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HomeMy WebLinkAbout1993 04-19 FCM• MINUTES OF THE PROCEEDINGS OF THE FINANCIAL COMMISSION OF THE CITY OF BROOKLYN CENTER APRIL 19, 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, Ulyssess Boyd and Denis Kelly. Also present were Finance Director Charlie Hansen and Ned Storla. Commissioner Pat Boran arrived at 7:45 P.M. APPROVAL OF MINUTES - MARCH 8. 1993 There was a motion by Commissioner Denis Kelly and seconded by Commissioner Ulyssess Boyd to approve the minutes of the March 8, 1993 meeting as submitted. The motion passed unanimously. 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: 1. Evaluate what will be done with thei. 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? 0 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? It was decided to hold further discussion of criteria over to the next Commission meeting and turn back to the immediate request. Commissioner Ron Christensen made and Commissioner Vi Kanatz seconded the following motion: That the CO-OP Northwest request be returned to the City Council without a recommendation since it is a policy decision for the City Council to augment the present budget for this program, and that the Commission will develop criteria for the evaluation of future requests. The motion passed unanimously. 5 City Manager Gerald Splinter arrived from the Board of Equalization meeting at this time. Commissioner Pat Boran offered an amendment to the just passed motion to refer the City Council to Financial Policies for the use of the contingency account which state that it be for unforeseen and nonrecurring uses. Commissioner Denis Kelly seconded the motion. The amendment passed unanimously. The motion as amended passed unanimously. SURVEY OF SEVERANCE POLICIES FOR LAID-OFF EMPLOYEES • Commissioners Ron Christensen and Vi Kanatz expressed concern over their assignment to a subcommittee to draft a severance policy. After a discussion of the feelings that various Commissioners have toward severance and a decision that the scope of the assignment is to review and comment on the policy which the City Council adopted in December'1992, they accepted the assignment. REPORT ON DEVELOPMENTS IN CITY FINANCES Finance Director Charlie Hansen presented a,General Fund Balance Sheet as of December 31, 1992 and an updated calculation of the Adequate General Fund Balance Policy Formula. The adequate fund balance formula showed an improvement from the 1991 deficiency of $890,225 to a 1992 deficiency of $555,922. This is primarily due to the elimination of the use of transfers from fund balance in the budget. The auditors are recommending that the City switch to an internal service fund to account for its vehicle purchases and maintenance costs. This would provide,better.cost accouBting, VUu_i-d-•-tran.~.. --$1-;-5649-,. --6rener-mil- Funs--o- 1- -fund. 93%p auditor- Led e Q}ata as Min - n i ng t -0n+r~re '.o SWlt on the City has as t The Mayor and Council are interested 'in ng from a department line item budget to a program budget. This will be accomplished over a two year period. Two memos from the City Assessor Mark Parish were presented. These explain the losses the City expects to incur in 1993 from abatements of property taxes by the tax court. Ned Storla was able to expand upon these because of • his experience with the Brooklyn Park Assessing department. • City Manager Gerald Splinter left to return to the Board of Equalization meeting at this time. FUTURE MEETINGS The joint meeting with the City Council is set for May 3rd to discuss the 1994 budget process. The next regular Commission meeting is set for Monday, May 17. • CAPITAL EXPENDITURE POLICY Chair Donn Escher noted that he had received the minutes of a City Council Special Work Session on March 15, 1993, which-describe the presentation of a 1993 proposed capital improvements schedule. Finance Director Charlie Hansen explained that the staff has been developing long range capital improvement plans for several years, and the current year's projects were brought before the City council for review. Commissioner Pat Boran moved that the Commission respectfully request that no expenditures be made from the Capital Improvements Fund by the City Council, until it has reviewed and considered the Capital Expenditure Policy currently being finalized by the Financial Commission. Commissioner Ulyssess Boyd seconded the motion. Commissioners Boran, Boyd, Escher and Kelly voted in favor of the motion and commissioner Kanatz voted against it. The motion passed. It was noted that there is a pressing need to schedule a meeting at which Council Liaison Dave Rosene and City Manager Gerald Splinter can be present to take part in the discussion of this issue. Finance Director Charlie Hansen was instructed to try to arrange such a meeting even if it must be on some other night than the meetings already scheduled. ADJOURNMENT There was a motion by Commissioner Pat Boran and seconded by Commissioner Viola Kanatz to adjourn the meeting. The motion passed unanimously. The meeting adjourned at 9:10 P.M. 0