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Home My WebLink About2002 08-19 CCM Joint Work Session with Financial Commission MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA GENERAL WORK SESSION MEETING WITH FINANCIAL COMMISSION AUGUST 19, 2002 COUNCIL /COMMISSION CONFERENCE ROOM CALL TO ORDER The Brooklyn Center City Council met for a general work session with the Financial Commission at Brooklyn Center City Hall in the Council /Commission Conference Room and was called to order by Mayor Myrna Kragness at 6:00 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kay Lasman, Ed Nelson, Bob Peppe, and Tim Ricker. Also present: City Manager Michael McCauley, Assistant City Manager Jane Chambers, and Deputy City Clerk Maria Rosenbaum. Financial Commission Members present were Chair Donn Escher and Commissioners Timothy Elftmann, Jay Hruska, Mark Nemec, Lawrence Peterson, and Gavin Wilkinson. GENERAL DISCUSSION OF 2003 BUDGET PROCESS City Manager Michael McCauley discussed the development process being used for the 2003 budget, which is very general at this time, since staff is still awaiting notification of the City's levy limits and final aid information. Based on the preliminary information received Local Government Aid LGA is projected to increase by $234,371. The estimated increase of levy authority is approximately $80,000 if the overall levy limitation is around 2.7 percent. General Fund Revenues from taxes and LGA would increase 2.5 percent to 3.0 percent. Preliminary and unreliable indications are that one other area of State Aid may increase in rental housing assistance. Actual notifications are due later this week and may impact the overall levy limits. This preliminary draft budget incorporates a total of $331,881 of increased aids, with predominant increases from LGA and rental housing aid. Additionally, the State Budget shortfall may result in decreases in aids during 2003 without the ability to levy back any lost aids. Councilmember Lasman questioned the changes with the Community Center Fees and Recreation budgets. Mr. McCauley informed the Council that the change in Recreation was due to the declining adult participation and that the net part-time and temporary employee costs in Recreation are increased approximately $70,000. 08/19/02 -1- Mr. McCauley discussed that the personnel costs in the General Fund Expenditures continues to be the highest single component. The target of 3.0 percent for personnel cost growth, while recognizing that individual costs would exceed 3.0 percent, is still the target; however it does not appear that it will be able to hold total personnel cost at 3.0 percent and the final budget will be lower than the draft reflects for departmental requests. Council discussed the reduced contingency, salaries and fringe benefits, and the changes in the Public Works Department. After further discussion of the General Fund budget and levies, it was the consensus of the Council to move forward with the 2003 budget process with a preliminary levy at the level set by the State for levy limits. Mr. McCauley informed the Council that the expenditures /service targets might change after the report is issued regarding the Public Works Department. Financial Commission Chair Donn Escher questioned typos in sections of the draft budget. Mr. McCauley informed the Financial Commission and the Council that the draft budget does have some narrative errors and that the errors will be amended before the final budget is presented. Mr. Escher questioned the use of pagers and cellular phones, and the increase in the Council and Special Events budgets. Mr. McCauley discussed that the technology is not always compatible and that is the reason for updating outdated pagers and cellular phones. He informed that a study is being conducted to research the use and need for pagers and cellular phones. As for the increases in the Council budget, the audit prices and some dues and fees have increased; and the Special Events budget relates to things that have been reclassified such as the J.D. Edwards Program. Mr. McCauley will get some details on the Special Events for the Council and Financial Commission. Council discussed the requests received for 2003 and was in consensus of the following: Joint Powers Five Cities Transportation $14,118 Northwest Hennepin Human Services Council $18,670 Project Peace $46,317 Services Dependent on ON Fundine PRISM $10,000 Services Aided by ON Funding Brooklyn Peacemaker Center, Inc. $ 7,000 North Hennepin Mediation Program, Inc. $ 4,000 08/19/02 -2- i Council continued discussions of the priorities that need to be met with the budget process. Councilmember Lasman indicated that she believes that the street improvements program needs to continue; Councilmember Nelson stated that he believes that the 20 -year street program is important; and Councilmember Peppe indicated that maybe raising street assessments would be an alternative the help with funding for these projects. MISCELLANEOUS Councilmember Nelson questioned the Civic Center project. Mr. McCauley informed the Council that the buildings still have work to be done. Mr. McCauley informed the Council that there may be discussion with the Park and Recreation Commission regarding major planning for future parks and including Community Center improvements in that planning. Council discussed the recent changes and options available to the City with the merger of the Brooklyn Area Chamber of Commerce. Mr. Escher discussed that he would like to make a presentation regarding Council's compensation on the September 9, 2002, City Council Agenda. ADJOURNMENT A motion by Councilmember Nelson, seconded by Councilmember Peppe to adjourn the meeting at 8:00 p.m. IM� AMX+Ok City Clerk Mayor 08/19/02 -3-