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Home My WebLink About2003 05-19 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 19, 2003 COUNCIL /COMMISSION CONFERENCE ROOM CALL TO ORDER The Brooklyn Center City Council met for a joint Work Session with the Financial Commission and was called to order by Mayor Myrna Kragness at 6:05 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Bob Peppe. Also present: City Manager Michael McCauley, Assistant City Manager/Director of Operations Curt Boganey, and Fiscal and Support Services Director Doug Sell. Financial Commission Members present: Chair Donn Escher, Jerald Blarney, Timothy Elftmann, Jay Hruska, Lawrence Peterson, and Gavin Wilkinson. REVIEW OF AUTOMATED CLEARING HOUSE TRANSACTIONS FOR UTILITY BILLS Fiscal and Support Services Director Doug Sell informed that as of today the percentage of participants in the Automated Clearing House (ACH) program was 2.7 percent. He indicated that he couldn't see how the 15 percent objective could be met even in two years. He explained that it would be his recommendation to drop the program due the fixed costs associated with the program. It was the Council consensus to discontinue the process and that this item should be placed on a future agenda for formal Council action. GENERAL REVIEW OF 2003 AND 2004 POTENTIAL BUDGET CUTS City Manager Michael McCauley informed that it is too early to know what the Legislature will finally decide. There is a $500,000 difference between the Governor's Plan and the House Republican Plan. These plans if approved would result in an 8 percent and 18 percent loss in revenue from the anticipated base in 2003 and 2004. Mr. McCauley provided an overview regarding ways the Council may wish to review the budget issues using a presentation based on packet materials presented with the following information: 05/19/03 -1- 2003 • Review Current Direction and Options • Short Term Impacts 2003 o Reduced services • Long Term Impacts without Real Revenue Increases • Reduced services and inability to replace infrastructure • Impact on quality of life in the community • Impacts on Residents • Likely to have no reduction in expectations • Impact on seniors and youth • Impact on Staff • Major loss • Governor's thesis that this should not impact services • Need to Focus Use of Staff Resources 2003 Issues and Results • Governor: o $1.17 Million • House Republican: o $ 1.18 Million • Budget Reductions: • Eliminate General Fund Budget Capital Transfer • Reduce recreation programming/events • Police reorganization • Leave positions unfilled ■ Retirement incentives $ 66,000 savings 2003 • Reduced seasonal hiring (9) • Deferred capital equipment • Shift to grants 2003 Issues • Capital Transfers from General Fund Balance: $1 Million to Replace Operating Budget Transfer to Street Replacement • Continued Operations in All Areas • Reduced Programming • Equipment Deferral • Additional Fund Balance Transfer from Liquor Fund to Capital Improvement Fund Pros of Usiniz Fund Balance for Capital • Sustains street reconstruction project for longer period • Operating implications fewer, but significant o Engineering staff if streets not funded 05/19/03 -2- Cons of Using Fund Balance • Reduces City to • Public Safety o Street and Park maintenance • General Government • Difficult to rebuild programs and partnerships 2004 Cuts • Governor $ 2.22 Million o No levy back • House Republican $ 1.7 Million o Levy back $ 550,000 of lost aid (5.4 percent levy increase) • Either Plan o Dramatic changes in General Fund Revenue Options 1. Levy Whatever May be Levied a. House Republican $ 550,000 b. Governor's Plan has no levy back (may allow vote) 2. Franchise Fees a. Potential of $ 1 Million b. Several other cities are enacting i. Robinsdale, New Brighton, (Crystal ?) 