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HomeMy WebLinkAbout2002 10-07 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 OCTOBER 7, 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, and Bob Peppe. Councilmember Tim Ricker was absent and excused. Also present: City Manager Michael McCauley, Assistant City Manager Jane Chambers, Fiscal and Support Services Director Doug Sell, and Deputy City Clerk Maria Rosenbaum. Financial Commission Members present were Chair Donn Escher and Commissioners Timothy Elftmann, Jay Hruska, Mark Nemec, and Jerald Blarney. REVIEW AUDIT SERVICES City Manager Michael McCauley discussed that Deloitte & Touche submitted a response that they are not willing to lower their proposal for auditing services. Mr. McCauley asked if there would be consensus to re -open discussions with other auditing firms. Council and Financial Commissioners discussed and both were in consensus to have staff re -open discussions with HLB Tauges and Redpath. TRUTH IN TAXATION HEARING Mr. McCauley discussed that the calculations for determining whether the City is required to conduct a taxation hearing had been received. The decreased levy combined with increased Local Government Aid is less than the threshold for requiring a truth in taxation hearing. He informed the Council that they could continue with conducting a truth in taxation hearing since it had been published in the local newspaper even though it is not required. Mayor Kragness stated that she believes the Council should conduct a truth in taxation hearing since it had already been published in the local newspaper. It was the consensus of the Council to continue with the truth in taxation hearing on December 2, 2002. 10/07/02 -1- CAPITAL IMPROVEMENT PROGRAM Mr. McCauley discussed that the Capital Improvement Program (CIP) that is being reviewed will implement the 2003 projects contained in the 2002 -2006 CIP; that there will be an infrastructure improvements fund created to replace the special assessment construction fund and consolidate the presentation; and that there will be a major change with the insertion of a street project in 2004 for the area around Northport School that was not contained in the 2002 -2006 CIP. This will push the neighborhood street projects identified for 2004 -2006 into the 2005 -2007 time frame. He informed once the new personnel being hired are present there may be a need to have a more comprehensive planning process and reevaluate the CIP in 2003 with the benefit of a fresh look at the City and its priorities. Council further discussed the CIP and issues relating to bonding. Councilmember Peppe asked if projects could be bonded in the future and if tax increment financing could be used. Mr. McCauley informed the Council that the City could bond projects in the future in the TIF Districts for certain improvements; and that tax increment financing could be used since it would be for an improvement to the City. Councilmember Nelson left the meeting at 6:40 p.m. It was the consensus of the Council to move forward with the CIP. UTILIITES Mr. McCauley informed that the rate studies are being updated to reflect the CIP and additional mandates. The Federal Government had mandated wellhead protection studies and efforts as part of homeland security that will add cost to the City; and there are utility infrastructure needs that may not have been fully reviewed and incorporated in the planning process that will need to be assessed in 2003. The rate studies show a three percent increase in each of the utilities; however, the following are preliminary recommendations: Water: three percent to four percent increase Sanitary Sewer: three percent to four percent increase Street Light Utility: one percent to two percent increase Storm Water Utility: three percent increase Recycling: no increase (if not considering the annual clean up), or two percent to three percent increase if considering repeating the annual clean up. Council and Financial Commissioners discussed the recommendations. Financial Commission Chair Donn Escher questioned the $42,700 for annual dues and subscriptions. Mr. McCauley informed that the City has to have a watershed management organization and the fees are for the operation of the watershed management organization which conducts studies, reviews construction, etc. on behalf of all the cities in the individual watershed. 10/07/02 -2- The annual recycling clean up event was discussed. Mr. McCauley informed the Council that they might wish to consider increasing one percent to two percent, instead of two percent to three percent, if they wished to continue the annual clean up event in future years. Councilmember Peppe believes that the rates should be left at this time and continue discussions of increasing at a later date. It was the consensus of the Council to move forward with the above preliminary recommendations for utilities suggested by Mr. McCauley. DRAFT ENTERPRISE FUND BUDGETS (NON- UTILITIES) Mr. McCauley discussed that the liquor store budget reflects anticipated continuation of established patterns of sales and costs. The golf course has suffered its second consecutive year of poor weather and cash balances are being used. Mayor Kragness questioned the loan. Mr. McCauley stated he would check and that he believes there are a number of years left on the loan. The Earle Brown Heritage Center (EBHC) preliminary budget reflects increased insurance and LOGIS charges. Revenue forecasts have been adjusted downward to reflect the downturn in the economy. Mr. McCauley stated that he would move forward with preparing the materials for the November 18, 2002, Worksession consistent with the discussion this evening. MISCELLANEOUS Mr. McCauley informed that he had attended a meeting regarding the land exchange issue with School District No. 286 and discussed the conversations that had taken place. Councilmember Lasman reported that she would not be at the Study Session and possibly the Open Forum on October 14, 2002 due to a class she was attending. ADJOURNMENT The Council adjourned the meeting at 8:20 p.m. i City Clerk Mayor 10/07/02 -3- I