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1998 10-19 CCP Work Session
• AGENDA CITY COUNCIL WORK SESSION OCTOBER 19, 1998 7:00 P.M. CONFERENCE ROOM B 1. Liquor Budget a) 1999 budget b) loss of building 2. Golf Course Budget a) 1999 budget b) 1998 results: construction closure 3. Earle Brown Heritage Center Budget (defer to later work session) 4. CO - -OP NORTHWEST - CHDO independence - remaining functions - City participation: financial and otherwise 5. Metro Transit lans and options p P discussion 6. Council Member Carmody - deferred loan program 7. City Council 1999 Goals - Council review of report prior to placing on regular agenda for adoption 8. Discussion of setting November 30th as City Council Work Session 9. Miscellaneous i 1031 City of Brooklyn Center A great place to start. A great place to stay. To: I Mayor Kragness and Council Members Carmody, Hilstrom, Lasman and Peppe From: Michael J. McCauley City Manager Date: October 16, 1998 Re: Liquor Budget Attached please find materials related to the budget for the Liquor Stores. Included in the materials is a memorandum from Finance Director Charlie Hansen regarding the value of the property surrendered by the liquor fund for the construction of the new fire station. the materials are included for discussion of what direction, if any, you would like to take. When the matter was discussed with the Council, I had indicated that the issue of the value of the property lost to the liquor enterprise would be an item to evaluate. Also included is a memorandum from Mr. Hansen regarding target cash balances for both the Liquor and Golf Funds. In the budget materials, the basic budget reflects a continuation of the present configuration that would meet the financial goals previously set by the Council. A five year projection of capital needs is also included. Based on continuing current operations, this would provide a 5 year plan for the liquor fund. • 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action IEqual Opportunities Employer MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Charlie Hansen, Finance Director DATE: October 15 199E SUBJECT: Enterprise Fund Cash Balance Targets One of the goals for the 1999 budget process is to develop targets for the cash balances to be maintained in each of the City's enterprise funds. These targets are intended to provide the cash needed for future operational and capital needs of each fund and establish a benchmark for evaluating the fund's current performance. The City's auditors have often cited the accumulated depreciation as a valid benchmark for cash. Even when cash equal to accumulated depreciation is maintained, it typically only pays for part of the cost of a replacement asset due to the effect of inflation since the original asset was purchased. • While accumulated depreciation is a good starting point, some enterprise funds have P g g P rP different operating or capital needs which require further development of a benchmark. If the pattern of operating revenues and expenses are uneven throughout the year, they may create a period during which expenses are paid out without matching revenues. A cash 4 balance is needed to carry through this period. If the capital needs of an enterprise fund are being met on a pay as you go method, but they are paid out in the opening months of a year, the cash must be on hand at the end of the preceding year. In other cases, a particular fund might build up cash for several years in anticipation of a large capital project. These circumstances may create a need for cash balances which are larger than the accumulated depreciation. Other times, it is the intent of the City that certain capital projects will be funded by means of bond issues when, and if, they are replaced. In these cases, it may not be appropriate in include accumulated depreciation on these assets in the target for cash balances. The particular circumstances of each enterprise fund are discussed as follows: • LIQUOR FUND • The liquor stores have high and low points in their business cycle. However, the revenues and expenses rise and fall in sync during the cycle. This eliminates the need for any special allowances for operating cash flows. Capital needs in most years are modest compared to operations. For large capital needs, such as a building, it will be possible to issue revenue bonds. Capital needs can therefore be handled on an exception basis rather than factored into every year's target calculation. The one circumstance which does call for special handling is accounts payable. The Liquor Fund is at the mercy of its vendors to control the timing of invoices at year end. Some years, the vendors get invoices for most December inventory purchases to the City in December and they must be paid in December to receive cash discounts. This minimizes the balances of cash and accounts payable. Other years the vendors are slow to invoice the City. The December inventory purchases show up as accounts payable and cash remains on the books until invoices are paid in January. This fluctuation is beyond the control of the City. Given all of these factors, I recommend a benchmark for the Liquor Fund which is that cash, minus accounts payable, should equal at least 50 % of accumulated depreciation. The Liquor Fund was short of this measure as of December 31, 1997, but it will probably meet it as of December 31, 1998. • GOLF COURSE The Golf Course cash balance was addressed in 1997 and a plan adopted as part of the 1998 Annual Budget. This plan partially resolved the issue by making the $1,150,000 loan be interest free, repaying the loan over 20 years, and by planning that $20,000 per year would be set aside as a capital reserve. The cash in the reserve could be spent each year on capital needs, or if not spent, would be held in the reserve for future needs. However, the plan was basically silent on the question of what cash the Golf Course should have on hand other than the capital reserve. Business at the Golf Course is highly cyclical, with most revenues collected in five months spanning May through September. Expenses occur throughout the year with a concentration during May through September. Virtually no revenues are collected in the January through March time period. A cash balance equal to 15 % of the budgeted revenues would be sufficient to cover expenses through the first three months of the year A good initial goal would be to have cash on hand equal to the capital reserve plus 15 % of the next year's budgeted revenues for operations. A better long term goal would be to have cash on hand equal to accumulated depreciation. • MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Charlie Hansen, Finance Director DATE: October 12, 1998 SUBJECT: Compensation to the Liquor Fund for the Brooklyn Boulevard Liquor Store Site The Liquor Fund took part in the purchase of land and construction of a building at 6250 Brooklyn Boulevard in 1959. Liquor paid $2,500 for the land and $40,760.49 for the building and parking lot that year. The General Fund paid for the Fire Station's portion of the costs of this shared facility. Construction of a new West Fire Station came with a decision to give this entire site over to the Fire Station. On several occasions there has been discussion of providing compensation to the Liquor Fund for the loss of this site. The Boulevard Liquor Store had benefited from the opening of the Rainbow Foods store • across the street and become quite profitable. I had my staff compile a profit and loss statement for the period of May 1, 1997 through April 30, 1998. These were the last twelve full months of operation for the store. Rainbow opened in August 1997, so the store benefitted from increased business for most of the period. Net income, after paying all operating and capital costs, was $95,337 for this final year of operations. City Assessor Stephen Baker was asked to estimate the market value of the liquor store as if it were a free standing site which could be sold. His attached memorandum gives an estimate of $240,500. This is probably more that the Capital Improvements Fund can afford. It perhaps is more than the site is really worth since it isn't a free standing site. Another proposal has been to have the Capital Improvements Fund forgive the remainder of the loan it made to the Liquor Fund for the Humboldt Liquor Store in 1985. This is fitting in that it is the Capital Improvements Fund which is constructing the new West Fire Station. The Boulevard Liquor Store closed in late May 1998 and opened in the rented space across the street in June. On June 1, 1998, the remaining balance on the Humboldt loan was $70,538.39. This amount is substantial enough to represent meaningful compensation to the Liquor Fund yet be affordable to the Capital Improvements Fund. • To: Michael McCauley, Charles Hansen MEMORANUM From: Stephen L. Baker Subject: Brooklyn Blvd. Liquor Store Value Date: August 27, 1998 You have requested I provide an estimate of the market value of the retail space recently vacated by the city owned liquor store on Brooklyn Boulevard. This store was actually a portion of a larger building which also contained a city fire station. The total building size is 9,045 square feet on a land parcel of 39,576 square feet. The liquor store occupied approximately 3,600 square feet of this building. This estimate will value the 3,600 square foot retail store as if it were a freestanding building located on a land parcel of 18,000 square feet. This land area represents a typical retail site, with a land to building ratio.of 5 to 1. This estimate is based on replacement cost new less depreciation for age and condition. This valuation assumes a zoning of C2. Recent commercial land sales in the city have ranged from $4.73 per square foot to $14.22 per square foot. These sales include: Property Sale Price Sale Useable Land Sale Price Per Date Area Square Foot TGIF /Country Inn $1,700,000 05/1996 359,370 $ 4.73 Denny's Restaurant $ 300,000 09/1996 44,431 $ 6.75 Walgreens $1,000,000 12/1996 70,316 $14.22 Brookdale Mitshibishi $1,163,000 08/1996 174,240 $ 6.67 W / Corrections Americlnn $1,74,647 03/1997 153,696 $ 6.99 W /Corrections Extended Stay America $ 628,546 07/1998 87,077 $ 7.22 Means 148188 $ 7.76 I estimate that the value of an 18,000 square foot land parcel at the subject location to be $7.00 per square foot or $126,000. A Marshall Swift computerized cost estimate has been performed for the improvements and the depreciated building value is estimated at $114,547. Please see attached estimate. Therefore the total value estimate (rounded) as of August 1, 1998 is: $240,500 ■ Summary Report 8/27/98 Page: 1 Parcel Number 34- 119 -21 -43 -0046 erty Owner City of Brooklyn Center erty Address 6250 Brooklyn Boulevard 55430 55430 Building Name LIQUOR STORE (Partial Allocation) Comment RETAIL Company Name City of Brooklyn Center Section 1 Occupancy % Class Height Rank Retail Store 100 Masonry bearing walls 14 2.0 Total Area 3,600 Number of Stories(Section) 1.00 Shape 1.0 Components Units /% Other HVAC (Heating): Package Unit 100% Climate Sprinklers: Sprinklers 100% Exterior Walls: Block with EIFS 25% HYRt�WMa s: Concrete Block 75% Miscellaneous Site Improvements 35,000 �st as of 10/1997 Basic Structure Units /% Cost Total Base Cost 3,600 37.69 135,684 Exterior Walls 3,600 12.40 44,640 Heating & Cooling 3,600 8.89 32,004 Sprinklers 3,600 2.64 9,504 Basic Structure Cost 3,600 61.62 221,832 Extras Site Improvements 35,000 Replacement Cost New 3,600 71.34 256,832 Less Depreciation Physical & Functional 55.4% 142,285 Depreciated Cost 3,600 31.82 114,547 Miscellaneous Land Value 18,000 7.00 126,000 Total Cost 3,600 66.82 240,547 • Rounded to Nearest 100 240,500 Cost Data by Marshall & Swift • LIQUOR STORE #2 - BOULEVARD LIQUOR P & L MAY 1, 1997 - APRIL 30, 1998 OPERATING REVENUES LIQUOR SALES 1,101,690.00 COST OF SALES 841,315.00 NET OPERATING REVENUE 260,375.00 OPERATING EXPENSES SALARIES & WAGES 106,831.00 FRINGE BENEFITS 16,042.00 SUPPLIES 4,128.00 PURCHASED SERVICES 1,114.00 COMMUNICATIONS 4,781.00 REPAIR, RENTAL & MAINT. 3,664.00 OTHER CONTRACTUAL 4,202.00 CENTRAL GARAGE 979.00 INSURANCE 4,029.00 UTILITIES 7,030.00 ADMINISTRATIVE SERVICE 9,152.00 DEPRECIATION 5,594.00 TOTAL OPERATING EXPENSES 167,546.00 NET OPERATING INCOME 92,829.00 NON- OPERATING REVENUE 2,508.00 NET INCOME 95,337.00 • Division: Liquor Stores Overview Budget Code: 651, 652, 653 PROFILE Total budgeted sales and total cost of sales are expected to increase less than 2% in 1999 compared to the 1998 Adopted Budget. Part of the decreased in sales at the Boulevard Liquor Store will be made up by increased sales at the other two stores. Operating costs increased primarily due to the building rent and depreciation of leasehold improvements at the new Boulevard Liquor Store. The liquor stores are expected to continue to produce operating profits in excess of $100,000. Transfers of $100,000 per year have been made to the General Fund from 1993 through 1997 with the remaining profits retained in the Liquor Fund. It may be necessary to retain more in the Liquor fund to cover the capital cost of new stores. The City Council decided during 1997 that a transfer of $75,000 per year is the minimum that would be acceptable and that the transfer should be directed to the Capital Improvements Funds instead of the General Fund. LIQUOR STORES 1999 BUDGET Dept p Actual Actual Adopted Request Budget 1996 1997 1998 1999 REVENUES: Liquor Sales $905,643 $966,552 $995,000 $1,007,000 Wine Sales 295,758 317,450 314,300 329,000 Beer Sales 1,462,802 1,536,179 1,573,000 1,604,000 Other Sales 195,920 195,446 211,100 203,350 Investment Earnings 1,668 6,910 3,000 9,000 Total Revenues $2,861,791 $3,022,537 $3,096,400 $3,152,350 Less: Cost of Sales $2,160,032 $2,295,705 $2,345,962 $2,386,838 Gross Profit $701,759 $726,832 $750,438 $765,512 EXPENDITURES: Personnel $333,979 $346,725 $380,685 $397,252 Supplies 15,861 11,904 11,700 11,700 • Other Contractual Services 40,690 42,742 49,131 50,935 Building Rent 35,936 38,133 58,000 74,000 Insurance 13,520 14,348 17,500 11,312 Utilities 24,507 26,558 26,980 28,490 Capital Outlay 0 0 0 5,000 Interest Expense 9,598 6,936 4,993 2,779 Administrative Service Transfer 35,082 30,084 25,435 26,251 Depreciation 22,745 24,768 22,339 42,100 Contingency 0 0 0 0 Total Expenditures $531,918 $542,198 $596,763 $649,819 Operating Income $169,841 $184,634 $153,675 $115,693 General Fund Transfer 100,000 100,000 Capital Improvements Fund Transfer 75,000 75,000 Net Income $69,841 $84,634 $78,675 $40,693 • 10/15198 12:10 PM • CITY OF BROOKLYN CENTER 1999 BUDGET SUMMARY OF CAPITAL OUTLAY REQUESTS Department: Liquor Stores DESCRIPTION 1999 2000 2001 2002 2003 Store #1 Carpet 2,000 Surveillance System VCR 1,000 Inventory Control System 13,500 Paint store 3,000 Cooler condensing unit 7,000 Complete surveilance system 5,000 Subtotal 3,000 13,500 10,000 