3. Increased Special Assessments 4. Special Service Districts in Commercial Areas 5. Shift to Enterprise Funds a. For street reconstruction b. Increased allocation of general operations 6. Use of tax Increment 7. Capital Reserve Emergency Fund $300,000 Prioritization of Operation 1. Major Issue is Establishing Framework of Values and Options 2. Question is a. Operations versus Capital b. Residential versus Commercial Services 3. Focus of staff resources a. Development b. New financial reporting requirements c. Proactive police reorganization d. Reduced public works: project focus 05/19/03 -3- Context for Budget Cuts Mr. McCauley reviewed a chart demonstrating the net General Fund Costs by department and compared departmental cost to proposed cuts in 2004. He presented another chart segregated general fund costs into five categories: • Fixed Costs $ 1,735,771 • General Government organization $ 2,880,746 • Core Essential Services $ 9,392,543 • City Wide Impact Services $ 715,920 • Specialized Services' $ 1,444,826 Ouestions for Council and Commission 1. Values to be Used in Assembling 2004 Budget Options a. Hierarchy of operations and infrastructure 2. Revenue Options That Would be Considered i. Taxes if allowed ii. Election to levy 3. Franchise Fees 4. Levels a. Dedication for specific uses or general use i. Street reconstruction ii. Keeping community center and youth programs iii. Park equipment (or defer to bonding) 5. Focus a. Code Enforcement b. Police levels c. Maintenance of streets d. Maintenance of parks e. Street reconstruction i. Yearly ii. Fewer, but larger projects every 2 or 3 years f. Services to be discontinued/reduced i. City Watch frequency ii. DARE (equals .75 of an officer plus supplies and training) 1. Robinsdale has eliminated g. Arbor Day h. Earle Brown Days support i. Fireworks and Entertainment in Park j. Landscaping contest k. Senior and medical transportation 1. Commissions i. Number ii. Frequency of meetings 05/19/03 -4- m. Etc. on the margin • Process o Future Council Commission discussion ■ Add budget to June 16, 2003, meeting with Auditor ■ Additional summer meeting prior to August 18, 2003? • Public Education and Comment o Summer o Fall • City Watch • Web Page Council and Financial Commissioners discussed the presentation with emphasis on ways to effectively obtain citizen input and understanding of the budget situation and the advisability of having a framework for a budget prior to soliciting that input so that there is a context. Discussion also revolved around the need to focus on what were the appropriate or essential functions of City Government. Some review was undertaken of reimbursements from enterprise funds for general management and financial services. Questions were asked regarding current levels of patrol and detective staffing at the Police Department. The evaluation and development of options regarding dispatch was considered. There was conversation regarding options for street reconstruction projects such as larger, less frequent projects, as a potential means of achieving greater efficiencies. The revenue options in the presentation were reviewed and discussed and referred to the Financial Commission to develop a set of recommendations for the Council on priorities and funding options. The Financial Commission will meet after the joint meeting with the Council on Junel6, 2003, to begin its review to develop recommendations for the Council. GRAVEL ROADS Councilmember Carmody reported from the most recent Housing Commission meeting and introduced a discussion on proposed ordinance changes that would require all driveways to be paved upon property sale. After a brief discussion regarding the issue of tracking sales, cost, the interpretation of "improved surface ", and other matters, it was the consensus of the Council that there be no changes to the current ordinance and that the current ordinance be consistently enforced. COMMISSION RECOGNITION Councilmember Carmody introduced the discussion regarding Commission Recognition. It was generally agreed that commission members should be recognized by the City Council but participation at the most recent recognition program was not sufficient and a change in approach might be warranted. It was the consensus of the Council that future Commission Recognition activities should be part of a regular City Council Meeting. 05/19103 -5- I ANIMAL ORDINANCE Councilmember Peppe introduced the discussion regarding dangerous animals. Several comments and suggestions were made regarding breed, specific provisions, State Law preemption, the establishment of fines for certain behavior, and enforcement of existing ordinances. One point made was the importance of making sure that Community Service Officers understand that enforcement of the current ordinance is a Council priority. ADJOURNMENT A motion by Councilmember Carmody, seconded by Councilmember Peppe to adjourn the Work Session at 9:17 p.m. Motion passed unanimously. a mm 4L w0� City Clerk May 05/19/03 -6-