HomeMy WebLinkAbout1992 08-17 FCM(EEEMFC) MINUTES OF THE PROCEEDINGS OF
THE BROOKLYN CENTER FINANCIAL COMMISSION
AUGUST 17, 1992
CITY COUNCIL CHAMBERS - CITY HALL
CALL TO ORDER
The Brooklyn Center Financial Commission met for its organizational session and
was called to order by Acting Commission Chairperson Denis Kelly at 7:07 p.m.
ROLL CALL
Acting Chairperson Denis Kelly, Commissioners Donn Escher, Ulyssess Boyd, Vi Kanatz,
Pat Boran, and Ron Christensen. Also present was Director of Finance Paul Holmlund.
APPROVAL OF MINUTES
There was a motion by Commissioner Escher and seconded by Commissioner Kanatz to
approve the minutes of the June 9, 1992 meeting of the Financial Task Force. The
motion passed unanimously.
ELECTION OF COMMISSION CHAIRPERSON
Acting Chairperson Kelly announced that the resolution establishing the Brooklyn
Center Financial Commission directed that a Chairperson shall be elected by a
majority vote of the Commission membership and that the Chairperson select a Vice
• Chairperson. There was a motion by Commissioner Kanatz and seconded by Commissioner
Boran to nominate Commissioner Escher as Chairperson. There were no other nomina-
tions and Commissioner Escher was elected by unanimous vote.
RECOMMENDATION ON MAYOR AND COUNCIL'S SALARIES
Chairperson Escher asked Commissioner Kelly to lead the discussion on recommendations
for Mayor and Council salaries. Commissioner Kelly agreed to do so, but announced,
because he is a candidate for City Council, he would only chair the discussion and
not enter into the discussion or vote on the matter. Commissioner Peppin arrived at
7:15 p.m.
Commissioner Kelly explained that the City Council had refered the Mayor and Council
salary compensation issue back to the Financial Commission for its review. He further
explained that it appears that the Commission was asked to comment on (1) whether the
Commission believes a lesser increase in compensation to the Mayor and Council is
justifiable than that which is scheduled to be effective January 1, 1993 and
(2) would the Commission have any recommendations or comments to the City Council
regarding any process the Council should consider in setting any future changes in
compensation for the Mayor and City Council.
A lengthy discussion of the compensation issue followed. There was a motion by
Commissioner Boran and seconded by Commissioner Kanatz to communicate to the City
Council that nothing had occurred to change the original findings of the Commission
on the compensation issue and that the Commission again recommends that the salary
compensation for the Mayor and City Council remain at the 1992 level. A roll call
vote followed. The following voted for the motion: Commissioners Escher, Kanatz,
Boran, Peppin, and Christensen. Commissioners Kelly and Boyd abstained. The motion
passed by majority vote.
- 1 -
• After further discussion, there was a motion by Commissioner Boran and seconded by
Commissioner Peppin to respond to the Council's request for recommendations regarding
any process the Council should consider in setting any future compensation for the
Mayor and Council as follows:
(1) The Commission believes that any compensation should be based on the
philosophy of public service rather than employment.
(2) The Commission requests City Staff to research whether other cities or
other municipalities have developed a plan of just compensation for
elected officials.
(3) The Commission requests the City Council to provide its imput on what
criteria should be considered in setting elected officials compensation.
The motion passed unanimously.
1993 PRELIMINARY PROPOSED BUDGET PRESENTATION
The Director of Finance explained to the Commission that the City Council had directed
that the 1993 City Manager's Preliminary Proposed Budget be forwarded to the Commission
at the same time that it was forwarded to the Council. He further explained that the
Budget will be formally presented to the City Council on August 20 and that the Council
wishes the Commission to review the budget at the same time that it is being reviewed
by the Council.
The Director of Finance then presented an overview of the Preliminary Proposed Budget.
He explained to the Commission that the primary purpose of the Preliminary Proposed
Budget is to set a tax rate which the County can use to notify taxpayers of what their
approximate property taxes might be if each taxing jurisdiction adopts its proposed
levies. He emphasized that the proposed levy certified to the County by the Council
may be lowered but not raised prior to the final adoption of the tax levy. He went on
to explain that there were significant problems which made balancing the 1993 budget
difficult. Among these were that a transfer from fund balance would not be available
for 1993; the 6 1/2% sales tax which now applies to cities; the gradual elimination
of borrowing to fund equipment purchases; and a first time levy for the Economic
Development Authority. He also pointed out that positive factors included the fact
that the 1980 park improvement bonds would be paid in 1993 so no 1993 levy would be
required and the Commission's prioritization process had assisted the City's depart-
ments in the preparation of their budget requests. He concluded his presentation
by stating that the Preliminary Proposed Budget would result in a total budget
increase of less than 1% and a tax levy increase of approximately 89%. Of the 8%
tax levy increase, approximately 5% resulted from General Fund and Debt Retirement
levies and approximately 3% from the new Economic Development Authority levy.
APPOINTMENT OF COMMISSION VICE CHAIRPERSON
Chairperson Escher announced that he is appointing Commissioner Boran as Vice Chair-
person of the Commission.
SETTING OF FUTURE MEETING DATES
• The Commission set the following meeting dates: September 21, October 5, October 19,
November 2, and November 16. The meetings were set for 7:00 p.m. and the Commission
requested that they be held in the Council Chambers of City Hall.
- 2 -
ADJOURNMENT
There was a motion by
adjourn the meeting.
Commission adjourned
Is
0
Commissioner Kelly and seconded by Commissioner Christensen to
The motion passed unanimously. The Brooklyn Center Financial
at 9:27 p.m.
- 3 -