5,000 Store #2 Surveillance System VCR 1,000 Inventory Control System 13,500 Complete surveilance system 5,000 Subtotal 1,000 0 13,500 5,000 Store #3 Surveillance System VCR 1,000 Carpet 3,000 Inventory Control System 13,500 Exterior Sign 10,000 Complete surveilance system 5,000 Subtotal 1,000 3,000 13,500 10,000 5,000 TOTAL 5,000 3,000 40,500 20,000 15,000 If the City Council were to decide to return to a City owned store in place of the leased space for the Boulevard Liquor Store, it is anticipated the cost of land and building could be in the range of $500,000 to $1,000,000. • SUMCAPALS 10/15/98 2:21 PM • LIQUOR STORES 1999 BUDGET Division: HUMBOLDT STORE Dept Actual Actual Adopted Request 1996 1997 1998 1999 REVENUES: Liquor Sales $265,990 $283,721 $282,000 $300,000 Wine Sales 80,471 86,965 85,300 92,000 Beer Sales 417,762 434,940 445,000 460,000 Other Sales 46,309 50,477 50,350 54,300 Investment Earnings 556 2,303 1,000 3,000 Total Revenues $811,088 $858,406 $863,650 $909,300 Less: Cost of Sales $607,285 $647,472 $650,340 $683,304 Gross Profit $203,803 $210,934 $213,310 $225,996 EXPENDITURES: Personnel $106,390 $111,998 $115,486 $121,961 Supplies 5,740 4,664 4,550 4,550 Other Contractual Services 13,921 15,060 17,682 18,872 • Building Rent Insurance 4,082 4,350 5,033 3,389 Utilities 9,565 10,525 9,400 10,640 Capital Outlay 0 0 0 3,000 Interest Expense 9,598 6,936 4,993 2,779 Administrative Service Transfer 11,694 9,084 7,122 7,448 Depreciation 11,439 12,499 11,635 10,800 Contigency 0 0 0 0 Total Expenditures $172,429 $175,116 $175,901 $183,439 Operating Income $31,374 $35,818 $37,409 $42,557 General Fund Transfer 30,000 30,000 Capital Improvements Fund Transfer 25,000 25,000 Net Income $1,374 $5,818 $12,409 $17,557 • 10/15/98 12:10 PM Division: Humboldt Liquor • Budget Code: 651 Program No: 7014 PROFILE Humboldt Liquor is the City's municipal liquor store located at Humboldt Avenue and 69th Avenue. The City purchased the building in the mid -1980s and remodeled it into a liquor store. Construction was financed with a loan from the Capital Improvements Fund. The loan is being repaid with interest and will be repayment will be complete in September 2000. DEPARTMENTAL GOALS Sales goal for 1999 is $909,300. These sales estimate are based on a continued increase of 5 % over the 1998 budgeted sales. This is indicated by actual 1998 sales. Another goal is to increase the advertising budget by $500 which will be used is to inform guests in the city hotels and motels of the location of the liquor store. SPECIFIC EXPENDITURE CODE DETAIL Object Number Explanation Amount 4346 Advertising $1,500 Advertising in the local newspaper, hotel directories, and promotional items. 4380 Repair & Maintenance Contract $1,500 Maintenance contract on cash registers and inventory control system. 4405 Check Verification Fees $1,500 Service which allow verification of the credit of customers paying by check. 4469 Liquor Liability Insurance $2,032 $1,000,000 liability insurance policy required for the sale of liquor and based on a percentage of sales. 4611 Interest $2,779 Interest paid to the Capital Improvements Fund on a loan taken out in 1985. PERSONNEL LEVELS Number Position 1 Liquor Operations Manager 10 Part-time sales clerks and inventory stockers • The Liquor Operations Manager is also the overall manager of the City's three liquor stores. It is not anticipated that any positions will be reclassified to a different pay grade, but several persons who aren't at the top of their existing pay grade will advance within that pay grade and all pay grades will be increased by 3 % as of the first of the year. CAPITAL OUTLAY Item Anticipated Units Cost(s) Use /need purchase date Individual equipment included in the Humboldt Store budget. VCR for surveillance system 1/99 $1,000 The surveillance system was purchased in 1995. It consists of cameras and a VCR to record activity. The system runs continuously which causes the VCR to wear out. Replace carpeting 5/99 $2,000 The present carpet was installed in 1985 when the Humboldt Store was originally remodeled. It is badly stained and no longer cleanable. • • • CITY OF BROOD CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 1 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED DIV HUMBOLDT LIQUOR 651 4100 Wages Regular Employees 19,916 21,432 23,316 29,751 18,504 30,617 4112 Overtime Regular Employee 0 82 0 0 0 0 4130 Wages Part -time Employees 59,473 63,650 66,252 68,086 48,873 72,316 4131 Overtime of Part -time Emp r 0 9 0 0 134 0 4133 Vacation Pay 4,325 4,420 4,584 0 1,992 0 4134 Holiday Pay 2,400 2,604 2,696 0 1,195 0 4135 Sick Leave Pay 3,314 1,222 1,153 0 0 0 Salaries and Wages TOTAL 89,427 93,419 98,001 97,837 70,698 102,933 4142 PERA Coordinated Plan 3,089 3,215 3,722 5,068 2,979 5,332 4146 FICA 6,859 7,040 7,349 7,484 5,429 7,874 4150 Employee Benefits 0 0 2,045 3,742 1,984 4,402 4151 Health Insurance 1,123 1,123 281 0 0 0 4152 Life Insurance 10 10 3 0 0 0 4153 Dental Insurance 136 115 23 0 0 0 4154 Workers Comp Insurance 1,447 1,199 284 1,057 767 1,114 4156 Unemployment Compensation 0 0 0 0 787 0 4158 Disability Insurance 0 269 291 298 218 306 Fringe Benefits TOTAL 12,664 12,971 13,997 17,649 12,165 19,028 4210 Office Supplies 49 0 37 200 0 200 4217 Paper Supplies 0 0 32 500 34 500 • CITY OF BROO* CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 2 1999 BUDGET 1998 1999 Object Code & Description' 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED 4220 Operating Supplies 2,885 3,121 2,348 2,000 1,821 2,000 4223 Cleaning Supplies 188 94 318 0 0 0 4230 Repair & Maint Supplies 588 257 339 750 220 750 4231 Equipment Parts 0 80 559 0 0 0 4233 Building Repair Supplies 170 102 699 1,000 0 1,000 4241 Laundry 107 122 105 100 82 100 4271 Minor Equipment 0 0 226 0 0 0 Supplies TOTAL 3,986 3,776 4,664 4,550 2,157 4,550 I 4310 Professional Services 997 0 325 250 0 250 4312 Legal Services 66 0 0 0 0 0 4313 Audit & Financial Service 1,036 1,064 798 840 825 864 i Purchased Services TOTAL 2,100 1,064 1,123 1,090 825 1,114 4322 Telephone Services 1,653 1,705 1,699 1,650 1,360 1,830 4340 Advertising 100 0 0 500 200 500 4346 Advertising - Print 526 967 1,405 1,000 518 1,500 Communications TOTAL 2,279 2,672 3,104 3,150 2,078 3,830 4380 Repair & Maint Contract 447 1,959 1,500 937 1,500 4382 Equipment Repair & Maint 149 1,022 1,600 1,500 183 1,500 4383 Buildings Repairs 0 0 180 1,000 2,965 1,000 4388 Electrical Repairs 0 0 0 500 370 500 4393 Equipment Rentals 144 12 0 0 0 0 • CITY OF BROOD CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 3 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED 4397 Logis Charges 2,220 1,373 1,909 1,811 1,252 1,584 4398 Protective Services 410 463 410 410 308 410 Repair Rental & Maint TOTAL 3,370 4,744 6,058 6,721 6,014 6,494 4400 Other Contractual Service 419 222 289 2,000 372 2,000 4401 Credit Card Fees 469 676 963 550 968 1,400 4402 Uncollectible Checks 468 248 -5 400 -41 400 4403 Cash (Over) and Short 804 1,341 1,247 500 1,461 1,200 4404 Collection Fees 0 0 3 0 21 0 4405 Check Verification Fees 1,912 1,782 881 2,000 939 1,500 4410 Miscellaneous 179 183 0 0 0 0 4411 Conferences and Schools 0 39 39 100 0 100 4413 Dues & Subscriptions 160 205 175 150 175 175 4414 Licenses, Taxes, & Fees 123 103 148 450 103 150 4421 Janitorial Service 0 0 91 0 3 0 Other Contractual Sery TOTAL 4,534 4,799 3,830 6,150 4,002 6,925 4440 Fuel Charges 83 71 73 74 61 83 4441 Fixed Charges 967 1,016 665 342 213 261 4442 Repair & Maint Charges 157 140 206 155 112 165 4443 Multi -use Hourly Charges 93 90 0 0 0 0 Central Garage Rentals TOTAL 1,299 1,317 945 571 385 509 4461 Gen Liability Insurance 818 607 467 638 519 804 • CITY OF BROO* CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 4 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED --------------------------------- --------- - - - - -- --------- - - - - -- -------- - - - - -- -------- - - - - -- -------- - - - - -- -------- - - - - -- 4462 Property Insurance 355 248 284 390 304 475 4463 Boiler & Machinery Ins 0 49 57 78 52 78 4469 Liquor Liability Ins 2,962 3,178 3,542 3,927 1,021 2,032 I Insurance TOTAL 4,135 4,082 4,350 5,033 1,895 3,389 4481 Electric Service 7,555 7,740 7,927 7,500 5,252 8,000 4482 Gas Service 563 669 507 750 387 750 4484 Water Service 244 177 486 250 231 360 4485 Sanitary Sewer Service 454 338 893 500 246 700 I 4487 Solid Waste Disposal 273 455 515 250 409 630 4488 Storm Water Drainage 177 187 196 150 139 200 Utilities TOTAL 9,266 9,565 10,525 9,400 6,663 10,640 4520 Buildings 0 0 0 0 0 2,000 4551 Office Furniture & Equip 110 979 0 0 0 0 4552 Other Equipment 0 984 0 0 0 1,000 Capital Outlays TOTAL 110 1,963 0 0 0 3,000 4611 Interest 12,639 9,598 6,936 4,993 3,337 2,779 Debt Service TOTAL 12,639___ 9,598 6,936 4,993 3,337 2,779 4701 Transfers to General Fund 100,000 100,000 100,000 0 0 0 4725 Capital Proj Fund Trans 0 0 0 25,000 0 25,000 Transfer to other Fund TOTAL 100,000 100,000 100,000 25,000 0 25,000 • CITY OF BROOD CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 5 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED 4199 Salaries Reimbursed 15,000 11,694 0 0 0 0 4702 Administrative Sery Trans 0 0 9,084 7,122 5,346 7,448 c Administrative Service TOTAL 15,000 11,694 9,084 7,122 5,346 7,448 4800 Inventory Variances 2,758 1,640 2 1,500 2,649 1,500 4801 Merchandise Breakage 113 120 266 250 39 250 4802 Delivery Charge C. 0. S. 2,546 2,839 2,907 2,850 2,362 2,850 4821 Liquor Cost of Sales 195,461 196,275 209,615 208,680 137,606 221,700 4822 Wine Cost of Sales 51,967 57,121 61,741 60,222 38,668 65,320 4823 Beer Cost of Sales 328,801 317,850 335,744 343,095 237,506 355,120 4824 Non Tax Mix Cost of Sales 4,496 3,144 3,323 3,960 2,401 4,050 4825 Taxable Mix Cost of Sales 6,946 8,219 8,134 9,048 5,393 8,820 4826 Misc Cost of Sales 18,722 19,403 22,753 20,735 17,637 23,694 Cost of Sales TOTAL 611,809 606,610 647,472 650,340 444,261 683,304 4920 Depreciation Expense 10,398 11,439 12,499 11,635 7,265 10,800 Depreciation TOTAL 10,398 11,439 12,499 11,635 7,265 10,800 HUMBOLDT LIQUOR TOTAL 883,014 879,713 922,588 851,241 567,092 891,743 • LIQUOR STORES 1999 BUDGET Division: BOULEVARD STORE Dept Actual Actual Adopted Request 1996 1997 1998 1999 REVENUES: Liquor Sales $293,894 $329,087 $346,000 $325,000 Wine Sales 110,183 121,903 117,000 120,000 Beer Sales 447,365 500,504 494,000 495,000 Other Sales 68,080 69,724 73,000 67,400 Investment Earnings 556 2,304 1,000 3,000 Total Revenues $920,078 $1,023,522 $1,031,000 $1,010,400 Less: Cost of Sales $695,775 $778,403 $780,715 $765,713 Gross Profit $224,303 $245,119 $250,285 $244,687 EXPENDITURES: Personnel $115,571 $119,994 $132,339 $140,918 Supplies 5,560 3,607 3,800 3,800 Other Contractual Services 13,985 14,603 15,952 16,174 • Building Rent 20,000 35,000 Insurance 4,519 4,791 5,860 3,750 Utilities 7,530 7,984 9,880 9,550 Capital Outlay 0 0 0 1,000 Interest Expense 0 0 0 0 Administrative Service Transfer 11,694 9,660 8,139 8,890 Depreciation 5,412 5,464 4,810 25,300 Contigency 0 0 0 0 Total Expenditures $164,271 $166,103 $200,780 $244,382 Operating Income $60,032 $79,016 $49,505 $305 General Fund Transfer 30,000 30,000 Capital Improvements Fund Transfer 25,000 25,000 Net Income $30,032 $49,016 $24,505 ($24,695) • 10/15/98 12:10 PM Division: Boulevard Liquor Budget Code: 652 Program No: 7024 • PROFILE Boulevard Liquor is the City's municipal liquor store located at Brooklyn Boulevard and 63rd Avenue. This store was previously located in a building shared with the West Fire Station and owned by the City. It has moved to a rented space across the street with a lease arrangement running through June 21, 2000. DEPARTMENTAL GOAD The sales goal for 1999 is $1,010,400. This store had benefited from the improved traffic flow from the opening of the Rainbow Foods supermarket in August 1997. Since the move to the new location, sales have been less than the sales of the old location from comparable months before the opening of Rainbow. This is due to the move from a favorable retail location to one that is perceived by customers to be troublesome to get into or out of. SPECIFIC EXPENDITURE CODE DETAIL Object Number Explanation Amount 4346 Advertising $2,500 Advertising effort will be continued in 1999 to capitalize on the presence of the Rainbow • Foods Store and attract customers to the new store. 4380 Repair & Maintenance Contract $1,500 Maintenance contract on cash registers and inventory control system. 4392 Building Rentals $35,000 The cost of renting a store front including base rent and common area expenses. 4405 Check Verification Fees $2 9 000 Service which allow verification of the credit of customers paying by check. 4469 Liquor Liability Insurance $2,260 $1,000,000 liability insurance policy required for the sale of liquor and based on a percentage of sales. PERSONNEL LEVELS Number t' Posi ion 1 Liquor Store Manager 10 Part-time sales clerks and inventory stockers The number of part-time hours are budgeted to always have two staff in the store. More staff are scheduled for peak sales times. It is not anticipated that any positions will be reclassified to a different pay grade, • but several persons who aren't at the top of their existing pay grade will advance within that pay grade and all pay grades will be increased by 3 % as of the first of the year. CAPITAL OUTLAY • Item Anticipated Units Cost(s) Use /need purchase date Individual equipment included in Boulevard Store budget. VCR for surveillance system 1/99 $1,000 The surveillance system was purchased in 1995. It consists of cameras and a VCR to record activity. The system runs continuously which causes the VCR to wear out. • • • CITY OF BROON CENTER BUDGET REQUEST WORKSHEET BY DIVISION Page 6 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED DIV BOULEVARD LIQUOR 652 4100 Wages Regular Employees 39,792 42,319 45,203 52,017 34,915 55,503 4112 Overtime Regular Employee 12 70 0 0 0 0 4130 Wages Part -time Employees 50,867 52,868 54,727 60,877 41,617 64,313 4131 Overtime of Part -time Emp 0 36 0 0 1,746 0 4133 Vacation Pay 2,066 2,205 2,522 0 1,703 0 4134 Holiday Pay 1,490 1,575 1,602 0 758 0 4135 Sick Leave Pay 747 664 654 0 0 0 Salaries and Wages TOTAL 94,975 99,738 104,708 112,894 80,738 119,816 4142 PERA Coordinated Plan 3,365 3,831 4,122 5,848 3,761 6,206 I 4146 FICA 7,182 7,597 7,830 8,636 6,158 9,166 4150 Employee Benefits 0 0 2,570 3,742 2,805 4,402 4151 Health Insurance 2,807 2,807 421 0 0 0 4152 Life Insurance 26 26 4 0 0 0 4153 Dental Insurance 341 287 34 0 0 0 4154 Workers Comp Insurance 1,646 1,285 306 1,219 874 1,328 Fringe Benefits TOTAL 15,367 15,833 15,286 19,445 13,598 21,102 4210 Office Supplies -119 0 76 200 0 200 4217 Paper Supplies 0 0 48 500 34 500 4220 Operating Supplies 3,995 3,174 2,685 2,000 2,847 2,000 4226 Chemical Products 87 0 0 0 0 0 • CITY OF BRON CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 7 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED - - - - - -- --------- - - - - -- -------- - - - - -- -------- - - - - -- -------- - - - - -- -------- - - - - -- 4230 Repair & Maint Supplies 357 0 0 500 89 500 i 4231 Equipment Parts 0 0 123 0 0 0 4233 Building Repair Supplies 500 949 56 500 679 500 4241 Laundry 17' 23 23 100 155 100 4271 Minor Equipment 0 0 595 0 135 0 Supplies TOTAL 4,837 4,146 3,607 3,800 3,939 3,800 4310 Professional Services 605 160 170 0 1,955 0 4312 Legal Services 66 0 0 0 197 0 4313 Audit & Financial Service 1,036 1,064 798 840 825 864 Purchased Services TOTAL 1,707 1,224 968 840 2,976 864 4322 Telephone Services 1,455 1,462 1,485 1,500 1,156 1,980 4324 Delivery Service 0 0 0 0 12 0 4340 Advertising 100 0 42 2,000 407 500 4346 Advertising - Print 1,334 2,356 2,701 2,000 2,412 2,500 Communications TOTAL 2,889 3,818 4,228 5,500 3,986 4,980 4380 Repair & Maint Contract 319 1,344 1,959 1,500 937 1,500 4382 Equipment Repair & Maint 148 858 362 500 535 500 4383 Buildings Repairs 0 0 0 0 82 0 4386 Communication Systems 0 0 0 0 534 0 4392 Building Rentals 0 0 0 20,000 11,023 35,000 4393 Equipment Rentals 144 12 0 0 0 0 • CITY OF BROON CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 8 1999 BUDGET _ 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED 4397 Logis Charges 2,504 1,373 1,909 1,811 1,252 1,890 4398 Protective Services 208 348 190 210 215 230 Repair Rental & Maint TOTAL 3,323 3,936 4,420 24,021 14,578 39,120 4400 Other Contractual Service 363 273 291 500 300 500 4401 Credit Card Fees 538 822 1,463 1,000 1,302 1,850 4402 Uncollectible Checks 471 521 363 270 -205 250 4403 Cash (Over) and Short 1,380 395 -196 250 26 600 4404 Collection Fees 0 0 2 0 47 0 4405 Check Verification Fees 2,178 1,741 1,471 2,000 932 2,000 4410 Miscellaneous 196 196 0 0 0 0 4411 Conferences and Schools 0 39 118 150 0 150 4413 Dues & Subscriptions 160 205 175 200 175 200 4414 Licenses, Taxes, & Fees 123 103 148 450 123 150 4421 Janitorial Service 88 168 90 200 4 0 Other Contractual Sery TOTAL 5,497 4,464 3,925 5,020 2,704 5,700 4440 Fuel Charges g 83 71 73 74 61 83 4441 Fixed Charges 967 1,016 665 342 213 262 4442 Repair & Maint Charges 157 140 323 155 112 165 4443 Multi -use Hourly Charges 0 139 0 0 0 0 Central Garage Rentals TOTAL 1,207 1,366 1,062 571 385 510 4461 Gen Liability Insurance 818 607 530 724 619 960 • CITY OF BRO# CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 9 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED 4462 Property Insurance 347 270 268 370 293 456 4463 Boiler & Machinery Ins 0 47 54 74 49 74 4469 Liquor Liability Ins 3,670 3,595 3,938 4,692 1,090 2,260 Insurance TOTAL 4,836 4,519 4,791 5,860 2,051 3,750 4481 Electric Service 5,369 5,361 5,904 5,750 4,196 5,500 4482 Gas Service 1,602 1,833 1,744 3,800 1,253 3,800 4484 Water Service 16 16 16 20 10 0 4485 Sanitary Sewer Service 63 63 63 60 40 0 4487 Solid Waste Disposal 257 257 257 250 346 250 Utilities TOTAL 7,308 7,530 7,984 9,880 5,845 9,550 4520 Buildings 0 0 0 0 28,375 0 4530 Other Improvements 0 0 0 0 3,428 0 4550 Furniture & Fixtures 0 0 0 0 14,163 0 4551 Office Furniture & Equip 3 430 0 0 0 0 4552 Other Equipment 0 984 0 0 0 1,000 Capital Outlays TOTAL 3 1,414 0 0 45,965 1,000 4725 Capital Proj Furid Trans 0 0 0 25,000 0 25,000 Transfer to other Fund TOTAL 0 0 0 25,000 0 25,000 4199 Salaries Reimbursed 15,000 11,694 0 0 0 0 4702 Administrative Sery Trans 0 0 9,660 8,139 6,102 8,890 • CITY OF BROIDN CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 10 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED Administrative Service TOTAL 15,000 11,694 9,660 8,139 6,102 8,890 4800 Inventory Variances -813 231 1,694 750 1,962 750 4801 Merchandise Breakage 115 214 190 300 84 300 4802 Delivery Charge C. O. S. 2,865 3,244 3,409 3,000 3,180 3,000 4821 Liquor Cost of Sales 220,898 219,118 246,503 259,500 156,832 243,425 4822 Wine Cost of Sales 70,358 80,001 88,119 84,474 52,573 86,760 4823 Beer Cost of Sales 331,756 345,814 390,403 385,320 259,956 385,110 4824 Non Tax Mix Cost of Sales 4,082 3,759 3,840 4,515 2,263 3,679 4825 Taxable Mix Cost of Sales 9,858 10,759 10,578 11,360 5,892 10,388 4826 Misc Cost of Sales 26,964 31,813 33,668 31,496 17,516 32,301 Cost of Sales TOTAL 666,082 694,953 778,403 780,715 500,259 765,713 4920 Depreciation Expense 4,839 5,412 5,464 4,810 3,474 25,300 Depreciation TOTAL 4,839 5,412 5,464 4,810 3,474 25,300 BOULEVARD LIQUOR TOTAL 827,869 860,045 944,505 1,006,495 686,601 1,035,095 LIQUOR STORES 1999 BUDGET Division: NORTHBROOK STORE Dept Actual Actual Adopted Request 1996 1997 1998 1999 REVENUES: Liquor Sales $345,759 $353,744 $367,000 $382,000 Wine Sales 105,104 108,582 112,000 117,000 Beer Sales 597,675 600,735 634,000 649,000 Other Sales 81,531 75,245 87,750 81,650 Investment Earnings 556 2,303 1,000 3,000 Total Revenues $1,130,625 $1,140,609 $1,201,750 $1,232,650 Less: Cost of Sales $856,972 $869,830 $914,907 $937,821 Gross Profit $273,653 $270,779 $286,843 $294,829 EXPENDITURES: Personnel $112,018 $114,733 $132,860 $134,373 Supplies 4,561 3,633 3,350 3,350 Other Contractual Services 12,784 13,079 15,497 15,889 • Building Rent 35,936 38,133 38,000 39,000 Insurance 4,919 5,207 6,607 4,173 Utilities 7,412 8,049 7,700 8,300 Capital Outlay 0 0 0 1,000 Interest Expense 0 0 0 0 Administrative Service Transfer 11,694 11,340 10,174 9,913 Depreciation 5,894 6,805 5,894 6,000 Contigency 0 0 0 0 Total Expenditures $195,218 $200,979 $220,082 $221,998 Operating Income $78,435 $69 $66,761 $72,831 General Fund Transfer 40,000 40,000 Capital Improvements Fund Transfer 25,000 25,000 Net Income $38,435 $29,800 $41,761 $47,831 • 10/15/98 12:10 PM Division: Northbrook Liquor Budget Code: 653 Program No: 7034 • PROFILE Northbrook Liquor is the City's municipal liquor store located in the Northbrook Plaza on 57th Avenue. The store space is rented in a lease running through March 31, 2000. DEPARTMENTAL GOAL This store currently is the sales and profit leader amongst the City's liquor stores and the goal for 1999 is to continue and improve upon that record. Sales for 1999 are expected to be about $1,232,650. SPECIFIC EXPENDITURE CODE DETAIL Object Number Explanation Amount 4346 Advertising $1,000 Advertising in the local newspaper, hotel directories, and promotional items. 4380 Repair & Maintenance Contract $1,500 Maintenance contract on cash registers and inventory control system. ® 4392 Building Rentals $39,000 The Northbrook Store is leased from the shopping center and is in the fifth year of lease that has been extended for one additional year to the year 2000. 4405 Check Verification Fees $2,000 Service which allow verification of the credit of customers paying by check. 4469 Liquor Liability Insurance $2,760 $1,000,000 liability insurance policy required for the sale of liquor and based on a percentage of sales. PERSONNEL LEVELS Number Position 1 Liquor Store Manager 10 Part-time sales clerks and inventory stockers The number of part-time hours are budgeted to always have two staff in the store. More staff are scheduled for peak sales times. It is not anticipated that any positions will be reclassified to a different pay grade, but several persons who aren't at the top of their existing pay grade will advance within that pay grade and all pay grades will be increased by 3 % as of the first of the year. • CAPITAL OUTLAY • Item Anticipated Units Cost(s) Use /need purchase date Individual equipment included in the Northbrook Store budget. VCR for surveillance system 1199 $1,000 The surveillance system was purchased in 1995. It consists of cameras and a VCR to record activity. The system runs continuously which causes the VCR to wear out. r • Czrr OF cEmToa � 000Goz REQUEST WOaoa8Eor BY oInzoz0m Page zz � 199* Bn000z lyou 1999 Object code a Description 1*95 1996 1997 aoOpzoo AS On oopz � Division code u Description acrUaL acToaL ACTUAL BUDGET 09/30/98 aEOoEaTso � ~~ ~~~~-~-~~~~~-� DIV NORT8BROOoI, LIQUOR 653 4100 Wages Regular Employees 40 42 4* 52.017 35 ss � 4130 Wages Part-time Employees 47,105 uu 49,732 60.807 36.992 58,566 4131 Overtime of Part-time Emp O 48 s o zoo o «zao Vacation pay 1,926 1 u O a«o o 413* Holiday ray 1,490 1 1.602 O 886 o *135 Sick Leave pay 539 550 609 0 0 0 Salaries and wages TOTAL 91,e20 95.671 98 112.824 74.536 114 � / � *142 ponA Coordinated eIao 3 3.241 4 5.844 s.z*a s � � 4146 Fzca 6 7.038 7.298 8,631 5 8.726 � ozsu Employee Benefits o o 3 4 a 4 4151 Health Insurance « 4,761 753 o o u 4152 Life Insurance os 26 4 n n o 4153 Dental Insurance 68 57 * o u n 4154 Workers Comp Insurance 1.576 1 291 1 817 1.267 4156 Unemployment Compensation _1 5 15 __ 0 0 Fringe Benefits TOTAL 16 16 15 20 12 20 4210 Office Supplies e9 U 30 200 o %Vn 4217 paper Supplies O O 16 500 17 sOo 4220 Operating Supplies 3 2,923 2.514 2.000 2 2,000 e223 Cleaning Supplies o 94 o o o o o • CITY OF BROON CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 12 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED 4230 Repair & Maint Supplies 823 344 34 500 89 500 4231 Equipment Parts 0 0 559 0 0 0 4233 Building Repair Supplies 113 11 0 0 0 0 4241 Laundry 178 205 178 150 137 150 4271 Minor Equipment 0 0 302 0 0 0 Supplies TOTAL 4,240 3,577 3,633 3,350 2,689 3,350 4310 Professional Services 260 0 105 250 0 250 4312 Legal Services 66 0 0 0 131 0 4313 Audit & Financial Service 1,036 1,064 798 840 825 864 Purchased Services TOTAL 1,362 1,064 903 1,090 956 1,114 4322 Telephone Services 1,537 1,555 1,562 1,575 1,202 1,575 4340 Advertising 100 0 0 0 216 0 4346 Advertising - Print 526 969 1,125 1,000 753 1,000 Communications TOTAL 2,163 2,525 2,687 2,575 2,171 2,575 4380 Repair & Maint Contract 372 1,344 1,405 1,500 937 1,500 4382 Equipment Repair & Maint 1,021 1,015 1,055 1,000 834 1,000 4388 Electrical Repairs 0 408 0 250 0 250 4392 Building Rentals 32,584 35,936 38,133 38,000 28,406 39,000 4393 Equipment Rentals 144 12 0 0 0 0 4397 Logis Charges 2,751 1,373 1,909 1,811 1,252 2,108 4398 Protective Services 547 581 598 600 416 600 ' czrr OF oe0GOm ComT8a 0 0000Er REQUEST WORKSHEET BY oznzazOm Page 13 1999 BUDGET ` 1998 19 Object Code & Description 1995 1996 1997 ADOPTED AS On oEpz Division Code & Description aCroaL ACTUAL ACTUAL aoo8uT 09/30/98 asODosToo Repair Rental a Maiut TOTAL 37,419 40,670 43,100 e3,16I 31,8*5 44,458 4400 Other Contractual Service 107 O 200 2,000 300 %,OOU 4401 Credit card Fees 589 877 1 yOo 1.167 900 4402 oucolleotible cbecbo 476 477 -56 600 -sa eoo 4403 caab (Over) and Short -36 108 182 ]OO 103 300 4404 Collection Fees U n 7 o «z O *405 Check Verification Fees 1,738 1,948 1 1 2 2 4410 Miscellaneous 196 196 O u o O 4411 Conferences and Schools o 39 '39 zoo o zoo 4413 Dues & Subscriptions 160 uos 180 zso zou 180 4e14 Li0000ea. Taxes, & Fees 123 103 148 450 zua 150 4421 Janitorial Service 0 �158 91 0 5 0 Other Contractual aery TOTAL 3,353 4.1I2 3,695 6,100 4.575 6,230 4440 Fuel Charges os 71 73 74 az o* 4441 Fixed Charges 967 1,016 665 342 213 uaz 4442 Repair a Maiut Charges 152 140� 89 155 -____-- 166 Central Garage Rentals TOTAL 1,207 1,227 827 571 385 szu 4461 Gen Liability Insurance 818 607 653 e90 691 1 4462 Property Insurance 182 zao zso uus 1e2 son 4463 Boiler & Machinery Ins U 27 »n *z 27 «a 4469 Li Liability z Liquor � oa ____ ___ 4,103 ____ ___ 5,470 ___ 1,382 ____2,760 • CITY OF BRO& CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 14 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED Insurance TOTAL - -- - 4_970 - -- - 4,919 - -- - 5,207 - -- - 6,607 - -- - 2,292 - - - 4,173 4481 Electric Service 6,064 6,079 6,884 6,000 4,522 6,600 4482 Gas Service 657 878 620 1,200 509 1,200 4484 Water Service 117 0 29 0 0 0 4487 Solid Waste Disposal 273 455 515 500 409 500 Utilities TOTAL 7,110 7,412 8,049 7,700 5,440 8,300 4551 Office Furniture & Equip 424 0 0 0 0 0 4552 Other Equipment 0 984 0 0 0 1,000 Capital Outlays TOTAL 424 984 0 0 0 1,000 4725 Capital Proj Fund Trans 0 0 0 25,000 0 25,000 Transfer to other Fund TOTAL 0 0 0 25,000 0 25,000 4199 Salaries Reimbursed 15,000 11,694 0 0 0 0 4702 Administrative Sery Trans 0 0 11,340 10,174 7,632 9,913 Administrative Service TOTAL 15,000 11,694 11,340 10,174 7,632 9,913 4800 Inventory Variances 770 1,292 3,069 1,800 2,119 1,800 4801 Merchandise Breakage 52 75 228 250 0 250 4802 Delivery Charge C. O. S. 3,161 3,631 3,634 3,750 3,102 4,000 4821 Liquor Cost of Sales 236,504 257,553 264,176 274,149 179,743 285,354 4822 Wine Cost of Sales 67,809 74,998 77,711 80,192 48,086 83,772 4823 Beer Cost of Sales 409,630 463,102 468,251 493,252 348,826 505,571 • CITY OF BROISN CENTER BUDGET REQUEST WORKSHEET BY DIVISION Page 15 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED 4824 Non Tax Mix Cost of Sales 4,418 4,061 3,904 4,627 2,722 4,269 4825 Taxable Mix Cost of Sales 10,110 11,856 11,301 12,427 8,377 12,325 4826 Misc Cost of Sales 32,834 39,526 37,556 44,460 29,160 40,480 Cost of Sales TOTAL 765,288 856,095 869,830 914,907 622,136 937,821 4920 Depreciation Expense 4,808 5,894 6,805 5,894 4,014 6,000 Depreciation TOTAL 4,808 5,894 6,805 5,894 4,014 6,000 NORTHBROOKL LIQUOR TOTAL 955,413 1,052,191 1,070,809 1,159,989 771,533 1,184,819 i LIQUOR STORES FUND TOTAL 2,666,296 2,791,948 2,937,902 3,017,725 2,025,227 3,111,657 City of Brooklyn Center A great place to start. A great place to stay. • To: Mayor Kragness and Council Members Carmody, Hilstrom, Lasman and Peppe From: Michael J. McCauley City Manager Date: October 16, 1998 Re: Golf Budget Attached are the materials for the draft Golf Fund budget. The budget reflects a continuation of present operations and projects an increased net revenue. The proposal for replacing lost storage /work space has been refined and the scope and cost reduced substantially. The budget proposal contains $8,000 to improve the garage to allow for some minor heated work. Major work will be moved to the garage after removal of the shelter building at Lion's Park. Also included is a memorandum from Mr. Glaose regarding the impact of the pond project on the golf course. Revenues are just under $40,000 lower for that period due to the late opening. At this juncture, it appears that the golf course will manage to turn a profit, notwithstanding the late • opening. If that should hold true, we would not propose any adjustment from the pond project for the loss of revenue. We wanted to bring this item to your information and discussion. The loan to the Golf Course Fund was re- structured last year to eliminate interest. This change would militate against any compensation to the Golf Fund for the lost revenue as long as the operations are profitable in spite of the late start. i 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action1Equal Opportunities Employer MEMORANDUM DATE: June 30, 1998 TO: Michael J. McCaw ey FROM: Jim Glasoe SUBJECT: Revised Net Revenue Analysis, Centerbrook Golf Course Per your request, I have revised the analysis of net revenues at Centerbrook golf course. The original analysis included revenues and expenditures from January 1 - May 31 for each of the