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Home My WebLink About2010 03-30 FCAAGENDA Brooklyn Center Financial Commission Tuesday, March 30, 2010 — 6 :30 PM Palmer Lake Conference Room (Upper Level of City Hall) I. Call to Order II. Approval of Agenda III. Introductions and Materials IV. Election of Officers V. City's Financial Condition VI. 2010 Budget Status VII. City Council Compensation for 2011 -2012 VIII. RFP for Insurance Agent/Risk Management Consultant IX. City Council Request for Review of Delinquencies X. April 6, 2010 City Council Event XI. Miscellaneous Business XII. Adjournment Susan Shogren Smith 600 62nd Avenue North Brooklyn Center, MN 55430 sssmith2(astthomas.edu (612) 812 -8160 Appointed: 1/26/2004 Term expires: 12/31/28ti!9 2012 Rex Newman 3107 61st Avenue North Brooklyn Center, MN 55429 RexNewman(a�comcast. net (763) 561 -2760 (h); (763) 391 -4921 (w) Appointed: 1/8/2007 Term expires: 12/31/2011 2010 City Council Liaison: City Manager: Director of Fiscal & Support Services: Philip Berglin 601 Bellvue Avenue Brooklyn Center, MN 5430 pberglinCa�mninter.net (763) 549 -5542 (h); (763) 862 -7300 (w) Appointed: 4/23/2007 Term expires: 12/31/2010 BROOKLYN CENTER FINANCIAL COMMISSION Chairperson and six members (revised March 2010) Dan Schueller 5937 Emerson Avenue North Brooklyn Center, MN 55430 dschue5(ayahoo.com Appointed: 1 /11/2010 Term Expires: 12/31/2011 Steve Landis 7118 Grimes Avenue North Brooklyn Center, MN 55429 landcomm(comcast.net (763)503 - 789922 Appointed: 2/Z /2010 Term Expires: 12/31/2012 2 vacancies Dan Ryan (h) (763) 535 -4177 council mem berryan (aci . brooklyn- center. m n . u s Curt Boganey (w) (763) 569 -3303 cboganeyAci. brooklyn - center. mn . us Daniel Jordet (w) (763) 569 -3345 djordetCa�ci. brooklyn - center. mn. us RESOLUTION NO. 91-115 RESOLUTION NO. 92 -99 RESOLUTION NO. 92 -168 RESOLUTION NO. 95 -78 RESOLUTION NO. 98 -13 RESOLUTION NO. 99 -110 RESOLUTION ESTABLISHING A BROOKLYN CENTER FINANCIAL COMMISSION AND DEFINING DUTIES AND RESPONSIBILITIES WHEREAS, the Brooklyn Center City Council established by Resolution Nos. 91 -115 and 92 -99 an ad hoc task force for the express purpose of reviewing the fiscal impacts of State of Minnesota budgetary problems on Brooklyn Center and assisting the City Council in formulating priorities and responses to a limited fiscal resource situation; and WHEREAS, on June 22, 1992, the ad hoc City Financial Task Force presented to the City Council a report entitled "General Fund Budget Prioritization Process" which was accepted by the City Council; and WHEREAS, there is an ongoing need to formulate priorities and responses to continuing limited fiscal resources. NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center City Council that there is hereby established within the City of Brooklyn Center an advisory Financial Commission as follows: Subdivision 1. TITLE: This organization shall be known as the Brooklyn Center Financial Commission. Subdivision 2. SCOPE: The scope of activity of this Commission shall consist of advising the City Council regarding matters relevant to the City's financial status. Subdivision 3. PURPOSE: The Commission shall serve as an advisory body to assist the City Council in evaluating and developing fiscal policies, fiscal procedures, Mayor and Council Member total compensation, budgetary and capital matters, and such other issues as may be assigned to the Commission by the City Council or referred to it by the City Manager. The Commission may also identify and recommend to the City Council issues and matters for Commission and/or staff review. Subdivision 4. COMPOSITION: The Commission shall be composed of a chairperson and six (6) members, all of whom shall be appointed and serve as set forth in Subdivision 5. Subdivision 5. MEMBERS METHOD OF SELECTION -TERM OF OFFICE - REMOVAL: Chairperson: The Chairperson shall be elected by majority vote of the Financial Commission membership. The election shall be conducted at the Financial Commission's first regular meeting of the calendar year, or in the case of a vacancy, within two regularly scheduled Financial Commission meetings from the time a vacancy of the chair occurs. The Chairperson may be removed by majority vote of the Financial Commission membership. The Chairperson shall assure fulfillment of the following responsibilities in addition to those otherwise described herein: 1. Preside over meetings of the Commission; 2. Appear or appoint a representative to appear, as necessary, before the City Council to present the viewpoint of the Commission in matters relevant to the City's financial status as it relates to business under consideration by the City Council; 3. Review all official minutes of the City Council and other advisory commissions for the purpose of informing the Financial Commission of matters relevant to city finances. Vice Chairperson: A Vice Chairperson shall be appointed annually by the Chairperson from the members of the Commission. The Vice Chairperson shall perform such duties as may be assigned by the Chairperson and shall assume the responsibilities of the chair in the absence of the Chairperson. Members' Tenn of Office: Members of the Commission shall be appointed by the Mayor with majority consent of the Council. The terms of office shall be staggered three -year terms, except that any person appointed to fill a vacancy occurring prior to the expiration of the term for which his or her predecessor was appointed shall be appointed only for the remainder of such term. Upon expiration of his or her term of office, a member shall continue to serve until his or her successor is appointed and shall have qualified. Terms of office for members of the Commission shall expire on December 31 of respective calendar years. In the event an appointed Commissioner suffers from an extended illness, disability, or other activity preventing proper fulfillment of duties, responsibilities, rules and regulations of the Commission, the Commissioner may be temporarily replaced by an interim Commissioner appointed by the Mayor with majority consent of the City Council. -2- Qualifications for Membership: Members of the Commission shall be residents of the City of Brooklyn Center while serving on the Commission and have an interest in the financial operations of the City. Representation Requirements: Members shall be appointed upon the basis of qualification and interest and to reflect a general representation of the diversity of the community. Conflict of Interest: Commissioners shall comply with provisions of the City of Brooklyn Center's business ethics policy. Resignations- Removal from Office- Vacancies: Commissioners may resign voluntarily or may be removed from office by the Mayor with consent by majority vote of the City Council. Three consecutive unexcused absences from the duly called Commission meetings or unexcused absences from a majority of duly called Commission meetings within one calendar year shall constitute automatic resignation from office. The City Council liaison shall inform the Mayor and City Council of such automatic resignations. Vacancies in the Commission shall be filled by Mayoral appointment with majority consent of the City Council. The procedure for filling Commission vacancies is as follows: 1. Notices of vacancies shall be posted for 30 days before any official City Council action is taken; 2. Vacancies shall be announced in the City's official newspaper; 3. Notices of vacancies shall be sent to all members of standing advisory commissions; 4. Applications for Commission membership must be obtained in the City Clerk's office and must be submitted in writing to the City Clerk; 5. The City Clerk shall forward copies of the applications to the Mayor and City Council; 6. The Mayor shall identify and include the nominee's application form in the City Council agenda materials for the City Council nieeting at which the nominee is presented; 7. The City Council, by majority vote, may approve an appointment at the City Council meeting at which the nominee is presented. Compensation: Commissioners shall serve without compensation. -3- Subdivision 6. RULES AND PROCEDURES: The Commission shall adopt such rules and procedures not inconsistent with these provisions as may be necessary for the proper execution and conduct of business. Subdivision 7. MEETINGS: The initial meeting of the Commission shall be convened at the call of the Chairperson within thirty (30) days after appointment by the Council. Thereafter, regular meetings shall be held with date and time to be determined by the Commission. Special meetings may be called by the Chairperson. Subdivision 8. STAFF: The City Manager shall assign one member of the administrative staff to serve as staff to the Commission. The staff member assigned shall perform such clerical and research duties on behalf of the Commission as may be assigned the City Manager. Subdivision 9. EX OFFICIO MEMBERS: The Mayor, or his or her City Council designee, shall serve as an ex officio member of the Commission, privileged to speak on any matter but without a vote, and shall provide a liaison between the Commission and the City Council. Financial Policies 2010 (revised and updated: December 2006) Asset Type Examples Useful Life Non - infrastructure Furniture and furnishings Desks, tables, chairs 5 years Computer hardware Monitors, CPUs, printers 3 years Communication equipment Telephone systems, radio systems 10 years Motor Vehicles Cars and light trucks $250,000 5 years Fire trucks 15 years Heavy duty trucks 10 years Motorized equipment Heavy construction equipment Dozers, loaders, graders 10 years Ground maintenance Mowers, tractors and attachments 15 years Other equipment Recreation equipment, custodial equipment, engineering equipment 10 years Improvements Parking lots, sidewalks, fences 25 years Buildings Buildings, park shelters 25 years Asset Category Value Threshold Land improvements (parking lots, sidewalks, fencing) $25,000 Buildings /Building improvements (excludes furnishings) $50,000 Furniture and furnishings $10,000 Technology equipment (computers, communication systems, printers) $10,000 Motorized vehicles (squad cars, pickup trucks, mowers) $10,000 Heavy equipment (plow trucks, fire trucks, loaders, graders) $25,000 Infrastructure improvements (water, sewer, storm sewer, street lights, streets) $250,000 SECTION II — GENERAL POLICIES reciation Schedule City Council Code of Policies FINANCIAL POLICIES 2.20 Capitalization and Depreciation Policy for Assets Held by the City of Brooklyn Center The City of Brooklyn Center is required under Governmental Accounting and Standards Board (GASB) pronouncements to record and account for fixed assets in accordance with approved City policies within certain Internal Revenue Service (IRS) regulations. With the implementation of GASB 34, it will be required that all fixed assets be capitalized and accounted for in the fund that provided financing for asset acquisition and should be credited with the value of that asset. City of Brooklyn Center 07/14/08 Page 221 Infrastructure Water systems Trunks, mains, towers, pumps 25 years Sewer systems Trunks, mains, lift stations 25 years Storm sewer systems Trunks, mains, ponds 25 years Street light systems Street lights 15 years Traffic control systems Signal lights 15 years Streets Paved 25 years SECTION II — GENERAL POLICIES City Council Code of Policies Reference: City Council Resolution No. 2002 -185 City of Brooklyn Center 07/14/08 Page 222 SECTION II — GENERAL POLICIES 2.21 Financial Management Policies City Council Code of Policies 1. Purpose The City of Brooklyn Center has a responsibility to its citizens to carefully account for public funds, to manage municipal finances wisely, and to plan the adequate funding of services desired by the public, including the provision and maintenance of public facilities. The City also has the responsibility to its citizens to provide both short-term and long -term future financial stability. The City must ensure that it is capable of adequately funding and providing local government services needed by the community. Further, the financial policies set forth herein, provide the basic framework for the overall fiscal management of the City. Operating independently of changing circumstances and conditions, these policies assist the decision making process of the City Council and Administration. Most of the policies represent long- standing principles, traditions and practices which have guided the City in the past and have helped maintain financial stability over the past years. The financial policies will be reviewed periodically to ascertain if modifications are necessary. 2. Objectives In order to achieve this purpose, this plan has the following objectives for the City's fiscal performance: A. To protect the City Council's policy- making ability by ensuring that important policy decisions are not controlled by financial problems or emergencies and to prevent financial difficulties. B. To provide sound principles to guide the important decisions of the City Council and of management which have significant fiscal impact and to enhance the City Council's policy- making ability by providing accurate information on program costs. C. To set forth operational principles which control the cost of local government, to the extent consistent with services desired by the public and which lower financial risk. D. To employ revenue policies which mitigate undue or unbalanced reliance on certain revenues, especially property taxes; which distribute the costs of municipal services fairly; and which provide adequate funds to operate desired program and assist sound management of the city government by providing r--a accurate and timely information on financial conditions. E. To provide essential public facilities and prevent deterioration of the City's public facilities and its capital plant. City of Brooklyn Center 07/14/08 Page 223 SECTION II — GENERAL POLICIES City Council Code of Policies F. To protect and enhance the City's credit rating and prevent default on any municipal debts. G. To ensure the legal use and protection of all City funds through a quality system of financial and internal controls. H. The City will maintain a Risk Management Program that will minimize the impact of legal liabilities, natural disasters or other emergencies. 3. Financial Management Policies A. Capital Improvement Budget Policies 1. The City will make all capital improvements in accordance with an adopted Capital Improvement Budget. 2. The City will develop a multi -year plan for capital improvements and update it at least biennially. 3. The City Council will adopt the annual Capital Improvements Budget based on the multi -year capital improvement plan. Future capital expenditures necessitated by changes in population, changes in real estate development, or changes in economic base will be calculated and included in Capital Budget projections. 4. The City will coordinate development of the Capital Improvement Budget with the development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts. 5. The City will use intergovernmental assistance to finance only those capital improvements which are consistent with the adopted capital improvement plan and City priorities and for which operating and maintenance costs have been included in operating budget forecasts. 6. The City will project its equipment replacement and maintenance needs for the next several years and will update this projection each year. From this projection, a maintenance and replacement schedule will be developed and followed. 7. The City staff will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted to the City Council for approval. 8. The City will determine the least costly financing method over the length of all new projects. City of Brooklyn Center 07/14/08 Page 224 SECTION II — GENERAL POLICIES B. Revenue Policies City Council Code of Policies 1. The City will attempt to maintain a diversified and stable revenue system to shelter it from short-run fluctuations in any one revenue source and to minimize property taxes. 2. The City will estimate its annual revenue by an objective conservative analytical process. 3. The City will project revenues for the next three years and will update this projection annually. Each existing and potential revenue source will be reexamined annually. 4. The City will maintain sound appraisal procedures to keep property values correct. Property will be assessed at the legally mandated market value for each type of property. Reassessments will be made of all property at least every five years. 