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HomeMy WebLinkAbout1994 05-05 FCA• AGENDA BROOKLYN CENTER FINANCIAL COXMSSION May S, 1994 City Hall Conference Room A 1. Call to Order: 7:00 P.M. 2. Roll call. 3. Approval of Minutes: March 15, 1994 4. Budget Calendar 5. Format of Activity Budget. 6. Forecast/Overview of 1995 Budget. 7. Policy and Procedure on Mayor and Council Member Total Compensation. 0 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 15, 1994 BROOKLYN CENTER CITY HALL, COUNCIL CHAMBERS CALL TO ORDER Vice Chair Ned Storla called the meeting to order at 7:04 P.M. in the City Hall Council Chambers. ROLL CALL Present at roll call were Commissioners: Denis Kelly, Lee Anderson, Ned Storla and Larry Peterson. Also present were Mayor Todd Paulson, City Manager Gerald Splinter, and Finance Director Charlie Hansen. Approval of Minutes A motion was made by Commissioner Larry Peterson to approve the minutes of the January 11, 1994 and February 15, 1994 meetings. Commissioner Lee Anderson seconded the motion and all members voted in its favor. Citv Council Action of Uronnosed oolicies Charlie Hansen reported on the City Council's action in adopting the Policy and on City Contractual Services for Nonprofit • Organizations at their March 14, 1994 meeting. This policy was developed by the Financial Commission, the Human Rights and Resources Commission, and the Parks Commission during 1993 and was unanimously adopted by the City Council. Adopted Polices Charlie Hansen handed out to each member present a three ring binder of policies that have been adopted since the inception of the Financial Task Force. This had been requested by Chair Donn Escher at an earlier meeting. Oraanizational Evaluation Process A memo from Chair Donn Escher was distributed which expressed his opinions on the reorganization since he was unable to attend this meeting. Gerald Splinter introduced the organizational charts included in the agenda and discussed the operation of the Engineering Department. Due to the new technologies of computerized drafting and mapping, there is a possibility of reducing the number of engineering technicians from four to three and using the savings to add an assistant engineer to the department. At the same time, the need for professional staff is increasing. These needs are: increased Council, Commission, and neighborhood meetings, watershed activities, annual rate analysis, annual capital improvement program, program budget, Highway 100, neighborhood street reconstruction, central garage, City buildings . reconstruction, ADA, hazardous waste, and commercial redevelopment. • Denis Kelly commented that the City recently had missed an opportunity to reduce staff in another department. Discussion ensued regarding the need for engineering staff during the time when the city was built up in the 1950s and 1960s verses now when the activity is redevelopment of private property and rehabilitation of infrastructure. Denis Kelly moved adoption of Chart B as a recommendation to the City Council as a basis for reorganization. Larry Peterson seconded the motion. The motion passed unanimously. Next Meetina The next meeting will be Thursday, May 5, 1994 at 7:00 P.M. ADJOURNMENT At 8:40 P.M. there was a motion by Commissioner Denis Kelly and seconded by Commissioner Lee Anderson to adjourn the meeting. The motion passed unanimously. 0 is budget\calendar CITY OF BROOKLYN CENTER 1995 BUDGET CALENDAR May 3, 1994 Tuesday Preliminary 1995 Operating Budget conference for City Manager with city department and division heads, 2:30 p.m., Council Chambers. May 5, 1994 Thursday Financial Commission discusses 1995 Budget May 16, 1994 Monday City Council discusses elements of Capital Improvements Program (C.I.P.). June 9, 1994 Thursday City Manager presents 1995 Operating Budget issues. June 9, 1994 Thursday 1995 Operating Budget requests due from all departments for submission to the Finance Director. June 16, 1994 Thursday Consolidated 1995 Operating Budget requests forwarded from the Finance Director to the City Manager. June 20, 1994 Monday City Council Town Meeting - 1995 Operating Budget. • June 17 through July 1 Manager consults as necessary with individual department and division heads as 1995 Operating Budget document is shaped. June/July 1994 City Commissions make preliminary recommendations on Capital Improvements Program (C.I.P.) components. July 1994 Department of Revenue is to certify Local Government Aid amounts. August 11, 1994 Thursday Preliminary 1995 Operating Budget is delivered to the City Council members. August 1994 County must notify City of the public hearing dates selected by school districts. August 1994 Department of Revenue is to certify Homestead and Agricultural Credit Aid (HACA). August 15, 1994 Monday Joint City Council/Finance Commission meeting. 0 August 29, 1994 Monday City Council holds work session to review Proposed 1995 Operating Budget. • 0 Nov 21, 1994 Monday City Council holds work session to review Proposed Sept 12, 1994 Monday Last day for adoption of the Preliminary 1995 Operating Budget and the Preliminary tax levy by the City Council. Sept 15, 1994 Certify preliminary 1995 Operating Budget and preliminary tax levy to the County. City must also inform the County of City budget public hearing dates. Sept 19, 1994 Monday Utility Rate Study and Utility Funds budgets presented. Sept 26, 1994 Monday City Council adopts the Utility Rate Study and Utility Funds budgets. Oct 17, 1994 Monday City Council holds work session to review Capital Improvements Program (C.I.P.) and Enterprise Funds budgets. Oct 24, 1994 Monday City Council approves C.I.P and Enterprise Funds budgets. Nov ? - Nov 1994 County must mail individual property tax notices to each property owner. 