past four years. In the original calculations, cost of sales figures were included as direct expenses for all fiscal years used. Cost of sales includes food and merchandise items for resale. As these items are often ordered at the beginning of the year, for resale throughout the year, these figures tend to be somewhat "front loaded." To account for this, I have analyzed the respective revenues that offset these cost of sale items through May 31 of each year. These "net cost of • sales revenues" were then subtracted from the total sales revenues to more accurately reflect this front loading of cost of sales expenditures. Using these calculations, the net impact of our late start appears to be just under $40,000. Please let me know if you have any questions, would like additional information, or would like different variables considered in the comparison. • Centerbrook Golf Course Income Comparison Totals thru May 31 for 1995, 96, 97, 98 1995 1996 1997 1998 Avg 1995 -1997 Total Sales $100,241 $95,959 $110,678 $26,805 $102,293 Cost of Sales $19,891 $13,722 $14,249 $15,098 $15,954 Net Cost of Sales Revenue ($4,180) ($2,330) ($1,772) ($12,866) ($2,761) Operating Expenses $93,955 $79,086 $87,168 $61,940 $86,736 Net revenue ($9,425) $5,481 $11,033 ($37,367) $2,363 Average net revenue 1995 -1997 $2,363 Net revenue 1998 ($37,367) Difference $3 • CENTERBROOK GOLF COURSE 1999 BUDGET Dept Actual Actual Adopted Request Budget 1996 1997 1998 1999 REVENUES: -- Green Fees $250,514 $268,808 $262,943 $271,418 Rentals 10,375 12,555 10,600 12,500 Leagues 6,920 12,647 14,500 13,200 Beer 10,354 11,755 10,500 11,000 Concessions 15,293 18,066 17,400 17,350 Golf Lessons 8,271 8,692 9,000 8,500 Other Merchandise 23,309 19,324 18,000 18,500 Pop Machine 2,470 1,678 2,000 2,000 Interest Earnings 788 1,729 2,000 Miscellaneous (633) 855 0 0 Total Revenues $327,661 $356,109 $344,943 $356,468 Less: Cost of Sales Beer $3,534 $3,361 $4,000 $3,750 Cost of Sales Concessions 19,185 13,949 16,000 16,000 Cost of Sales Merchandise 11,502 19,941 12,000 13,000 Cost of League. Banquets 2,655 2,000 2,000 • Total Cost of Sales $34,221 $39,906 $34,000 $34,750 Gross Profit $293,440 $316,203 $310,943 $321,718 EXPENDITURES: Personnel $122,783 $133,039 $130,977 $134,861 Supplies 20,672 23,573 16,700 18,300 Other Contractual Services 21,210 24,330 20,244 21,041 Central Garage 17,557 25,102 30,202 26,639 Insurance 6,451 5,624 7,550 7,776 Utilities 12,880 11,652 10,800 11,075 Interest Expense 58,075 57,500 Administrative Service Transfer 4,581 4,722 5,128 5,292 Depreciation 16,322 17,250 16,435 13,200 Total Expenditures $280,531 $302,792 $238,036 $238,184 Operating Income $12,909 $13,411 $72,907 $83,534 Capital Outlay $20,500 $13,000 Loan Repayment $50,000 $50,000 Available Resources $12,909 $13,411 $2,407 $20,534 • 10/15/98 2:06 PM Division: Centerbrook Golf Course Budget Code: 654 Program No: 7052 • PROFILE Center brook Golf Course is a nine (9) hole, par three (3) course, owned by the City of Brooklyn Center. It was built in 1986 -87 with a loan from the Capital Improvements Fund. It opened for business in the Spring of 1988 and was established as an enterprise fund entity. Enterprise funds were established to account for the financing of self supporting activities of the City which render services on a user charge basis to the general public. Each year between 30,000 and 35,000 rounds of golf will be played at Centerbrook. In addition, about 200 people will take lessons. The 1999 budget assumes 33,500 rounds will be played in 1999. DEPARTMENTAL GOALS • Continue implementation of financial plan adopted in 1997 by City Council. • Continued improvements in tee time scheduling, cash reporting and inventory control. • , Increase league and lesson offerings to increase the number of persons participating by 10 %. • Continue analysis of merchandise selection, pricing and display for changes that would increase revenues. PERSONNEL LEVELS • Number Position 1 Grounds Supervisor SPECIFIC EXPENDITURE CODE DETAIL Object Number Explanation Amount 4130 Part -Time $79,579 Clubhouse staff, rangers, part-time golf professional, seasonal golf course manager, and maintenance workers. 4220 Operating Supplies $6,000 The cost of various supplies such as score cards, towels, cleaning materials, etc. 4221 Motor Fuels $1,300 Fuel for mowers and other golf course equipment. The increasing cost of fuel necessitates an increase in budget 4235 Landscaping Materials $2,500 Fertilizer, grass seed, sod, etc, plus the cost of flowers in the various planters throughout the course and at the clubhouse. • 4390 Rentals $3,000 The cost of leasing golf carts for rental to patrons. • CAPITAL OUTLAY Item Anticipated Units Cost(s) Use /need purchase date Individual equipment included in Central Garage budget. Flag pole 4/99 $1,000 Display of U.S. and State flags Window Treatments 4/99 $1,000 Replacement for window treatments that are inoperative Display Furnishings 4/99 $3,000 For improved display of merchandise for resale Garage Improvements 9/99 $8,000 Shelter building at lions Park will (insulate, sheetrock, gas line, heat) be replaced with a picnic gazebo. Garage improvements will allow it to be used during the winter months. • • • CITY OF BROON CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 16 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED - - - -- -- -------- - - - - -- -------- - - - - -- -------- - - - - -- -------- - - - - -- DIV CENTERBROOK GOLF 654 4100 Wages Regular Employees 25,566 28,079 27,094 32,834 10,802 34,658 4112 Overtime Regular Employee 0 0 0 0 189 0 4130 Wages Part -time Employees 76,708 75,967 85,629 77,900 64,386 79,579 4131 Overtime of Part -time Emp 0 0 1,599 0 2,440 0 4133 Vacation Pay 1,163 1,284 1,458 0 72 0 4134 Holiday Pay 1,114 1,170 1,259 0 701 0 Salaries and Wages TOTAL 104,551 106,500 117,039 110,734 78,589 114,237 4142 PERA Coordinated Plan 2,107 2,226 2,469 5,736 1,078 5,917 4146 FICA 7,728 7,968 8,772 8,471 6,014 8,739 4150 Employee Benefits 0 0 3,570 4,342 3,255 4,402 4151 Health Insurance 3,660 3,840 647 0 0 0 4152 Life Insurance 20 20 3 0 0 0 4153 Dental Insurance 360 360 60 0 0 0 4154 Workers Comp Insurance 2,606 1,868 479 1,694 1,063 1,566 Fringe Benefits TOTAL 16,482 16,283 16,000 20,243 11,410 20,624 4210 Office Supplies 445 0 71 300 147 250 4212 Printed Forms 0 1,257 373 0 0 0 4220 Operating Supplies 8,639 6,682 9,254 4,000 4,163 6,000 4221 Motor Fuels 834 2,260 1,078 1,500 806 1,300 4222 Lubricants & Additives 9 0 0 0 0 0 • CITY OF BRON CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 17 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED 4226 Chemical Products 6,292 806 6,277 5,200 853 5,500 4230 Repair & Maint Supplies 2,113 0 548 2,000 50 750 4231 Equipment Parts 415 4 702 0 0 250 4233 Building Repair Supplies 22 748 0 750 1,164 1,000 4235 Landscaping Materials 1,578 7,119 4,409 2,200 6,854 2,500 4236 Signs & Striping Material 18 0 0 0 0 0 4240 Small Tools 28 967 0 0 43 0 4241 Laundry 829 828 862 750 749 750 4245 Maintenance Supplies 250 0 0 0 0 0 Supplies TOTAL 21,471 20,672 23,573 16,700 14,828 18,300 4310 Professional Services 856 769 487 1,000 375 750 4313 Audit & Financial Service 777 798 788 640 825 576 4318 Casual Labor 0 0 178 0 0 0 Purchased Services TOTAL 1,633 1,567 1,462 1,840 1,200 1,326 4321 Postage 117 97 0 200 54 100 4322 Telephone Services 4,035 4,088 4,348 4,100 3,483 4,100 4340 Advertising 3,958 3,428 5,096 3,500 5,204 5,000 4350 Printing 0 0 0 0 660 0 Communications TOTAL 8,110 7,613 9,445 7,800 9,402 9,200 4380 Repair & Maint Contract 785 1,564 918 900 5,451 1,000 4381 Auto Equipment Repair 0 96 0 0 0 0 • CITY OF BRON CENTER • BUDGET REQUEST WORKSHEET BY DIVISION Page 18 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED -- - - - - -- -------- - - - - -- -------- - - - - -- ----- --- - - - - -- 4382 Equipment Repair & Maint 4,804 2,699 4,713 3,250 1,978 3,250 4383 Buildings Repairs 0 0 0 500 0 0 4385 Landscaping Services 1,506 0 0 0 0 0 4389 Maintenance Contracts 0 852 0 0 0 0 4390 Rentals 3,800 2,271 590 2,500 177 3,000 4393 Equipment Rentals 0 0 3,408 0 0 0 4397 Logis Charges 660 1,516 1,865 1,454 920 1,515 4398 Protective Services 179 216 206 200 103 200 Repair Rental & Maint TOTAL 11,733 9,214 11,700 8,804 8,629 8,965 4400 Other Contractual Service 0 852 47 1,000 0 250 4402 Uncollectible Checks 8 141 79 0 13 0 4411 Conferences and Schools 90 90 95 200 0 200 4413 Dues & Subscriptions 110 210 534 200 556 300 4414 Licenses, Taxes, & Fees 0 179 173 0 10 0 4415 Claims Payment 0 460 0 0 0 0 4421 Janitorial Service 408 883 795 400 842 800 4425 Board of Prisoners 17 0 0 0 0 0 Other Contractual Sery TOTAL 633 2,815 1,723 1,800 1,420 1,550 4440 Fuel Charges 0 10 343 0 361 192 4441 Fixed Charges 13,839 11,545 20,438 22,191 13,653 19,183 4442 Repair & Maint Charges 8,451 6,002 4,322 8,011 5,034 7,264 • CITY OF BROkO-N CENTER • - BUDGET REQUEST WORKSHEET BY DIVISION Page 19 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED Central Garage Rentals TOTAL 22,290 17,557 25,102 30,202 19,048 26,639 4461 Gen Liability Insurance 6,656 4,931 4,404 6,014 6,270 6,460 4462 Property Insurance 338 264 266 363 204 240 4463 Boiler & Machinery Ins 0 46 54 73 71 76 4469 Liquor Liability ins 994 1,210 900 1,100 1,000 1,000 Insurance TOTAL 7,988 6,451 5,624 7,550 7,545 7,776 4481 Electric Service 4,864 4,398 4,675 4,400 3,972 4,750 4482 Gas Service 995 1,509 1,248 1,400 770 1,400 4484 Water Service 4,015 5,346 4,081 3,000 4,709 3,000 4485 Sanitary Sewer Service 170 179 175 200 136 200 4487 Solid Waste Disposal 1,997 888 895 1,200 1,137 1,100 4488 Storm Water Drainage 526 561 578 600 473 625 Utilities TOTAL 12,566 12,880 11,652 10,800 11,197 11,075 4520 Buildings 0 0 0 5,000 2,275 8,000 4548 Computer Equipment 0 0 0 15,500 2,545 0 4551 Office Furniture & Equip 363 0 0 0 0 0 4552 Other Equipment 1,996 0 0 0 0 5,000 Capital Outlays TOTAL 2,359 0 0 20,500 4,820 13,000 4611 Interest 57,634 58,075 57,500 0 0 0 Debt Service TOTAL 57,634 58,075 57,500 0 0 0 . CITY OF BRON CENTER . BUDGET REQUEST WORKSHEET BY DIVISION Page 20 1999 BUDGET 1998 1999 Object Code & Description 1995 1996 1997 ADOPTED AS OF DEPT Division Code & Description ACTUAL ACTUAL ACTUAL BUDGET 09/30/98 REQUESTED 4199 Salaries Reimbursed 6,200 4,581 0 0 0 0 4702 Administrative Sery Trans 0 0 4,722 5,128 3,843 5,292 Administrative Service TOTAL 6,200 4,581 4,722 5,128 3,843 5,292 4823 Beer Cost of Sales 3,293 3,534 3,361 4,000 3,446 3,750 4840 Merchandise for Resale 7,246 11,502 19,639 12,000 18,070 13,000 4841 Merchandise Cost of Sales 14,009 0 302 0 0 0 4842 Food Cost of Sales Guests 8,646 19,185 13,949 16,000 10,928 16,000 4843 Banquet Expenses 2,909 0 2,655 2,000 2,673 2,000 Cost of Sales TOTAL 36,102 34,221 39,906 34,000 35,117 34,750 4920 Depreciation Expense 15,990 16,322 17,250 16,435 9,522 13,200 4922 Loss Fixed Asset Disposal 493 0 0 0 0 0 Depreciation TOTAL 16,483 16,322 17,250 16,435 9,522 13,200 CENTERBROOK GOLF TOTAL 326,234 314,752 342,698 292,536 216,570 285,934 GOLF COURSE FUND TOTAL 326,234 314,752 342,698 292,536 216,570 285,934 City City o f Brooklyn Center A great place to start. A great place to stay. • To: Mayor Kragness and Council Members Carmody, Hilstrom, Lasman and Peppe From: Michael J. McCauley City Manager Date: October 16, 1998 Re: Earle Brown Heritage Center Budget I would like to defer discussion of the Heritage Center budget until the work session on November 16th. Adjustments need to be made and more time is needed for staff and department head review. • 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action/ Equal Opportunities Employer City of Brooklyn Center A great place to start. A great place to stay. • To: Mayor Kragness and Council Members Carmody, Hilstrom, Lasman and Peppe From: Michael J. McCauley City Manager Date: October 16, 1998 Re: Earle Brown Heritage Center Budget I would like to defer discussion of the Heritage Center budget until the work session on November 16th. Adjustments need to be made and more time is needed for staff and department head review. • • 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action /Equal Opportunities Employer City of Brooklyn Center A great place to start. A great place to stay. • To: Mayor Kragness and Council Members Ca ody, Hilstrom, Lasman and Peppe From: Michael J. McCauley City Manager Date: October 16, 1998 Re: Met Council Transit: Brookdale Attached are materials received from Metro Council Transit regarding a potential location for transit operations by Brookdale. The item is on the agenda for discussion and updating of the Council. Brad Hoffman and I met with Craig Rapp of the Met Council on Wednesday and have scheduled a meeting with Met Council Transit, the developer of the Cub site, Talisman, and City staff to review options and concepts that would be more permanent and acceptable. • • 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action /Equal Opportunities Employer METRO TRANSIT • 560 Sixth Avenue North Minneapolis, AIN 55411 -4398 Team Transit/Public Facilities ' Fax Number (612) 349 -7612 �'RANSIV[TTT�ET TO FAX #• 5 �g - 3(4 q Urgent Review 1� Respond Per Your Re 9 nest � ri r • PAGES: (including this page): 1 4 • Tnn / ! 01 NCM EACH ar.COtA ORCC, -OCT, PICK -Up, BUS TWE7i NOONS P COORDINATE EXACT PEDESTRIAN CROSSING LOCATIONS Wjrri NEW ' - ! BUILDING LOCATION ANO DESIGN I � O'' _ N ALTERNATIVE C FOR TRANSIT "III -_o FACILITY AT BROOKDALE • / ! I / — — •- _ is �� @ENSHOOF ~ ASSC CIA TFS, INC. _ 0 ow O CTOBER 7. 1998 9 // I , t u / R � 0 n o / o `.. s ( o � . i,,� 0 +CChr�00�TES PA5531C� / J t � , ( � e —off. PICA —UP, CVO i 075 Ut'OVFJi NwC'Or:S ( / ' a I COORDINATE c" XACT PEDESTRIAN I CROSSING LOCATIONS WITH NFW ! BUILDING LOCATION AND DESIGN --- -- �— I I ALTERNATIVE 71.. { FACILITY AT BR OOKDALE TRANSIT A l • — — — '— — — I ' , SCAL 13ENSHOOF & ASSOCIATES. TES. INC. l `l j o OCT08ER 7, 1998 B00 A002T ZT9L M ZT9 JYJ 9 C LO aam 86 /6T /OT / r I = J 11 � o - �— l! .:.. � t' • COORDINATE EXACT PEDEMI CROSSING LOCATIONS wITH NEW - / / BUILDING LOCATION AND DEMON ALTERNATIVE A FOR TRANSIT it _ FACILITY AT BRO BENSHOOF do ASSOCIATE. INC. OCTOBER 7. 