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HomeMy WebLinkAbout2005 08-15 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 AUGUST 15, 2005 CITY HALL - COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Work Session and was called to order by Mayor Myrna Kragness at 6:30 p.m. ROLL CALL Mayor Myrna Kragness and Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present: City Manager Michael McCauley, Assistant City Manager/Director of Operations Curt Boganey, Fiscal and Support Services Director Dan Jordet, and Deputy City Clerk Maria Rosenbaum. Others present were Financial Commissioners Robert Anderson, Robert Paulson, and Earl Simons. Chair Donn Escher and Mark Nemec were absent and excused. Susan Shogren Smith arrived at 6:49 p.m. Commissioner Samuel Tweah was absent and unexcused. REVIEW OF 2006 ROUGH DRAFT GENERAL FUND BUDGET REVIEW OF DEBT SERVICE FUNDS FOR 2006 REVIEW OF EDA AND HRA City Manager Michael McCauley reviewed the draft General Fund Budget that reflects revenue targets that had been developed at the May 16, 2005, Joint Work Session. The overall combined increase is 2.91 percent for the General Fund, Debt Service, and Housing and Redevelopment Authority (HRA) levies. The General Fund levy increases 3 percent plus .94 percent, representing a 3 percent increase, plus the 1995 improvement bond levy amount; with the 1995 improvement bonds retiring in 2005. Mr. McCauley discussed the major expense items in the draft budget that are being reviewed. One item is the requirement to purchase new election equipment for the Help America Vote Act. The budget contains $40,000 to purchase special election equipment to assist persons with disabilities in voting. The Federal Regulations have yet to be finally adopted. The City may receive reimbursement for all or part of the cost of the equipment from the State of Minnesota. 08/15/05 -1- The State will be receiving the Federal Funds and it will be up the State to determine what portion of those funds may be distributed to local governments to reimburse the cost of complying with the Act. Another item being evaluated in the continued budget review are requests for capital equipment for grounds keeping equipment replacement. The draft budget contains some larger computer equipment replacement items. Staff is reviewing whether those items more properly belong in the Technology Fund, but until a plan is developed for consideration in the Technology Fund, these equipment purchases are being shown in the draft General Fund Budget. At the current time there are Dispatch Funds that are not anticipated to be spent; however, there may be a request for an additional position in the Police Department. Dispatch is budgeted for a full year of operations in 2006, though it will not operate a full year. Staff does not know how many months dispatch will operate. This creates some contingency funding as there is no amount in contingency in the draft budget. Another item not included in the budget at this point would be the replacement of the equipment used in connection with the message board for the cable access channel. The City receives $22,000 from the cable commission annually that is placed in the Capital Projects Fund. Those funds would be sufficient to cover approximately $6,000 to acquire a new system that would result in improved technology for a similarly static informational display. There was discussion regarding the money that is received, subscribers, and the forms of communications used for communicating to residents. Councilmember Niesen expressed that she believes $6,000 would not be too much to spend on this form of communication and that she would like to continue discussing this since communication is an important area. Council and Financial Commissioners continued discussions with comments and questions regarding cumulative increases; lodging taxes, license /permit fees, General Fund transfers, General Fund revenues, real estate taxes, interest earnings, Debt levy, old and new bonds, special assessments, General Fund expenditures, and preliminary property tax levy totals for all sources. Fiscal and Support Services Director Dan Jordet discussed the issuance of refunding of bonds in 2004. In 2005 the old bonds for which the refunding bonds were issued will be retired. That results in a substantial drop in the total indebtedness of 2005. The tax payments received in 2005 will be used to service the refunding bonds. The proceeds of the refunding bonds will have been used to retire the original bonds. On the issue of interest earnings, there was discussion with respect to historical interest earnings that have been lower than the proposed 2006 Budget. Mr. Jordet reviewed the interest rate being earned on City money at this time and will review these projections further. There was also discussion regarding the issuance of $17 Million of tax increment bonds in 2005. Those bonds are repaid through tax increments received and are not part of the General Fund. At 8:27 p.m. the meeting recessed and was reconvened at 8:37 p.m. Mayor Kragness outlined the scheduled budget dates which are as follows: 08/15/05 -2- a. September 12 - Preliminary General Fund Levy and Budget Adoption b. October 3 - Review of Utilities and Enterprises Budgets c. November 21 - Review of General Fund Budget and Capital Improvement Plan d. December 5 - Truth in Taxation Hearing e. December 12 - Budget Adoption Mr. McCauley discussed that the HRA levy goes into the Economic Development Authority (EDA) budget and that staff will continue with the preliminary numbers from May 16, 2005. Councilmember Carmody asked if future discussions could include averages on the cumulative budget amounts, and if better estimates could be provided regarding the time spent on inspecting single family dwellings and duplexes versus other inspections, along with information as to who is doing the inspections and how much it costs. MISCELLANEOUS Council discussed the office building proposal that will be going before the Planning Commission. ADJOURNMENT A motion by Councilmember Lasman, seconded by Councilmember Carmody to adjourn the Work Session at 9:05 p.m. Motion passed unanimously. ,�- /A-X-i City Clerk Mayor 08/15/05 -3-