HomeMy WebLinkAbout1995 07-13 FCA•
AGENDA
BROOKLYN CENTER FINANCIAL COMMISSION
July 13, 1995
City Hall
Conference Room D
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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.
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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.
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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.
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• 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.
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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
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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).
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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.