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HomeMy WebLinkAbout1995 07-13 FCA• AGENDA BROOKLYN CENTER FINANCIAL COMMISSION July 13, 1995 City Hall Conference Room D • 1. Call to Order: 7:00 P.M. 2. Roll call. 3. Approval of Minutes: May 4, 1995 4. Comprehensive Annual Financial Report for Year Ended December 31, 1994. A copy of the report was delivered to you in time for the June 26, 1995 City Council meeting. Please bring that copy with you. I will have extra copies at the meeting if you have misplaced yours. 5. 1996 Budget Calendar. 6. Set Date of Next Meeting. 7. Adjournment: 9:00 P.M. 0 MINUTES OF THE PROCEEDINGS OF THE FINANCIAL COMMISSION OF THE CITY OF BROOKLYN CENTER MAY 4, 1995 CITY HALL, COUNCIL CHAMBERS CALL TO ORDER Chair Donn Escher called the meeting to order at 7:00 P.M. in the City Hall Council Chambers. ROLL CALL Present at roll call were Chair Donn Escher, Commissioners: Lee Anderson, Ned Storla, Larry Peterson, Jay Hruska, and Phillip Roche. Also present were Council Liaison Kathleen Carmody, City Manager Gerald Splinter, and Finance Director Charlie Hansen. Also present was Nancy Carlson. Commissioner Larry Peterson arrived at 7:35 P.M. Annroval of Minutes A correction was noted that lay Hruska and Phillip Roche abstained from voting on the minutes of the March 2 1995 since they were attending their first meeting on April 12. A motion was made by Commissioner Phillip Roche to approve the minutes of the April 12, 1995 meeting as corrected. Commissioner Jay Hruska seconded the motion and all members voted in its favor. General Fund Budget Prioritization Process A summary of the 1992 prioritization list was included in the agenda packets with check marks by recommendations which have been implemented. Donn Escher asked what a street light utility is. Jerry Splinter explained that it would be an enterprise with a user fee on the utility bill. Phillip Roche asked if all of the implemented recommendations continued in effect today. Charlie Hansen answered that a few items had proved to be impractical or otherwise failed, but the great majority are still in effect. Deliverv of Adopted 1995 Budget Jerry Splinter described the new budget format as having more narratives and less line item detail than the old budget. It is designed to be oriented toward policy making decisions by the City Council. Jay Hruska asked if the accounting system is up to speed so that actual expenditures can be compared to budget. Charlie Hansen answered that the computer system has the capability but that some employee training is needed to capture data on timesheets and coding invoices to fit the new system. Memo on Future Agenda Items Jerry Splinter distributed a memo which had been discussed at the May 2, 1995 City Council Worksession and reviewed it with the Commission. The first section dealt with tax increment financing projects. Depending upon their nature and location, various projects will be producers of T.I.F., users of T.I.F., or both a user and producer of T.I.F. One of the challenges is to time and balance these projects in such a way that demands for T.I.F. revenue don't exceed the supply. 0 Memo on Future Agenda Items. continued An early draft of questions for the community survey was distributed. It was put together by Decision Resources and the staff has identified a number of modifications to be made before the telephone survey is done, probably in June. A list of six issues that are likely to have major impact on the 1996 budget was discussed. Actions of the State Legislature on Budget Issues Jerry Splinter gave a summary of actions at the State Legislature. The Governor, Senate, and House of Representatives each have their own agendas. There is little chance of predicting the outcome before the Legislature adjourns. Next Meeting. The City Council requested that the Financial Commission propose possible dates for a joint meeting in June to discuss the 1996 budget. Monday June 19, Wednesday June 21, and Thursday June 29 were chosen. The next meeting after that will be Thursday, July 13, 1995 at 7:00 P.M. ADJOURNMENT At 9:00 P.M. Commissioner Larry Peterson made a motion which was seconded by Commissioner Jay Hruska to adjourn the meeting. The motion passed unanimously. • 0 • MEMORANDUM TO: Mayor Myrna Kragness Councilmember Barbara Kalligher Councilmember Kristen Mann Councilmember Kathleen Carmody Councilmember Debra Hilstrom FROM: Charlie Hansen, Finance Director CH DATE: June 21, 1995 RE: RESPONSES TO THE AUDITOR'S MANAGEMENT LETTER At the June 26, 1995 City Council meeting, Cliff Hoffman of Deloitte & Touche will make a presentation on the audit of city operations for the year 1994. He will review several reports, including a Management Letter which makes four recommendations regarding administrative and operating issues. This memo provides the Management Responses to the Auditor's Management Letter. If Councilmembers wish to discuss these issues, they may do so at the June 26, 1995 0 meeting or request that this be put on a worksession agenda for further discussion. CASH COLLATERALIZATION: This problem occurred in 1993 as the result of depositing tax