1995 Operating Budget. Dec 1994 City Council holds original public hearing on the 1995 Operating Budget. Dec 1994 City Council holds reconvened public hearing on the 1995 Operating Budget. December 1994 Tuesday All counties to hold budget public hearings. December 19, 1994 Monday City Council adopts the final 1994 tax levy and final 1995 Operating Budget at a subsequent public hearing held during the regular City Council meeting. December 26, 1994 Monday Last day to certify final tax levy and final 1995 Operating Budget to the County. • Assessing Department . 1994 Budget POLICIES: + Remain In compliance with Minnesota Statutory requirements and accepted professional standards. + Provide Information to other departments, agencies, and the public In an efficient and responsible manner. + Manage appeals effectively to minimize fiscal Impact. The Assessing Department is a General Government function. The department is managed by the City Assessor and is Unit # 115 of the City Budget. The purpose of this department is the valuation and STAFFING: classification of all property as of the assessment 1 City Assessor date. Beyond the initial assessment, the department 1 Appraiser II responds to appeals at various levels. Assistance is 1 Assessment Technician given to other City departments on valuation, tax, and 1 Assessing Secretary related issues. Assessing also manages the data located in the Property Data System and assists 4 FTE users of the information. ACTIVITIES: Percent of Budget Residential Appraisal 46% Non-Residential Appraisal 14% • Appeals 30% Special Assessments 10% 100% Actual Actual Adopted Estimated Requested Budget 1991 1992 1993 1993 1994 REVENUES: Property taximisc. revenue $175,383 $179,786 $186,380 $186,139 $205,792 Charges for services 2,942 3,978 5,740 500 500 Total $178,325 $183,764 $192,120 $186,639 $206,292 EXPENDITURES: Personnel $173,009 $174,039 $176,670 $175,761 $189,054 Supplies $1,221 $3,496 $4,100 $3,500 $3,600 Services $3,090 $3,348 $10,025 $6,053 $9,160 Dues&Subscr. $1,005 $1,140 $1,325 $1,325 $1,325 Vehicle Services $0 $0 $0 $0 $3,153 Capital Outlay $0 $1,741 $0 $0 $0 Total $178,325 $183,764 $192,120 $186,639 $206,292 Staffing (FTE) 4.75 4.25 4 4 4 COMMENTS: Personnel increase is due to In-Range step progression within the salary schedule. Supplies decrease due to reduction in mailings of homestead cards. Capital request for adjustable workstations withdrawn from budget. ACT115.XLS DEPARTMENT: Assessing (115) ACTIVITY: Residential Appraisal Activity Description Minnesota Statutes, 273.08, require: "The assessor shall actually view, and determine the value of each tract or lot of real property listed for taxation, including the value of all improvements and structures thereon, at maximum intervals of four years and shall enter the value opposite each description". This activity satisfies this requirement as one-quarter of the residential properties are viewed and physical characteristics verified or updated. This program also includes administering the homestead laws and other classification issues. Percent of Total Dept. Budget 46% 1994 Objectives 11 Inspect approximately 2400 properties. 2) Maintain Coefficient of Dispersion at less than 6.5%. 3) Fully implement the use of Pen-based PCs for data collection. 4) Adapt to and integrate new legislation on classification and valuation. Requested 1994 Budget • Comment • Personnel $88,565 Supplies $2,520 Services $1,832 Dues & Subscr. $530 Vehicle Services $2,838 Capital Outlay $0 Total $96,285 Staff Allocation Assessor 10% Appraiser 11 90% Assessment Technician 75% Assessing Secretary 20% FTEs, this activity 1.95 This program is the largest in the Assessing budget and impacts the greatest number of property owners. As the appeal load has increased and resources tightened, we have reduced the time and dollars spent on this program. Historically, we reviewed 98 % of the properties, both exterior and interior. This is no longer possible as it is too time consuming. Now, if the appraiser believes the data on our records from previous inspections is complete and unchanged, no interior inspection is made. The 1993 legislature made significant changes to the statutes pertaining to valuation. Specifically, limited market value and deferred values of improvements were passed. These will require revisions to our computer systems and additional staff time to analyze each property. Finally, the pen-based computers acquired in 1993 will be thoroughly tested and should be of full benefit to the appraisers. Page 1 ACT1 15.XLS • • DEPARTMENT: Assessing (115) ACTIVITY: Non-Residential Appr Activity Description Minnesota Statutes, 273.08, require: "The assessor shall actually view, and determine the value of each tract or lot of real property listed for taxation, including the value of all improvements and structures thereon, at maximum intervals of