5. The City will follow an assertive policy of collecting property tax revenues. The annual level of uncollected property taxes should generally not exceed two percent. 6. Each year the City will recalculate the full costs of activities supported by user fees to identify the impact of inflation and other cost increases. 7. The City staff will recommend revised user fees with review by the City Council on an annual basis, to adjust for cost factors and inflation on the City's cost of providing services. 8. The City will set fees and user charges for each Enterprise Fund, such as Water and Sewer, at a level which fully supports the total direct and indirect costs of the activity. Indirect costs include the cost of annual depreciation of capital assets. 9. User charges and fees determined to be appropriate for City services will generally be established at a level which will recover the full cost of providing the service, including administrative costs. C. Debt Policies 1. The City will confine long -term borrowing to capital improvements or projects which cannot be financed from current revenues. 2. When the City finances capital projects by issuing bonds, it will pay back the bonds within a period not to exceed the expected useful Life of the project. City of Brooklyn Center 07/14/08 Page 225 SECTION II — GENERAL POLICIES City Council Code of Policies 3. On all projects, at least 50% of the principal shall be retired within ten years. 4. The City will make every attempt to keep the average maturity of General Obligation Bonds at or below 20 years. 5. Total debt service payments for General Obligation debt will not exceed five percent of total annual locally generated operating revenue in the general, special revenue, and proprietary funds. 6. Total outstanding General Obligation debt will not exceed two percent of the market valuation of taxable property. 7. Where possible, the City will use special assessment, revenue or other self - supporting bonds instead of General Obligation Bonds. 8. The City will not incur debt to support current operations. 9. The City will maintain good communications with bond rating agencies regarding its financial condition. The City will follow a policy of full disclosure in every financial report, official statement, and bond prospectus. 10. Direct net -debt (gross debt less debt fully supported by non - property tax revenues) per capita shall not exceed $600 per capita. 11. The City will require Minimum Assessment (Taxable Valuation) Agreements on all projects in which the City is providing development assistance through tax increment financing or committing its bonding authority. This will ensure minimal cash flow (increment) to repay obligations, provide another level of review before commitment (by the City Assessor), and to the minimal value agreed upon, eliminate tax appeals during the agreement period. 12. For purposes of this section, tax increment revenues are classified as a non - property tax revenue source. D. Reserve Policies 1. The City shall manage its cash flow needs by having a target unreserved and undesignated General Fund balance at the close of each fiscal year of 50 to 52% of the next year's General Fund operating budget. 2. Undesignated General Fund monies that are not required for cash flow purposes may be transferred into other funds as may be appropriate or needed during the fiscal year. It is specifically anticipated that transfers will be made to the Street Reconstruction Fund, Capital Improvements City of Brooklyn Center 07/14/08 Page 226 SECTION II — GENERAL POLICIES E. Investment Policies City Council Code of Policies Fund, and the Technology Fund when operating results generate a surplus of actual revenues over actual expenditures to serve as a recurring source of funding for those three funds. 1. The City will make cash flow analysis of all funds on a regular basis. Disbursement, collection and deposit of all funds will be scheduled to ensure maximum cash availability. 2. When permitted by law, the City will pool cash from several different funds for investment purposes. 3. The City will invest at least 98% of its idle cash on a continuous basis. 4. The City will analyze market conditions and investment securities to determine what yield can be obtained, and attempt to secure the best possible return on all cash investments. 5. The City's accounting system will provide regular information concerning cash position and investment performance. 6. The City will maintain a formal written investment policy which will contain legal and administrative guidelines necessary to ensure that the City's available funds will be invested to the maximum extent possible, at the highest rates obtainable at the time of the investment, consistent with minimizing credit and market risk and which provides proper safeguards for the keeping of the City's investments. F. Accounting, Auditing and Financial Reporting Policies 1. The City will establish and maintain a high standard of accounting practices in conformance with generally accepted accounting principles. 2. The accounting system will maintain records on a basis consistent with accepted standards for local government accounting using GASB 34 as the basis of accounting for all governmental funds and an accrual basis of accounting for Enterprise and Internal Service Funds. Accounting policies will reflect the principle of charging current taxpayers and /or users for the full cost of providing current services. 3. Regular monthly and annual financial reports will present a summary of financial activity by mayor types of funds as determined by the prior year's Comprehensive Annual Financial Report. City of Brooklyn Center 07/14/08 Page 227 SECTION II — GENERAL POLICIES City Council Code of Policies 4. Where possible, the reporting system will provide monthly information on the total cost of specified services by type of expenditure and, if necessary, by fund. 5. An independent public accounting firm will perform an annual audit and will publicly issue an opinion concerning the City's finances. G. Risk Management Policies 1. The City will maintain a Risk Management Program that will minimize the impact of legal liabilities, natural disasters or other emergencies through the following activities: a. Loss Prevention. Prevent negative occurrences. b. Loss Control. Reduce or mitigate expenses of a negative occurrence. c. Loss Financing. Provide a means to finance losses. d. Loss Information Management. Collect and analyze relevant data to make prudent loss prevention, loss control and loss financing decisions. 2. The City's Risk Management Program will: a. Analyze all the City's risks. b. Avoid risks whenever possible. c. Reduce risks whenever possible. d. Transfer risks to other entities when possible. e. Of those risks that must be retained, it shall be the City's policy to fund risks which the City can afford and transfer all other risks to insurers. 3. The City will maintain an active Safety Committee comprised of City employees. 4. The City will periodically conduct educational safety and risk avoidance programs, through its Safety Committee and with the participation of its insurers, within its various departments. 5. The Safety Committee will report to the City Manager, at least annually, on the results and costs of the City's Risk Management Program for the preceding year. The City Manager shall report annually to the City Council. City of Brooklyn Center 07/14/08 Page 228 SECTION II — GENERAL POLICIES City Council Code of Policies H. Operating Budget Policies 1. In accordance with Chapter 7, Section 7.06 of the City Charter, the total sum appropriated in the General Fund annual budget shall be equal to the total estimated General Fund revenue and any allocated General Fund balance. 2. The City will pay for all current expenditures with current revenues. The City will avoid budgetary procedures that balance current expenditures at the expense of meeting future year's revenues, or rolling over short-term debt, or that rely on accumulated fund balances to meet current obligations. 3. The City will annually appropriate a contingency appropriation in the General Fund budget, not to exceed five percent of the total budget, to provide for unanticipated expenditure of a non - recurring nature. 4. The City Manager, when submitting the Proposed Budget to the City Council, shall submit a balanced General Fund budget in which appropriations shall not exceed the total of the estimated General Fund revenue and any fund balance appropriated by the City Council. 5. Prior to adopting the General Fund Annual Budget, the City Council shall review the Reserve Policy. 6. In the event that there is a shortfall of revenues in a current year budget, the City Manager may recommend the use of a portion of the General Fund balance not to exceed the amount available after deducting amounts reserved for items not readily convertible to cash or reserved for working capital. 7. The budget will provide for adequate maintenance of the capital plant and equipment, and for their orderly replacement. 8. The budget will provide for adequate funding of all retirement systems. 9. The City will maintain a budgetary control system to assist in adhering to the budget. 10. The City administration will prepare regular monthly reports comparing actual revenues and expenditures to the budgeted amount. 11. Each year the City will update expenditure projections for its Enterprise Funds for at least the ensuing five years. Projections will include estimated operating costs of future capital improvements included in the Capital Budget. City of Brooklyn Center 07/14/08 Page 229 SECTION II — GENERAL POLICIES I. Ethics Policy City Council Code of Policies 12. The Operating Budget will describe the major goals to be achieved, and the services and programs to be delivered for the level of funding provided. 13. Where possible, the City will integrate performance measurement and productivity indicators with the budget. 14. Enterprise funds shall be budgeted to have positive net income plus a sufficient margin to provide for replacement cost of property, plant, and equipment. The City will maintain, and periodically review, a formal written ethics policy for all City employees and elected officials. J. Role of Auditors The City's independent auditors shall be required, in the course of their audit, in the content of their Management Letter, to report any conditions that appear to be violations of our financial management policy. Reference: City Council Resolution Nos. 2006 -120; 2004 -189; 99 -21; 98 -48; City Council Minutes 5/22/95; 6/8/92; 2/26/90; 12/22/80 City of Brooklyn Center 07/14/08 Page 230 SECTION II — GENERAL POLICIES 2.22 Investment Policy 1. Scope This investment policy applies to all of the investment activities of the City, except for the proceeds of refunding bond issues where the investment of such proceeds is specifically governed by the bond escrow agreement. 2. Objective A. Safety Safety of principal is the foremost objective of the investment program. Investments shall be in a manner that ensures the preservation of capital in the overall portfolio. 1. Credit Risk City Council Code of Policies Credit risk is the risk of loss due to failure of the security issuer or backer. Credit risk may be mitigated by: a. Limiting investments to the safest types of securities; and b. Pre - qualifying the financial institution, broker /dealer, intermediaries, and advisors with which an entity will do business; and c. Diversifying the investment portfolio so that potential losses on individual securities will be minimized. 2. Interest Rate Risk Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rate. Interest rate risk may be mitigated by: a. Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and b. By investing operating funds primarily in shorter -term securities. City of Brooklyn Center 07/14/08 Page 231 SECTION II — GENERAL POLICIES C. Yield D. Stable Earnings 3. Standards of Care A. Prudence City Council Code of Policies B. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. Furthermore, since all possible cash demands cannot be anticipated, the portfolio should contain a large component of securities with active secondary or resale markets. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall be held to maturity with the following exceptions: 1. Liquidity needs of the portfolio require that the security be sold. 2. A security of declining credit could be sold early to minimize loss of principal. Since investment earnings are included in the budgeted revenues of the City, it is important that these earnings be stable and predictable through at least the next budget cycle. This emphasizes the need to purchase securities of various maturities so that at least half of the portfolio will remain for two or more years with known interest rates. The standard of prudence to be used by investment officials shall be the prudent person standard described in Minnesota Statutes Chapter 118A. It will be applied in the context of managing the overall portfolio. Investment officials acting in accordance with this policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the purchase and sale of securities are carried out in accordance with the terms of the policy. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the City of Brooklyn Center 07/14/08 Page 232 SECTION II — GENERAL POLICIES City Council Code of Policies management of the City's affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. B. Ethics and Conflicts of Interest Officials involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial /investment positions that could be related to the performance of the investment portfolio. Officials shall refrain from undertaking personal investment transactions with the same individual with whom business in conducted on behalf of the City. C. Delegation of Authority Authority to manage the investment program is derived from Minnesota State Statutes, Chapter 118A and Brooklyn Center City Charter Chapter 6, Section 6.04 and is granted to the City Manager, City Treasurer, and Assistant Finance Director. Responsibility for the operation of the investment program may be delegated by the City Manager to the City Treasurer, who shall carry out the program consistent with this policy. No person may engage in any investment transaction except as provided under the terms of this policy. The City Treasurer shall be responsible to the City Manager for all transactions undertaken and shall establish a system of controls to regulate the execution of all investment transactions. D. Training To ensure the competence of its investment officials, the City shall provide the opportunity for the officials to attend such investment training programs as are available and suitable. 4. Safekeeping and Custody A. Authorized Financial Dealers and Institutions A resolution shall be submitted to the City Council at least annually to designate depositories of City funds. This shall include institutions and dealers /brokers where accounts are maintained for banking services, purchase and sale of investment securities, and the custody of securities. The City Treasurer shall provide to each broker or institution a written statement of investment restrictions which shall include a provision that all future investments are to be made in accordance with Minnesota Statutes governing the City of Brooklyn Center 07/14/08 Page 233 SECTION II — GENERAL POLICIES City Council Code of Policies investment of public funds, prior to completing an initial transaction, and annually thereafter. An annual review of the depositories shall be conducted by the City Treasurer. Requests for Proposals for banking services and custodian for investment securities shall be conducted on a periodic basis as defined in the Policy and Procedure on Requests for Proposals for Financial Professional Services. B. Internal Controls The City Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management. Internal controls shall include the following: I. Control of Collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. 2. Custodial safekeeping. Securities purchased from any bank or dealer shall be placed with an independent third party for custodial safekeeping or held in an account with the Federal Reserve Bank of Minneapolis. 3. Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physical delivered securities. 