HomeMy WebLinkAbout2004 05-17 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
MAY 17, 2004
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, Councilmembers Kathleen Carmody, Kay Lasman, and Diane Niesen.
Councilmember Bob Peppe was absent. Also present: City Manager Michael McCauley, Assistant
City Manager /Director of Operations Curt Boganey, and Deputy City Clerk Maria Rosenbaum.
Others present were Financial Commission Chair Donn Escher, and Commissioners Timothy
Elftmann, Jay Hruska, Mark Nemec, and Lawrence Peterson.
Councilmember Bob Peppe arrived at 6:46 p.m.
REVIEW OF BUDGET PRIORITIZATION FOR 2004 BUDGET
City Manager Michael McCauley reviewed the budget prioritization for the 2005 budget and
suggested that if the Council had general or specific matters that it wants reviewed and analyzed for
the budget, identification of those issues at the beginning of the budget development process aids in
that process and allows for staff to develop appropriate scenarios.
REVIEW OF 2005 BUDGET DATES
Mr. McCauley outlined the scheduled dates for the 2005 budget:
August 16
September 13 - Preliminary General Fund Levy and Budget Adoption
October 4
November 15
December 6 - Truth in Taxation hearing
December 13 - Budget Adoption
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State law requires adoption of a preliminary tax levy by the second week of September. The final
levy may be reduced in December, but may not be increased from the amount adopted as the
preliminary levy.
Councilmember Niesen expressed that she would like to have one meeting added between now and
August 16, 2004. Councilmember Carmody suggested waiting until the Legislature ends and make a
decision at that time whether an additional meeting is needed.
OVERVIEW OF 2005 ISSUES
Mr. McCauley discussed the single largest impact for 2005 is the next phase in the implementation
of the new Local Government Aid (LGA) formula adopted by the Legislature last year. Current
projections indicate an additional $300,000 loss to Brooklyn Center. A three percent increase for
real estate taxes would generate approximately $280,000. Thus, a three percent increase would not
quite replace the anticipated loss in LGA.
Councilmember Niesen expressed that she is not comfortable with putting more increases on
residential properties and that she believes the dollar amounts need to be more visible before matters
come to the Council.
Councilmember Bob Peppe arrived at 6:46 p.m.
Council continued discussions regarding increases, the General Fund Budget, and Tax Increment
Financing Districts (TIF). Mr. McCauley informed that there are still a lot of unknowns. He
expressed that he believes that residential values will be higher by nine to ten percent than in 2004.
With commercial property increasing at a much lower rate, residential properties would likely see an
increase in their taxes even if the City did not increase its 2005 levy.
Councilmember Niesen expressed that she would like to see the total dollars estimated for
residential, commercial, and retail and that she believes it is important to see the shifts.
Councilmember Carmody discussed the trends with covering costs and questioned if the Council
should consider looking at services that the City can no longer provide.
Council discussed the profits from City facilities. Councilmember Peppe questioned if anyone has
ever showed interest in purchasing the Centerbrook land and suggested that might be something to
consider.
Mr. McCauley questioned if the three percent range for increases in real estate taxes was reasonable.
It was the consensus of the Council to move forward with the three percent range for planning
purposes.
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Mr. McCauley discussed that personnel increases would be in the three percent range to stay
competitive. Mayor Kragness questioned if there were any contracts for more than one year. Mr.
McCauley informed that there are currently none.
PRIORITIZATION/FOCUS
It was the consensus of the Council to continue with guidelines and approach the budget for 2005
with the same approach used last year.
MISCELLANEOUS
Council discussed the Brooklyn Center Transit Groundbreaking Event that will be held on May 24,
2004.
ADJOURNMENT
A motion by Councilmember Lasman, seconded by Councilmember Carmody to adj ourn the Work
Session at 8:17 p.m. Motion passed unanimously.
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