four years and shall enter the value opposite each description". Unlike residential inspections, the main characteristics of non-residential properties are their economics, not simply physical characteristics. Therefore, to fully analyze an income-producing property, one must review the operating results of the property and the market in which it operates. As owners are reluctant to provide this data, we usually do not have the necessary information until an appeal is filed. Therefore, while the exteriors are verified in accordance with statute, a complete review is not possible at that point. Percent of Total Dept Budget 1994 Objectives 14% 1) Complete market overview by January 15, 1994 2) Report all values to Hennepin County by January 27, 1994 3) Update physical data on industrial buildings in mid-94. 4) Adapt to and integrate new legislation on classification and valuation. Requested 1994 Budget Personnel Supplies Services Dues & Subscr. Vehicle Services Capital Outlay Total Staff Allocation $26,392 $360 Appraiser $916 $530 $158 $0 $28,356 FTEs, this activity Comment 28% 5% 5% 10% 0.48 With the increase in the number and complexity of appeals in the past several years, we have reduced the resources spent on inspection and appraisal of non-residential property, and placed the emphasis on the appeals. While it seems foolish to reduce resources at a time when the initial assessment is more important, there was no alternative. Very few parcels have not been appealed at least once in the past four years, so we are, in a fashion, completing thorough reviews through the appeals rather than by inspection. Information that is gathered for appeals is utilized to adjust similar properties on subsequent assessments. Surveys of income producing properties that had been mailed annually have been reduced or eliminated due to lack of response. Instead, industry sources are utilized and individual requests made. Legislation passed in 1993 will require that values be determined for CONTAMINATION TAX, a new tax on the amount of value reduction due to contamination. This will require significant changes to our computer system and additional analysis on affected parcels. Additional appeals are also likely. • Page 2 Assessor ' II Assessment Technician Assessing Secretary ACT115.XLS • DEPARTMENT: Assessing (115) ACTIVITY: Appeals Activity Description After making the assessment each year, the Assessor defends that assessment at several levels. Informal appeals are made directly by property owners following receipt of their value and classification notice, appeals are made to the Board of Equalization, applications for abatements are filed, or petitions are filed in the Minnesota Tax Court. Over the past several years, the number of petitions filed has increased from 44 in 1989 to 105 in 1993. Beyond the increase in numbers, these cases have become more complicated and time-consuming as issues such as ground water contamination, business enterprise, and bankruptcy litigation have been raised and analyzed. Percent of Total Dept. Budget 30% 1994 Objectives • 1) Contact petitioner upon receipt of setting to request data. 2) Complete analysis and report 30 days following receipt of data. 3) Review findings with Hennepin County Assessor's and Attorney's offices 4) Attempt appraisal-based resolution or proceed to trial. 5) Inform taxing jurisdictions of anticipated impact to mitigate impact. Requested 1994 Budget Personnel $54,715 Supplies $360 Services $5,496 Dues & Subscr. $265 Vehicle Services $158 Capital Outlay $0 Total $60,994 Comment Staff Allocation Assessor 60% Appraiser 11 5% Assessment Technician 15% Assessing Secretary 20% FTEs, this activity 1.00 Following the over-building of the 1980's and the Tax Reform Act of 1986, commercial, industrial, and apartment values have fallen dramatically. Coupled with a credit or equity crunch in the early 1990's and new wetland and watershed requirements, values have fluctuated and market activity slumped. Minnesota has extremely high tax rates on non- residential property and attorneys have found fertile ground for appeals. Therefore, we have had to significantly shift resources to analysis and defense of these appeals. If an adequate defense is not made, attorneys representing owners will seek and receive an advantageous assessment, not simply a fair assessment. As reductions and refunds have been made, the loss of anticipated revenues to jurisdictions has become critical. We will continue to advise the City and local school boards on anticipated losses. • Page 3 ACT115.XLS 0 DEPARTMENT: Assessing (115) ACTIVITY: Special Assessments Activity Description Special Assessments are maintained on the Special Assessments module of the Property Data System (PDS) . This is a computerized application through LOGIS. Special Assessments occur from improvement projects or unpaid items such as weed destruction or utility bills. Specific assessment amounts and affected parcels are reported to Assessing by Finance, Public Works, or other departments and the data is entered. Reports of pending, certified, and other assessments are available for public inspection. Reports are made to Hennepin County as levies are certified. Search reports are provided to various users for a fee. Percent of Total Dept Budget 10% 1994 Objectives 1) Implement Public Inquiry on terminal to eliminate report updates. 