1 59H City of Brooklyn Center A great place to start. A great place to stay. • To: Mayor Kragness and Council Members Carmody, Hilstrom, Lasman and Peppe From: Michael J. McCauley City Manager )00� Date: October 16, 1998 Re: CO -OP NORTHWEST & CHDO A separate CHDO (Community Housing Development Organization) is being formed. Apparently the federal government has pressured to have the CHDO removed from CO -OP Northwest because it is too tied to governmental units in its board. CO -OP Northwest is re- evaluating its mission in light of the separation of the CHDO. The City of Brooklyn Center has not used the CHDO. CHDO works exclusively on low and moderate income projects. The City is addressing all income levels with the Housing Resource Center. I have indicated that staff was not inclined to recommend to the Council that we participate in a fee standing CHDO and pay for such operations. • • 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 I, An Affirmative Action /Equal Opportunities Employer 031 City of Brooklyn Center A great place to start. A great place to stay. To: Mayor Kragness an d Council Members C ody, Hilstrom, Lasman and Peppe From: Michael J. McCauley City Manager Date: October 16, 1998 Re: CDBG Deferred Loan discussion In discussions with Council Member Carmody, it appears that I may have misunderstood the direction that the Council wished to take on the deferred loan program. Attached are materials for background on the discussions earlier this year. The Council adopted the budget, with the understanding that the budget could be modified at a later point. The Council also, by motion put a freeze. on fiscal 1998 use of the deferred loan program. At a subsequent work session, my recollection was that the council had not reached a consensus on whether to consider formally amending the budget to discontinue the deferred loan program. This item is on the agenda for discussion to clarify the direction that you would like taken. • • 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action/ Equal Opportunities Employer MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Tom Bublitz, Community Development S ecialisv tY -- P P � . DATE: March 19, 1998 SUBJECT: Status of Community Development Block Grant (CDBG),Deferred Loan Program Currently, the Community Development Block Grant (CDBG) Deferred Loan Program is administered by Hennepin County. Under this program eligible residents at 80% of median income or below can borrow up to $15,000 to do eligible repairs on their properties. Recipients of these CDBG funds are required to execute a repayment agreement that provides for a 30 year lien. In other . words, if the house is sold any time within,the 30 year period the entire loan is repaid to the CDBG program. For recipients between 50% and 80% of median income, a 3% simple interest rate is charged for the first 10 years of the loan period. For recipients at 50% of median income or below there is no interest charged but the 30 year lien is still required. Hennepin County does the income verification for recipients and works with residents to prepare the • scope of work for the rehabilitation project. The County also assists with hiring contractors and county staff perform final inspections of the project when complete. Currently there are over 40 people on the deferred loan waiting List. County staff has informed me that presently there is approximately $90,000 left in the program for 1997 and most of these funds are already committed to projects. Should some of these projects not go forward, some of this $90,000 may become available. The $50,000 allocated for the 1998 CDBG program will not become available until July 1, 1998.. The CDBG Deferred Loan waiting list has been closed for several years. It was staff's understanding that the waiting list would be closed but that projects would continue from the existing waiting list. Staff also explored the option of doing a "blended" loan program using CDBG funds and vlinnesota Housing Finance Agency QVII3FA) loan funds which would have provided a write -down of the interest rate on v1HFA funds using CDBG funds. When staff explored this option with the County, Hennepin County investigated this option and essentially recommended that it would be more beneficial to utilize a more flexible funding source other than CDBG for writing -down fix up fund loan interest rates due to the restrictive conditions of the CDBG program. Hennepin County recommended against using CDBG funds to write down MHFA loan funds due to the number of administrative issues that would need to be addressed to accomplish this. Staff has reviewed the minutes from Council work sessions and regular sessions from 1995 through • the present period and was unable to find anything in the minutes regarding placing a hold on deferred loan applicants that are currently on the waiting list. Member Debra Hilstruu introduced the following resolution and moved its adoption: RESOLUTION NO. 98 -40 RESOLUTION APPROVING PROJECTED USE OF FUNDS FOR 1998 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND AUTHORIZING SIGNATURE OF SUBRECIPIENT AGREEMENT WITH HENNEPIN COUNTY AND ANY THIRD PARTY AGREEMENTS - WHEREAS, the City of Brooklyn Center, through execution of a Joint Cooperation Agreement with- Hennepin County, is cooperating in the Urban Hennepin County Community Development Block Grant Program; and WHEREAS, the City of Brooklyn Center has developed a proposal for the use of Urban Hennepin County CDBG funds made available to it, and held a public hearing on March 9, 1998, to obtain the views of citizens on local and Urban Hennepin County housing and community development needs and priorities on the City's proposed use of $240,809 from the 1998 Urban Hennepin County Community Development Block Grant. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brooklyn Center approves the following projects for funding from the Urban Hennepin County _ Community Development Block Grant Program and authorizes submittal of the proposal to Hennepin County for review and inclusion in the 1998 Urban Hennepin County Community Development Block Grant Program. Project Bud Rehabilitation of Private Property $ 50,000 Household Outside Maintenance for the Elderly 9,000 53rd Avenue Development and Linkage Project 181,809 BE IT FURTHER RESOLVED that the City Council hereby authorizes and directs the Mayor and its City Manager to execute the Subrecipient Agreement and any required Third Parry Agreement on behalf of the City to implement the 1998 CDBG Program. March 9, 1998 P�d� Date Mayor ATTEST: — Jba��J�lyu� City Clerk City of Brooklyn Center A great place to start. A great place to stay_ MEMORANDUM TO: Mayor and Council members FROM: Michael J. McCauley, City Manager DATE: March 5, 1998 SUBJECT: Community Development Block Grant Attached are materials from Mr. Bublitz outlining the uses to which Community Development Block Grant program funds may be put and examples of what cities in Hennepin County are doing with Community Development Grant Funds. - As indicated in that listing activities such; as. senior transportation and services for battered women are being funded in several cities in Hennepin County using Community Block. Grant Funds. Staff would recommend that the City Council approve a budget at the March. 9th hearing. This budget may be later amended upon notice and a public hearing. You may recall that in 1996, a budget.was adopted and then amended at a later date to fund the. 53rd Avenue project_ Should the Greater Minneapolis Metropolitan Housing Corporation {GMMHC) be able to setup a fully functional housing resource center to serve the. four cities that would be participating (Brooklyn Park did not choose to participate), there are programs that maybe "available to Brooklyn Center:residents for fixing up their homes. One program is the fix-up- fund which has a sliding scale of interest rates from 2 -8 %,` dependent on income, that does not involve all of the standards required for. Community . Development Block Grant fix -up programs. This is an example of the type of program thattmay address the needs to assist people in accessing money for exterior home improvement projects. Mr. Bublitz has also advised that Hennepin County has a community fix -up fimd that has some potential to- be targeted for use in particular neighborhoods, such as the southeast. This program would have higher income limits than the fix -up program. Again, this would be the type of program that with a flizlly functional . housing resource center, there would be greater potential to have people with the time to pursue these programs further and to disseminate the information in the community. As an update on the progress being made with the GMMHC. proposal, they are still waiting for their funding request from the McKnight Foundation. There have been impediments to that process raised by Community Action for Suburban Hennepin (CASH) that have delayed action on the grant request 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall. & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmatiue Action /Equal Opportunities Employer Memorandum to Mayor and Council arch 5 1998 Page t that would result in a ' fully functional center for our area.. You may note in your: materials that Community Action for Suburban Hennepin has requested direct funding from the City of Brooklyn Center. Staff would not- recommend direct fimding for Community Action for Suburban Hennepin. Community Action for Suburban Hennepin receives funding from a number of agencies. and does not provide the type of service that we are looking for here.. In: fact, Community Action for Suburban - Hennepin has actively participated in attempts to thwart redevelopment projects that have in Brooklyn Park and has testified against initiatives proposed for housing renewal at the Legislature. Memorandum TO: Michael I McCauley, EDA Executive Director FROM: Tom Bublitz, Community Development specialist! DATE: March 4, 1998 SUBJECT: Resolution Approving Projected Use of Funds for 1998 Urban Hennepin County .Community Development Block Grant Program and Authorizing Signature of Subrecipient Agreement with Hennepin County and Any Third Party Agreements Brooklyn Center is one of 43 Hennepin County cities in the Urban Hennepin County consortium which receives federal Community Development Block Grant (CDBG) funds. Federal CDBG dollars flow from the federal government through the Department of Housing and Urban Development (HUD) County, , to Hennepin Coun where funds are allocated to 43 participating cities on a formula basis. One of the requirements of the federal CDBG program is that each participating city must hold a public hearing to provide public comment and input on the proposed use of CDBG funds. The 1998 Urban Hennepin County Community Development Block Grant (CDBG) program was first discussed at the February 9, 1998, City Council meeting. At that meeting, the City Council authorized the public hearing for the March 9, 1998, City Council meeting. A copy of the public hearing notice is included with this memorandum. OVERVIEW OF URBAN HENNEPIN Co NTY CDBG PROGRAM Hennepin County has notified the City ofBrooldr Center that its share of the 1998 Urban Hennepin County Community Development Block Grant (CDBG) entitlement will be approximately $240,809. This amount if $7,047 less than last year's allocation. The total estimated 1998 Community Development Block Grant allocation for all of Hennepin County is $3,462,000. Memorandum to Michael J. McCauley March 4 1998 Page 2 The total Hennepin County CDBG allocation from HUD has been decreasing over the past several years as shown by the following: CDBG ALLOCATIONS HENNEPIN COUNTY BROOKLYN CENTER YEAR ALLOCATION ALLOCATION 1995 3,806,962 270,083 1996 3,651,000 259,971 1997 3,591,000 247,856 1998 3,462,000 240 FEDERAL CDBG OBJECTIVES Since the CDBG allocation represents federal dollars, the CDBG programs adopted by local jurisdictions must meet one of the following national objectives: , •Benefitting low and moderate income persons -Prevention or elimination of slums or blight -Meeting a particularly urgent community development need COUNTY -WIDE HOUSING AND CommuNITY DEVELOPMENT PRIORITIES In addition to the federal objectives, Hennepin County is also required to develop priorities for CDBG funding under its Consolidated Plan Process. The Consolidated Plan Process has been instituted by the Department of Housing and Urban Development (HUD), and provides for consolidated planning for all federal programs for which the County and municipalities are eligible, including CDBG, HOME (the 1990 Cranston - Gonzales Housing Act), and Emergency Shelter Grant programs. ` The County -wide housing and community development priorities, as part of the Consolidated Plan, include the following: • Rental and supportive housing: Planning, site acquisition, related infrastructure for development of new units and rehabilitation of existing units for low income households (less than 50 %) of median income). • Home ownership: Planning, site acquisition, related infrastructure, down payment assistance for low income, first -time home buyers, and rehabilitation of existing units occupied by low income households. Memorandum to Michael J. McCauley March 4, 1998 Page 3 • Community development: Neighborhood redevelopment/revitalization, senior centers, removal of architectural barriers/ADA compliance, lead -based paint abatement and planning activities to address housing and community revitalization needs. • Public services: Services to senior citizens, disabled persons and youth, child care assistance and transportation services. ADMINISTRATIVE REQUIREMENTS Hennepin County advises that no more than three activities should be undertaken in one community and each activity should have a budget of at least $75,000, although these limits do not apply where funds are committed jointly with other participants, as in the case of the Household Outside Maintenance for the Elderly (H.O.M.E.) Program. Low/MoDERATE INCOME BENEFrr Seventy percent of the CDBG funds on a County -wide basis must be utilized for activities benefitting very low and low income residents. FUNDING PUBLIC SERVICES u Communities will continue to have the flexibility, initially, of using up to 20% of their CDBG planning allocation to fund public services. Proposals that exceed 20% will be reduced by Hennepin County. REvaw OF BROOKLYN CENTER'S 1997 CDBG PROGRAM The City's 1997 CDBG allocation is shown by the following: Rehabilitation of Private Property $60,000.00 (EDA home rehabilitation deferred loan program) Household Outside Maintenance for the Elderly (H.O.M.E.) $7,000.00 53rd Avenue Development and Linkage Project $180,856.00 TOTAL (1997) $247,856.00 Staff recommendations for the 1998 CDBG program are summarized below: 1. The City's home rehabilitation deferred loan program (rehabilitation of private property) was budgeted at $60,000 for the 1997 CDBG program. The current waiting list of applicants for this program is approximately 45. Presently, the EDA is able to put up to $15,000 in each household to rehabilitate the structure. Staff is recommending an allocation of $50,000 in CDBG funds for the 1998 home rehabilitation deferred loan program. Memorandum to Michael J. McCauley March 4, 1998 Page 4 2. Stag has received a request from Senior Community Services for the Household " Outside Maintenance for the Elderly (H.O.M.E.) program in the amount of $9,000. The project has been part of the CDBG program for six years and has proved to be a beneficial program. The H.OAiE. program provides minor maintenance and repair for persons 60 years of age and older and/or permanently disabled individuals.. The households are required to pay a certain amount towards the rehabilitation based on a sliding fee scale according to their income. CDBG dollars are used to bring down the overall cost of repairs.. Examples of the repairs included in this program are installation of grab bars, painting (interior and exterior), minor roof and gutter repair, concrete repair, and carpentry, including door, window and trim repair. Staff is recommending an allocation of $9,000 for the H.O.M.E. program for 1998. Staff estimates 3 0-3 5 projects will be completed annually under the H.O.M.E. program. 