4. Clear delegation of authority to subordinate staff members. Officials must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure. 5. Written confirmation of telephone transactions for investments and wire transfers. Due to the potential for errors and improprieties arising from telephone transactions, all transactions should be supported by written communications and approved by the appropriate official. Written communications may be via fax on letterhead. Institutions and brokers /dealers shall be provided with a list of authorized signers. 6. Development of a wire transfer agreement with institutions and brokers /dealers. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. City of Brooklyn Center 07/14/08 Page 234 SECTION II — GENERAL POLICIES City Council Code of Policies 7. Independent Audit. The City's independent auditors shall conduct a thorough review of the City's investment portfolio and transactions as part of their engagement. C. Delivery Verses Payment All trades where applicable will be executed by delivery verses payment (DVP). This ensures that securities are deposited in the eligible financial institution prior to the release of funds. Securities will be held by a third party custodian. 5. Suitable and Authorized Investments A. Investment Types Consistent with Minnesota Statutes Chapter 118A, the following investments will be permitted by this policy: 1. Securities that are the direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress; including governmental bills, notes, bonds, and other securities. 2. Commercial paper issued by U.S. corporations or their Canadian subsidiaries that is rated in the highest quality by at least two nationally recognized rating agencies and matures in 270 days or less. 3. Time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of U.S. banks. 4. Repurchase agreements and reverse repurchase agreements may be entered into with financial institutions identified by Minnesota Statutes Chapter 118A. 5. Securities lending agreements may be entered into with financial institutions identified by Minnesota Statutes Chapter 118A. 6. Minnesota joint powers investment trusts may be entered into with trusts identified by Minnesota Statutes Chapter 118A. 7. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of short term securities permitted by Minnesota Statutes Chapter 118A. 8. Bonds of the City of Brooklyn Center issued in prior years, may be redeemed at current market price, which may include a premium, prior to maturity using surplus funds of the debt service fund set up for that issue. City of Brooklyn Center 07/14/08 Page 235 SECTION II — GENERAL POLICIES B. Securities Not Purchased C. Collateralization D. Maximum Maturities 6. Reporting Reference: City Council Resolution Nos. 2006 -120; 97 -60; 90 -105 City Council Code of Policies Such repurchased bonds shall be canceled and removed form the obligation of the fund. Derivative securities, which obtain their value by the calculation of some portion of the value of another security, shall not be purchased. Mortgage backed securities, unless issued by a Federal Agency, shall not be purchased. Securities, which represent the principal or interest payments stripped off from an original issue security, shall not be purchased. To the extent that deposits in bank accounts, certificates of deposit, and repurchase agreements exceed the available federal deposit insurance, collateral shall be furnished by the financial institution in accordance with Minnesota Statutes Chapter 118A. When purchasing investments, the Treasurer will attempt to match the maturity to future cash flow requirements. The City will not invest in securities maturing more than five years from the date of purchase. No more than ten percent of the City's portfolio at any time shall be invested in securities with maturities of more than three years. A. The City Treasurer shall prepare a monthly investment report to the City Manager which shall include a succinct management summary; a list of significant transactions such as purchases, sales, and maturities of investments; a list of investments by type, a list of investments by maturity, a calculation of average yield on the portfolio, and a statement of interest earned. This report will be prepared in a manner which will allow the City Manager to ascertain whether investment activities during the month have conformed to the investment policy. B. A statement of the market value of the portfolio shall be issued at least annually. This will review the investment portfolio in terms of value and subsequent price volatility. City of Brooklyn Center 07/14/08 Page 236 SECTION II — GENERAL POLICIES UTILITY POLICIES 2.30 Policy for Public Utility Account Collections 2. Policy 3. Procedure A. Normal Billing and Collection 2. A public utility bill is due 28 days from the date of billing. City Council Code of Policies 1. Purpose The purpose of this policy is to provide an orderly and reasonable method for the collection of accounts of the various utilities operated by the City of Brooklyn Center and any which may be added in the future. This policy is intended to follow with the provisions of Minnesota State Law, Brooklyn Center City Charter, and City Ordinance. Utilities currently operated by the City of Brooklyn Center and the corresponding ordinances are as follows: Water, Sanitary Sewer, Storm Drainage, and Street Light Service District, Chapter 4; and Recycling, Chapter 7. In keeping with Minnesota State Law, all municipal utility services shall be considered to be services to the property, not to the person. All residential utility services shall be billed to the owner of the property, not to the tenant. Commercial and industrial properties may be billed to either the owner or the tenant. Utility services shall be billed to the appropriate party by the Finance Department according to the rate schedule adopted annually by resolution by the City Council. Utility accounts shall become due immediately following billing and must be paid by the due date printed on the bill. Special assessment against the benefited property of any delinquent unpaid accounts shall be considered as the primary means of collection. Shutting off of water service to the benefited property shall be an alternate means of collection in any situation where special assessment isn't possible or practical and for situations where the customer has failed to provide a water meter reading for more than four quarters. Any City utility service for which a rate schedule is established by resolution is eligible for collection by means of either special assessment or water shut off. 1. A meter card is mailed to each residential property 28 days prior to the billing date. Readings must be submitted to the Finance Department by the date printed on the meter card. Penalties for failure to submit a meter reading will be charged on the date of billing as defined by the rate schedule. Customers who fail to submit a meter reading card for four quarters will be required to submit a meter reading or face the shut off of water service. City of Brooklyn Center 07/14/08 Page 237 SECTION II — GENERAL POLICIES a. 3. The late payment penalty as defined in the rate schedule shall be applied five working days after the due date. 4. A delinquent billing is generated for each account unpaid after 35 days from the date of billing. Customers have 21 days to pay this delinquent bill. B. Delinquent Accounts 1. Delinquent accounts shall be pended as a special assessment. 2. Rental property (Commercial or Industrial) C. Final Bills City Council Code of Policies a. If delinquency not incurred by current tenant, 1. obtain a meter reading and date of change of occupancy, and calculate final bill for previous tenant. 2. if a forwarding address is available for the previous tenant, send a final bill. Send an informational copy to the property owner. 3. if no address is available, notify property owner of delinquent final bill. 4. if not paid in 28 days, the unpaid amount shall be certified as a special assessment. b. If delinquency incurred by current tenant, follow normal procedures for delinquent bills and certification by special assessment to the property tax. 1. All final bills unpaid after 28 days shall be pended as a special assessment. For residential properties undergoing sale to new owners, where a utility bill exists which had not been pended to the assessment rolls prior to the date of closing on the sale to the new owner, the unpaid balance of the old owner shall not be applied to the account of the new owner. 2. Rental Property (Commercial and Industrial) All final bills unpaid after 28 days shall be billed to the property owner, due in 28 days after the date of the billing. b. If not paid in 28 days, the unpaid amount shall be certified as a special assessment. City of Brooklyn Center 07/14/08 Page 238 SECTION II — GENERAL POLICIES 3. Other Property a. After 28 days unpaid, the bill shall be pended as a special assessment, and a letter of explanation sent to the new property owner. D. Returned Checks City Council Code of Policies b. Two or more attempts 28 days apart shall be made to collect from the previous property owner. If unpaid, the bill shall be certified as a special assessment. Checks which are returned to the City for non - sufficient funds, account closed, or otherwise not honored by the bank shall be charged the maximum service fee allowed by Minnesota Statutes. 4. Special Assessments For accounts that remain uncollected after performance of the normal billing and collection procedure, special assessment against the property shall be considered as a primary means of collection. A. The annual City Council resolution adopting the utility rate schedule shall establish the number of assessment cycles per year and a schedule for public hearings to be held at City Council meetings for the purpose of adopting a certification roll of delinquent utility accounts for special assessment. At least one certification cycle will be timed each year to coincide with Hennepin County's requirements for certification to the following year's taxes. Additional certification cycles may be set in the annual resolution. B. A certification cut -off date shall be established at which time all accounts which have been billed a delinquent bill and the account is unpaid as of the due date on the delinquent bill, shall have the balance on the account included in the preliminary special assessment certification roll. C. A notice of public hearing will be published in the City's official newspaper at least two weeks prior to the public hearing. A notice of public hearing and a copy of the proposed special assessment roll will be sent by first class mail to each affected property owner at least two weeks prior to the public hearing. D. The owner of the property shall have the option of paying the balance due on the account until the date the notice of public hearing is mailed. After the date the notice of public hearing is mailed, payments will still be accepted, but will include the certification charge. City of Brooklyn Center 07/14/08 Page 239 SECTION II — GENERAL POLICIES 5. Water Shut Offs a. Deliver payment in full to the City. City Council Code of Policies E. The public hearing will be held at a City Council meeting at which the property owner shall have the opportunity to object to the special assessment. F. After the public hearing, for each special assessment sustained by the City Council, the property owner shall have the option: 1. To prepay the special assessment and the special assessment certification charge listed on the preliminary roll, but without additional interest after the public hearing, within 30 days of the public hearing date. 2. To prepay the special assessment and the special assessment certification charge after 30 days of the public hearing date, but before the county certification deadline, with interest at the rate set in the adopted rate schedule, accrued beginning on the 31st day following the public hearing date through the date of payment. 3. To pay the special assessment as billed to them by Hennepin County on their property tax statement with an assessment term of one year. G. After the 31st day following the public hearing, the certified roll, minus any prepayments, shall be delivered to Hennepin County. The City reserves the right to shut off water service to properties in situations where special assessment isn't practical or possible. Brooklyn Center Ordinance 4 -202 provides that water service may upon reasonable notice be discontinued for nonpayment of individual accounts or for disregard of duly established rules and regulations pertaining to the operations of the water distribution system. The following is the procedure to be followed when it is necessary to discontinue water service to any customer. Appropriate procedures for various circumstances of a water shut -off shall be as follows: A. For public utility accounts in arrears, or when a closing bill is more than 30 days overdue; for non - payment of the account by a property which is tax exempt and doesn't pay property taxes; or for non - payment of the account by a property which is in another city and that city doesn't cooperate with a request to special assess the delinquent account: 1. A "Final Notice" letter is sent to each delinquent account unpaid 56 days after the date of billing. This notice informs customers that they have 11 days to select one of the following three options for handling their account. City of Brooklyn Center 07/14/08 Page 240 SECTION II — GENERAL POLICIES City Council Code of Policies b. Sign and return a payment agreement to the City. A minimum acceptable agreement includes a partial payment of at least 1/4 of the total amount due paid within 14 days, and the full payment within 30 days of the date of the final notice. If that payment agreement is not met, the property will be red tagged. c. Provide a written letter to the City requesting an administrative hearing before the City Council at their next regularly scheduled meeting. At this meeting, the customer must show cause as to why the City Council should remove their name and account from the list of accounts for which service is to be discontinued. The City Council may either sustain the requirement for payment, modify the required terms of payment, or order staff to take such actions as it deems are necessary. If no written request is received, it is assumed the customer waives the right to a hearing. 2. On the 70th day, a "red tag" is delivered to properties where the account remains unpaid, a payment agreement has not been made or isn't being adhered to, and where no request for a hearing has been made. This notice informs customers that payment is due within five days or water will be immediately shut off. 3. Once service has been shut off for non - payment, the entire balance due and a restoration of service fee must be paid prior to service being turned on. The restoration of service fees will be established in the adopted rate schedule and will include a fee for restoration during normal business hours and a higher fee for restoration when workers must be called back on overtime. B. For a customer who short- circuits the special assessment process by paying the balance on the account with a check, then the check is returned to the City for non - sufficient funds or account closed after a critical step in the assessment process has been missed: 1. A "Final Notice" letter is sent to each delinquent account immediately upon receipt of the returned check from the bank. The established fee for processing a returned check shall be added to the account. This notice informs customers that they have 11 days to select one of the following three options for handling their account. a. Deliver payment in full of the total amount which was to be assessed plus the fee for a returned check to the City. b. Sign and return a payment agreement to the City. A minimum acceptable agreement includes a partial payment of at least 1/4 of the total amount which was to be assessed plus the fee for a returned check, paid within 14 days, and full payment within 30 City of Brooklyn Center 07/14/08 Page 241 SECTION II — GENERAL POLICIES City Council Code of Policies days of the date of the final notice. If that payment agreement is not met, the property will be red tagged. c. Provide a written letter to the City requesting an administrative hearing before the City Council at their next regularly scheduled meeting. At this meeting, the customer must show cause as to why the City Council should remove their name and account from the list of accounts for which service is to be discontinued. The City Council may either sustain the requirement for payment, modify the required terms of payment, or order staff to take such actions as it deems are necessary. If no written request is received, it is assumed the customer waives the right to a hearing. 