2) Reduce administrative costs and time. 3) Utilize Local Area Network(LAN) to improve coordination between departments. Requested 1994 Budget Staff Allocation Personnel $19,381 Assessor 2% Supplies $360 Appraiser II 0% Services $916 Assessment Technician 5% Dues & Subscr. SO Assessing Secretary 50% Vehicle Services $0 Capital Outlay $0 Total $20,657 FTEs, this activity 0.57 Comment Assessments are levied against benefitting properties for improvements and against delinquent properties for City services. Errors expose the City to further costs. Therefore, every effort is made to prevent errors and coordinate this activity between departments. Currently, printed reports are updated or replaced manually. We propose to replace the reports with an on-line terminal to be used by the public. This will address objective # 2. • Page 4 S MEMORANDUM TO: Gerald G. Splinter, City Manager FROM: Charles Hansen, Finance Director DATE: April 29, 1994 SUBJECT: Forecast/Overview of 1995 Budget. The following sheets represent my effort to give a forecast or overview of the challenges we will face in preparing a budget for the year 1995. I began with expenditures as shown on the first spread sheet. Most reports of inflation are in the 2.5% to 3% range and may be increasing, so I took 1994 appropriations and increased them by 3%. (The E.D.A. and H.R.A. amounts are just the portion of their budgets supported by property taxes.) I also added $123,000 for debt service which is my estimate of the property tax levy needed to support bonds which will be sold to finance street improvements in the northwest neighborhood and the James/Knox area. This raises total spending by 4.1%. This assumes no new services or additional police officers. Next I assumed that revenues would have to raise 4.1% to meet the City Charter requirements for a balanced budget. Each revenue estimate was raised 3%, unless I had reason to believe something different would happen. As is described by the L.M.C. Cities Bulletin, the prospects for intergovernmental revenue is very bleak for 1995. I assumed that 1995 revenue would be frozen at the 1994 level. That may be overly optimistic. Fines & Forfeitures have been falling for the last five years and are running at an annualized rate of $108,000 so far in 1994. Transfers to the General Fund from the Liquor and M.S.A. Construction Funds are maximized at the $190,000 level. All these revenue shortfalls and the property tax to rise faster increase in spending results in tax with this set of assumptions. new debt service spending force to keep us in balance. A 4.1% . 7.71% increase in the property 0 fincomm/allaprop CITY OF BROOKLYN CENTER, MINNESOTA COMBINED ANNUAL OPERATING BUDGET FOR ALL BUDGETED CITY FUNDS INCLUDING THE GENERAL FUND - DEBT RETIREMENT FUNDS ECONOMIC DEVELOPMENT AUTHORITY (EDA) FUND - HOU SING AND REDEVELOPMENT(HRA) FUND 1995 PROPOSED RESUME OF APPROPRIATI ONS AND EXPENDITURES 1992 1993 1994 1995 1995 1995 % Actual Actual Adopted Proposed Increase Increase Expend- Expend- Approp- Approp- -Decrease -Decrease itures itures riations riations From 1994 From 1994 I. GENERAL FUND BY FUNCTION AND ORGANIZATIONAL UNIT - A. - General Government 1,797,900 1,560,674 1,728,089 1,779,932 51,843 3.00% B. Public Safety 3,938,920 3,870,562 4,669,904 4,810,001 140,097 3.00% C. Public Works 1,594,190 1,756,188 1,610,962 1,659,291 48,329 3.00% D. Health & Social Services 114,579 41,325 41,572 42,819 1,247 3.00% E. Recreation 1,783,811 1,999,271 2,124,425 2,188,158 63,733 3.00% F. Economic Development 187,606 178,702 171,000 176,130 5,130 3.008 G. Unallocated Expenses 273,275 300,803 567,493 584,518 17,025 3.008 Total General Fund 9,690,281 9,707,525 10,913,445 11,240,848 327,403 3.008 II. DEBT SERVICE FUNDS BY FUND A. 1980 Park Improvement Bond Redemption Fund 335,748 322,383 0 0 0 B. 1991 Cert. of Indebtedness Redemption Fund 261,000 153,000 0 0 0 C. 1992 Cert. of Indebtedness Redemption Fund 198,000 265,200 0 0 0 D. 1993 Cert. of Indebtedness Redemption Fund 0 129,600 0 0 0 E. 1994 Spec Assess Bonds 0 0 0 123,000 - 123,000 Total Debt Redemption 794,748 870,183 0 - 123,000 123,000 III. E.D.A. & H.R.A. FUNDS A. Economic Development 175,543 165,739 170,711 4,972 3.00% B. Housing & Redevelopment 142,859 137,986 139,360 143,541 4,181 - 3.009 Total EDA & HRA 142,859 313,529 305,099 314,252 - 9,153 3.00% IV. TOTAL APPROPRIATIONS AND EXPENDITURES 10,627,888 10,891,237 11,218,544 11,678,100 459,556 4.10% 4/27/94 fincomm\rvdetaii CITY OF BROOKLYN CENTER, MINNESOTA COMBINED ANNUAL OPERATING BUDGET FOR ALL BUDGETED CITY FUNDS INCLUDING THE GENERAL FUND • DEBT RETIREMENT FUNDS - ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL OPERATING FUND 1995 PRELIMINARY RESUME OF REVENUE AND ESTIMATED REVENUE 1995 1995 % 1992 1993 1994 1995 Increase Increase Actual Actual Estimate Estimate -Decrease -Decrease Revenue Revenue Revenue Revenue From 1994 From 1994 I. GENERAL PROPERTY TAXES General Fund Levy 3,896,362 4,630,565 5,489,414 5,799,711 310,297 5.65% Debt Retirement Levy 632,150 220,998 0 123,000 123,000 EDA Special Levy 0 140,750 129,256 134,228 4,972 3.85% HRA Special Levy 128,362 121,682 121,525 125,706 4,181 3.44% Total Property Taxes 4,656,874 5,113,995 5,740,195 - 6,182,645 442,450 - 7.71% II. LODGING TAXES 