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HomeMy WebLinkAbout1993 08-10 FCA• AGENDA BROOKLYN CENTER FINANCIAL COMMSSION August 10, 1993 City Hall Council Chambers 1. Call to Order: 7:00 P.M. 2. Roll call. 3. Approval of Minutes: July 12, 1993 4. Criteria for evaluation of requests for funding by outside agencies or groups. 5. Preliminary 1994 Annual Budget. 6. Organizational Evaluation Process. 7. Unrestricted Capital. Expenditure Policy. • 8. Adjournment: 9:00 P.M. 0 • MINUTES OF THE PROCEEDINGS OF THE FINANCIAL COMMISSION OF THE CITY OF BROOKLYN CENTER JULY 12, 1993 BROOKLYN CENTER CITY HALL, CONFERENCE ROOM B CALL TO ORDER Chair Donn Escher called the meeting to order at 7:00 P.M. in the City Hall Conference Room B. ROLL CALL Present at roll call were Chair Donn Escher, Commissioners, Viola Kanatz, Ron Christensen, Ned Storla, Ulyssess Boyd and Denis Kelly. Also present was Finance Director Charlie Hansen. Approval of Minutes A motion was made by Commissioner Denis Kelly to approve the minutes of the May 11, 1993 and May 17, 1993 meetings. Commissioner Viola Kanatz seconded the motion and it passed unanimously. Comprehensive Annual Financial Report Finance Director Charlie Hansen made a presentation of the financial report similar to the presentation made to the City Council on June 14, 1993. The Auditor's letters to the City Council were also presented and discussed. • Oraanizational Evaluation Process City Manager Gerald Splinter arrived at 7:47 and made a presentation of his proposal as described in his memorandum of July 9, 1993, on how to proceed on this project. The Commission had many questions regarding the City Council's intentions, the commission's role, the outside consultant's role and cost, a timetable, and how other processes such as benchmarking and Total Quality Management fit in. Commissioner Ron Christensen moved that "The Financial Commission, as a preliminary step to fulfilling its responsibility for evaluating the organization of the City of Brooklyn Center as to its effectiveness, accepts Areas 1 & 2 as outlined in the City Manager's Memoranda of March 31, 1993 and July 9, 1993." Commissioner Ned Storla seconded the motion and all Commissioners voted in favor of it. Criteria for evaluation of reauests for fundina by outside aaencies or aroups Copies of the Human Rights and Resources Commission's policy, application form, and evaluation form which they use to handle such requests were distributed in the agenda packet. It was decided to take up this subject at the next meeting. 0 . Capital Expenditure Policv Finance Director Charlie Hansen distributed the Capital Expenditure Policy as revised at the May 11, 1993 Financial Commission meeting. This was done so that commission Members could confirm that the changes represented the Commission's intent. He also explained that both he and City Manager Gerald Splinter have reservations about the section of the policy which prohibits projects with a value of less than $100,000. They feel it will be impossible to fund these through the General Fund as called for in the policy. The Commission directed them to come back at the August meeting prepared to demonstrate their case. Next Meeting The next meeting was set for Tuesday, August 10, 1993 at 7:00 P.M. Its agenda will include: Requests for funding by outside agencies or groups, Capital expenditure policy, and Organizational evaluation process. ADJOURNMENT There was a motion by Commissioner Viola Kanatz and seconded by Commissioner Denis Kelly to adjourn the meeting. The motion passed unanimously. • • 0 FINCOMM\MIN04193 EXCERPTS OF THE MINUTES OF THE FINANCIAL COMMISSION OF THE CITY OF BROOKLYN CENTER APRIL 19, 1993 BROOKLYN CENTER CITY HALL, CONFERENCE ROOM B CO-OP NORTHWEST FUNDING REOUEST Charlie Hansen presented this funding request which had been referred to the Commission by the City Council. It is for additional funding for the year 1993 to an organization that the City is already a member of and providing funding for in the budget. The Council's instructions are for the Commission to report back a recommendation on this request and to develop criteria to use in evaluating future requests. Commissioner Ron Christensen related his experience with the CO-OP Northwest from his position with the school district and noted that the request had already been endorsed by City Manager Gerald Splinter and the Human Rights and Resources Commission. Chair Donn Escher expressed the feeling that this request is entirely within the policy making rights of the City Council, because the program is already part of the City budget, and needn't be reviewed by the Commission. He suggested that a subcommittee be named to develop the criteria the Council requested to evaluate future requests. Commissioner Vi Kanatz spoke in favor of the entire Commission participating in the development of criteria. A discussion of possible criteria followed, including the items listed below: i 1. Evaluate what will be done with the requested money. 