HomeMy WebLinkAbout2003 08-18 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 18, 2003
COUNCIL /COMMISSION CONFERENCE ROOM
CALL TO ORDER
The Brooklyn Y J Center City Council met for a ' oint Work Session with the Financial Commission and
was called to order by Mayor Myrna Kragness at 6:45 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 Deputy City Clerk Maria Rosenbaum.
Financial Commission Members present: Chair Donn Escher, Timothy Elftmann, Jay Hruska, Mark
Nemec, and Lawrence Peterson.
REPORT BY CHAIR ESCHER ON FINANCIAL COMMISSION REVIEW TO DATE
Donn Escher, Financial Commission Chair, reported on the recommendations made by the Financial
Commission for the 2004 Preliminary Tax Levy and franchise fee for gas and electric utilities. Mr.
Escher discussed that the Financial Commission would also like to recommend that the City
Newsletter be reduced to four issues per year.
DISCUSSION OF PRELIMINARY LEVY AND GENERAL FUND BUDGET
City Manager Michael McCauley discussed that the draft General Fund Budget indicated an
assumption of a $560,247 increase in the operating levy above the 2003 operating levy, with an
additional $21,500 for 5 Cities Senior Transportation and PRISM. In the process of the budget
preparation to remove debt service from the General Fund Budget and the General Fund portion of
the levy, the base revenue did not increase the $560,247 over the 2003 operating levy. The draft
budget proposed a franchise fee in the range of three percent to raise approximately $750,000. If the
General Fund preliminary levy were set at $9,468,725 that would equal roughly $370,494 in
additional taxes and $750,000 in franchise fees, which combined would equal the original target of
2/3 of the lost LGA; however, direct more of that replacement to street reconstruction. The General
Fund would still have reductions associated with decreased interest earnings and lodging taxes.
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The 2004 debt service levies of $976,104 will be added to the operating levies, but will be accounted
for as revenue to their respective Debt Service Funds rather than transferred from the General Fund
to the Debt Service Funds. Mr. McCauley informed that overall the budget is balanced with a lot of
unknowns at this time.
Mr. McCauley discussed franchise fees and requested direction from the Council as to what direction
they would like to take for the September 8, 2003, City Council Meeting. The September 8, 2003,
City Council agenda will address the preliminary levy. Mr. McCauley reminded that once the
preliminary levy is set, the numbers can only be decreased and that the preliminary numbers levied
on September 8, 2003, will be sent with the Truth in Taxation Notices.
Council continued discussions regarding franchise fees and the impact these fees will have on
residents.
Councilmember Carmody expressed that she would like to see a higher tax levy and lower franchise
fees.
Councilmember Niesen questioned what dollar amount the residents would have with the franchise
fees. Mr. McCauley discussed that approximately three to four dollars a month would be added to
for the franchise fees.
Mr. McCauley suggested that if a franchise fee were going to be incorporated he would like to have
staff start the ordinance process.
Mayor Kragness expressed that she would like to keep the D.A.R.E. Program. There was discussion
regarding the D.A.R.E. Program and the budget issues surrounding it. Councilmember Lasman
informed that she will be discussing the D.A.R.E. Program at the next Crime Prevention meeting and
that she will inquire about any possible grants.
The Council recessed at 8:05 p.m. and reconvened at 8:15 p.m.
The Council discussed the policy issues for Senior Transportation and PRISM. Councilmember
Carmody and Councilmember Peppe wanted to cut both senior transportation programs. Mayor
Kragness, Councilmember Lasman and Councilmember Niesen wanted to retain only the Senior
Transportation Program. It was the consensus of the Council to drop PRISM. Councilmember
Lasman suggested that something be included with the City's Newsletter.
Mr. McCauley and the Council discussed the shift of $100,000 from Capital Projects to the General
Fund and the budget assumptions recommended by the Financial Commission.
DIRECTION FOR SEPTEMBER 8, 2003, CITY COUNCIL MEETING
It was the consensus of the Council that a franchise fee ordinance go forward.
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NEXT WORK SESSION ON OCTOBER 20, 2003
Mr. McCauley suggested that the Work Session on October 20, 2003, be amended to 6:30 p.m. It
was the consensus of the Council to have this time amended on the meeting schedule.
MISCELLANEOUS
Council discussed the streetlights along Shingle Creek Parkway, the City's odd even watering ban,
and the sod along 53` Avenue.
ADJOURNMENT
A motion by Councilmember Lasman, seconded by Councilmember Carmody to adjourn the joint
Work Session at 9:23 p.m. Motion passed unanimously.
City Clerk Mayo
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