394,960 376,146 - 360,000 - 370,800 - 10,800 3.00% III. LICENSES & PERMITS 332,185 300,478 2891300 297,979 8,679 3.00% IV. INTERGOVERNMENTAL REV. General Fund 3,133,495 3,167,212 3,319,818 3,319,818 0 0.00% EDA Special Levy 34,792 36,483 36,483 0 0.00% HRA Special Levy 14,497 16,304 17,835 17,835 0 0.00% Debt Retirement Fund 157,200 56,410 0 0 0 Total Intergovmt. Rev. 3,305,192 3,276,718 3,374,136 3,374,136 0 0.008 GEN. GOVERN. CHARGES 34,934 - 37,968 35,100 36,153 1,053 3.00% PUBLIC SAFETY CHARGES 25,669 16,861 22,100 22,763 663 3.00% VII. RECREATION FEES 734,273 784,056 879,713 906,104 26,391 3.00% VIII. FINES & FORFEITURES 148,701 140,104 144,000 108,000 -36,000 -25.00% IX. MISCELLANEOUS REVENUE Sale of Certificates 480,000 120,000 0 0 0 Other Revenue General 301,771 279,212 184,000 189,520 5,520 3.00% Debt Retirement 23,339 16,628 0 Total Miscl. Revenue 805,110 415,840 184,000 - 189,520 5,520 3.00% X. TRANSFERS-OTHER FUNDS To General 140,000 175,000 190,000 190,000 0 0.00& To Debt Retirement 421,764 Total Transfers-Other 140,000 596,764 190,000 190,000 0 0.00% TOTAL REVENUE & TRANSFERS 10,577,898 11,058,930 11,218,544 11,678,100 459,556 4.10% TOTAL GENERAL FUND 9,622,350 10,027,602 10,913,445 11,240,848 327,403 3.00% TOTAL DEBT RETIREMENT FUND 812,689 717,800 0 123,000 123,000 TOTAL EDA SP. OPER. FUND 0 175,542 165,739 170,711 4,972 3.00% WAL HRA SP. OPER. FUND ---142,859 137,986 139,360 143,541 -----4,181 3.00% TOTAL BY FUND 10,577,898 11,058,930 11,218,544 11,678,100 459,556 4.10% 1 • • League of Minnesota Cities ~ -L Cities Bulletin Number 12 City officials travel to St. Paul; hope to influence tax bill City officials urged legislators not to cut state aid to cities and to restore funding in the local government trust fund when they met in St. Paul on Thursday, April 21, 1994. The state created the trust fund in 1991 dedicating a percentage of the sales tax to local government needs. As sales tax revenues rose, so too was cities' portion to rise. Likewise when sales tax revenues declined, cities would shoulder that burden. "Each year, though, legislators erode the fund by adding more programs, leaving less and less for cities," said League of Minnesota Cities President Chuck Winkelman, mayor, St. Cloud. After supporting and defending the local government trust fund since its inception, the LMC board and other city groups changed course Thursday and backed a Senate proposal to eliminate the trust fund. The Senate replaced the trust fund with an infla- tionary index that will provide city aid increases. The House omnibus tax bill maintained the trust fund but none of the future revenue growth was appro- priated for city aid increases. City groups testifying before the Tax Conference Committee stated: If the Legislature and governor refuse to guarantee trust fund revenue growth for city local government aid (LGA) and for homestead and agricultural credit aid (HACA), the trust fund will continue to be meaningless. Therefore the trust fund should be abolished rather than used as an excuse to further cut LGA and HACA. At their rally on Thursday, Winkelman said, "Although cities have supported the trust fund, the Senate growth factor for local govern- ment aid is the only promise for any aid increases in the future." Cities opposed the House portions of the tax bill that further restrict tax increment financing. The House provisions would make development and redevelopment impossible in most cities. Tax increment financing is the last remaining tool cities can use to encourage development in marginal areas. City officials voiced concern about a potential veto of the tax bill this year. Winkelman said, "A veto would mean automatic cuts in the trust fund in December, and no increase in local government aid in 1995. The only options for cities are to increase property taxes or cut services." 0 Next week in Cities Bulletin... Tax bills are expected on the House and Senate floors early next week. In the April 29 issue we will analyze the bills and took at how they may affect cities. April 22, 1994 Achievement awards deadline approaches Does your city have some- thing to brag about? Have you instituted a new, innovative, successful program in your community? If so, enter your city in the 1994 City Achievement Awards competition. Entries are due April 29, so send in your entry soon. You may enter materials, plans, or projects your city has produced between January 1, 1993 and April 15, 1994. Judges will select winners for each population group (under and over 10,000 population) in five categories: • Communications • Community Development • Public Safety • Cooperation and Consolidation • Management Hurry, enter now. See complete details on page 9. 