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HomeMy WebLinkAbout2001 12-27 CCM Special Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION DECEMBER 27, 2001 CITY HALL — ADMINISTRATION CONFERENCE ROOM 1. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in special session to discuss the revised City budget and levy and was called to order by Mayor Myrna Kragness at 8:15 a.m. 2. ROLL CALL Mayor Myrna Kragness, Councilmembers Kay Lasman, Ed Nelson, and Bob Peppe. Councilmember Tim Ricker was absent and excused. Also present: City Manager Michael J. McCauley, Assistant City Manager Jane Chambers, City Attorney Charlie LeFevere, and Deputy City Clerk Maria Rosenbaum. 3. DISCUSSION OF LEVY LIMIT APPLICATION TO COMBINATION OF GENERAL FUND AND ECONOMIC DEVELOPMENT AUTHORITY LEVIES AND OPTIONS City Manager Michael McCauley discussed that when the 2002 preliminary levy was certified to Hennepin County in September the City received information regarding the final levy limits for the Housing and Redevelopment Authority (HRA) and the Economic Development Authority (EDA). The County recently advised the City that the 2002 levy limit for the General Fund includes the amount levied on behalf of the EDA. The EDA levy has been included in the Truth in Taxation Notice in past years when a notice was required, while the HRA levy was not, and some confusion arose out of the separateness of the EDA levy and the separate limitation on the amount of the EDA levy. In speaking with representatives from the County and the State Finance Department, it was confirmed that the EDA levy would have to be included in the overall levy limit calculations for taxes payable in 2002 which means that there are two limits on the EDA levy, a percent limit on the market value of taxable property, and the overall levy limitation. The HRA levy is treated as a special levy and is only limited by the percentage limitation in Statute and not included in the overall levy limitation. The net impact is that the adopted levy is $248,423 higher than the levy limit for pay 2002. Mr. McCauley informed the Council that there were several options and outlined the options that had been provided in the materials. 12/27/01 -1- Council discussed the impacts and the options suggested before coming to consensus that the best option would be to amend the final levy and reduce the EDA levy entirely which leaves $237,067 in the budgeted expenses against sufficient HRA transfers and interest to cover salaries and supplies with a potential $15,000 shortfall that could be covered by a transfer from the General Fund at a later time. Council further discussed other cities eliminating their HRA and why the City of Brooklyn Center had chosen not to eliminate their HRA. City Attorney Charlie LeFevere informed the Council that at the time other cities eliminated their HRA the City of Brooklyn Center's HRA still owned property and it was a good decision at the time to continue with the HRA. Mr. McCauley advised that it was likely that State Aids payable in 2002 may be replaced. Thus, the General Fund Budget will likely need to be reviewed after the Legislative Session. Eliminating the EDA levy gives the Council greater flexibility in dealing with potential aid cuts. It was noted that the Resolution Adopting Amended 2002 General Fund Budget would be eliminated since the EDA levy reduction eliminated a need to amend the General Fund Budget at this time. 4. RESOLUTION APPROVING FINAL TAX CAPACITY LEVY FOR THE GENERAL FUND, DEBT SERVICE FUNDS, HOUSING AND REDEVELOPMENT AUTHORITY AND ECONOMIC DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2002 RESOLUTION NO. 2001-194 Councilmember Peppe introduced the following resolution and moved its adoption: RESOLUTION APPROVING FINAL TAX CAPACITY LEVY FOR THE GENERAL FUND, DEBT SERVICE FUNDS, HOUSING AND REDEVELOPMENT AUTHORITY AND ECONOMIC DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2002 The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 5. RESOLUTION APPROVING AMENDED FINAL TAX CAPACITY LEVY FOR THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER FISCAL YEAR 2002 RESOLUTION NO. 2001-195 Councilmember Lasman introduced the following resolution and moved its adoption: 12/27/01 -2- RESOLUTION APPROVING AMENDED FINAL TAX CAPACITY LEVY FOR THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER FISCAL YEAR 2002 The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Peppe. Motion passed unanimously. 6. RESOLUTION ADOPTING AMENDED 2002 GENERAL FUND BUDGET This resolution was eliminated since the EDA levy was being reduced. 7. RESOLUTION ADOPTING AMENDED 2002 SPECIAL REVENUE FUND BUDGETS RESOLUTION NO. 2001-196 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION ADOPTING AMENDED 2002 SPECIAL REVENUE FUND BUDGETS The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Nelson. Motion passed unanimously. 8. ADJOURNMENT A motion by Councilmember Lasman, seconded by Councilmember Nelson to adjourn the Special City Council meeting at 8:50 a.m. Motion passed unanimously. )?z City Clerk Mayor 0 12/27/01 -3-