2. Two weeks after the date of the Final Notice letter, a "red tag" is delivered to properties where the account remains unpaid, a payment agreement has not been made or isn't being adhered to, and where no request for a hearing has been made. This notice informs customers that payment is due within five days or water will be immediately shut off. 3. Once service has been shut off for non - payment, the entire balance due and a restoration of service fee must be paid prior to service being turned on. The restoration of service fees will be established in the adopted rate schedule and will include a fee for restoration during normal business hours and a higher fee for restoration when workers must be called back on overtime. C. For a customer who refuses to submit a meter reading for four quarters or refuses to allow the City access to a property for maintenance of a meter as provided in City Ordinances, Chapter 4, Section 201, Subdivision 6. 1. After the City has contacted the owner through normal business channels and the owner has refused to provide a meter reading or allow access to a property for required maintenance, a "Final Notice" letter is sent to the owner and to the service address, if different. This notice reproduces the legal authority establishing the City's need for access, describes the work to be performed, and informs customers that they have two weeks to make arrangements with the City to afford access to the property. 2. Two weeks after the date of the Final Notice letter, a "red tag" is delivered to properties where the meter reading or access have been denied. This notice informs customers that access is required within five days or water will be immediately shut off. 3. Once service has been shut off for denial of a meter reading or access, the meter reading or access must be allowed and a restoration of service fee must be paid prior to service being turned on. The restoration of service fees will be established in the adopted rate schedule and will include a fee City of Brooklyn Center 07/14/08 Page 242 SECTION II - GENERAL POLICIES E. Cold Weather Rule City Council Code of Policies for restoration during normal business adopted rate schedule and will include a fee for restoration during normal business hours and a higher fee for restoration when workers must be called back on overtime. D. For a property owner making a request for the City to shut off water service: 1. The property owner must complete and sign a City form requesting and authorizing the shut -off or provide an equivalent written request. Billing for water, sanitary sewer, storm drainage, street light service district, and recycling program will continue; a. at the minimum rates designated in the City's utility rate schedule while the water is shut off for a period of one month or more; or b. at the regularly scheduled rates when water is shut off for less than one month. 2. Once service has been shut off at the owner's request, a restoration of service fee must be paid prior to service being turned on. The restoration of service fees will be established in the adopted rate schedule and will include a fee for restoration during normal business hours and a higher fee for restoration when workers must be called back on overtime. The City of Brooklyn Center will not shut off water service between October 15 and April 15 if the shut off would affect the primary heat source of a customer. Customers must contact the utility billing staff and explain how the cold weather rule applies to them. Reference: City Council Resolution Nos. 2008 -29; 2000 -55; 98 -180; 97 -86; 96 -212; 93 -13 City of Brooklyn Center 07/14/08 Page 243 SECTION II — GENERAL POLICIES City Council Code of Policies 2.31 Policy Regarding the Sanitary Sewer Rate for the Elderly The City Council finds it in the best interest of the City to establish a sanitary sewer rate for the elderly as follows: 1. The rate is available to properties being billed residential sanitary sewer rates and where the head of household or spouse has attained the age of 62 years or older and a maximum of 2 persons permanently reside there. 2. The maximum of 2 persons in the residence may be exceeded by any additional persons who are at least 62 years of age or who are disabled. 3. Residents of owner- occupied homes applying for this program shall complete an application provided by the City once when entering the program and agree to notify the City of any changes in their household which might change their eligibility for the program. 4. Landlords of rental properties may apply for this program on behalf of their senior renters by annually completing an application provided by the City, agreeing that the benefit of the reduced rate shall flow through to the renter, and agreeing to notify the City of any changes in the rental of the property or the renter's household which might change their eligibility for the program. 5. Falsification of information submitted on the application or failure to notify the City of changes in eligibility shall constitute a violation of Chapter 4 of the City Ordinances and may be prosecuted according to Section 4 -501 of Chapter 4 of the City Ordinances. 6. The sanitary sewer rate for the elderly shall be equal to 55% of the rate established annually for single- family homes. Reference: City Council Resolution Nos. 97 -215; 86 -155; 83 -124 City of Brooklyn Center 07/14/08 Page 244 SECTION II - GENERAL POLICIES City Council Code of Policies 2.32 Water Utility Meter Reading Policy Brooklyn Center Ordinance 4 -105 requires that all water utility customers read their meters and provide those readings to the Utilities Division. Section 4 -202 sates that water service may be discontinued to any property for disregard of duly established rules and regulations. The following is the policy regarding meter reading: 1. Residential Properties: A meter reading is due 18 days after the date of mailing meter reading cards. 2. Non - Residential Properties: Public Utilities Division employees read non- residential property meters each quarter. 3. If a meter reading is not provided and the meter reading must be estimated, then a delinquent meter reading penalty shall be assessed to the customer on the next utility bill. Meter reading penalties are established annually with the utilities rate schedules. 4. Residential Properties: If after four consecutive quarters the customer has not submitted a meter reading, the Public Utilities Division shall notify the customer that they have 14 days to schedule an appointment for meter reading. Such notice shall also inform the customer that they have a right to demand a hearing before a hearing officer designated by the City Manager to show cause as to why their water should not be shut off. The demand must be made in writing to the City Clerk within 10 days. If no written demand is received within that time period, then it is assumed the customer waives the right to a hearing. 5. Non - Residential Properties: If after two consecutive quarters the Public Utilities Division has not been able to read a meter, the customer shall be notified that they have 14 days to schedule an appointment for meter reading. Such notice shall also inform the customer that they have a right to demand a hearing before a hearing officer designated by the City Manager to show cause as to why their water should not be shut off. The demand must be made in writing to the City Clerk within 10 days. If no written demand is received within that time period, then it is assumed the customer waives the right to a hearing. 6. Following the show cause hearing, the hearing officer shall make findings and recommendation to the City Manager, whose determination shall be enforced. 7. If by the end of the 14 -day period the customer refuses to schedule an appointment or if the Public Utilities Division is unable to otherwise gain access to the building or obtain a reading, and if the customer has not demanded a public hearing, then the water shall be turned off immediately. Reference: City Council Resolution Nos. 2007 -78; 93 -63 City of Brooklyn Center 07/14/08 Page 245 SECTION II — GENERAL POLICIES BUDGET POLICIES 2.40 Guidelines for Funding of Social Services City Council Code of Policies Social service funding will be divided into categories as follows: 1. Joint Powers Agreements. Services which the City is required to or otherwise would provide itself and has chose to enter into joint powers agreements with other governmental units to provide those services. Increased costs of providing these services over time are to be anticipated in the budget process based on allocation of costs to the City under the joint powers agreements. Guideline: The services will be funded and included in the budget. The City Council will review these services in February of even - numbered years to determine if the delivery mechanism through joint powers is appropriate and effective. Unless the Council directs notice of intent to leave the joint powers agreement by March of any given year, the budget will include participation for the following year. 2. Services Dependent on City Funding. General services that the City could provide itself and has chose to contract for its provision by another entity, where the provision of the service in Brooklyn Center is dependent on the City's provision of financial support at a given level. Increased costs of providing these services over time are to be anticipated in the budget process based on allocation of costs to provide the service in the City. Guideline: The services will be funded and included in the budget at a level necessary for the provision of the service. The City Council will review these services in February of each year to determine if the delivery mechanism through contract is appropriate and effective. Unless the Council directs notice of intent to terminate contractual provision of services by March of any given year, the budget will include participation for the following year. 3. Services Aided by City Funding. General services that the City could provide itself and has chosen to contract for its provision by another entity and the provision of service in Brooklyn Center would be aided by City financial support, but is not dependent on City financial support. Guideline: Based on a timely application for funding, the City Council will consider the following factors in determining funding in this category and allocate funding up to a total amount determined by the City Council • service is unique in the City: that is, there is a rationale for funding the organization's service provision, as opposed to funding one organization out of a group of similar organizations without an objective basis for differentiating between the organizations City of Brooklyn Center 07/14/08 Page 246 SECTION II — GENERAL POLICIES City Council Code of Policies • request meets an important community need • service does not duplicate other services offered in the community • number of residents served or benefit to community is high in relation to the amount requested /provided from /by City • program requires City support to provide level of service • use of volunteers is reasonable and cost effective • other funding sources have been explored /used • budget request is reasonable in light of organization's overall budget • administrative costs and program service costs are in reasonable balance Reference: City Council Minutes 3/14/94; City Council Resolution Nos. 98 -66; 99 -186 City of Brooklyn Center 07/14/08 Page 247 SECTION II — GENERAL POLICIES City Council Code of Policies 2.41 Capital Improvements Fund and Infrastructure Construction Fund Expenditure Policy 1. Policy Objective The City of Brooklyn Center makes large unrestricted capital expenditures through one of two funds. Generally, small capital expenditures are funded through the general fund and planned for as part of the annual budget process for the general fund. Large unrestricted capital expenditures for municipal buildings and park improvements are funded through the capital improvements fund based on City Council Resolution No. 68 -246, which was approved in 1968. Large unrestricted capital expenditures for street and utility improvement projects are funded through the infrastructure construction fund. Capital expenditures are also made through other funds such as the M.S.A. construction fund, the street construction fund, the water utility fund, the sanitary sewer utility fund, and the storm drainage utility fund. These funds each have restrictions in place to guide their expenditures. The objective of this policy is to clarify funding for all unrestricted capital expenditures by specifically defining which capital expenditures are eligible for funding through the capital improvements fund and infrastructure construction fund. Unrestricted capital expenditures not meeting the criteria for the capital improvements fund must be made from the general fund operating budget. Specifically excluded from this policy are capital expenditures that are to be reimbursed by insurance proceeds. These may be accounted for through the capital improvements fund at the discretion of the Director of Finance. 2. Source of Funds The sources are ad- valorem taxes, issuance of bonds, state and federal grants, transfers of unrestricted balances from other funds, and investment earnings. 3. Use of Funds The infrastructure construction fund may be used, pursuant to this policy, for expenditures on infrastructure improvements and similar projects having an aggregate value in excess of $50,000. The types of expenditures contemplated by this policy include projects such as: • street repair, replacement, and construction • bridge rehabilitation and construction • water, sanitary sewer, storm drainage, and street light utility improvements The may capital improvements J pursuant r rovements fund ma be used, p to this policy, for on -� y r expenditures capital equipment, infrastructure improvements and construction, and similar projects having an aggregate value in excess of $50,000. The types of expenditures contemplated by this policy include projects such as: City of Brooklyn Center 07/14/08 Page 248 SECTION II — GENERAL POLICIES City Council Code of Policies • building construction, repair, reconstruction, and remodeling, including component systems for heating, ventilation, and air conditioning • equipment and furnishings, including furniture, lights, and communications cabling • park landscaping, shelter, and improvements • computer, radio, and telephone systems The expenditures from the capital improvements fund and infrastructure construction fund are to be used for general governmental capital needs and not for enterprise fund capital needs, except as the general governmental portion of a joint project for both general and enterprise purposes. Additionally, the capital improvements fund may be used to provide loans to other funds maintained by the City. However, loans from the capital improvement fund may only be made to proprietary funds which have the ability to generate revenue and repay the loan within 10 years at prevailing interest rates. 4. Authority to Spend Expenditures meeting the above criteria may be funded through the, capital improvements fund based on the following authority limits: 1. Expenditures from $0 to $50,000: Not eligible for funding from the capital improvements fund. Funding is required through the general fund operating budget. 2. Expenditures from $50,001 to $300,000: The City Council may, through simple majority, approve these expenditures. 3. Expenditures over $300,001: Following a public hearing, the City Council may, through a 4 /5ths majority, approve expenditures in this category. 5. Spending Limitation/Fund Balance Requirement The objective as described in Section 1 and previously defined in City Council Resolution No. 68 -246 requires the capital improvements fund and infrastructure construction fund to be a permanent source of funding for planned major expenditures. As such, the following criteria is established to comply with that intent: 1. Planned Expenditures: If the proposed capital expenditure is in excess of $300,000, it must have been included in the fifteen -year Capital Improvement Program for at least two years. 