0 Route to: 1994 top issues Contents City officials travel to St. Paul; hope to influence tax bill 1 Achievement awards deadline approaches 1 Would a minimum wage increase affect your city? 3 Tax conference commitee begins deliberations 3 Data practices, open meeting bill goes to conference 4 POST Board considering new rules 4 League seeks city officials to serve on leadership institute committee 4 Action alert-Most cities will have to change election dates under Senate proposal 5 Tenn limits dead for now 5 GASB to issue statement on debt refundings 5 Minnesota Cities 1994 Photo Contest 6 Cities must comply with federal sludge rules 6 League of Minnesota Cities Legislative Review Sessions 7 Training/awards 8 1994 City Achievement Awards 9 Municipal ads 1 0 The Cities Bulletin is a publication of the League of Minnesota Cities and includes an update of state legislative, administrative, and congressional actions that affect cities. It also includes reviews of metropolitan area issues by the Association of Metropoli- tan Municipalities. The Cities Bulletin lists authors of bill summaries and some articles by their initials. League legislative staff members are available to answer your questions concern- ing legislation relating to cities. Executive Director Editors Typesetting and design Jim Miller Jean Mettle Goad Gayle Bnxh Tim Busse Laurie Audette The League of Minnesota Cities has eight priority issues for the 1994 legislative session. We will include this list every week with a page number after the issue if we include a story. State Aid to Cities - Preserve 1994 level and seek additional funding for future years for LGA and HACA. / page 1, 3 Local Government Trust Fund - Stabilize the LGTF and resolve the current shortfall. / page 1, 3 Open Meeting Law - Clarify require- ments and permit defense of alleged violations. / page 4 Annexation - Preserve 1992 annex- ation amendments, expand cities ability to annex urban or urbanizing areas, and control growth in nonurban areas. Landfill Cleanup - Establish new program separate from Superfund to clean up closed municipal landfills. Public Employment Labor Rela- tions Act - Reform PELRA's interest arbitration provisions to balance the bargaining power of essential and nonessential public employees. Development/Redevelopment - Remove the aid penalties on TIF for manufacturing and redevelopment districts; obtain additional funding for pollution clean-up. / page 1 17ransportation Systems Funding - Increase funding for roads and transit by extending the sales tax to gasoline; or increase the gas tax and establish dedicated revenue for transit. 40 League of Minnesota Cities, 3490 Lexington Avenue North, St. Paul, MN 55126 1'lantu: (t,t 2)4+X1-~M)tl; Fax: (ht2) 4~►()-tx172;"rt)1): (b12) 49t1 X)30; I-NOO-925-1122, p1w; ytwr city co le Printed on recycled paper Page 2 LMC Cities Bulletin • POLICY AND PROCEDURE ON MAYOR AND COUNCIL MEMBER TOTAL COMPENSATION 1. NEED FOR POLICY: The community is entitled to a clearly articulated, written description of the policy and procedure for establishing the total compensation of local elected officials. II. POLICY: 1. Service on the City Council is a civic obligation and an honor. The total compensation of the Mayor and Council Members should, therefore, not encourage candidacies based on monetary rather than public service objectives. However, the compensation of Brooklyn Center elected officials shall be fair and equitable in order to attract qualified candidates for local elective office. 2. The propriety of the compensation levels of the Mayor and Council Members shall be evaluated through comparisons with compensation paid to similar officials within the seven county metropolitan area. 3. The compensation levels of elected officials should be regularly reviewed and • adjusted to ensure compliance with the objectives of this policy and to avoid the need for drastic or sudden compensation adjustments. 4. Compensation set pursuant to this policy and procedure shall be deemed to be the total compensation for elected officials of the city with the exception of expense reimbursement which shall be the same as provided all other city employees. III. PROCEDURE: 1. The City Manager shall biennially conduct a survey of compensation paid to elected officials of comparably sized municipalities with similarly sized budgets and tax bases in the seven county metropolitan area. Surveys prepared by the Association of Metropolitan Municipalities or the League of Minnesota Cities may be utilized in lieu of the City Manager's survey. 2. The City Manager shall biennially prepare a compensation report that contains an analysis of the survey information. The report shall compute the average amounts paid to Mayors and Council Members and correlate survey results to the current compensation of Brooklyn Center elected City officials. 0 • 3. The City Manager shall submit the compensation report to the City Council and the Financial Commission prior to June 1, for information pertaining to the applicable calendar year. 4. The Financial Commission shall biennially review the City Manager's compensation report and discuss possible budgetary and public perception impacts of the indicated changes. Prior to July 1, of the same year, the Commission shall recommend to the City Council that the compensation of the Mayor and Council Members either remain the same or be changed to some specific amount in the manner prescribed by law. 5. Consistent with the City Charter, Section 2.07, the Mayor and Council Members may, after conducting public hearings, set their compensation by ordinance. No change in compensation shall be in effect until January 1, following the next succeeding general election. IV. AUTHORITY: The authority for establishing compensation for the Mayor and Council Members is found in Minnesota Statutes 415.11 and the City of Brooklyn Center Charter, Section 2.07. • 0 LEAGUE OF MINNESOTA CITIES . SURVEY O F MAYOR AND COUNCILMEMBER SALARIES CITIES WITH POPULATIONS FROM 20,000 TO 40,000 ANNUAL SALA RY in 1994 MUNICIPALITY POPULATION MAYOR COUNCIL MEMBER Apple Valley 37,035 $8,400 $6,000 Cottage Grove 24,574 $6,600 $4,800 Crystal 23,839 $7,421 $5,626 Fridley 28,369 $8,400 $6,900 Golden Valley 21,019 $9,105 $6,815 Inver Grove Heights 23,721 $7,500 $6,000 Lakeville 27,982 $8,400 $7,200 Maplewood 31,909 $8,686 $7,644 New Brighton 22,324 $7,200 $5,580 New Hope 21,875 $8,280 $6,006 Oakdale 20,574 $6,000 $5,820 Richfield 35,625 $7,573 $5,878 Roseville 33,522 $7,800 $6,000 Shoreview 25,345 $6,492 $4,872 South St. Paul 20,295 $7,200 $4,200 . White Bear Lake 25,101 $4,800 $3,600 Woodbury 23,252 $4,920 $3,600 AVERAGE 26,257 $7,340 $5,679 Brooklyn Center 1 28,5581 1 $7,300 $5,3001 0 N O 0 CITIES WI POPULATION UNDER 2,540 POPULATION 1992 REG. SP. ANNUAL SALARY OF MAYOR ANNUAL SALARY OF CNCLMBRS o PER KTG. f KTG . o 14MICIPALITY METRO COUNCIL MO. 1994 - 1993 1992 1994 1993 1992 z Bethel. 428 2 $ 960 $ 960 $720 $ 720 $720 $ 110 Birchwood Village 1,042 1 * * 600 * * 340 1-1 . Carver 755 1 900 900 940 600 604 600 Centerville 1,968 2 2,100 2,100 2,100 1,020 1,020 1,020 ti N Coates 184 1 500 500 540 300 300 300 = Cologne 567 2 600 600 600 480 480 480 Dellwood 893 2 $ Na Salary * $ 1 No Salary * Excelsior 2,395 2 ?200 1,200 1.200 600 600 600 Elko 234 1 * 720 720 * 480 480 Gem Lake 440 1 1700 1,700 1,540 728 728 560 Greenfield 1,528 1+ 1200 1,200 1,200 600 600 +600 i Greenwood 512 1 * * 3,600 * * 2,400 Hamburg 502 1 600 604 600 480 480 480 'J Hanover 331 2 * 11200 1,200 * 900 900 u Hampton 385 1 * 740 540 Hilltop 755 1 3000 3,000 3,000 2400 2,400 2,400 i Lakeland 2,406 1 3000 3,000 3,000 2300 2,300 2,300 a Lakeland Shores 295 1 none none 920 none none 860 V) 0 9 0 N N O O Z CITIES WITH POPULATION UNDER 2,500 POPULATION 1992 REG. MTG. ANNUAL SALARY OF MAYOR ANNUAL SALARY OF CNCLMBRS. PER MUNICIPALITY METRO COUNCIL, PER MONTH 1994 1993 1992 1994 1993 1992 a' r~ Lake St. Croix Beach 1,103 1 960 960 960 720 720 720 N Lexington 2,210 2 1,800 1,800 1,800 10500 1,500 1,500 Q CE: Lilydale 501 1 * 2,400 1,200 * 1,020 500 Long Lake 1,995 2 3,600 3,600 3,600 3,000 3,000 3,000 Loretto 444 1 800 800 800 600 600 600 Maple Plain 2,076 2 2,400 2,400 2,400 1,200 1,200 1,200 0 0 Marine on St. Croix 607 0 * 1,250 1,250 * 500 500 C71 Mayer 495 1 600 600 600 480 480 480 N Medicine Lake 388 1 ISO * ISO 120 * 120 J Mendota 164 1 700 180 360 500 120 240 Miesville 135 1 480 420 360 300 w Minnetonka Bea ch 61.2 1 No Salary * * No Salary H New Germany 366 1 480 480 480 360 360 360 z New Market 224 1 * 1200 540 * 6010 300 i iJ n L i1 -2- J ~ CD • • • CL N N O O z CITIES WITH POPULATION UNDER 2 500 , POPULATION 1992 REG. MTG. ANNUAL SALARY OF MAYOR ANNUAL SALARY OF CNCLMBRS. PER MUNICIPALITY METRO COUNCIL PER MONTH 1994 1993 1992 1994 1993 1992 New Prague 2,481 2 2,400 1,8003 z New Trier 96 1 * 484 480 * 325 300 Northfield 217 4,800 3,604 Norwood 1,377 I 720 720 720 480 480 480 Pine springs 434 1 No Salary No Salary v D Randolph 448 1 * * 960 * * 480 D i Rogers 730 2 1500 1500 1,500 1200 1200 1,200 7 Iv St. Bonifacius 1,191 2 1500 1,500 1,500 1200 1,200 1,204 J St. Mary's Point 358 1 * * 600 * * 420 J Spring Park 1,474 2 2400 2,400 2,400 1800 1,800 1,800 Sunfish Lake 436 1 No Salary No Salary Tonka Bay 1,474 2 1800 1,800 1,440 1200 1,204 1,000 i } Vermillion 510 1 600 720 720 540 540 540 Victoria 2,669 2 2275 2,275 2,275 1635 1,635 1,635 • 0 UO rn sz • 1CZp~Ty Water'°ll ,aillernie ,Woodland young Arierl''a` N N O n Ll b J ,5p0 Z~ pt)PUATZ4t~ ~S~ER 2 ' O~ ~yOR GITZES ~ SAL Tlog 1942 IKT 1g~4 1993 19,9 pt?PU E 1409TA 1,08a 1,Q80 T4ETR4 ~T I~ 2 121 500 600 2 f 459 1 $04 40 40 587 1 40 3.8320 11320 449 1 1320 1x386 .4. Y OT CLgCvLBRS JXL S 1g9? ma 1993 19 4 960 1080 960 480 480 480 20 20 20 720 720 720 CL C1I 0 0 z CITIES WITH POPULATION FROM 2,500 TO 10,000 POPULATION 1992 REG. MTG. ANNUAL SALARY OF MAYOR ANNUAL SALARY OF CNCLMBRS. PER cr MUNICIPALITY METRO COUNCIL PER MONTH 1994 1993 1992 1994 1993 1992 Afton 2,736 1 1,800 $1,800 $1,800 1,200 $1,200 $ 1,200 c~ Arden Hills 9,513 2 3,600 3,600 2,900 3,180 3,180 2,3+00 Cr Bayport 3,155 1 2,700 2,700 2,700 2,100 2,100 2,100 Belle Plaine 3,184 2 2,0100 1,800 1,400 1,800 1,400 1,100 Circle Pines 4,779 2 2,004 1,500 1,500 1,450 1,125 1,125 Corcoran 5,405 2 1,800 10800 1,800 1,200 1,200 1,200 O CD 0 Dayton 4,571 2 1,750 1,750 1,750 1,250 1,250 1,300 Cn Deephaven 3,681 2 2,400 2,400 2,400 600 600 600 1 1-4 East Bethel 8,417 2 2,700 2,700 2,700 2,400 2,400 21400 w Falcon Heights 5,293 2 4,500 4$00 4,500 3,600 3,600 3,600 Farmington 6,347 2 3,000 3,000 3,000 3,000 3,000 3,000 Forest Lake 50-098 2 1,200 1,500 1,500 1,000 1,204 1,200 Ham Lake 9,273 2 4,0300 4,000 4,000 3,200 3,200 3,200 Hugo 836 2 2$160 2,160 600 1,800 L,800 480 L r; ,r --5 J r Q N N C} d Z 1-4 ~s c~ N O i 0 (7) C`J J W J } Ci i } W H } f- } H r c~~ 1 W rn r'[ ~I • MUNICIPALITY Independence Jordan Lake Elmo Lauderdale Little Canada Mahtomedi Medina Mendota Heights Minnetrista Mound Newport New Prague North Oaks POPULATION 1992 PER METRO COUNCIL 2,`344 3,015 5,965 2,710 9,081 5,85L 3,430 9,926 3,555 9,652 3,756 3,683 3,516 0 0 CITIES WITH POPULATION FROM 2.500 TO 10 , 000 REG. MTG. ANNUAL SALARY OF MAYOR ANNUAL SALARY OF CNCLMBRS. PER MONTH 1994 1993 1992 1994 1993 1992 2 1,800 1,800 1,800 