3. The 53rd Avenue Development and Linkage Project was established as a CDBG project at the October 15, 1996, City Council meeting. This CDBG project is designed to be a multi-year project, with CDBG funds to be dedicated to project activities on an annual basis. Activities funded with CDBG dollars in the 53rd Avenue Development and Linkage Project include relocation, demolition, and environmental activities including asbestos abatement and capping of private wells. Stag is recommending an allocation of $181,809 for the 53rd Avenue Development and Linkage Project for 1998. REQUEST FOR CDBG FUNDS FROM COMMUNITY ACTION FOR SUBURBAN HENNEPIN (CASH) ro The City has received a request for funding un der the 1998 CDBG program from the Community Action for Suburban Hennepin (CASK. The dollar amount requested from CASH is $6,000. Included with this memorandum is the written request from CASH, along with supporting documentation regarding their CDBG funding requests. Representatives of CASH have been notified of the March 9 CDBG public hearing. SUBRECIPIENT AND Tmw PARTY AGREEMENTS The resolution included with this memorandum also provides authorization for the City Manager and Mayor to execute Subrecipient and third party agreements required for the 1998 CDBG program. The subrecipient agreement is between Hennepin County and the City and sets forth the administrative requirements for the 1998 CDBG program. Third parry agreements are executed between the City and program providers such as Senior Community Services, which operates the Household Outside Maintenance for the Elderly (H.O.M.E.) Program. Memorandum to Michael I McCauley March 4, 1998 Page 5 LIST OF ATTACHMENTS The following list of attachments provide background information relative to the 1998 proposed Community Development Block Grant program. • Senior Community Services Request for Continued CDBG funding for H.O.M.E: program and summary of service for 1997. • Community Action for Suburban Hennepin (CASH) request for funding from the city's CDBG allocation. • History and National Objectives of the Community Development Block Grant program. NOTE: This attachment provides a brief history and overview of the CDBG program and eligible activities. • CDBG eligible activities NOTE: This is a one page list of eligible and ineligible CDBG activities prepared by Hennepin County. • Urban Hennepin County Five Year Priority Needs Summary. NOTE: This is a table showing the relative priority of funding needs proposed by Hennepin County. • 1997 Activities by City (Urban Hennepin County) NOTE: This is a listing of CDBG funded by a number of Hennepin County cities in 1997. • Public Hearing Notice i - SENIOR COMMUNITY SERVICES 10709 Wayzata Blvd., Suite 111, Minnetonka, MN 55305 Phone 541 -1019 - Fax 541 -0841 BOARD of DIRECTORS John Nelson January 28, 1998 President Dwight Johnson fst Vice President Peggy Kelly Mr. Tom Bublitz, 2nd vice President Community. Development Specialist Laurie Lafontaine Ci of Brooklyn Center rreasUrer 6301 Shingle Creek Parkway Francis Hagen Brooklyn Center Mn 55430 Secretary Kevin Krueger Dear Mr. Bublitz: Past President Mary Henning Senior Community Services is requesting that the City of Brooklyn Member-at-Lar Center allocate $9,000 from it's share of Community Development Dr. C. (1ka) Nlaka Block Grant (CDBG) Year XXIV funds to support the HOME Memberatlarge Program. This would be at a level of funding previously approved by the City. The number of clients served has increased by over John Roeder 50% in 1997. Enclosed is a Hennepin County Request for Ajo Coyle bert DeGhetta Fu pp ou y q a ap filled t for the City to facilitate our request. -- Ma rty Guritz Aiko Higuchi Brooklyn Center's CDBG funds will be leveraged from client fees, .Gloria Johnson . funding from the Greater Minneapolis Council of Churches Kathleen Miller Senator Gen Olson (GMCC) and from donations. The HOME Program operates on. a Curtis Pearson sliding fee scale- Clients cover approximately one- quarter of the Neil Peterson Programs' cost. GMCC funding,. utilizing Federal Title III monies, Dan Ryerson Mary Tambornino helps to subsidize chore services. Friends of HOME, an Leonard J . Thiel organization that solicits private donations, helps to fill the Tom Ticen remainin g g a between the Cit ; Y ' s CDBG funds and the total Benjamin F. withhart Program expense. Execudve Director & C.E.O. If you have any questions, or if the Mayor and City Council would PROGRAMS like to have an informational presentation, please let me know. - Community Senior Groups & Sincerely, Multi- purpose Senior Centers r•—� H.O.M.E. • Senior outreach Ron Bloch Program Administrator A coiled Ab„ 1998 URBAN HENNEPIN COUNTY CDBG PROGRAM REQUEST FOR' FUNDING (Use one form per project) A. GENERAL INFORMATION 1. Community: Brooklyn Center 2. Project Name: HOME (Household & outside Maintenance for Elderlvl 3. Contact Person/Phone No. Ron Bloch / 541 -1019 B. PROJECT DATA 1. Funding Request $,9.000 2. Is this request to fund an existing CDBG: Project? X Yes _ No 3. Leveraged Funds: Amount $ See # 9 Source See :.!� 9 (To what extent does project leverage additional public or private fundstfirm commitment ?) 4. Project Location: Address Brooklyn Center Citywide . (Attach map) 5. Project Description: (Describe the project in as much detail as possible and identify what, if any, alternative funding sources have been considered for this project) See Attachment 6. Urban County Priorities: Using the list provided identify what priority(ies) the project will meet. (Note: If proposed project is a low Urban County priority you must explain why it has a higher priority in your community) Public Service Needs: Senior Services - High Priority 7. Anticipated resultslaccomplishments project will have. (le., dumber of persons/households - to be assisted/served,*number of housing units to be rehabbedibuilt, etc. In 1997 the project served 30 Brooklyn Center residents (26 households). It is anticipated that a greater about the same number will be_ served in COBC Year XXIV. S. If applicable, describe how project will assist community in achieving Metropolitan Livable Communities Act goals. 9. Implementation Schedule: (For the time period 7 -1 -98 to 6- 30 - 00, identify the major project tasks to be performed and when they will occur) Date hs� Month/ Date On -coing delivery of the following services: CDBG Year Maintenance - Includes minor repairs in the areas of carpe plumbing, concrete. electrical painting. A l n innit Irnv r+nurinn ^ ^' ^rnr romnMl in cn-7Cn 141.e 10. Budget: (Specify total project budget by major project component -i.e., administration, planning, construction, acquisition, direct grants, public service.) BUDGET/SOURCE OF FUNDS Comp, nen CDBG. Otherf ident h Public Services /Eden Prairie $ 10.067 $ 05.000 Client fees /Edina 18 ,000 �,y_ELL.Q Edina/EEHF /Richfield $22,700 41 .313 United Way /Minnetonka $14 26 084 GMCC /Brooklyn Center $ 9.000 14,000 Friends of HM $ 83,754 Hen County Project Budget S-74 $268.161 Total Project Budget $342.528 copy NOTE: A ca of the HOME Program Budget is attached showing all anticipated _ expenses and revenues for the Program ACachment H.O. M. c. r (Household & Outside Maintenance for Elderty) Program Summary SUMMARY PARAGRAPH - The H.O.M.E. Program is a homemaker, maintenance, and chore program designed as a cast - effective alternative to long te, �n care for the elderly currently operating in the cities of Bloomington, Eden Prairie, Edina, Richfield, Minnetonka, Brooklyn Center and St. Louis Park. Disabled persons are also eligible for the services. The project maintains a core staff of trained individuals to assure" prompt, quality service and a skills bank component. Clients are asked to contribute according to. their ability to pay, based on a sliding scale. TARGET POPULATION - Consumers of H.O.M.E. services are elderly residents age 60+ or people with disabilities who live independently and need some affordable in- home services in order to maintain their residence or property. The H.G.M.E. Program serves those clients who need assistance but are not financially capable of paying the . full cost of service as well as frail older adults who require services designed to meet the needs of vulnerable elderly. SERVICES - The philosophy of the H.O.M.E. Program is to maintain independence for elderly and avoid premature placement in nursing homes by providing 4�e=zk sr, maintenance, ;;Pd -s;::=a services. Clients are asked to contribute based on a. sliding- fee scale. Assessments are made and services provided according to the specific needs of each client for type of service, time and frequency. G#ef2 /home maintenance s e rv ic es include spGw , Ga; installation of security features, carpentry, minor plumbing, painting, weatherization, minor roof repair and other maintenance lobs needed to enable. elderly residents to remain in their homes, as wail as maintaining them homes in an. acceptable manner. STAFF- Home maintenance and homemaker services are provided by workers who are trained in the necessary skill areas and techniques for working with older persons_ Skills Bank Workers are also utilized to P rovide chore services- All staff report to the management and Program Director, who is responsible fo r the supervision of H.O.M.E. p Other staff and volunteers provide administrative and clerical support. FACILITY - Services are provided in the homes of elderly residents. The office is located at Creekside Community Center, 9801 Penn Ave. South, Bloomington 55431, and a satellite office is located at the Minnetonka Center. PLACEMENT PROCEDURE - Clients gain access to the program either by a referral from an area agency or by calling the H.O.M.E. office and requesting service. FUNDING SOURCES - Revenues are derived from client Fees, Hennepin County, the Greater Minneapolis Council of Churches (GMCC), municipalities in which the program operates, the United Way, and contributions from clients and the community' through an associated organization called Friends of HOME. HOME Program 1998 Operating Budget w/ Gov't Revenue Detail 1 REVENUE Contributions United Way 41,313 Government Revenue Bloomington (CDBG) f 20,000 Bloomington (HRA) 17,500 Brooklyn Center 9,000 Eden Prairie 10,340 Edina i 26,000 Greater Mpis Council of Churches 26,084 Hennepin County 83,754 Minnetonka 14,600 _ Richfield 22,700 Sub -total Gov't Revenue 229,978 Friends of HOME ( 14,000 Client Fees 95,000 i Total 388,791 EXPENSES f Salaries & Wages ( 248,724 Benefits & Taxes 66,117 Office Rent 3,066 Equipment Repair /Maint. s. 892 Telephone 3,536 Postage € 2,478 Printing & Publications 4,678 Supplies 14,230 Professional Fees E 13,402 Mileage 5,699 Conferences & Meetings 2,759 Insurance 5,947 Memberships & Subscriptions 595 Miscellaneous 607 Depreciation g 6,938 Allocation of Admin. g 18,598 Total 398,266 Net Excess (Deficit) ($9,475) FROM SENIOR COMMUNITY SF.RUICES PI.ONE NO. 541 1019 Mar. 02 1998 12:58PM P2 HOUSEHOLD & OUTSIDE MAINTENANCE FOR ELDERLY. SUNbtARY OF SERVICE 1997 MAINTENANCE HOMEMAKER TOTAL BLOOMINt3'TON Customers 177 t04 281 Households 139 233 Jobs 570 1,428 1,498 Hours 2,031 3,124 5,15v EDEN PRAIRIE Custamar-sl 20 14 34 Households 15 13 28 Jobs 56 238 294 Hours 278 500 • 778 EDINA Customers 73 72 ` 145 f Households .63 68 131 �.� Jobs 296 1,113 1.409 Hours 913 2,325 3,238 RICHFIELD 0- xamersi 100 66 166 Households 83 59 142 Job 1 384 1,1321 1,516 Hours 1,5461 2,4881 4,034 MINNETONKA Customers 2541 4 258 Households 179 4 i 1 83 .lobs 1,076 55 T 1,131 Hours 3,292 12-5 f 3,417. BROOKLYN Customers 30 30 CENTER Households 26 26 Jobs 34 34 Hours 709 709 Sir LOUIS PARK Customers 2 l 2 Households 1 1 Jobs 1 1 I Hours 33 33 MAINTENANCE HOMEMAKER TOTAL GRAND TOTAL Customers 656 1 2601 916 Househclds --461 2381 744 • Jobs 2,417 1 3,9661 6 .� Hours 8,802 8,562. 17,364 Memorandum To: Michael McCauley From: Brad Hoffman, Community Development Director Date: November 19, 1997 Re: Blended Home Loan Program The council has requested information on the possibility of using our current deferred loan money (CDBG) to write down interest rates for home rehabilitation loans. The intent was to create a simple financial incentive for homeowners to reinvest in their homes. Attached you will find Hennepin County's response to the idea. Keep in mind that anytime federal funds (CDBG) are used all federal block grant regulations must be adhered to. Such regulations include but are not limited to: income eligibility requirements, priorities as to eligible expenditures, competitive bidding as well as numerous others. Under the program as proposed, Hennepin County would administer a program blending Brooklyn Center's deferred loan program with the Minnesota Housing Finance Agency's "Fix Up Fund ". The deferred loan would continue as is with no interest. A lien is placed on the property for 30 years or until the property is sold whichever is sooner. At that time the deferred loan is repaid. The deferred loan would make up 40 percent of the blend of the two programs with a minimum total loan of $12,500 (MHFA— $7,500, CDBG—$5,000).. As an example a homeowner who has otherwise qualified would borrow $15,000 to undertake the eligible activities they wish to do. The homeowner has a household income of $32,000 and will borrow the money at a fifteen (15) year term at 8 percent. The monthly payment would be $86.01 for an effective interest- rate of 4/10 of a percent. While the interest rate is significantly reduced, it is coupled with CDBG's cumbersome regulations. Also, if Brooklyn Center held back approximately $8,000 to deal with emergency grants and our administrative cost was $7,200 in reality we would have only $44,800 available. Brooklyn Center would be, in theory, able to do four (4) to nine (9) loans per year. Our actual experiences would probably be six (6) or seven (7) per year. Currently, Brooklyn Center does three (3) to five (5) deferred loans per year. Given the federal regulations of the CDBG program, our deferred loan money does not easily lend itself to a home loan program. What home loan exists where the owner must get competitive quotes and work with the lowest quote and complete a federal priority list of home improvements before the owner addresses the improvements they desire? Such requirements I believe would prove to be more of a disincentive to the homeowner. 