2. The request should be recommended by at least one Commission. 3. Is the request for a new or existing function? 4. Is there outside grant money available which will multiply the effect of City money? 5. Does it create an ongoing demand for funding in future budgets? 6. Could the request have been foreseen and included in the regular budget process? 7. Can funds be found else ware in the budget? 0 CITY OF BROOKLYN CENTER POLICY RELATING TO CITY CONTRIBUTING TO NONPROFIT HUMAN SERVICE PROGRAMS AND/OR AGENCIES General The City of Brooklyn Center is aware that there are many worthwhile nonprofit human service programs and agencies serving metropolitan area residents, and that such organizations are supported primarily through public and private contributions. Contributions to such organizations from the City of Brooklyn Center, when made, will be distributed in accordance with this policy. Purnose To develop an effective method for receiving and considering requests made to the City of Brooklyn Center from nonprofit human service programs and agencies. To maximize the benefits to the citizens of Brooklyn Center from the limited resources available for human services contributions. To maintain objectivity and equity in granting contribution requests. To provide a means of monitoring and responding to community needs and interests that may change from year to year. General Policv Guidelines The Brooklyn Center city council is responsible for determining whether a financial or in-kind contribution will be made by the City to assist nonprofit human service programs or agencies. The City Council will consider the following guidelines in determining which nonprofit human service program(s) or agency(ies), if any, receive contributions from the City. This policy should not be construed to obligate the City Council to provide financial or in-kind human service contributions. 1. The City Council shall contribute to nonprofit human service programs or agencies for one year, with the option for further contributing after review and approval by the City Council on an annual basis. All requests for contributions must be submitted to the City by May 1 for consideration for the following fiscal year (January 1 to December 31). 2. The City Council shall give special consideration to Community Social Service Act priorities established annually by the Northwest Hennepin Human Services Council and to annual needs assessment findings of the Brooklyn-Center Human Rights Commission. -1- 3. The City Council will give high priority to contributing to programs or agencies which can demonstrate that the contributions are used to provide services to Brooklyn Center residents. 4. The City Council will give preference to contributing to nonprofit human service delivery programs or agencies that act as an advocate and advisor regarding other available human services for the Brooklyn Center population. 5. Contribution requests will normally be considered in relation to existing City human service commitments and the target populations served. 6. The City Council may request proposals from a variety of alternative sources. 7. Preference will be given to programs or agencies which: A. Have taken affirmative efforts to raise funds to support their efforts. B. Demonstrate in their budgets that there is a continuing concentration on minimization of administrative and overhead costs. C. Cannot be effectively or fully funded through other sources. D. Sponsor programs which have verifiable benefits to the community at large; for example, programs that enhance the effectiveness of City service delivery programs. E. Make effective use of volunteer skills and in-kind contributions to reduce the cost of program/service delivery. 8. Final approval of requests are subject to the City's public hearing and budget approval process. Contribution Reauest Guidelines The completion of the following procedures is the responsibility of the City Council. 1. A letter specifying the required information for consideration for contributions and the deadline for application will be sent to the programs and agencies that have previously requested and received contributions from the City. This information will be available-to other interested parties upon request. -2- •r ` a 2. All written requests for contributions must be submitted prior to May I for consideration for the following fiscal year (January 1 to December 31). An Application for Contributions form must be filled out completely and submitted as part of the written request. 