can be reimbursed is $25. The following are
authorized to maintain a system of petty cash: City Clerk, EBHC Manager, EBHC
Innkeeper, Recreation Director and Chief of Police or Chief s designee. Original receipts are
required to obtain petty cash reimbursement.
14. Sole Provider
The City must follow uniform contracting law. If the City purchases goods from a provider
which appears to be the sole provider, the City must maintain records showing a good faith
effort to ensure that this in fact is the sole provider, and no other vendors are available.
Purchases from a sole provider must be approved by the City Manager following the limits
stated above.
•
City Manager
Date
4