HomeMy WebLinkAbout1999 06-21 CCM Special 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
SPECIAL WORK SESSION
JOINT MEETING WITH FINANCIAL COMMISSION
JUNE 21, 1999
CONFERENCE ROOM B
CITY HALL
CALL TO ORDER
The Brooklyn Center City Council met for a special joint work session with Financial
Commission at Brooklyn Center City Hall and was called to order by Mayor Myrna Kragness at
7:01 p.m.
ROLL CALL
Mayor Myrna Kragness, Councilmembers Debra Hilstrom, Kay Lasman, Ed Nelson, and Robert
Peppe. Also present: City Manager Michael J. McCauley, Assistant City Manager/HR Director Jane
Chambers, Finance Director Charlie Hansen, Recording Secretary Maria Rosenbaum, Financial
Commission Chair Donn Escher, and Commission Members Jerald Blarney, Timothy Elftmann, Jay
Hruska, Mark Nemec, and Gavin Wilkinson.
PRESENTATION BY AUDITOR, DELOITTE & TOUCHE LLP
Cliff Hoffinan, Partner of Deloitte &Touche LLP, introduced himself and other personnel from the
firm, Ginny Halerin and Michelle Knuesel. Mr. Hoffman reviewed pages of the selected financial
information dated December 31, 1998, and discussed various aspects of the annual financial report.
Public safety is at the high end due to the volunteer fire program and what the differences are for
cities that have full -time fire departments. He explained that it is not only the volunteer fire program
that makes public safety a high percentage, it is all public safety issues.
General fund revenues /expenditures per household. Mr. Hoffman explained the expenditures are
per capita and that the State is trying to lower the burden.
Selected performance indicators. Mr. Hoffman discussed operating ratios and that the City is much
lower than the national average. Mr. Hoffman's one concern is the Earle Brown Heritage Center.
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The Earle Brown Heritage Center had a (3.9 %) in 1998. Mr. Hoffinan informed the Council that the
City has a lower cost of debt due to the good financial management of the City.
Market values and legal debt margin. Mr. Hoffman discussed the difference between the market
values and the legal debt margins and explained the reasoning of the legal debt margin.
Fire Department Relief Association retirement obligations. Mr. Hoffman informed the Council this
pension plan is 100% funded and is at a good financial standpoint.
Finance Director Charlie Hansen explained the benefits of the plan and that there has been
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discussions about switching the plan from defined benefit to a defined contribution plan.
Debt service schedule (principal and interest). Mr. Hoffman discussed the general obligation bonds,
the special assessment bonds, and the tax increment bonds.
Mr. Hoffman finished the presentation with discussion of management practices to avoid,
competitive advantages, challenges, and what the City should do over the next five years. Some of
the issues for what the City should do over the next five years are things the City is currently
performing or has performed since December 31, 1998. Mr. Hoffman praised the City's staff for all
the work they have done.
Ms. Halerin explained to the Council the management letter regarding the current year comments
and the status of prior year comments regarding the audit process. She also praised the City's staff
for all the work they had done.
City Manager Michael McCauley stated that the formal presentation of the 1998 Audit will be on
the June 28, 1999, agenda.
ADJOURNMENT
Councilmember Lasman made a motion to adjourn the meeting at 8:20 p.m., seconded by
Councilmember Nelson. Motion passed unanimously.
City Clerk ® Mayor
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