settlements from Hennepin County which exceeded the amount of collateral pledged by Marquette Bank Brookdale. We thought a solution was achieved by making those large deposits at First Bank N.A., where they could be invested immediately. However, the problem reoccurred in 1994 when daily balances sometimes exceeded the $500,000 in collateral which Marquette Bank Brookdale had pledged to our account. This happened when we would release a large checkrun and deposit money to cover it, but the checks didn't clear back to our account for several days. Marquette Bank Brookdale has now increased the amount of pledged collateral to $1,500,000 which will prevent any reoccurrence of the problem. DISCLOSURES BY MUNICIPAL SECURITY ISSUERS: The SEC has issued new regulations to promote the release of financial information to buyers of municipal bonds. The City of Brooklyn Center has always to be responsive to this need by sending the annual financial report to those buyers of our bonds who made themselves known to us and requested the reports. The staff will work with Deloitte & Touche LLP and Springsted • Inc. to insure that we meet the new SEC regulations. Our goal is to provide the financial information necessary to make Brooklyn Center bonds attractive to the bond market. 0 COMMUNITY DEVELOPMENT BLOCK GRANT EXPENDITURES: One of the goals of the activity budget was to record all of its costs for each activity or program, regardless of where those personnel or costs otherwise would normally be charged. As a result, we captured some nonreimbursable costs along with the reimbursable cost we had traditionally recorded under CDBG. We have put new controls in place to segregate reimbursable and nonreimbursable costs. CAPITALIZATION OF FIXED ASSETS: The staff welcomes this suggestion and will take steps to implement it. • 0 CITY OF BROOKLYN CENTER ~ 1996 BUDGET CALENDAR May 2, 1995 Tuesday Preliminary 1996 Operating Budget conference for City Manager with city department and division heads. May 4, 1995 Thursday Financial Commission discusses 1996 Budget May 12, 1995 Friday Data processing capital outlay requests due. Vehicle capital outlay requests due. May 22, 1995 Monday City Council discusses elements of Capital Improvements Program (C.I.P.). City Manager presents 1996 Operating Budget issues. June 16, 1995 Friday 1996 Operating Budget requests due from all departments for submission to the Finance Director. June 30, 1995 Friday Consolidated 1996 Operating Budget requests forwarded from the Finance Director to the City Manager. June 27 through July 11 Manager consults as necessary with department and division heads as 1996 Operating Budget document is shaped . June/July 1995 City Commissions make preliminary recommendations on Capital Improvements Program (C.I.P.) components. July 12 through July 21 Manager develops Recommended 1996 Operating Budget. July 24 through Aug 9 Finance Dept. writes and prints Recommended 1996 Operating Budget. August 1, 1995 Department of Revenue is to certify Local Government Aid amounts. August 10, 1995 Thursday Preliminary 1996 Operating Budget is delivered to the City Council members. August 21, 1995 Monday Joint City Council/Finance Commission meeting. August 20, 1995 County must notify City of the public hearing dates selected by school districts. August 31, 1995 Department of Revenue is to certify Homestead and Agricultural Credit Aid (HACA). • • • Sept 6, 1995 Wednesday City Council holds work session to review Proposed 1995 Operating Budget. Sept 11, 1995 Monday Last day for adoption of the Preliminary 1996 Operating Budget and the Preliminary tax levy by the City Council. City must select initial truth in taxation hearing date and a date for a continuation hearing. Sept 15, 1995 Certify preliminary 1996 Operating Budget and preliminary tax levy to the County. City must also inform the County of City budget public hearing dates. Sept 18, 1995 Monday Utility Rate Study and Utility Funds budgets presented. Sept 25, 1995 Monday City Council adopts the Utility Rate Study. Sept 29, 1995 Friday Proposed 1996 Operating Budget is delivered to the City Council members. Oct 16, 1995 Monday City Council holds work session to review Capital Improvements Program (C.I.P.) and Enterprise Funds budgets. Nov 10-24, 1995 County must mail Truth In Taxation notices to each property owner. Oct 23, 1995 Monday City Council approves C.I.P. and Enterprise budgets. Nov 20, 1995 Monday City Council holds work session to review Proposed 1996 Operating Budget. Nov 29, 1995 Wednesday Notice of public hearing placed with Post Publishing December 6, 1995 Weds City Council holds original public hearing on the 1996 Operating Budget. December 12, 1995 Tuesday All counties to hold budget public hearings. December 13, 1995 Weds City Council holds reconvened public hearing on the 1996 Operating Budget. December 18, 1995 Monday City Council adopts the final 1996 tax levy and final 1996 Operating Budget at a subsequent public hearing held during the regular City Council meeting. December 28, 1995 Thursday Last day to certify final tax levy and final 1996 Operating Budget to the County.