'The GMMC proposal would assist homeowners locate financing develop g notes and enter into elo rehab laps and et • P P q contracts. I believe this approach will be a more effective way to encourage and assist home renovations. 4i Hennepin u Co nt v An Equa! Opp mmic7 Emplo7er November 20, 1997 Mr. Brad Hoffman Community Development Director City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Dear Brad: Subject: CDBG Funded Single- Family Housing Rehabilitation Program Several weeks ago, we met to discuss ways that Brooklyn Center could restructure their single- family housing rehabilitation progams. This letter is a follow -up to that discussion. Brooklyn Center participates in the Urban Hennepin County Community Development • Block Grant (CDBG) program and allocates, each year, funds for housing rehabilitation loans. Hennepin County administers the _Brooklyn Center CDBG housing rehabilitation loan program and additional loan programs provided through the Minnesota Housing Finance Agency ( T iVIHFA). Brooklyn Center currently has 45 families on the waiting list for the CDBG loan program. A CDBG allocation of $60,000 would provide approximately 5 to 6 deferred loans for low - income families. The loans are secured by a thirty-year lien against the property and repaid at the point of sale. Most families served under the existing CDBG-funded program are very low- income and do not have the ability to make principal and interest payments. While the CDBG loan program provides direct assistance to families, it also assists in maintaining the city's housing stock. The MHFA- funded deferred loan program is a $250,000 allocation for all of suburban Hennepin County. Funding for this two -year program was committed in three months. MHFA Fix -Up Fund Hennepin County is a participating lender under the TNEHFA Fix -Up Fund. In addition, the Southeast Area Neighborhood of Brooklyn Center has been designated eligible for MHFA Community Fix -Up Funds. Office Of Planning & Development • Development Planning Knit Rtc+cW Pape 10709 Wav_ata Boulevard, Suite 260 Minnetonka, Minnesota 53303 (612) 341 -7030 FAX:(612) 541 -7090 TDDI"M:(612) 541 -7981 Mr. Brad Hoffman • Page 2 Both programs provide below- market rehabilitation loans for income eligible families. Following is an overview of the program guidelines: NIHFA HOME Itii IPROVEMENT LOAN PROGRAMS Community Fix-Up Fund Fix -up Fund Maximum Loan $15,000 $25,000 Maximum HH Income $46,000 $65,895 Interest Rate Under $10,000 2% 2% $10,001-S20,000 4% 4% $20,001- $30,000 6% 6 % $30,001 + 8% 8% Blending CDBG and NIHFA Funds 11IHFA The NEHFA Fix -Up Fund is available from local lenders and through the Hennepin County BRA. The program operates very similar to regular bank loans. Homeowners make an application and are approved based upon their income and credit history. A payment for the entire loan amount is given to the family to use for the proposed improvements. MHFA randomly audits a small percentage of the loans. No property inspections are required under this program. The homeowner decides what improvements are made and they may pay for value -added improvements. CDBG: The CDBG program requires property inspections prior to starting the work and an inspection following completion of the work. The types of improvements eligible for CDBG - funded improvements are much more restrictive, basically deferred maintenance improvements. Under the CDBG program, the administering agency determines which improvements are eligible for loan funds. Blended Fund: • CDBG funding could be used to write -down the NEHFA Fix-Up und or Community Fix-Up P tY P Mr. Brad Hoffman Page 3 Fund. I recommend, under a blended program, that CDBG funds be in the form of a zero- interest deferred loan. V1HFA staff is currently reviewing options on how local agencies can provide write -downs to Fix -Up Fund loans. If Brooklyn Center elected to blend CDBG and NETA funds, the following program administrative issues would need to be addressed: 1. Properties must be inspected, a scope of work prepared, and a final inspection conducted. 2. Administering agency would prioritize which improvements are funded. 3 Property owners would be required to obtain a minimum of two bids for work to establish cost reasonableness. 4. Loans should be written -down at a flat rate, such as 40% of the total loan amount. CDBG would be a deferred loan and the remainder NHFA funds. A minimum loan amount must be established. It would not be cost effective to operate a CDBG write -down for less than $5,000 per loan. 5. Hennepin County would continue to charge a 12% administrative fee for the CDBG rehabilitation program. V 6. An emergency fund should be established for such things as furnaces, water heaters and sewer lines. Families in emergency situations may not be eligible for Fix -Up Fund loans. Hennepin County recognizes the need to maximize existing resources for single - family rehabilitation; this is why the county has agreed to administer the MHFA Home Improvement loan programs in suburban Hennepin County. It may be more beneficial for the city to utilize a more flexible funding source other than CDBG for writing -down Fix -Up Fund loan interest rates. We will work with you to access state funding sources to the greatest extent feasible in addressing Brooklyn Center single- family housing rehabilitation needs. I believe that CDBG deferred loans fill a need for very low - income families that otherwise would not make necessary repairs on their homes. Please let me know if you have any questions. We will need to work on administrative details once a funding decision has been made. I will contact you after you have had the opportunity to discuss funding options with the city council. Sincerely, Barbara Hayde Administrative Manager cc: Tom Bublitz • Jim Graham Memorandum To: Michael J. McCauley, City Manager ?� From: Tom Bublitz, Community Development Specialist f 1 Date: June 17, 1997 Subject: Options for EDA Housing Rehabilitation Deferred Loan Program Over the past several months, the EDA Board of Commissioners /City Council has received and reviewed information relative to the eligible uses of Community Development Block Grant (CDBG) funds, particularly as they relate to the Economic Development Authority's (EDA's) home rehabilitation program. This memorandum will not attempt to duplicate material previously presented to the EDA/City Council. The purpose of this memorandum is to summarize some of the primary features of CDBG funding requirements and to offer some options for the single- family rehabilitation program. Some of the background information previously sent to the EDA is included as an attachment to this memorandum as a reference for the EDA. CURRENT STATUS OF EDA SINGLE- FAimIILY HOME REHABILITATION PROGRAM . The program is administered by Hennepin County staff. The Hennepin County Office of Planning and Development accepts homeowner applications, determines income eligibility, does the inspection and scope of work and coordinates the project. . The e a ' itat' r h bil ion program is funded at $60,000 for 1997. The maximum loan is $15,000, and there are approximately 43 households on the waiting list. To qualify for the program, household income must be 80 % of metro area median income or lower. Current income limits are shown below: 1 Person $30,450 2 Person $34,800 3 Person $39,150 4 Person $43,500 5 Person $47,000 6 Person $50,450 • • Memorandum to Michael J. McCauley June 17, 1997 Page 2 . The current program provides a loan up to $15,000 with a 30 year lien period. For households with incomes at 50% of median to 80% of median, the interest rate charged on the loan is three percent for a term of ten years. For households at or below 50% of median, there is no interest charged on the loans. PRIMARY OBJECTIVES AND RESTRICTIONS ON CDBG FUNDS The primary objective of the CDBG program from the federal perspective is to develop "viable urban communities by providing decent housing and suitable living environment and expanding economic opportunities, principally for persons of low and moderate income." All CDBG projects must meet one of the three national objectives. They must either (i) principally benefit low and moderate income persons; (ii) aid in the prevention or elimination of slums or blight; and (iii) meet other urgent community needs. . In addition to the national objectives, 70% of the total County -wide CDBG funds must be used • for low and moderate income benefit activities. The 70% requirement must be met at the County level, but it also impacts participating cities' ultimate use of CDBG funds. OPTIONS FOR FUTURE USES OF CDBG FUNDS AND THE HOME REHABILITATION PROGRAM Today there are many more options to obtain funding for home repair than there were in the mid- to late- 1970's when the federal Community Development Block Grant (CDBG) program was put in place. The Minnesota Housing Finance Agency (MHFA) provides rehabilitation loan programs and there are nonprofit organizations in place such as the Center for Energy and the Environment to assist homeowners in obtaining MHFA loans. Hennepin County has expanded its role in providing loans through the MHFA "Fix Up Fund" program, and banks provide a number of loan products including home equity loans. Not all these programs are accessible to persons of low and moderate income; however, there now are more financing tools available to homeowners so CDBG need not be the sole source of funding. Clearly, even if all the City's annual allocation of CDBG dollars were dedicated to home rehabilitation, they could not meet the increasing needs. Some possible options for revising the home rehabilitation program are: . Consider usin CDBG funds to "buy down" the interest rates on MHFA Fix Up Fund loans. Presently, Fix Up Fund rates are between two and eight percent with most borrowers in the six to eight percent range. Using CDBG funds to "buy down" the rates to,five percent or lower could leverage more rehabilitation dollars. . Keep the CDBG home rehabilitation program in place, but use the funds to target certain neighborhoods such as those neighborhoods that are the focus of code enforcement efforts. • Memorandum to Michael J. McCauley June 17, 1997 Page 3 _ • Refer persons with rehabilitation needs to existing MHFA programs, but keep a limited amount of CDBG funds available for emergencies such as furnace replacement, roof repair, plumbing and electrical repair, etc. . The EDA can also choose to eliminate the program completely and refer persons to existing loan programs, including MHFA loans. In deciding upon any option for the use of CDBG funds or revising the EDA's existing home rehabilitation program, it is necessary to receive approval from Hennepin County before implementing the changes. - • • f I I i Member Debra Hilstrom introduced the following resolution and f oved its adoption: m P , ` RESOLUTION NO. 96 -11 ! j yam._ RESOLUTION AUTHORIZING HENNEPIN COUNTY OFFICE OF PLANNING AND DEVELOPMENT TO ADMINISTER THE COMMUNITY DEVELOPMENT II BLOCK GRANT HOUSING REHABILITATION PROGRAM AND APPROVING i "? CERTAIN CHANGES TO THE PROGRAM WHEREAS, the Joint Cooperation Agreement approved by the city and Hennepin County provides that the County shall, upon official request by a participating city, agree to i administer local housing rehabilitation loan programs funded pursuant to the Joint Agreement f ' provided that the County receives twelve percent (12 %) of the allocation by the city to . the it rehabilitation activity as reimbursement for costs associated with the administration of the city's l program; and WHEREAS, the City Council of the City of Brooklyn Center desires to have Hennepin County administer the city's housing rehabilitation deferred loan program, pursuant to the terms of the Joint Cooperation Agreement; and WHEREAS, the Hennepin County Office of Planning and Development has I 1 quested clarification of the following issues with regard to the administration of the city's housing rehabilitation deferred loan program: ► Confirmation of the city's policy of not approving deferred loan projects for non - conforming uses. ► Option to close the waiting list for deferred loan applications on an intermittent '. basis, as deemed necessary by Hennepin County. I � ► City's schedule for implementing the changes in the terms of the deferred loan ` I P g program as recommended by the County. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center as follows: 1. Hennepin County is hereby requested to administer the Community Development = Block Grant deferred loan program as provided in the Joint Cooperation Agreement. 4 2. Hennepin County, in administration of the program, is hereby directed not to approve deferred loan projects for any non - conforming uses in the City of Brooklyn Center. ' j is I. gESOLUTION NO. 96 -1 19 3. Hennepin County is authorized to temporarily close the waiting list for the housing rehabilitation program as it deems necessary from time to time. • i 4. Hennepin County is hereby authorized to implement its proposed changes to the CDBG deferred loan program as soon as practicable for those persons currently i on the cit waiting list, d for all future applicants said changes are }�� t, PP `J b � summarized below: ` a. That the lien period for the zero percent deferred loans (maximum $15,000) will be extended from ten to 30 years. b. For families with incomes greater than 50% of area median income, the loans r, will be three percent (3 %) simple interest for ten years and have a 30 -year lien. June 10, 1996 Date or Ma D Y sew ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member les Nichols and upon vote being taken thereon, the following voted in favor thereof. 4'rn Kragness, Kathleen Carmody, Debra Hilstrom, Kristen Mann, and Charles Nichols; and the following voted against the same: none, ti.