2. Additionally, the fifteen -year Capital Improvement Program must be approved by the City Council at a public hearing on an annual basis. City of Brooklyn Center 07/14/08 Page 249 SECTION II — GENERAL POLICIES 6. Role of the Financial Commission City Council Code of Policies If a review of an expenditure is requested by the City Council from the Financial Commission, the Financial Commission will respond on the basis of the following questions: 1. Does the expenditure comply with the Capital Improvements Fund Expenditure Policy? 2. Is the expenditure appropriate considering the financial condition of the City? Reference: City Council Resolution Nos. 2007 -56; 2006 -46; 97 -84; City Council Minutes 1/10/94 City of Brooklyn Center 07/14/08 Page 250 SECTION II — GENERAL POLICIES 2.42 Capital Reserve Fund Policy City Council Code of Policies 1. Policy Objective The objective of this policy is to provide funds to meet emergency needs for capital expenditures that may arise from time to time. While the City carries property and casualty insurance, the City may need additional funds beyond insurance proceeds in the event of natural or other disaster impacting its buildings and their contents, as well as other improvements to real property. Also, unanticipated failure of buildings or improvements to buildings may require immediate expenditure of funds for repair or replacement that are not covered by insurance. The funds placed in the Capital Expenditure Reserve Fund are not to be considered a source for planned or recurring capital needs, but only to deal with emergency needs as described due to damage, loss, or failure of existing buildings and other improvements to real property. 2. Use of Funds Funds may be expended from the Capital Expenditure Reserve Fund for the repair or replacement of buildings or other improvements to real property and their contents where the repair or replacement is necessitated by damage to such buildings or other improvements to real property and their contents due to: 1. natural disaster such as a tornado, storm, flood, earthquake, or fire 2. fire, vandalism, terrorism, explosion, building or component collapse 3. Authority to Spend Expenditures meeting the criteria for the use of funds may be funded through the Capital Expenditure Reserve Fund upon Resolution of the City Council finding that the criteria for expenditure have been met and that the use of funds would not otherwise be covered by insurance proceeds, except that the City Council may authorize the use of Capital Expenditure Reserve Funds in anticipation of the receipt of insurance proceeds providing that such funds used in anticipation of insurance proceeds are repaid to the Capital Expenditure Reserve Fund from such insurance proceeds. City of Brooklyn Center 07/14/08 Page 251 SECTION II — GENERAL POLICIES 4. Fund Balance City Council Code of Policies The Capital Expenditure Reserve Fund shall be established at $1,000,000. Such fund balance shall increase each year by the interest earned on the fund balance. In the event that the fund would drop below $1,000,000, the City Manager shall prepare a plan for restoring the balance to $1,000,000. The fund balance target should reflect an analysis of the City's uninsured exposure to the losses identified in this policy. Such plan, as well as whether the balance should be made higher or lower, shall be reviewed by the Financial Commission and City Council. The plan adopted by the City Council shall be included in the budgetary process if the fund's balance is not restored by transfer of existing funds from another fund, such as the Capital Improvement Fund. Reference: City Council Resolution No. 97 -84 City of Brooklyn Center 07/14/08 Page 252 SECTION II — GENERAL POLICIES PURCHASING/DISPOSAL OF PROPERTY POLICIES City Council Code of Policies 2.50 City Purchasing Policy The policy of the City of Brooklyn Center shall be to follow the Uniform Municipal Contracting Law set forth in Minnesota Statutes Section 471.345 as the same may be amended or renumbered from time to time. The City Manager shall be the chief purchasing agent for the City; all purchases for the City and all contracts shall be made or let by the City Manager for which State Law does not require solicitation of bids. The City Manager shall establish an administrative purchasing policy to implement the provisions of the Uniform Municipal Contracting Law. Reference: City Council Resolution Nos. 96 -106; 83 -172; 81 -43; City Council Minutes 8/12/91 City of Brooklyn Center 07/14/08 Page 253 SECTION II — GENERAL POLICIES DISPOSAL OF PROPERTY 2.51 City Disposal of Property Policy City Council Code of Policies The policy of the City of Brooklyn Center shall be to follow Minnesota State Law regarding disposal of public property. It is necessary from time to time for the City to dispose of surplus, unused, or unneeded equipment or supplies. Such property includes supplies and equipment, including electronic equipment, that have no market value or nominal market value or the cost of environmentally sound disposal is more than its value. It is in the best interests of the City for the City Manager to dispose of such property without incurring undue or unnecessary costs or commitment of staff resources in order to properly dispose of such property. The City Manager is authorized to dispose of surplus, excess, or unneeded property that, because of its state of disrepair, obsolescence, or other cause, is no longer of use to the City, in accordance with the following procedures: 1. Such property may be transferred to any other public agency to which transfer is authorized by Minnesota Statutes, Section 471.64, or other Statute governing the transfer of property from a City to another public agency. 2. When the City Manager determines that the cost of lawful and environmentally sound disposal of property exceeds its fair market value, the City may transfer such property to any party willing to receive the property at the lowest cost to the City or may dispose of the property through any duly authorized public authority receiving such property for disposal. 3. Disposal of property determined to be of value will be accomplished consistent with applicable State Law. Reference: City Council Resolution No. 2005 -108; 2004 -16; 2000 -197 City of Brooklyn Center 07/14/08 Page 254 SECTION II — GENERAL POLICIES City Council Code of Policies SCHEDULE FOR PROFESSIONAL SERVICES POLICIES 2.80 Policy and Procedure on Requests for Proposals for Financial Professional Services 1. Need for Policy The City needs a policy and procedure to provide for the orderly conduct of requesting proposals for professional services for handling financial affairs, to ensure that all services will be periodically reviewed, and that the proper balance will be maintained between cost and quality of services. 2. Policy A. All professional services in the area of City finances will be periodically let out for request for proposals (RFPs) according town established schedule. B. Service levels will be monitored by the City Council and Staff and if unsatisfactory service is received, that contract will be re- advertised prior to the year set in the schedule. C. Quality of service will be the primary factor in awarding a contract for professional service, but cost will also be a determinant. 3. Procedure A. A schedule shall be established for the conduct of RFPs. The schedule should be adhered to unless there is a performance problem or other justification for an earlier RFP. Going to the market too frequently with RFPs expends Staff time, requires extensive orientation of new professionals, and discourages quality firms from submitting proposals at their most attractive price since they will expect to only have the contract for a short time. B. Specifications tailored to the professional service to be advertised will be prepared by Staff, reviewed by the Financial Commission, and approved by the City Council. C. A review committee made up of the City Manager and Finance Director shall review proposals for Banking Services, Insurance Agent, Risk Management Consultant, and Custodian for Investment Securities. Proposals for Auditor and Financial Advisor shall be initially screened by Staff, and then reviewed by a committee of City Council Members and Financial Commission Members appointed by the Mayor in consultation with the Chair of the Financial C with the approval of the City Council, which committee shall also include the City Manager and Finance Director. City of Brooklyn Center 07/14/08 Page 262 SECTION II — GENERAL POLICIES Schedule for Requests for Proposals Financial Services Usual Interval between.RkPs Most Recent RFP 2006 2007 2008 2009 2010 2011. 2012 2013 2014 2015 2016 2017 Financial Advisor for Bond Sales 6 years 2004 RFP RFP Banking Services 6 years 2002 RFP RFP Insurance Agent 6 years 2003 Risk Management Consultant 6 years 2003 RFP RFP Custodian for Investment Securities 6 years 1998 RFP RFP RFP Auditor 6 years 2002 * RFP RFP RFP Reference: 5/28/96 City Council Code of Policies D. The specifications will emphasize the abilities, qualifications, and experience of the applicant firms to provide high quality service to the City. Price will be considered after one or more applicants have been identified as providing the desired quality of service. When appropriate, the specification shall require prices to be submitted in a separate, sealed envelope to be opened after applicants have been ranked according to quality. E. The City Manager shall make a recommendation to the City Council of a provider to be appointed to a multi -year engagement. It shall be written in the engagement that the appointment may be terminated earlier. *Awarded to Deloite Touche who subsequently withdrew after the FY 2001 audit. Balance of engagement awarded to HLB Tautges Redpath for FY 2002 — FY 2006. City Council Resolution Nos. 2006 -120; 2000 -120; 99 -20; City Council Minutes City of Brooklyn Center 07/14/08 Page 263 I City of Brooklyn Center Financial Information December 2009 Please note: All budgeted numbers referred to in these reports and all monthly reports going forward will reflect the budget amendments adopted by the City Council by resolution on 27 April 2009. END OF 2009 FISCAL YEAR UNAUDITED REPORT General Fund Narrative Explanation of 2009 General Fund Operating Results (lower case letters in each heading refer to the "Key " column in the spreadsheet for identification). Revenues a. Taxes This line includes both property taxes and lodging taxes. Property taxes were budgeted at $ 11,804,016 and came in with actual collections of $ 11,808,091. The small positive variance for property tax is 3/100 of 1 %. Lodging taxes were significantly lower than budgeted, providing only $ 550,687 on a budget of • $ 720,000. The original budget included receipts from the Embassy Suites for an entire year. Because the lodging tax receipts were lower than budget, distribution of taxes through the Convention & Tourism budget is also lower than expected. b. Licenses This line exceeded budgeted expectations by $ 33,598. This was the result of a higher number of rental licenses being collected after enhancing enforcement of rental licensing codes and by the addition of the liquor license for the Embassy Suites hotel when it opened. c. Permits Permit revenues were down significantly below the budget for 2009. Building permits were $ 107,954 below budget, mechanical permits were $ 23,898 below budget and plumbing permits were $ 11,905 below budget. d. Intergovernmental When the City amended the 2009 budget for expected LGA, the budget was set at $ 776,827 which was an early projection of the City's expected Toss. When the final unallotment was made after amendment of the budget, the City was reduced to $ 1,019,990, a gain of $ 243,163 over expectations. The budget was not modified to reflect the higher LGA expectation after unallotment numbers were officially announced. Therefore, the City benefitted from the revision of the unallotment process. e. Charges for Service In 2009 the City implemented charges for registration of vacant properties, conversion of rental properties from owner- occupied to rental, and inspections of vacant properties prior to reoccupation of those properties. No projected revenue was determined for those charges or included in the 2009 amended budget. However, in the final, actual numbers, vacant property registration produced $ 166,685, conversion fees produced $ 73,400, and reoccupancy inspection fees produced $ 83,930 of additional revenue. These amounts are all included in the Charges of Service line item. In addition, the police patrolling agreement with SuperAmerica produced $ 63,030 of additional, unbudgeted revenue. f. Fines Rental dwelling fines exceeded expectations by $ 10,350 and court fines were above budget by $ 6,326. g. Interest Interest income was over budgeted at $ 185,000 based on prior years' experience. Actual interest income for the General Fund in the 2009 fiscal year totaled only $ 52,789. h. Miscellaneous Income Transfers into the General Fund were about $ 10,000 lower than budgeted. i. TOTAL REVENUES Revenues for the General Fund in 2009 were $16,224,149. This is an additional $ 207,128 above the budgeted amount. Actual revenues were 101.29% of the budgeted expectation. 2 Expenditures j. Mayor and Council The Mayor and Council expenditures were within the budgeted amounts for 2009. Savings resulted from not using all of the conference and training funds available. k. City Manager The City Manager expenditures were $ 12,409 over the budgeted amount. Additional liability for unused vacation and some additional wages coupled with increases in conferences and schools and dues payments made up this amount. City Clerk The City Clerk expenditures were $ 18,279 below budget, primarily because there were not election expenses for equipment rental or election judges in 2009. m. Finance Finance was within 0.32% of its budget. n. Legal Contractual legal services exceeded the 2009 budget by $ 13,772 following a significant increase in the budget from 2008 to 2009 of $ 50,000. Increased activity in the area of code enforcement and the costs of a lawsuit brought by the former owners of Centerpoint apartments were the major additional costs. o. Human Resources Human Resources was $ 11,678 under its budgeted allotment primarily because the professional services and cafeteria plan allotments to the division were not fully used. p. Other General Government Including the operations of the City Hall building, the Central Supplies and Support function, and the Information Technology function, this area exceeded budget by $ 40,283. The main reasons for this were building repairs and maintenance at City Hall totaling $ 71,058 more than budgeted. These costs were offset by savings in utility and vehicle costs. 