3. The City Council may request an oral explanation of the written request from each applicant prior to establishing priority rankings. 4. Upon request of the City Council, the Brooklyn Center Human Rights Commission will be available, in an advisory capacity, to research and monitor groups receiving City contributions. 5. City staff may make contribution recommendations to the City Council based upon use of the Evaluation Form for Contributions Requests. Needs Assessment Guidelines On an annual basis, the Human Rights Commission will conduct a needs assessment in the area of human service needs of the community by reviewing the resources listed. A. Community Social Service Act priorities established by the Northwest Hennepin Human Services Council B. Priorities established by the United Way C. Local newspaper reports on human service needs or issues D. Community Emergency Assistance Program (LEAP) priorities E. Applications for Contributions, City of Brooklyn Center (for nonprofit human service program/agency) F. Ministerial Association priorities G. Other appropriate sources Additional efforts shall be made to monitor the community by methods available to the Human Rights Commission at the time of assessment. An annual report outlining current human service needs in Brooklyn Center will be prepared by the Human Rights Commission and submitted to the City Council for review. This report may be accompanied by specific recommendations for action by the City to deal with human service needs. • -3- APPLICATION FOR CONTRACTUAL SERVICES CITY OF BROOKLYN CENTER (FOR NONPROFIT HUMAN SERVICE PROGRAM/AGENCY) Date Submitted- (Deadline is June 1 for consideration for the following fiscal year, January 1 to December 31.) Applicant Program/Agency Name- Address: City, State, Zip- Phone Number- Contact Person- PROGRAM OVERVIEW 1. Generally describe the program/agency, including its mission, date established, services, and goals. • 2. Explain the areas of expertise of the program/agency, including a description of the range of staff capability. 3. Describe the target group for services of the program/agency. • March 1992 -1- • • • 4. Describe how the program is marketed, and to what geographical and demographical areas. 5. Discuss the methodology employed in measuring the effectiveness of the program/agency. BUDGET DOLLAR AMOUNT REQUESTED FROM CITY $ TOTAL PROGRAM/AGENCY BUDGET CITY AMOUNT AS % OF TOTAL BUDGET % % OF TOTAL BUDGET FOR OVERHEAD AND ADMINISTRATION COSTS % 6. List specific secured and anticipated sources of contributions available to the applicant. SECURED (S) OR SOURCE AMOUNT ANTICIPATED (A) 7. List in-kind items requested from the City. -2- 8. Describe use of all in-kind contributions, and include estimated value of each in- kind contribution. 9. a. Describe use of volunteers. b. Describe how the use of volunteers impacts your budget. . COMMUNITY NEED 10. a. Explain the community need for the proposed service. b. Discuss possible alternative sources for those services available within the community. c. Describe why those alternative services are not fulfilling the current needs. t -3- 11. • • Describe how Brooklyn Center benefits from the services provided. State the total numbers of people from all communities who participate or receive direct benefits, and describe how these numbers were determined. 12. TOTAL SERVED LAST YEAR PROJECTED TOTAL TO BE SERVED NEXT YEAR 13. State the numbers of residents from Brooklyn Center only who are served, and describe how these numbers were determined. TOTAL SERVED LAST YEAR ORGANIZATION NEED PROJECTED TOTAL TO BE SERVED NEXT YEAR 14. What would be the consequences to your program/agency of not receiving the amount requested? -4- • • • Include the following supporting documentation that must accompany this application. If any item is not enclosed, please explain why not. 1. Financial statement for the preceding fiscal year. 2. Proposed budget for the upcoming fiscal year. 3. Data substantiating the need for this service in Brooklyn Center. 4. Proof of nonprofit status. 5. List of current Board of Directors. 6. Job descriptions and resumes of key personnel. 