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HomeMy WebLinkAbout2001 10-29 CCM 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 29, 2001 CONFERENCE ROOM B CALL TO ORDER The Brooklyn Center City Council met for a general work session with the Financial Commission at Brooklyn Center City Hall in Conference Room B 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 J. McCauley, Assistant City Manager Jane Chambers, Fiscal and Support Services Director Doug Sell, and Deputy City Clerk Maria Rosenbaum. Financial Commission Members present were Financial Commission Chair Donn Escher, Financial Commissioners Jerry Blarney, Mark Nemec, Jay Hruska, Gavin Wilkinson, Lawrence Peterson, and Tim Elftmann. DRAFT ENTERPRISE FUND BUDGETS (NON - UTILITY) FOR LIQUOR, GOLF, AND EARLE BROWN HERITAGE CENTER City Manager Michael McCauley discussed the draft liquor budget is close to meeting the 2001 budget projections and that in 2002 the budget projects sales roughly at the 2001 budget level. The contribution to the Capital Improvements Fund is increased from $75,000 in 2001 to $100,000 in 2002. Projected net income will sustain the increased contribution and the accumulation of capital funds in the Liquor Fund for fixture and other replacement needs over time. Mayor Kragness questioned the decrease in salaries and the increase in communications. Mr. McCauley explained that the decrease in salaries was due to less management with the closing of the two liquor stores and that the increase in communications was for telephone, advertising, and postage associated with the liquor store at the Cub Foods location. 10/29/01 -1- Mr. McCauley discussed that the draft golf budget for 2002 reflects a slight increase in revenues and an accelerated debt payment is included increasing the debt service from $50,000 to $70,000. The targets for cash balance and capital outlay are being met even with revenues below budget for 2001 because of the weather this year. Mr. McCauley discussed the Earle Brown Heritage Center (EBHC) budget is on track to have better cash flow for operation and some capital operating equipment and facility repairs. As had previously been discussed, EBHC does not have the capacity to meet long -term capital replacement needs and the timing of some of the capital replacement may coincide with the capacity to issue debt after the police and fire bonds are retired. This approach could allow the Community to determine the course of future funding for major capital needs as the facility ages. Councilmember Nelson questioned the increase in management fees. Mr. McCauley discussed that the increase is associated with the business done by Flik Catering Services. Their compensation increases as sales increase if the target profitability is met for sales verses cost of sales. Mr. McCauley informed the Council that he would like to consider transferring $100,000 of cash from the Heritage Center into Heritage Capital Funds for larger capital items. Financial Commission Chair Donn Escher questioned where the $100,000 would come from since there was not that amount indicated at this time for a transfer. Fiscal and Support Services Director Doug Sell explained that the numbers presented are what was previously presented. Mr. McCauley noted that the money to be transferred is a thought at this time and that staff will take a closer look in December to see if the transfer is possible. This would use identified, earned cash for larger capital expenditures. Mayor Kragness questioned what the amount is allocated for transfer of other funds. Mr. McCauley informed the Council that is money used for the switching of the Assistant City Manager's responsibilities to include work at the EBHC. This item may be re- considered. UPDATE ON DRAFT GENERAL FUND BUDGET Mr. McCauley updated the Council and Financial Commission on the general fund revenues and informed them that the taxes collected is based on the maximum level and that the levy can always be reduced. The changes since the August 6, 2001, worksession include increased revenues based on levy information from the State, an increased budgeted special assessment construction fund transfer to $480,000 from $409,044, provides additional reimbursement from other funds for time spent by the City Manager and Assistant City Manager to reflect time spent on the EBHC, Economic Development Authority, and Liquor budgets that continue to be evaluated. 10/29/01 -2- Mayor Kragness questioned the 22.02 percent increase for repair and rental. Mr. McCauley informed the Council that the increase for this allocation is for the central garage replacement costs, which are being lifted to anticipated replacement cost from historical acquisition cost. Councilmember Nelson questioned the debt service to NSP. Mr. McCauley discussed that the money allocated for this was to replace traffic signal light bulbs in the City which was to be an energy savings to Brooklyn Center. Mr. McCauley questioned if the Council would be comfortable with an increase in the contingency fund of $70,000 to $100,000. This money would be added for unexpected costs such as more policing efforts, cosmetics to Brookdale, and/or purposes for weather incidents. Councilmember Peppe questioned if this money would be spent at the discretion of the City Manager or if the Council will be involved. Mr. Escher questioned if the fiscal policy language would be considered when making this decision. Mr. McCauley responded that the narratives will include the expenditures that he will review with the fiscal policy. Councilmember Lasman stated that she likes the idea of the increase and the idea of having the Council work with the City Manager on any issues that arise. Councilmember Peppe stated that he would like a tracking measure of the _increase monies to the contingency fund and that the Council should be involved in the process of how to spend the money. Councilmember Nelson requested that the Council be made aware of how this money is spent. Mr. McCauley informed the Council that the next budget meeting will be on November 19, 2001, and that staff should have a teamsters contract at the November 13, 2001, City Council meeting. SMART GROWTH OPPORTUNITY SITE — KEY ELEMENTS OF PREFERRED OPTION FOR SITE Council discussed key elements for the Smart Growth opportunity site. After much discussion it was the consensus of the Council to suggest the following to the Metropolitan Council for the next stage of the concept development. • Expand hospitality industry (possibility of hotel next to EBHC). • Create a focus and marketable area north of Bass Lake Road, east of Shingle Creek Parkway, to capture an imaginative community focal point. It was suggested to indicate modular, large masses that can be integrated into focused plan. • Potential plaza through entire length providing large, focal space consistent with modular components and ability to attract or create destination amenities. 10/29/01 -3- • Housing with mixed types to include owner occupied, upper rental, and senior with price points not currently available in Community. These types must be sustainable over the long term at upper /upper middle levels with scattered locations and not over concentration. • Enhanced trail and pedestrian access with swales unacceptable. • Address the Transit Hub to County Road 81 and note that location for Transit Hub is not acceptable on any part of Brookdale property. Transit Hub should be part of mixed use development and have full amenities for patrons. • Greenscape. MISCELLANEOUS Mr. McCauley discussed that he is considering the name of the Phil Cohen Community Room for the new room at the Community Center. The Council consensus supported that direction. Mayor Kragness questioned if the Lions should be considered during the naming process. Mr. McCauley informed the Council that he was considering a plaque in the kitchen area since they may provide money towards the remodel of the kitchen at the Community Center. ADJOURNMENT A motion by Councilmember Peppe, seconded by Councilmember Ricker to adjourn the meeting at 8:59 p.m. City Clerk Mayor( 10/29/01 -4-