1,200 1,200 1,200 2 3$00 3,300 3,300 1,800 1,800 1,800 2 2,400 2,400 2,400 1,800 1,800 10800 2 2,456 2,456 * 1,376 * 1,376 2 4,080 4,080 4,080 31180 3,180 3,180 2 3,800 1,800 1,800 10500 1,500 1,500 2 2,700 2,700 * 1,800 1,800 1,200 2 3,600 3,600 3,600 2,400 2,400 2,400 4 2 2,400 2,400 1,800 0 1,8 840 1,800 3 1,800 1,800 1,800 1,200 1,200 1,200 2 3,000 3,000 3,010 2,400 2,400 2,400 2 2,400 2,400 2,400 1,800 1,800 1,200 o 1 180 180 180 120 120 12 -4>- co • • 0 a. (14 N 0 0 Z U-) CITIES WITH POPULATION FROM 20 500 TO 1 0,000 ~ 1-4 POPULATION 1992 REG. MTG. ANNUAL SALARY OF MAYOR ANNUAL SALARY OF CNCLMBRS. PER MUNICIPALITY METRO COUNCIL PER MONTH 1994 1993 1992 1994 1993 1992 Oak Grove Twsp. 5,756 2 * * 3,000 * * 2,400 Oak Park Heights 3,627 2 3,000 3,000 3,000 2,400 2,400 2,400 ¢ Orono 7,303 2 3,600 30600 3,600 2,900 2,900 2,900 Osseo 2,660 2 1,200 1,800 1,200 1,020 1,200 1,020 Rockford 2,759 2 1,000 1,000 1,000 750 750 750 CV Rosemount 9,750 2 4,200 4,200 4,200 3,600 3,600 3,600 r11- CD ( St. Anthony 7,994 2 4,680 4,500 4,500 3,120 3,000 3,000 CD i St. Francis 2,719 2 1,800 1,800 1,800 11200 1,200 1,200 Q0 St. Paul Park 5011+6 2 3,300 3,300 3,300 21700 2,700 2,700 Shorewood 5,322 2 3,000 3,000 2,400 20400 2,400 1,800 Spring Lake Park 6,598 2 4,200 4,200 41200 3,600 3,600 3,600 Victoria 2,669 2 2,275 2,275 2,275 1,635 1,635 1,635 F-I ~ Waconia 3,689 2 2,400 20,400 2,400 2,000 2,000 2,000 t~ Z Wayzata 3,882 2 3,600 3,600 3,620 2,400 2#400 2,400 White :Bear Twsp. 9,985 3 6,000 6,000 w 13 i • i N N O 0 z CITI ES WITH POPULATION FROM 10,000 TO 20,000 Q0 POPULATION 1992 REG. MTG. ANNUAL SALARY OF MAYOR ANNUAL SALARY OF CNCLMBRS. PER MUNICIPALITY METRO COUNCIL PER MONTH 1994 1993 1992 1994 1993 1992 Iq rn Andover 16,887 2 $4,200 $4,240 $4,200 $3,600 $3,600 $.3,600 ~ cv Anoka =7,409 2 4,200 4,200 4,200 3,570 3,570 3,570 Q cr Champlin 8,244 2 4,976 4,976 4,700 3,971 3,972 3,750 Chanhassen 12,863 2 3,600 3,600 3,600 2,400 2,400 2,400 Chaska 12,430 2 3,600 3,600 3,600 31000 3,000 3,000 cN Columbia Height s 19,055 2 9,000 13,800 13,800 7,800 7,800 71800 r- 0 o Hastings 16,032 2 4,800 4,800 4,800 3,600 3,600 3,600 i CD i Hopkins L6,419 3 5,200 5,200 5,200 4,000 41000 4,000 ev Lino Lakes L0,056 2 4,500 3,500 3,500 3,600 2,600 2,600 w mounds view L2r638 2 req/1 sp. 5r100 3r600 3i600 4r500 3■300 3r300 Northfield 15,052 2 41800 4,800 4,800 3,6030 3,600 3,600 w North St. Paul 12,710 2 5,400 4,200 5,400 4,200 3,000 4,200 Prior Lake 11,876 2 4,200 4,200 4,200 3,[3(10 3,000 3,000 Ramsey 13,269 2 6,000 6,000 6 r 000 4,500 4, 5CO 4,500 y Robbins-dale 14,429 2 6,600 6,600 6,600 5,280 5,280 5,280 • • ULT '014 1992 p PO S.CiF~ 11 r?? 5 Savacje 1-21344 Shayokpee 141,59S Stzlwater 11 r 420 e Va als A ights 19x286 'Oest St. pawl ct ("I tl-- 0 0 rn J r 0) Lo r° U- 20 000 To ~ . I0 F0=~040 SY OT CI S or ypaopt 3.993 $AI+AY 1994 4 x200 G• 1992 4x200 RSG, rIT - )93' 144 4,1200 5 r 3-00 94 10p p 1401; 3,00 5 r 140 5 r 5 r -,04 51 6, ooo 5 r ~,0 6r 124 6 r 400 2 6,12Q 6 rOoo 2x440 6,"1'20 .7 x240 21 400 3 r 604 2 7 r 2p4 7 r 200 3 r 904 2 r404 3 r 600 2 3,540 43rr~'00 41 200 31600 0 2 4x200 20 2 "4.w v v i 3 i r a • XMICIPALIT'Y Apple Valley Blaine Bloomington Brooklyn Center Brooklyn Park Burnsville Coon Rapids Cottage Grave Crystal Eagan Eden Prairie Edina Fridley Golden Valley POPULATION 1992 PER METRO COUNCIL 37,035 40,501 86,927 28,558 57,688 52,733 56,+493 24,574 23,839 51,068 41,272 46,916 28,369 21,019 0 0 CITIES WITH POPULATION OVER 20,000 REG. MTG. ANNUAL SALARY OF MAYOR ANNUAL SALARY OF CNCLXBRS. PER MONTH 1994 1993 1992 1994 1993 1992 2 $8,400 $8,400 $7,200 6,000 6,000 6,008 2 9,424 8,724 8,424 6,600 6,372 6,216 2 16,008 15,000 15,080 10,000 10,000 10,000 2 7,304 7,150 7,000 5,300 5,150 5,000 2 13,140 12,900 12,600 8,760 8,580 8,400 4 98000 8,700 7,928 6,420 6,180 5,400 3 100000 10,000 18,000 9,000 9,000 9,000 2 6,600 6,600 6,600 4,800 4,800 4,800 2 7,421 7,421 7,421 5,626 51626 5,626 2 9,000 7,200 7,200 6,480 5,400 5,400 2 71200 7,200 6,000 6,000 6,080 4,800 2 7,050 7,100 7,050 5,100 5,100 5,100 2 8,400 8,400 8,400 6,900 6,100 6,100 2 9,105 9,2.05 9,105 6,815 6,815 6,815 -10-- N CL N N d 0 z 110 1-1 N Cr N r•- d d i d cs, N w ti D (f) Dw H ?Y H w Sri I, ~ 1 0 0 CITIES WITH POPULATION OVER 20,000 POPULATION 1992 REG. MTG. ANNUAL SALARY OF MAYOR PER MUNICIPALITY METRO COUNCIL PER MONTH 1994 1993 1992 Inver Grove Heights 23,721 3 7,500 7,000 5,000 Lakeville 27,982 Maple Grove 41,420 Maplewood 31,909 Minnetonka 49,266 New Brighton 22,324 New Hope 21,875 Oakdale 20,574 Plymouth 53,781 Richfield 35,625 Roseville 33,522 St. Louis Park 43,875 Shoreview 25,:345 South St. Paul 20,295 White Bear Lake 25,101 Woodbury 2-2,252 *i~ o .~C"4r+~.`.T/JI se 2 2-4 2 4 2 2 2 2 2 2 2 2 2 2 2 8,404 8,000 8,686 8,400 7,200 8,280 60000 8,x600 7,573 7,800 8,000 8,458 8,400 7,200 7,204 7,200 7,908 8,400 7,200 8,089 6,000 8,600 7,573 7,200 8,078 6,000 8,600 7,573 7,800 7,200 9,000 9o,601 6, 492 6, 492 7,200 7,200 4,800 4,8001 4,920 4,,9.0 0 ANNUAL SALARY OF CNCLMBRS. 1994 1993 1992 6,000 6,000 4,200 7,200 6,600 60,000 6,000 6,000 6,000 7,644 7,644 6,959 5,604 5,604 5,640 5,580 5,580 5,580 6,006 51860 5,716 5,820 5,820 5,820 60,300 6,300 6,300 5,878 5,878 5,878 61000 5,400 5,400 7,200 7,200 7,202 4,800 6,240 4,872 4,872 4,680 -7,200 4,200 4,200 4,200 4,800 3,600 3,600! 3,600 4,620 3,600 3,600 3,300