3 q. Police This area includes all divisions of the Police Department consisting of Administration, Investigation, Patrol, Support Services and Building Operations. The $ 82,275 spent above and beyond the budgeted allotment for Police includes these major elements: Spent Less than Budgeted: Detective Wages & Benefits Telephone Communications Fuel Charges for Vehicles Spent More than Budgeted: Firing Range Rentals Medical Services Unemployment Compensation Investigation Services Police Part -Time and Overtime Police Severance Police Professional Services Support Services Personnel r. Fire $ 13,500 $ 5,500 $ 36,000 $ 3,600 $ 2,900 $ 7,200 $ 6,500 $ 37,900 $ 58,700 $ 5,800 $ 12,700 The Fire Department spent $ 32,440 less than budgeted for supplies, $ 42,275 less than budgeted for the Pension plan because the City received $ 42,275 less than budgeted from the State of Minnesota, $ 14,183 less than budgeted for communications, $ 5,173 less than budgeted on conferences and schools, and spent $ 20,987 less in vehicle fuel and maintenance costs than was budgeted. s. Emergency Management The planned replacement of a siren did not occur in 2009 saving about $ 20,000 in Emergency Management budgeted costs. t. Business and Development Assessing spent $ 3,594 less than budgeted and Planning spent $ 4,744 less than was budgeted. u. Inspections and Code Enforcement Significant savings occurred in this area because the full complement of personnel allowed for in the budget was not employed in 2009. A Supervisor 4 and Inspector were hired after the beginning of the budget year and another Inspector plus a Support Staff person were not employed at all during the year. In the course of setting up the operations of the code enforcement staff and additional $ 5,137 was purchased in minor equipment beyond budgeted amount and $ 10,033 in furnishings were purchased. The net amount remaining below the budgeted allocation is $ 187,499. v. Engineering Wages of Engineering staff are nominally assigned to the Engineering business unit. At the end of each fiscal year, the General Fund is reimbursed for the portions of engineering staff time spent directly on capital improvement projects by the applicable capital project fund. The amounts budgeted, however, should be adequate to cover the wages and benefits of all employees assigned to Engineering. w. Street Maintenance Savings in the 2009 street maintenance function were realized in overtime expenses and benefits ($ 10,000), maintenance materials purchased ($ 10,000), landscape services ($ 19,500), and fuel and repair charges for fleet equipment ($ 45,000). x. Social Services This division was within 1% of budgeted expenditures. An additional $ 700 was paid to Five Cities Senior Transportation. y. CARS Administration The bulk of this budget variance was caused by funding of the unpaid /unused vacation and sick leave. z. Recreation Programs and Facilities This division came within 71/100ths of 1% of its budget for the year. On a budget of $ 1,254,356 recreation spent $ 1,245,463 for a $ 8,893 surplus. aa. Park Maintenance & Forestry This division came within 12/100ths of 1% of its budget. On a 2009 budget of 906,427 park maintenance & forestry spent $ 905,350 for a $ 1,077 surplus. 6 bb. Convention & Tourism This item tracks only the payments made to Visit Minneapolis North form the lodging tax proceeds. It was $ 62,986 under budget as a result of lower lodging tax receipts during 2009 causing lower distribution of proceeds. The City distributes 95% of the first 3% of the lodging tax to VMN. cc. Other Expenses and Transfers The contingency account of $ 250,511 remained intact for 2009. This was offset by Tess than expected in the administrative transfers leaving a positive result of $ 201,888 in this budget division. dd. TOTAL EXPENDITURES Expenditures for the General Fund in 2009 were $1,5501,607. This is $ 515,414 less than the budgeted amount. Actual expenditures were 96.78% of the budgeted allocation. Economic Development Authority Professional services exceeded the budget because the EDA paid a significant bill for the citizen satisfaction survey performed earlier in the year. In addition, a large legal bill for renegotiation of a development agreement was paid in June. Wages exceeded the budgeted amount because, unlike past years, wages and benefits were not charged to the TIF District # 3 fund as project costs to the extent that past years have seen this done. Utility Funds Generally, utility revenues are at or above the expected budget amounts. The exceptions are the Street Lights and Recycling funds. The lower Miscellaneous Revenues clearly reflect the drop in interest rates for invested funds. Water Fund overall expenditures exceeded the operational budget by about 2.0% or $ 36,600. The largest of these expenditures involved the transfer of funds to the General Fund to assist in paying wages and benefits for the utility billing staff. These expenses were offset by higher revenues allowing the Water Fund to generate operating income of $ 173,041. Sewer Fund expenses were also slightly above the budgeted amounts because of a transfer to the General Fund to assist in paying for utility billing staff. The Street Light Fund is showing depreciation expense for the first time in 2009. Because the City owns and operates all of the ornamental light fixtures and because the number of ornamental light fixtures has grown it is appropriate to track the number and cost of these fixtures as utility assets. The Recycling Fund is showing negative net income and negative cash flow. During the 2010 budget process this Fund will be carefully reviewed for performance expectations and cash flow projections. Enterprise Funds Sales are higher at BC Liquor. The liquor operations continue to show positive operating revenue that is slightly higher than in 2008 for the same period. Net Income, however, is reduced because of the decision to transfer funds from the Liquor Fund to cover the costs of the Capital Building Maintenance Program. Rent was also above the budgeted amount because fo the mid -year decision to expand the storage space in Store # 1. Greens fees revenue is down for the 2009 year at the Golf Course. This appears to be because of missed league rounds that are reserved but not paid for. Staff is exploring solutions to this problem. Expenses are higher in personnel, cost of goods sold, and Other Expenditures resulting in a larger net loss for the year compared with 2008. At the Earle Brown Heritage Center the Inn on the Farm operation has been discontinued. No budget amounts or revenues will be shown for that operation in the future. Overall sales in both the Convention Center and Catering Services sectors are down. Office rentals are also down with the departure of Blumenthal from the "D" barn. Net cash flows for 2008 and 2009 are negative as a result of transfers for capital funding needs. Central Garage The Central Garage operations as of 30 September 2009 are, for the most part, within expected parameters. The exception is Equipment Repairs where additional costs have been incurred for bodywork repairs to damaged squad cars. Fund Balance and Cash Summaries Fund Balance and Cash Balance summaries for the end of the 3rd quarter are included with this report. The only number that is outside expectations is the cash balance for the Water Fund. Bils for the automated meter reading project 7 have been paid form the Water Fund and will be reimbursed with bond funds when the bonds are sold in early 2010. Until that time, cash balance in the Water Fund will be below the expected level. Investments Staff continues to work on diversification of the investment portfolio to increase the net yield by investing in agency securities, such as the Federal Home Loan Bank (FHLB) and Federal Home Loan Mortgage Corporation (FHLMC), and various Certificates of Deposit (CD's) insured by the Federal Deposit Insurance Corporation (FDIC). The rates on these CD's range from 3.40% to 4.30 %. Currently, about 19.95% of our portfolio is invested in these higher yielding securities. This percentage is lower than prior periods because two large Government Securities were called late in September and will not be replaced until October. This will raise the level of longer term, higher yield securities back to the expected 25% to 30% range. The balance of the investment portfolio is held in the.4M Funds and other money market accounts for cash flow /liquidity purposes. 8 REVENUES: Taxes Licenses Permits Intergovernmental Charges for Service Fines Interest Miscellaneous TOTAL REVENUES: EXPENDITURES: .agrw City of Brooklyn Center General Fund Income Statement Year to Date for the month ended 31 December 2009 Mayor and Council City Manager City Clerk Finance Legal Human Resources Other General Government Police Fire Emergency Management Business & Development Inspections & Code Enforcement Public Works Administration Street Maintenance Social Services CARS Administration Recreation Programs and Facilities Parks Maintenance & Forestry Convention & Tourism Other Expenses and Transfers TOTAL EXPENDITURES: NET OPERATIONS: 9 nominal % = 100.00% 2009 Budget !' 12,524,016: 231795 499,500 425,667 71,9,593 296,000 185,000 135,450 2009 Budget' amended', 130,391": 266,690 232,422 485,041 273,088 6,425,868 902,065 85,148 469,418 822,553 570,916 ,448,045 70,819 186,293 ; 254,356 906,427 347,000 353,618) YTD Actual at 12/31/2009 12,358,778 265,393 351,226 1,643,852 1,111,423 314,380 52,789 126,308 16,224,149 YTD Actual at 12/31/2009 127,084 279,099 214,143 483,475 388,772 261,410 1,159,382 6,508,143 785,312 65,719 461,080 635,054 628,581 1,360,254 71,519 193,259 1,245,463 905,350 284,014 (555,506) 722,542 % of Budget Received 98.68% 114.49% 70.32% 115.30% 154.45% 106.21% 28.53% 93.25 % % of Budget Used 97.46% 104.65% 92.14% 99.68% 103.67% 95.72% 103.60% 101.28% 87.06% 77.18% 98.22% 77.21 % 110.10% 93.94% 100.99% 103.74V 99.29% 99.88% 81.85% 157.09% YTD Actual at 12/31/2008 11, 995, 502 280,482 363,252 1,112,272 749,002 302,986 137,173 86,474 15, 027,143 YTD Actual at 12/31/2008 125,834 264,433 232,724 448,468 461,454 251,030 1,228,515 6,149, 347 819,295 87,062 504,807 498,614 570,490 1,399,467 72,893 171,279 1,268,896 871,560 301,332 (501,379) (198, 978) % of Budget Received 100.81% 100.41% 81.72% 67.33% 107.91% 122.17% 74.15% 73.78% 96.83% % of Budget Used 93.70% 102.52% 95.84% 96.82% 141.99% 93.80% 110.28% 99.63% 89.49% 100.04% 99.89% 93.51% 100.99% 96.89% 99.83% 96.11% 104.68% 93.47% 93.91% 222.71% 16,01"7,021"! 15,501,607 96.78% 15,226,121 98.11% Variance Good/ (Not Good) Key (165,238) a. 33,598 b. (148,274) c. 218,185 d. 391,830 e. 18,380 f. (132,211) g. (9,142) h. 207,128 3,307 j. (12,409) k. 18,279 I. 1,566 m. (13,772) n. 11,678 0. (40,283) p. (82,275) q. 116,753 r. 19,429 s. 8,338 t. 187,499 u. (57,665) v. 87,791 w. (700) x. (6,966) y. 8,893 z. 1,077 aa. 62,986 bb. 201,888 cc. 515,414 dd. 722,542 ee. REVENUES: Transfers from HRA Levy Other Income TOTAL REVENUES: EXPENDITURES: Personnel Supplies Professional Services Operational Services Transfers TOTAL EXPENDITURES: NET INCOME: AI City of Brooklyn Center Economic Development Authority Year to Date for the month ended 31 December 2009 nominal % = 100.00% .udget 2009. 5,289 Budget 2009 amended 0,226 4,859 35,000 9,540 .; 73,832 363,457 =,1 YTD Actual at 12/31/2009 382,520 17,260 399,780 YTD Actual at 12/31/2009 213,700 273 71,980 37,007 74,355 62,8321 2,465 %Q of Budget Received 99.28% 42.10% 93.78% of Budget Used 101.65% 5.62% 205.66% 9359% 100.71% 397,315 1 109.32% YTD Actual at 12/31/2008 303,612 53,889 357,501 YTD Actual at 12/31/2008 173,879 1,734 24,742 35,926 57,752 % of Budget Received 100.47% 82.91 % 97.36% % of Budget Used 82.92% 63.05% 164.95% 89.22% 102.33% 294,033 1 90.71% 63,468 10 City of Brooklyn Center Utility Funds Income Statements Year to Date for the month ended 31 December 2009 WATER FUND REVENUES: Water Sales Miscellaneous TOTAL REVENUES: EXPENDITURES: Operating Expenses Utilities Other Expenses Transfers Depreciation TOTAL EXPENDITURES: NET INCOME: SEWER FUND REVENUES: Sewer Collection /Treatment Charges amended' 908,558 46,280 Budget 2009 amended 7,180 _6,825. 90, 808 57,883 644,800 '. YTD Actual at 12/31/2009 1,974,100 53,039 2,027,139 YTD Actual at 12/31/2009 737,136 149,040 284,243 87,499 596,180 137,342 1 173,041 % of Budget Received 103'.43% 114.60 % % of Budget Used 96.08% 95.04 %'. 148.97 % ' ' 151.17% 92.46% I ' = -1,817,4961 1,854,0981 102.01% YTD Actual at 12/31/2008 1,967,534 86,588 2,054,122 YTD Actual at 12/31/2008 738,951 157,055 205,056 61,281 611,328 1,773,671 280,451 % of Budget Received 109.88% 145.58% 111.03% % of Budget Used 97.26% 113.87% 123.33% 100.37% 99.55% 101.99 %' Miscellaneous TOTAL REVENUES: EXPENDITURES: Operating Expenses Met Council Contractual Services Other Expenses Transfers Depreciation NET INCOME: udget 2009 ;209,820. 66, 500 Budget 2009 amended 448,921 917,384 62,652 57,883 577.900 YTD Actual at 12/31/2009 3,235,989 105,654 3,341,643 YTD Actual at 12/31/2009 397,158 2,015,724 65,521 85,475 550,108 TOTAL EXPENDITURES: ; , 3,064,740 ";,I 3,113,986 211,580 'I 227,657 %o of Budget Received 100.82%' 158.88 % '' Vo of Budget Used 88.47% 105.13 % 04.58% 147.67% 95.19% YTD Actual at 12/31/2008 3,176,491 159,682 3,336,173 YTD Actual at 12/31/2008 389,787 1,915,444 53,195 95,225 553,548 328,974 % of Budget Received 101.10% 222.55% 103.82% % of Budget Used 90.09% 103.80% 85.90% 100.00% 100.57% 101.61% 3,007,1991 - 100.73 %1 11 nominal % = 100.00% City of Brooklyn Center Utility Funds Income Statements Year to Date for the month ended 31 December 2009 STORM SEWER FUND REVENUES: Storm Drainage Fees Miscellaneous TOTAL REVENUES: EXPENDITURES: Operating Expenses Other Expenses Transfers Depreciation TOTAL EXPENDITURES: NET INCOME: STREET LIGHT FUND REVENUES: Street Light Charge Budget 2009 amended ,524,462 38,000:,''. Budget 2009 amended 208,931.;' 9.7,312' 157,883 838,360 '? YTD Actual at 12/31/2009 1,550,741 53,394 1,604,135 YTD Actual at 12/31/2009 160,705 68,886 179,934 858,450 1,302,486 1 1,267,975 1 1 '259, 976 1 336,160 % of Budget Received 101.72% 140.51% %o of Budget Used 76.92% 70.79 % '' 113.97 %' 102.40% 97.35% YTD Actual at 12/31/2008 1,526,822 75,092 1,601,914 YTD Actual at 12/31/2008 167,191 76,980 147,534 763,536 446,673 of Budget Received 103.66% 178.79% 105.74% of Budget Used 80.10% 83.68% 100.00% 124.09% 1,155,241 1 108.62 %1 Miscellaneous TOTAL REVENUES: EXPENDITURES: Operating Expenses Other Expenses Transfers Utilities Depreciation TOTAL EXPENDITURES: NET INCOME: Budget 2009 amended 249,658 7,500 Budget 2009.. 17,700 1,950 15,553.'; 172, 048 YTD Actual at 12/31/2009 248,664 6,156 254,820 YTD Actual at 12/31/2009 25,477 1,183 15,553 172,240 5,566 207,251 1 220,019 1 49,907 1 34,801 %° of Budget Received 99.60% 82,08% 99.09% % of Budget Used 143.94% 60.67% 100.00% 100.11 % 100.00% 106.16% YTD Actual at 12/31/2008 244,802 9,396 254,198 YTD Actual at 12/31/2008 7,133 1,255 14,909 159,106 71,795 % of Budget Received 101.49% 125.28% 102.20% % of Budget Used 56.84% 65.71% 100.00% 98.33% 0.00% 182,403 1 95.41%1 12 nominal % = 100.00% City of Brooklyn Center Utility Funds Income Statements Year to Date for the month ended 31 December 2009 nominal % = 100.00% RECYCLING FUND REVENUES: Recycling Services Fee Miscellaneous TOTAL REVENUES: EXPENDITURES: Operating Expenses Other Expenses Recycling Program Fee Transfers TOTAL EXPENDITURES: NET INCOME: Budget 2009 amended 267.656' 100 Budget 2009. amended 8,771 4,350 15,553 YTD Actual at 12/31/2009 259,347 7,994 267,341 YTD Actual at 12/31/2009 61 8,068 252,377 15,552 (918)1 (8,717) of Budget Received 96.:90% 7,994.00% Vo of Budget Used 0.00% 91.98% 103.29% 99.99% 268,674.1 276,058 1 102.75% YTD Actual at 12/31/2008 250,726 9,151 259,877 YTD Actual at 12/31/2008 89 7,876 243,109 14,909 265,983 (6,106) % of Budget Received 97.42% 762.58% 100.51% % of Budget Used 0.00% 91.59% 103.47% 100.00% 102.91%1 13 City of Brooklyn Center Al Enterprise Funds Income Statements Year to Date for the month ended 31 December 2009 nominal % = 100.00% BC LIQUOR REVENUES: Sales Less: Cost of Goods Sold Operating Revenue: EXPENDITURES: Personnel Supplies Rent Utilities Other Expenses Transfers Depreciation Operating Expenditures: Other Income /(Expenditure) NET INCOME: 5,500,000. 4 • 1,445,885 Budget 2009 amended 656,878 71 142 243,360 37,500 178,604 319,036 26, 500 YTD Actual at 12//31/2009 5,610,108 4,088,278 1,521,830 YTD Actual at 12//31/2009 634,795 34,669 269,969 37,867 181,957 319,036 26,359 1,533,020 1 1,504,652 27,300 1 23,725 1 (59,835)1 40,903 % of Budget Received .02.00% 1"00.84 %; %o of Budget Used 96.64% 48.73% 110.93% 100.98% 101.88% 100.00% 99.47% YTD Actual at 12/31/2008 5,484,529 3,997,698 1,486,831 YTD Actual at 12/31/2008 597,686 23,836 243,925 41,030 136,514 186,420 26,431 98.15% 1,255,842 1 97.54%1 86.90% 39,731 1 121.87%1 270,720 % of Budget Received 95.28% 92.41% 103.95% % of Budget Used 94.45% 99.42% 100.23% 106.57% 101.19% 100.00% 95.76% 14 REVENUES: Greens Fees Lessons Concessions Merchandise CENTERBROOK GOLF COURSE Less: Cost of Goods Sold Operating Revenue: EXPENDITURES: Personnel Supplies Other Expenses Transfers Depreciation Operating Expenditures: Other Income /(Expenditure) NET INCOME: Capital Outlay miff City of Brooklyn Center Enterprise Funds Income Statements Year to Date for the month ended 31 December 2009 Budget 2009 amended 3,000 1,500 44,000 5,500 24,000 250,000 219,837 Budget 2009. amended 142,788 23,800 75.588' 9, 375 29,900 YTD Actual at 12//31/2009 185,782 1,644 44,985 16,898 29,472 YTD Actual at 12//31/2009 152,793 18,245 79,435 9,375 28,185 281,451 288,033 1,000 1 174 (30,451)1 (68,022) 18,500 1,342 15 of Budget Received • 87!:22% 09.60% .02.24% • 109.02 %, 22.80% /° of Budget' Used 07.01% 76.66 %. 