7. Statistical or other data measuring effectiveness of the program/agency. Signature Title Date -5- s EVALUATION FORM FOR CONTRACTUAL SERVICES CITY OF BROOKLYN CENTER Applicant Program/Agency NamP- Address- City, State, Zip- Contact Person Phone Number: Date Application Submitted- Budget Year Requested- Score each statement based on the maximum points listed in parentheses next to each item. The higher- the score, the more the actual request is equated to the statement. A total of 100 points is possible. For Y/N responses, select Y for yes or N for no. A. PROGRAM OVERVIEW (20) (10) 1. The applicant has a realistic view of their resources and the program is limited to their level of competence. The applicant indicates the availability of an effective staff. (5) 2. The applicant has demonstrated the ability effectively to reach its target/demographical and geographical areas. (5) 3. The methodology employed to measure the program is effective, clear, and concise. B. BUDGET (30) (10) 1. The total amount requested from the City of Brooklyn Center is reasonable given the overall program budget. (10) 2. The budget request is reasonable given the objectives of the proposal for the contribution period. (10) 3. The administrative and program service costs are in reasonable balance. I* (Y/N) 4. The use of volunteers is reasonable and cost effective. March 1992 • • C. COMMUNITY NEED (30) (10) 1. The applicant is meeting an important.community need. (10) 2. The extent of this service does not' overlap with services provided elsewhere in the community. (10) 3. The number of Brooklyn Center residents served is high in relation to the amount requested. D. ORGANIZATION NEED (20) (10) 1. The program is not viable without local government support. (10) 2. There are few, if any, alternate sources of funding available to the applicant. TOTAL SCORE 0 • MEMORANDUM TO: Financial Commission Members FROM: Charlie Hansen, Finance Director CR DATE: August 5, 1993 SUBJECT: August 10 Meeting Agenda Items 1. Preliminarv 1994 Operatina Budget. The original 1994 Budget Calendar called for us to have the Preliminary 1994 Operating Budget ready for delivery on August 6, 1993. We have not been able to keep that schedule, but now expect to have it complete on August 10. This will allow us to hand it out to Financial Commission members at the meeting that night. It will be discussed at the Joint City Council / Financial Commission meeting on August 16, 1993. • 2. Organizational Evaluation Process. The Financial Commission's motion of July 12, 1993 regarding the Organizational Evaluation Process was forwarded to the City Council as a discussion item on their agenda for the August 9, 1993 meeting. See attached "Request For Council Consideration." Five candidates have been interviewed for the position of Administrative Intern to do research work for the Organizational Evaluation Process. A very well qualified individual named Todd Peterson will begin work on August 16, 1993. A proposal for the firm of Deloitte & Touche to provide consulting services in the area 3 "service evaluation process" should be delivered to us by the end of this week. If we receive it, we may be able to discuss this area in greater detail at the August 10 meeting. 3. Unrestricted Capital Expenditure Policv. Because of the need to focus my attention on the budget, I haven't been able to prepare material to support our case for amending the Capital Expenditure Policy. If I am able to prepare it by Tuesday, it will be handed out at the meeting. 0 CITY OF BROOKLYN CENTER Council Meeting Date g_/,? /9-3 Agenda Item Number Ila, • REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RECOMMENDATION OF THE FINANCIAL COMMISSION REGARDING THE ORGANIZATIONAL EVALUATION PROCESS DEPT. APPROVAL: CA44& W a^A~ Charles Hansen, Finance Director NANAGERIS REVIEII/RE ATI No comments to supplement this report Comments below/attached SUMMARY EXPLANATION: (supplemental sheets attached ) Earlier this year, the City Council charged the Financial commission with the responsibility of evaluating the organization of the City of Brooklyn Center as to its effectiveness and to report back to the City Council. The Financial Commission took up this issue at its meeting of July 12, 1993 and wishes to inform the City Council of a motion passed regarding the organizational evaluation process. Commissioner Ron Christensen moved that "The Financial Commission, as a preliminary step to fulfilling its responsibility for evaluation the organization of the City of Brooklyn Center as to its effectiveness, accepts Areas 1 & 2 as outlined in the City Manager's Memoranda of March 31, 1993 and July 9, 1993." Commissioner Ned Storla seconded the motion and all commissioners voted in favor of it. The City Manager's Memoranda lists areas of interest as follows: 1) evaluation of potential for administrative structure reorganization; 2) evaluation of the supervision/management -and other staffing levels; and 3) service evaluation process. The Commission's motion deliberately omitted any reference to area 3, because they felt there wasn't an adequate description of what the objective was, the resources which will be available to accomplish it, and what the Commission's role was to be in this area. Complete minutes of the meeting will be distributed and approved at their next meeting. RECOMMENDED CITY COUNCIL ACTION: Review and discuss the Financial Commission's motion. 