Loading...
HomeMy WebLinkAbout2006 11-20 CCM Joint Work Session with Financial Commission MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA JOINT WORK SESSION WITH FINANCIAL COMMISSION NOVEMBER 20, 2006 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Work Session with the Financial Commission and was called to order by Mayor Myrna Kragness at 6:36 p.m. ROLL CALL Mayor Myrna Kragness, and Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen (arrived at 6:38 p.m.) and Mary O'Connor. Also present: City Manager Curt Boganey, Director of Fiscal and Support Services Daniel Jordet, Public Works Director /City Engineer Todd Blomstrom, and Deputy City Clerk Camille Worley. Financial Commission Members present: Susan Shogren Smith (arrived at 6:39 p.m.), Mark Nemec (arrived at 6:39 p.m.) and Gene Maze. 1. REVIEW OF 2007 BUDGET DATES City Manager Curt Boganey explained the following budget dates and their purpose: a. Final Draft Review- November 20, 2006 b. Truth in taxation hearing — December 4 th and 11 if necessary i. Notice Publication c. Budget Adoption — December 11, 2006 There was discussion on the tax levy not increasing beyond the established limit and it was indicated that a Truth in Taxation Hearing and advertisement of such would not be required. It was the majority consensus of the City Council to hold the hearing but not to spend the $600.00 on the formal public notice rather post the notice of a Truth in Taxation Hearing on the City's website. The City Council and Financial Commission members stated the dates were acceptable. 2. RECYCLING FUND City Manager Curt Boganey introduced the Recycling Fund and stated the monthly household rate will be $2.45, with services provided by Waste Management. He discussed the efforts by the HRG to arrive at this rate. 3. OTHER UTILITY FUND FEES Mr. Boganey introduced the Other Utility Fund Fees and discussed the factors that affect rate increases. 11/20/06 1 Director of Fiscal and Support Services Dan Jordet discussed the chart entitled 2006 Water Rates that compares water rates of surrounding communities. He discussed four different rate scenarios for 2006. He discussed various options for rate increases that offer a steady rate of increase over the next nine years. There was a discussion on the estimated cost of Personnel Services as reflected in the rate increase spreadsheets. Public Works Director /City Engineer Todd Blomstrom explained that in the past, the fund balance has been drawn down to allow for lower utility rates. Councilmember Carmody stated preference for the rate increase of 10% in 2007, so that an adequate amount of revenue is earned. Mr. Jordet described the effect of a 7.25% increase for 2007. Councilmember Lasman and Financial Commissioner Gene Maze stated agreement with the rate increase of 7.25 %. Mr. Jordet discussed the chart entitled 2006 Sanitary Sewer Rates that compares sanitary sewer rates of surrounding communities. He discussed the proposed rate of increase of 2.75 %. Mr. Jordet discussed the three charts regarding rate increases for stormwater. He discussed various scenarios for rate increases. Mr. Jordet discussed the three charts regarding rate increases for streetlights. He discussed the increase in the cost of electricity and the effects on the Streetlight Fund. It was the majority consensus of the City Council and the Financial Commission to increase the Streetlight Utility fee by 5% in 2007. It was the majority consensus of the City Council and the Financial Commission to increase the Storm Water Utility fee by 8.5% in 2007. It was the majority consensus of the City Council and the Financial Commission to increase the Sanitary Sewer Utility fee by 2.75% in 2007. There was discussion on the implementation of an Automated Meter Reading (AMR) system. It was indicated that the cost of implementing an AMR system is not included in the proposed utility budget. It was the majority consensus of the City Council and the Financial Commission to increase the Water Utility fee by 7.25 % in 2007. 4. TECHNOLOGY FUND Mr. Boganey introduced the Technology Fund and stated the purpose of the fund. He discussed various proposed technology upgrades within the City. He indicated that these upgrades are proposed to be completed between the years 2007 and 2010. There was discussion on the balance of the Technology Fund and how it should be spent. Mr. Boganey stated the current balance allows for the improvements for the year 2007 and the beginning of the year 2008. 11/20/06 2 Councilmember Niesen discussed her opinions on the use of the Technology Fund and stated the current balance is a large amount of money and use of the fund should be reconsidered. Councilmember O'Connor suggested that a lower amount be contributed to the fund in 2007. Mr. Boganey stated he would provide more information from CARS Director Jim Glasoe along with justification of the proposed improvements. Financial Commissioner Shogren Smith discussed the importance of an interactive City website. Mayor Kragness and Councilmember Lasman stated agreement with the proposed 2007 contribution to the Technology Fund. 5. USE OF LOCAL GOVERNMENT AID BALANCE Mr. Boganey discussed the following optional uses of Local Government Aid: • Invest in Capital Equipment needs • Street Construction Fund • Utility Fund - Automatic Meter Reading System - Met Council repayment • Set aside for a rainy day • Increase emergency fund • Save for a determined future need • Buy something that you wouldn't otherwise purchase • Reduce Tax Levy of Utility Rate Increase Mayor Kragness suggested that the additional LGA be used to pay the money owed to the Metropolitan Council or be applied towards the implementation of an Automated Meter Reading system. Councilmember Niesen suggested using the money in a manner to repay the taxpayers such as the installation of ball field lights. Councilmember Carmody stated preference to applying a portion of the money to the Metropolitan Council repayment. She suggested that the money be held until the amount owed to the Metropolitan Council is determined. Councilmember O'Connor agreed with Councilmember Carmody, however stated if the amount was to be paid over time, the money should be put in the Sanitary Sewer Fund to reduce the increase in rates. Financial Commissioner Shogren Smith stated the money should be used to impact the City. She stated by reducing rates, a small amount per household would be saved, however a larger project would impact the City in a greater manner. Mr. Boganey discussed the pool at the Community Center and future repairs and replacement costs as an example of another use of the surplus of LGA. 11/20/06 3 Councilmember Lasman stated preference that the money is applied to a determined need such as the Metropolitan Council repayment with the remainder being applied to the Street Reconstruction Fund. Councilmember Niesen stated agreement. It was the majority consensus of the City Council and Financial Commission to hold the money until the Metropolitan Council repayment situation is better defined. 6. MISCELLANEOUS ISSUES a. Muzak at Liquor store b. EBHC Water Tower Mr. Boganey stated a $75,000 grant was received for the EBHC water tower restoration. He explained that if the water tower was to be restored, a balance of $125,000 would be needed. c. Recreation Grant Fund d. Police Forfeiture Fund e. Little League Fields Councilmember Carmody stated there are lights at the Iten ball field; however the lights were paid for by the Little League. She stated objection to paying for the ball field lights. There was discussion on the approval of employee salaries and number of positions in the 2007 Budget along with market comparisons. Mr. Boganey stated the pay plan put in place approximately 10 years ago was developed by a consultant who reviewed all positions with comparison to the market. Councilmember Niesen discussed the need for a salary comparison to other communities rather than the comparison of annual increases only. There was discussion on the hiring of an Assistant City Manager. ADJOURNMENT Councilmember Lasman moved and Councilmember Carmody seconded adjournment of the City Council meeting at 9:20 p.m. Motion passed unanimously. City Clerk M7aor 11/20/06 4