105.09% 100.00% 94.26% 102.34% 17.40% 7.25% nominal % = YTD Actual at 12/31/2008 196,095 1,580 41,279 14,868 26,402 227,420 YTD Actual at 12/31/2008 146,453 20,606 73,515 6,420 27,244 274,238 (45,948)1 500 100.00% % of Budget Received 83.44% 63.20% 93.29% 118.94% 107.76% 84.31% % of Budget Used 104.90% 88.53% 97.47% 100.00% 89.37% 99.64 %1 870 34.80 % 1.79% I f City of Brooklyn Center Enterprise Funds Income Statements Year to Date for the month ended 31 December 2009 16 nominal % = 100.00% EARLE BROWN HERITAGE CENTER REVENUES: Convention Center Catering Services Office Rentals Inn on the Farm Less: Direct Cost of Sales Operating Revenue: EXPENDITURES: Personnel Supplies Utilities Other Expenses Transfers Depreciation Operating Expenditures: Other Income /(Expenditure) NET INCOME: Budget, 2009. amended 1,025,000 104,200 81,030, 2,071,487 2,138,743 Budget' 2009 amended 964,507 161,500 267,250 483,884 268,001 492,635 2,637,777 1 28,000 1 YTD Actual at 12//31/2009 947,579 2,568,819 25,680 1,816,865 1,725,213 YTD Actual at 12//31/2009 926,848 109,075 166,919 455,968 368,001 624,329 11,606 1 (471,034)1 (914,321 % o of Budget Received 92.45% 82.75 % 31.69% 0.00% .87.71% % of Budget Used 96.10 %. 67.54% 62.46% 94.23% 37.31% 26.73% 2,651,140 100.51% 41.45% YTD Actual at 12/31/2008 1,074,012 2,692,103 57,183 8,675 1,875,3/5 1,956,658 YTD Actual at 12/31/2008 894,062 123,906 221,067 509,778 302,994 579,118 (639, 924) % of Budget Received 97.64% 84.60% 91.21% 20.36% 85.84% 88.82% % of Budget Used • 92.68% 73.51 % 89.78% 97.91 % 113.06% 99.25% 2,630,9251 95.62% 34,343 85.86% I City of Brooklyn Center Financial Information December 2009 END OF 2009 FISCAL YEAR UNAUDITED REPORT Balance Sheets and Cash Balances Fund balance comparisons for 31 December 2008 and 2009 are: General Fund Economic Devebpment Fund Water Utility Fund Sanitary Sewer Utility Fund Storm Water Utility Fund Street Light Utility Fund Recycling Utility Fund BC Liquor Fund Centerbrook Golf Course Fund Earle Brown Heritage Center Fun d Central Garage Fund 7,743,438 8,530,003 1,877,490 1,892,935 11,746,572 10,615,615 12,763,479 ' 12,379,419 17,900,118 ; 18,340,593 530,850 568,786 48,432 (14,337) 1,939,204 1,975,150 874,676 805,312 7,454,586 6,652,780 7,934,971 7,898,959 Decreases in the Water and Sanitary Sewer Funds are the result of cash expenditures for the Capital Improvements Program projects in 2009. The decrease in the Recycling Fund is being addressed with the 6.00% rate increase implemented for 2010 The decrease in the Centerbrook Golf Course Fund is a net loss of book value because of depreciation and an operating loss exclusive of depreciation of about $ 39,800. The decrease in the Earle Brown Heritage Center Fund is a net loss of book value because of depreciation and an operating Toss exclusive of depreciation of about $ 375,000. The loss in the Central Garage Fund is the net result between equipment purchases and depreciation charged. 17 786,565 15,445 (1,130,957) (384, 060) 440,475 37,936 (62,769). 35,946 (69, 364) (801,806) (36,012) Cash and Investment balance comparisons for the funds at 31 December 2008 and 2009 are as follows: 2008 2009 u General Fund 8,178,381 8,915,799 737,418 Economic Devebpment Fund 1,875,128 1,892,835 17,707 Water Utility Fund 2,068,255 1,147,687 (920,568) Sanitary Sewer Utility Fund 2,191,302 1,972,466 (218,836) Storm Water Utility Fund 1,929,535 2,157,478 227,943 Street Light Utility Fund 72,996 117,678 44,682 Recycling Utility Fund (14,337) (14, 337)' BC Liquor Fund 1,318,525 1,414,065 95,540 Centerbrook Golf: Course Fund 8,645 (33,822) (42,467) Earle Brown Heritage Center Fund 1,153,340 766,814 (386,526) Central Garage Fund 4,180,414 4,044,101 (136,313) Change down General Fund I City of Brooklyn Center Balance Sheet Analysis for the Fiscal Year ended 31 December 2009 (unaudited) Fund Balance at 12/31/2008 7,743,438 Increase /(Decrease) in Cash & Investments 826,874 Increase /(Decrease) in Receivables & Other Assets (325) (Increase) /Decrease in Liabilities Payable (39,984) Net Period Change in Fund Balance 786,565 Fund Balance at 12/31/2009 8,530,003 Cash Balance at 12/31/2009 8,915,799 Economic Development Authority Fund Balance at 12/31/2008 1,877,491 Increase /(Decrease) in Cash & Investments 6,591 Increase /(Decrease) in Other Assets (Increase) /Decrease in Liabilities Payable (4,127) Net Period Change in Fund Balance 2,464 Fund Balance at 12/31/2009 1,879,955 Cash Balance at 12/31/2009 1,892,935 Water Utility Fund I City of Brooklyn Center Balance Sheet Analysis for the Fiscal Year ended 31 December 2009 (unaudited) Fund Balance at 12/31/2008 11,746,571 Increase /(Decrease) in Cash & Investments (920,568) Increase /(Decrease) In Current Assets (194,797) Increase /(Decrease) in Other Assets 23,366 (Increase) /Decrease in Liabilities Payable (38,957) Net Period Change in Fund Balance (1,130,956) Fund Balance at 12/31/2009 10,615,615 Cash Balance at 12/31/2009 1,147,687 Sanitary Sewer Utility Fund Fund Balance at 12/31/2008 12,763,479 Increase /(Decrease) in Cash & Investments (218,835) Increase /(Decrease) In Current Assets (15,542) Increase /(Decrease) in Other Assets (137,672) (Increase) /Decrease in Liabilities Payable (12,011) Net Period Change in Fund Balance (384,060) Fund Balance at 12/31/2009 12,379,419 Cash Balance at 12/31/2009 1,972,466 Storm Water Utility Fund Fund Balance at 12/31/2008 17,900,118 Increase /(Decrease) in Cash & Investments 223,589 Increase /(Decrease) In Current Assets (1,849) Increase /(Decrease) in Other Assets 220,226 (Increase) /Decrease in Liabilities Payable (1,491) Net Period Change in Fund Balance 440,475 Fund Balance at 12/31/2009 18,340,593 Cash Balance at 12/31/2009 2,157,478 I City of Brooklyn Center Balance Sheet Analysis for the Fiscal Year ended 31 December 2009 (unaudited) Street Light Utility Fund Fund Balance at 12/31/2008 530,850 Increase /(Decrease) in Cash & Investments 44,682 Increase /(Decrease) In Current Assets (1,632) Increase /(Decrease) in Other Assets (2,431) (Increase) /Decrease in Liabilities Payable (2,683) Net Period Change in Fund Balance 37,936 Fund Balance at 12/31/2009 568,786 Cash Balance at 12/31/2009 117,678 Recycling Utility Fund Fund Balance at 12/31/2008 48,432 Increase /(Decrease) in Cash & Investments (9,983) Increase /(Decrease) In Current Assets 1,376 Increase /(Decrease) in Other Assets (Increase) /Decrease in Liabilities Payable (110) Net Period Change in Fund Balance (8,717) Fund Balance at 12/31/2009 39,715 Cash Balance at 12/31/2009 (14,337) BC Liquor Fund Fund Balance at 12/31/2008 1,939,204 Increase /(Decrease) in Cash & Investments 106,240 Increase /(Decrease) in Inventory 40,729 Increase /(Decrease) In Current Assets (131,550) Increase /(Decrease) in Other Assets (26,359) (Increase) /Decrease in Liabilities Payable 46,886 Net Period Change in Fund Balance 35,946 Fund Balance at 12/31/2009 1,975,150 Cash Balance at 12/31/2009 1,414,065 a City of Brooklyn Center Balance Sheet Analysis for the Fiscal Year ended 31 December 2009 (unaudited) Centerbrook Golf Course Fund Fund Balance at 12/31/2008 874,676 Increase /(Decrease) in Cash & Investments (42,067) Increase /(Decrease) in Inventory (224) Increase /(Decrease) In Current Assets - Increase /(Decrease) in Other Assets (28,185) (Increase) /Decrease in Liabilities Payable 1,112 Net Period Change in Fund Balance (69,364) Fund Balance at 12/31/2009 805,312 Cash Balance at 12/31/2009 (33,822) Earle Brown Heritage Center Fund Fund Balance at 12/31/2008 7,454,586 Increase /(Decrease) in Cash & Investments (386,326) Increase /(Decrease) in Inventory (1,352) Increase /(Decrease) In Current Assets 78,818 Increase /(Decrease) in Other Assets (510,813) (Increase) /Decrease in Liabilities Payable 17,867 Net Period Change in Fund Balance (801,806) Fund Balance at 12/31/2009 6,652,780 Cash Balance at 12/31/2009 766,814 Central Garage Fund Fund Balance at 12/31/2008 7,934,971 Increase /(Decrease) in Cash & Investments (136,312) Increase /(Decrease) in Inventory 1,643 Increase /(Decrease) In Current Assets 37,628 Increase /(Decrease) in Other Assets 201,294 (Increase) /Decrease in Liabilities Payable (140,265) Net Period Change in Fund Balance (36,012) Fund Balance at 12/31/2009 7,898,959 Cash Balance at 12/31/2009 4,044,101 SECTION II - GENERAL POLICIES City Council Code of Policies 2.05 Policy and Procedure on Mayor and Council Member Total Compensation 1. Need for Policy The community is entitled to a clearly articulated, written description of the policy and procedure for establishing the total compensation of local elected officials. 2. Policy A. Service on the City Council is a civic obligation and an honor. The total compensation of the Mayor and Council Members should, therefore, not encourage candidacies based on monetary rather than public service objectives. However, the compensation of Brooklyn Center elected officials shall be fair and equitable in order to attract qualified candidates for local elective office. B. The propriety of the compensation levels of the Mayor and Council Members shall be evaluated through comparisons with compensation paid to similar officials within the seven county metropolitan area. C. The compensation levels of elected officials should be regularly reviewed and adjusted to ensure compliance with the objectives of this policy and to avoid the need for drastic or sudden compensation adjustments. D. Compensation set pursuant to this policy and procedure shall be deemed to be the total compensation for elected officials of the City with the exception of expense reimbursement which shall be the same as provided all other City employees. 3. Procedure City of Brook13 n Center A. The City Manager shall biennially prepare a compensation report that contains an analysis of the compensation paid to elected officials of Minneapolis -St. Paul Area Metropolitan cities having a population within 10,000 of the City of Brooklyn Center that are generally fully developed {Such grouping shall include the cities of Richfield, Roseville, Maplewood, Fridley, Shoreview, White Bear Lake, Crystal, New Hope, and Golden Valley, in addition to the City of Brooklyn Center.} The report shall compute the average and median amounts paid to Mayors and Council Members and correlate survey results to the current compensation of Brooklyn Center elected City officials. The City Manager shall assemble such additional information on compensation of City elected officials as may be requested to assist the Commission and Council in their review of elected official's compensation. B. The City Manager shall submit the compensation report to the City Council and the Financial Commission prior to June 1, for information pertaining to the applicable calendar year. 223:14:06 Page SECTION II - GENERAL POLICIES Reference: City Council Resolution No. 98 -91; City Council Minutes 1/10/94 4. Authority The authority for establishing compensation for the Mayor and Council Members is found in Minnesota Statutes 415.11 and the City of Brooklyn Center Charter, Section 2.07. City of Brooklyn Center City Council Code of Policies C. The Financial Commission shall biennially review the City Manager's compensation report and discuss possible budgetary and public perception impacts of the indicated changes. Prior to July 1 of the same year, the Commission shall recommend to the City Council that the compensation of the Mayor and Council Members either remain the same or be changed to some specific amount in the manner prescribed by law. D. Consistent with the City Charter, Section 2.07, the Mayor and Council Members may, after conducting public hearings, set their compensation by ordinance. No change in compensation shall be in effect until January 1, following the next succeeding general election. 218,14/06 Page 208 I City of Brooklyn Center Public Utility Bill Assessment Information Spring 2004 through Spring 2010 Number of Accounts Spring 2004 Fall 2004 Spring 2005 Fall 2005 Spring 2006 Fall 2006 Spring 2007 Fall 2007 Spring 2008 Fall 2008 Spring 2009 Fall 2009 Spring 2010 First Letter 885 788 884 1,088 1,016 1,285 1,231 1,372 1,462 1,470 1,417 1,254 1,282 Second Letter 471 442 520 578 623 676 756 802 960 965 985 810 859 Final Assessment 384 394 419 457 498 542 604 662 794 838 779 638 684 Dollars Spring 2004 Fall 2004 Spring 2005 Fall 2005 Spring 2006 Fall 2006 Spring 2007 Fall 2007 Spring 2008 Fall 2008 Spring 2009 Fall 2009 Spring 2010 First Letter 188,513.66 144,514.60 199,612.05 219,736.69 237,033.39 302,840.00 329,512.91 353,887.75 349,170.57 415,146.42 394,132.56 329,126.75 346,266.22 Second Letter 138,018.80 102,507.52 152,661.45 163,982.33 184,504.47 192,307.09 260,158.91 231,049.14 294,841.65 307,484.82 329,763.77 255,163.81 273,254.88 Final Assessment 119,402.92 88,062.69 125,157.51 135,162.05 148,624.15 151,402.02 222,408.60 197,452.01 249,602.10 276,533.13 258,617.12 205,993.76 224,410.73 1,600 1,400 1,200 1,000 800 600 400 200 Number of Accounts Notified and Assessed Spring Fall 2004 Spring Fall 2005 Spring Fall 2006 Spring Fall 2007 Spring Fall 2008 Spring Fall 2009 Spring 2004 2005 2006 2007 2008 2009 2010 First Letter -, --°- Second Letter Final Assessment 450,000.00 400, 000.00 350,000.00 300,000.00 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00 Dollar Amount of Notifications and Final Assessments First Letter Second Letter Final Assessment Spring Fall 2004 Spring Fall 2005 Spring Fall 2006 Spring Fall 2007 Spring Fall 2008 Spring Fall 2009 Spring 2004 2005 2006 2007 2008 2009 2010 I City of Brooklyn Center A Millennium Community MEMORANDUM DATE: February 26, 2010 TO: City Advisory Commissions and Charter Commission FROM: Curt Boganey, City Manage SUBJECT: Joint Meeting with City Council — Tuesday, April 6, 2010, 6:30 -8:00 p.m. On February 8, 2010, the City Council asked that we schedule a reception and joint meeting with all advisory commissions and the Charter Commission. The meeting will be held as follows: Tuesday, April 6, 2010 6:30 — 8:00 p.m. Constitution Hall Brooklyn Center Community Center - 6301 Shingle Creek Parkway Refreshments will be served Each commission will be provided ten minutes to briefly review activities of the past year. In addition the City Council is very interested in having the advisory commissions assist in achieving the Strategic Goals as adopted by the Council in_the 2010 Strategic Plan. I have attached a copy of the Strategic Plan for your review. As you will note there are six strategic goals. Within each strategic goal there are success targets. The Council is committed to achieving these success targets and the Council believes that your involvement could be very critical to our success. Please review these Strategic Goals with your staff liaison; please determine if you believe your commission can contribute to the achievement of any of these success targets. If you believe that you can and if you are willing to assist the Council/staff in this regard, please identify no more than two success targets of interest and at the joint meeting inform the Council how you would like to assist. For example: you might decide to assist with the achievement of S.G.4. Positively address demographic make and increasing cultural diversity. Success Target 1, Members of all communities will have equal access to governmental activities. Your commission might offer to develop a report on current participation levels on all commissions and provide a set of proposals to expand outreach to groups that are underrepresented on Commissions. As you look through the plan, I am certain you will find many important goals and needs where the talent and knowledge of your commission can be invaluable to the achievement of these important goals for our community. The Council and staff greatly appreciate your service and look forward to your continued contribution to the City. cc: Staff and Council Liaison Mission: An attractive, clean, safe community that enhances the quality of life and preserves the public trust 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 -2199 City Hall & TDD Number (763) 569 -3300 FAX (763) 569 -3494 www.cityofbrooklyncenter.org Recreation and Community Center Phone & TDD Number (763) 569 -3400 FAX (763) 569 -3434 Our Mission Strategic Plan Brooklyn Center 2010 To ensure an attractive, clean, safe community that enhances the quality of life and preserves the public trust Our Values Excellence and quality service delivery We believe that service to the public is our reason for being and strive to deliver quality services in a highly professional and cost - effective manner. Ethics and integrity We believe that ethics and integrity are foundation blocks of public trust and confidence and that all meaningful relationships are built on these values. Visionary Leadership and Planning We believe that the very essence of leadership is to be visionary and to plan for the future Fiscal Responsibility We believe that fiscal responsibility and prudent stewardship of public funds is essential for citizen confidence in government. Cooperation and Teamwork We believe that the public is best served when departments and employees work cooperatively as a team rather than at cross purposes. Open and Honest Communication We believe that open and honest communication is essential for an informed and involved citizenry and to foster a positive working environment for employees Professionalism We believe that a commitment to ethical values and continuous improvement is the mark of professionalism. We are committed to applying this principle to the services we offer and to the development of our employees. 