0 • FINCOMM\CAPPOLCY CITY OF BROOKLYN CENTER UNRESTRICTED CAPITAL EXPENDITURE POLICY POLICY OBJECTIVE: The City of Brooklyn Center funds unrestricted capital expenditures through one of two accounts. Generally, small capital expenditures are funded through the general fund and planned for as part of the annual budgeted process for the general fund. Large unrestricted capital expenditures are funded through the capital improvements fund based on resolution 68-246, which was approved in 1968. The objective of this policy is to clarify funding for all unrestricted capital_expenditures by specifically defining which capital expenditures are eligible for funding through the capital improvements fund. Unrestricted capital expenditures not meeting the criteria for funding through the capital improvements fund require funding from the general fund. specifically excluded from this policy are capital expenditures that are to be funded from insurance proceeds. capital expenditures funded by insurance proceeds may be accounted for • through the capital improvements fund at the discretion of the Director of Finance. SOURCE OF FUNDS: The sources are ad-valorem taxes, issuance of bonds, state and federal grants, transfers of unrestricted balances from other funds and investment earnings. USE OF FUNDS: The following defines general expenditure criteria for the utilization of the capital improvements fund balance. A.) Major: Any capital expenditure that exceeds $100,000. Capital expenditures of less than $100,000 are to be funded through the general fund balance. B.) Permanent: Any capital expenditure that has an estimated useful life of 15 years or longer, as defined by generally accepted accounting principles. C.) Facility: Buildings, improvements to real estate, the acquisition of land for city purposes. This definition excludes the acquisition of land for development or resale • and excludes equipment and vehicles. Additionally, the capital improvements fund may be used to provide loans to other funds maintained by the City. However, loans from the capital improvement fund may only be made to proprietary funds which have the ability to generate revenue and repay the loan within 10 years at prevailing interest rates. AUTHORITY TO SPEND: Expenditures meeting the above criteria may be funded through the capital improvements fund based on the following authority limits: A.) Expenditures from $0 to $100,000: Not eligible for funding from the capital improvements fund. Funding requires through the general fund. B.) Expenditures from $100,001 to $200,000: Upon recomm- endation from the Finance Commission the City Council may, through simple majority, approve these expend- itures. C.) Expenditures from $200,001 to $1,000,000: Upon recommendation from the Finance Commission and a public hearing, City Council may, through a 4/5th's majority, approve expenditures in this category. D.) Expenditures over $1,000,000: These expenditures require a citizen referendum. SPENDING LIMITATION,/FUND BALANCE REQUIREMENT: The objective as described above and previously defined in Resolution 68-246 requires the capital improvements fund to be a permanent source of funding for planned major expenditures. As such, the following criteria is established to comply with that intent: A.) Planned Expenditures: If the proposed capital expend- iture is in excess of $200,000 it must have been included in the five year capital improvements plan for at least two years. Additionally, the five year capital improvements plan must be approved by the City Council at a public hearing on an annual basis. B.) Spending Limitations: Proposed capital expenditures in the range of $100,001 to $200,000 are limited to interest earnings for the capital improvements fund from the previous year. c.) Fund Balance RequXrements: At all times, a minimum fund balance shall be maintained in the amount of $3,000,000 as of January 1, 1993 and increased by the Consumer Price Index each year thereafter. 0 POLICY AMENDMENT: Amendments to this policy require a 4/5th's majority by City Council vote. ROLE OF THE FINANCE COMMISSION: The finance Commission MUST provide the City Council a recommendation on all expenditures from this fund. recommendation requires response to the following; A) Does the expenditure comply with the unrestricted capital expenditure policy? B.) Is the expenditure appropriate considering the financial condition of the City? • 9