2/3/2010 3:17 PM Page 1 Strategic Plan Brooklyn Center 2010 Strategic Goals 1. We will ensure a safe and secure community 2. We will aggressively proceed with implementation of City's redevelopment plans 3. We will stabilize and Improve residential neighborhoods 4. We will positively address the community demographic makeup and increasing cultural diversity 5. We will continue to maintain and upgrade City infrastructure improvements 6. We will respond to increased public awareness and interest in environmental sustainability and green community issues Ongoing Goals 1. We will continue to provide streamlined, cost effective quality services with limited resources 2. We will ensure the financial stability of the City 3. We will move toward maintaining or lowering the level of the City's property taxes 4. We will ensure the city's influence at the legislature 5. We will Improve the image of the City with citizens and those outside of the City's borders 6. We will ensure the City drinking water is high quality and that the storm water is properly managed 2/3/2010 3:17 PM Page 2 Strategic Plan Brooklyn Center 2010 Desired Outcomes and Success Targets S.G. 1 We will ensure a safe and secure community The threat and fear of real or perceived crime among citizens and others will be greatly reduced (d.o.1) Success Targets 1. Reduce violent crime by 10% or more each year 2. Reduce property crime by 10% of more each year Citizens will feel and be safe in their homes, areas of concern and throughout the City. (d.o.2) 1. City survey results will reflect that all residents feel safe in their homes. 2. City survey results will reflect that all residents feel safe throughout the City. (No places deemed unsafe) 3. City survey results will reflect that all residents feel safe walking alone at night. S.G. 2 We will aggressively proceed with implementation of City's redevelopment plans Private redevelopment will expand and improve (d.o.1) Success Targets 1. At least 50 % of the privately owned residential vacant properties will be redeveloped within the next five years adding to the adjusted for inflation taxable value of the City. Redevelopment of these properties will commence within two (2) years. 2. At least 80 % of privately owned vacant commercial properties will complete redevelopment within the next five years adding to the adjusted for inflation taxable value of the City. Redevelopment of these properties will commence within two (2) years. 2/3/2010 3:17 PM Page 3 Strategic Plan Brooklyn Center 2010 3. At least 50% of the blighted /economically obsolete commercial properties will be redeveloped within the next five years adding to the adjusted for inflation City tax base. Redevelopment of these properties will commence within two (2) years. "Opportunity Site" redevelopment will commence (d.o.2) Success Targets 1. 30 % of the privately owned properties north and east of John Martin Drive will commence redevelopment within five years. 2. All of the privately owned properties north and east of John Martin Drive will complete redevelopment within ten (10) years adding to the adjusted for inflation value of the City. 3. At least 50 % of EDA owned and privately owned properties located south and west of John Martin Drive will commence and complete redevelopment within five (5) years adding to the adjusted for inflation taxable value of the City. 4. All EDA owned and privately owned properties located south and west of John Martin Drive will commence and complete redevelopment within Ten (10) years adding to the adjusted for inflation taxable value of the City. EDA owned properties redevelopment will proceed expeditiously (d.o.3) Success Targets 1. At least 50 % of the EDA properties owned (non- Opportunity Site) commercial properties will commence redevelopment within the next 2 years. 2. All EDA owned commercial property will have completed redevelopment within ten (10) years adding to the adjusted for inflation taxable value of the City. S.G. 3 We will stabilize and Improve residential neighborhoods Citizens will benefit from a diverse stock of housing types and styles (d.o.1) Success Targets 1. The number of home remodels will increase. 2. The value added home improvements will exceed $7,500 average valuation per permit in each neighborhood (i.e. garage additions, bathrooms, bedrooms, 2 " stories, energy efficiency) annually. 2/3/2010 3:17 PM Page 4 Strategic Plan Brooklyn Center 2010 3. Housing and accommodations for seniors will be available for aging residents consistent with the demand for housing by this demographic group. 4. There will be new housing construction to accommodate the needs of those seeking a modern housing and move up housing choices Owners and occupants of housing in residential neighborhoods will comply with City codes and regulations which will be adequate to assure a safe well maintained and attractive community (d.o.2) Success Targets 1. Of all residential properties inspected 90 % will be in full compliance with property maintenance codes (% violation types) 2. All residents surveyed are aware of, understand and support the enforcement of city housing and neighborhood codes Owner occupied housing will increase as a percentage of total housing (d.o.3) Success Targets 1. At least 95% of single family residential properties will be owner occupied. 2. At least 95 % of all new housing will be built for owner occupancy Problems associated with foreclosures will be dramatically reduced or eliminated (d.o.4) Success Targets 1. 90 % of qualified vacant properties will be registered and in compliance with the vacant building ordinance. 2. All vacant properties will be in compliance with property maintenance codes. Residential property values will improve and citizens will be proud of their neighborhood and community (d.o.5) Success Targets 1. Within three years the average residential sales price will stop declining 2. Within five years residential sales prices will increase at a rate equal to or greater than rate of increase in comparable communities 2/3/2010 3:17 PM Page 5 Strategic Plan Brooklyn Center 2010 3. All residential properties will be well maintained and landscaped 4. All residents surveyed will say they are proud of their neighborhood. 5. All residents surveyed will say they are proud of Brooklyn Center. S.G.4 We will positively address the community demographic makeup and increasing cultural diversity All demographic groups will be represented and encouraged to participate in civic, governmental, community organizations and activities (d.o.1) Success Targets 1. Members of all communities will have equal access and representation in civic, governmental, community organizations and activities Youth will be adequately served by recreation and educational programs and activities (d.o.2) Success Targets 1. All youth who desire to will be productively engaged in recreational activities or educational programs 2. Participation in community programs and activities will reflect the demographic makeup of the community. The social, health and housing needs of the aging and moderate income population will be improved (d.o.4) Success Targets 1. Service gaps in the social, health and housing needs of aging and moderate income community members will be reduced and eliminated over time. 2/3/2010 3:17 PM Page 6 2/3/2010 3:17 PM Strategic Plan Brooklyn Center 2010 S.G.5 We will continue to maintain and upgrade City infrastructure We will Improve the image of the City with citizens and those outside of the City's borders City government buildings, major equipment and other physical assets of the City will be maintained and improved (d.o.1) Success Targets 1. Meet or exceed the minimum maintenance condition standard for City facilities. 2. Customers provide positive feedback pertaining to City facilities (clean, attractive buildings). 3. Maintain public access and availability to City park facilities and infrastructure. 4. Reduce graffiti occurrences and complaints. Neighborhood streets and utilities will be maintained and improved (d.o.2) Success Targets 1. Citizens rate reconstruction projects as meeting or exceeding expectations via surveys sent to project area residents. 2. Using a pavement index rating system, meet or exceed the established acceptable roadway rating standard. 3. Reduce potholes and roadway complaints. 4. Reduce sewer blockage and watermain breakage /complaints. 5. Complete the citywide street and utility reconstruction program within 10 years. The traveling public will benefit from multi -modal transportation options fostered and provided by the City (d.o.3) Success Targets 1. Minimize an increase to future traffic delays and congestion. 2. Minimize the amount of regional traffic flow on local streets. 3. Increase alternative modes of transportation used. Page 7 Strategic Plan Brooklyn Center 2010 Citizens will benefit from the expansion and improvement of needed technology infrastructure as cost effective feasible options become available (d.o.4) Success Targets 1. Reduce City government expenses through the application of technology. 2. Improve City services to the citizens through the application of technology. 3. Preserve environmental resources and conservation of energy through the application of technology. S.G. 6 We will respond to increased public awareness and interest in environmental sustainability and green community issues Public appreciation for the environment will improve and recycling and energy conservation will improve (d.o.1) Success Targets 1. Within three years all residents surveyed will understand the value of recycling and energy conservation and at least 70 % will have changed their behavior in order to conserve environmental resources. 2. Within five years energy consumption in the City will be reduced significantly. 3. Within five years City Government energy consumption will be reduced significantly. The purchasing power of the City will support the goal of an environmental sustainability (d.o.2) Success Targets 1. The City will purchase recycled materials whenever costs are reasonable and quality is acceptable. 2. The City will increase the share of purchased recycled materials by 10 % annually for the next five years. 3. The City will eliminate the use of products, chemicals or compounds that pose a risk to human health or to the environment whenever a viable cost effective alternative is available. 4. The City will purchase environmentally friendly equipment and vehicles whenever performance requirements and costs are comparable. 2/3/2010 3:17 PM Page 8 0. G.1 We will continue to provide streamlined, cost effective Quality services with limited resources The quality of service delivered by the City will consistently meet or exceed customer expectations (d.o.1) Success Targets 1. Customer surveys for City services delivered will reflect customer satisfaction from not less than 90% of respondents Service delivery will improve on an ongoing basis Success Targets 1. Implementation and execution of continuous improvement program throughout all departments 2. Qualification for Malcolm Baldridge or comparable quality improvement award. 3. Cost effectiveness performance benchmark comparisons from each department will reflect upper quartile performance for each high priority benchmark measure 0.G.2 We will ensure the financial stability of the City City funds will be protected against loss (d.o.1) Success Targets 1. All City funds will be FDIC insured up to the legal maximum per account 2. Any funds in excess of the FDIC maximum in any one account will be properly collateralized. 3. The City's investment portfolio will be diversified so as to minimize potential losses on individual securities. The City administration will provide meaningful short, Intermediate and long term fiscal planning (d.o.2) Success Targets 1. The operating budget document will provide annual and multi year operating plans. 2. Staff will annually provide life -cycle capital plans for all Tong -lived assets. 2/3/2010 3:17 PM Strategic Plan Brooklyn Center 2010 Page 9 Strategic Plan Brooklyn Center 2010 City will take appropriate actions to buffer essential services against the effects of significant economic downturns (d.o.3) Success Targets 1. Fund reserves as indicated by year end cash balance will be maintained at levels allowing for short term funding of operations in emergency situations 2. Essential services as determined by the City Council will be funded from non - volatile resources. City will position itself for economic growth (d.o.4) Success Targets 1. The City will keep current and adhere to the Comprehensive Plan 2. Capital Improvement Plans will reflect the intentions of the Comprehensive Plan O.G. # 3 We will move toward maintaining or lowering the level of the City's propertv taxes Except in extraordinary circumstances the property tax levy will not increase faster than the rate of inflation (d.o.1) Success Targets 1. Property tax levy increases do not exceed the rate of inflation. 2. If the tax levy increase exceeds the rate of inflation a clear, extraordinary circumstance is identified. The City will expand the proportion of industrial and commercial tax base to relieve the residential property tax burden (d.o.2) Success Targets 1. The City commercial /industrial tax base increases at a rate faster than the residential tax base. 2/3/2010 3:17 PM Page 10 Strategic Plan Brooklyn Center 2010 The inflation adjusted property taxes paid by the median family household will be stabilized or reduced over time (d.o.3) Success Targets 1. The inflation adjusted city property taxes payable for the median valued single family home will be equal to or Tess than the calculated city taxes payable for the prior year. O.G. # 4 We will ensure the city's influence at the leaislature State and Federal legislators will be kept informed regarding City needs that may be affected by legislation (d.o.1) Success Targets 1. Annually, the City Council and Staff will assess legislative needs and communicate directly with appropriate Local, State and Federal legislators We will maintain positive ongoing relationships with Local, State and Federal legislators (d.o.2) Success Targets 1. Legislative officials will address the City Council annually regarding their efforts on behalf of our shared constituents. 2. Legislators will sponsor and support legislation on behalf of the City O.G. # 5 We will Improve the image of the City with citizens and those outside of the City's borders Citizens and others throughout the State will recognize Brooklyn Center as a safe, quality, attractive community in which to live work and play (d.o.1) Success Targets 1. The rate of property value increase in each property classification will equal or exceed the average rate of increase in the Hennepin County and in the State. 2. Citizen Survey results will reflect the perception that Brooklyn Center is a safe, quality, attractive place to live work and play. 3. Positive press regarding the City of Brooklyn Center will increase. 2/3/2010 3:17 PM Page 11 Strategic Plan Brooklyn Center 2010 O.G. 6 We will ensure the City drinking water is high Quality and that the storm water is properly managed The City's drinking water will meet or exceed safe drinking water standards of the State of Minnesota (d.o.1) Success Targets 1. City will meet or exceed all safe drinking water standards. 2. The water supply will be protected against emerging and potential water contaminants. Storm water runoff will be managed in an efficient and environmentally sensitive manner (d.o.2) Success Targets 1. City will implement and maintain all priority elements of the Brooklyn Center Local Water Management Plan by 2012. 2/3/2010 3:17 PM Page 12