- f whereupon said resolution was declared duly passed and adopted. City Council Goals for 1999 • 4. Support Brookdale redevelopment b PP : P Y - use of tax increment assistance - review and evaluation of land use applications - prompt construction and plan review /inspection - monitoring developer performance 8. Continue and Improve Code Enforcement and Compliance activities by: - coordinated effort of police and community development departments - evaluation of additional approaches to improve compliance such as greater penalties and alternate approaches such as charging property owner for violation removal by City if fail to comply 9. Increase proactivity towards fighting crime by: - increased visibility of police in neighborhoods - continue and expand on high participation rate in neighborhood watch groups - begin recruitment of park watch groups or extensions of neighborhood watch to include parks - 2 newsletter articles on neighborhood watch and encouraging active participation 12. Finish Fire and Police Building Construction 6. Evaluate housing programs and policies by: - Council decision on resource allocation - survey current practices in other cities on occupancy limits and coordinate that review with housing commission - continue ARM participation - Council decision on point of sale ordinance - review first time home buyer programs - review potential and actual offerings by Greater Metropolitan Minneapolis Housing Corporation 7. Plan for needed work at Community Center and City Hall by: - preparation of overview of options, mandatory Americans With Disabilities Act modifications and required repairs to walls, roofs, and heating, ventilation, air conditioning - solicitation of citizen input • - development of plans with architect and construction manager - development of budget 3. Create Neighborhood Traffic Safety Plan • - enforcement of speed limits - define goals and attainable results - hire consultant to assist in development of Neighborhood Traffic Safety planning - coordinate with neighborhood watch groups 2. Continue and Improve long term financial planning - continue 5 year planning for utilities and capital improvements - continue /expand 5 year planning for other funds - review and develop contingency planning Principles to guide actions in the form of goals: 5. Place priority on Brooklyn Boulevard Redevelopment - funding and acquisition for project between 65th and 71st 11. Incorporate elements to make City more visually appealing where and as possible in projects • and developments. • 0 COMPANY September 23, 1998 Mr. Michael McCauley, City Manager City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Dear Mr. McCauley: • Enclosed please find pages 7 and 8 of the Summary of Key Observations and Conclusions reached by the participants during the August 14 City Council Leadership and Goal- Setting Workshop, as per your fax. If you have any further questions, please do not hesitate to contact us. Sincerely, Sharon J. Wallin Assistant to Carl Neu Enclosures • C] Pro -Med Health Care Management Division ❑ Government Leadership Division Phone: 303/986 -8487 ❑ General Management Systems Division Fax: 303/986 -0223 8169 West Baker Avenue Lakewood, Colorado 80227 Mailing Address: P.O. Box 36308 Lakewood, Colorado 80236 b. Key Action Steps: • (1) Develop overview of options and mandatory regulations that must be met (2) Generate citizen input (3) Create plans for construction of centers and hire architect and construction manager (4) Recognize the project will require major Staff time commitment and some commitment of Council time C. Coordination Required with Other Agencies: None d. Budget Implications: Capital improvement cost and Staff time e. Other Considerations: None 8. Goal: Code enforcement and compliance a. Relative Priority: High • b. Key Action Steps: (1) Cooperation with Department to ensure that police officers in neighborhoods can "write things up" which are in violation of Codes (2) Mandate to share responsibility - all patrol officers participate in Code enforcement (3) Require more than just the efforts of Heather and Janine (4) Will include involvement of Building Inspectors (5) Resources will be required to monitor Code Enforcement (6) Code Enforcement will include all commercial properties (7) Generate a report on the benefit that might be achieved from escalating and stiffer fines and enforcement actions. • 7 C. Coordination Required with Other Agencies: None • d. Budget Implications: Budget implications are anticipated, but need to be determined. e. Other Considerations: Ability of the City to establish escalating fines and stiffer penalties for Code violations. (May be limited or prohibited by State Statutes) 9. Goal: Increase proactivity towards fighting crime. a. Relative Priority: High b. Key Action Steps: (1) Increased presence in neighborhoods (2) Find ways to increase citizen interactions with Police (3) Establish a list of options as to what "proactive things" the City can do. (4) Stay within current staffing levels; no hiring of additional • police officers C. Coordination Required with Other Agencies: None d. Budget Implications: To be determined e. Other Considerations: None 10. Goal: Establish usable benchmarks and data on Staff utilization, especially in the Police Department a. Relative Priority: Medium b. Key Action Steps: (1) Conduct appropriate time studies (2) Obtain benchmark information from other cities against which comparisons can be made 8 CITY OF BROOKLYN CENTER, MINNESOTA CITY COUNCIL LEADERSHIP AND GOAL - SETTING WORKSHOP SUMMARY OF KEY OBSERVATIONS AND CONCLUSIONS Prepared b P Y Carl H. Neu, Jr. August 26, 1998 • © Neu and Company, 1998 • CITY OF BROOKLYN CENTER, MINNESOTA CITY COUNCIL LEADERSHIP AND GOAL- SETTING WORKSHOP SUMMARY OF KEY OBSERVATIONS AND CONCLUSIONS August 26, 1998 I. INTRODUCTION On August 14,1998, the City Council, City Manager, and Assistant City Manager conducted a City Council Leadership and Goal- Setting Workshop. The Objectives for this Workshop are attached as Appendix A. II. KEY OBSERVATIONS AND CONCLUSIONS A. Proposed City Council Goals for Calendar Year 1999 . The Council developed a total of twelve goals, nine of which were identified as "A- List" Goals, and three of which were identified as `B- List" Goals. The "A- List" Goals were those that were identified by a majority of Council as being of the highest priority for the City. The "B- List" Goals were Council Goals deemed to be of importance to the Council but not having the high- priority status as those Goals listed on the "A- List ". After each Goal listed below, the number of Council members indicating it as a high priority and the number of Staff members indicating it as a high priority is noted. 1. "A- List" Goals a. Develop a general Comprehensive Guide for Development and Redevelopment • Redevelopment policies and priorities • Development and redevelopment that simultaneous provides high- paying jobs (Council - 5; Staff - 2) • 1 b. Continue and improve long -term financial planning including • establishment of a contingency plan for possible cuts in funding from the State Legislature. (Council - 5; Staff - 2) C. Create Neighborhood Traffic Safety Plan which includes enforcement of speed limits. (Council - 5; Staff - 0) d. Support Brookdale Redevelopment (Council - 4; Staff - 2) e. Move the Brooklyn Boulevard Redevelopment to "top of the list" for State and County funding assistance. Also search for additional funding. (Council - 4; Staff - 1) f. Evaluate housing programs and policies for: • Low- interest loan program • Occupancy issues Multi- family housing • Point of Sale • First -time home buyers • Single family rental units (Council - 4; Staff - 0) • g. Work on Plan for Redoing City Hall and Community Center (Council - 3; Staff - 2) h. Code Enforcement and Compliance (Council - 3; Staff - 1) i. Increase proactivity towards fighting crime (Council - 3; Staff 0) 2. "B- List" Goals: a. Establish usable benchmarks and data on Staff utilization, especially in the Police Department (Council - 2; Staff - 2) b. Make the City of Brooklyn Center visibly appealing to include burying of utility lines (Council - 2; Staff - 0) C. Finish Police and Fire Building construction. (Council - 1; Staff - 1) B. Implementation Plans for Proposed Goals The participants were then asked to examine and propose for each Goal the following information relative to attaining its implementation: 2 • Relative priority (high - priority is a "must do"; medium priority indicates that . the Goal can be delayed until staff time becomes available for ensuring its implementation) • Key Action Steps • Coordination required with other agencies including appropriate informatiog on which agencies and how the coordination should be attained. • Budget implications for the 1999 City Budget • Other considerations 1. Goal: Develop a general Comprehensive Guide for development and redevelopment a. Relative Priority: Medium b. Key Action Steps: (1) Schedule required Council work sessions • (2) Schedule for appropriate Staff preparation work C. Coordination Required with Other Agencies: None d. Budget Implications: (1) Salary of staff (2) Consultant fees to assist in development of the general Comprehensive Guide e. Other Considerations: Competition for Staff and Council time. 2. Goal: Continue and improve long -term financial planning including establishment of a contingency plan for possible cuts in funding from the State Legislature. No detailed implementation plan was developed by the participants. • 3 3. Goal: Create Neighborhood Traffic Safety Plan which includes • enforcement of speed limits. a. Relative Priority: Medium b. Key Action Steps: (1) Define what we want and what we can accomplish (2) Hire a consultant to assist in developing the Neighborhood Traffic Safety portion of the Plan (3) Evaluate use of Police time to determine ability of the Police Department to enforce speed limits. C. Coordination Required with Other Agencies: Neighborhood Watch Groups d. Budget implications: (1) Cost of consultant to assist in creation of Neighborhood Traffic Safety component of PIan • (2) Potential cost to implement Plan e. Other Considerations: Public acceptance of increased enforcement of speed limits and Neighborhood Traffic Safety Plan recommendations. 4. Goal: Support Brookdale Redevelopment a. Relative Priority: High b. Key Action Steps: (1) Financing the redevelopment (2) Issuing of Land Use Permits (3) Construction Inspection (4) Monitoring Developer performance • 4 (5) Recognition that Goal requires major management time • commitment and services of a full -time inspector. C. Coordination Required with Other Agencies: some coordination may be required with the County d. Budget Implications: Salary for full -time inspector which should be covered by fees. e. Other Considerations: (1) Related development around Brookdale (2) Potential impact on the Target store area 5. Goal: Move the Brooklyn Boulevard Redevelopment to "top of the list" for State and County funding assistance. Also search for additional funding. a. Relative Priority: Not indicated b. Key Action Steps: • (1) Generate appropriate financial information (2) Sign contract with County (3) Acquire right -of -way and insure relocation of affected businesses C. Coordination Required: Coordination with County will be a big part of this effort d. Budget Implications: Need to be determined. e. Other Considerations: None 6. Goal: Evaluate housing programs and policies a. Relative Priority: High b. Key Action Steps: • 5 (1) Low - interest loan program • Council decision on resource allocation • Possible funding option • GMHC (2) Address occupancy per household: • Coordinate with Housing and Planning Commissions • Conduct survey on ordinances that other cities may have pertaining to this item (3) Multi- family housing - continue current activities (4) Council decision and implementation on a point -of -sale ordinance (5) Establish a First -Time Home Buyer Program • Program needs further clarification • Need to determine appropriate income levels and ways to assess occupants' ability to maintain the • property (6) Single - Family Rental Units: • Need clarification of program • Need to clarify numbers of units that exist in City (7) Need to recognize that this Goal will require a major Staff time commitment C. Coordination Required with Other Agencies: GMHC d. Budget Implications: allocation of transfer of funds e. Other Considerations: Potential litigation that could result from enforcement of City's adopted policies in response to this Goal, particularly pertaining to occupancy. 7. Goal: Work on plan for redoing City Hall and Community Center a. Relative Priority: Medium • 6 b. Key Action Steps: • (1) Develop verview of options and mandatory regulations that P P rY g must be met (2) Generate citizen input (3) Create plans for construction of centers and hire architect and construction manager (4) Recognize the project will require major Staff time commitment and some commitment of Council time C. Coordination Required with Other Agencies: None d. Budget Implications: Capital improvement cost and Staff time e. Other Considerations: None 8. Goal: Code enforcement and compliance' a. Relative Priority: High • b. Key Action Steps: (1) Cooperation with Department to ensure that police officers in neighborhoods can "write things up" which are in violation of Codes (2) Mandate to share responsibility - all patrol officers participate in Code enforcement (3) Require more than just the efforts of Heather and Janipe (4) Will include involvement of Building Inspectors (5) Resources will be required to monitor Code Enforcement (6) Code Enforcement will include all commercial properties (7) Generate a report on the benefit that might be achieved from escalating and stiffer fines and enforcement actions. • 7 C. Coordination Required with Other Agencies: None • d. Budget Implications: Budget implications are anticipated, but need to be determined. e. Other Considerations: Ability of the City to establish escalating fines and stiffer penalties for Code violations. (May be limited or prohibited by State Statutes) 9. Goal: Increase proactivity towards fighting crime. a. Relative Priority: High b. Key Action Steps: (1) Increased presence in neighborhoods (2) Find ways to increase citizen interactions with Police (3) Establish a list of options as to what "proactive things" the City can do. (4) Stay within current staffing levels; no hiring of additional • police officers C. Coordination Required with Other Agencies: None d. Budget Implications: To be determined e. Other Considerations: None 10. Goal: Establish usable benchmarks and data on Staff utilization, especially in the Police Department a. Relative Priority: Medium b. Key Action Steps: (1) Conduct appropriate time studies (2) Obtain benchmark information from other cities against which comparisons can be made • 8 (3) Recognize that a great deal of Staff time will be required to implement this Goal. C. Coordination Required with Other Agencies: None d. Budget Implications: Staff support time e. Other Considerations: Potential backlash that could result from recommendations that emerge from benchmark studies. 11. Goal: Make the City of Brooklyn Center visibly appealing to including burying of utility lines. a. Relative Priority: Medium b. Key Action Steps: (1) Establish as a 1999 work goal, creation of the appropriate policies for achieving utility under grounding (2) Provide more information to City Council on options available to it in creating this policy. • C. Coordination with Other Agencies: Affected utilities and regulatory agencies. d. Budget Implications: To be determined; e. Other Considerations: Could have franchise implications and regulatory implications. 12. Goal: Finish Police and Fire Building construction a. Relative Priority: High b. Key Action Steps: (1) Finish Police and Fire Buildings as planned (2) Keep Council informed of progress (3) Ensure that projects stay on schedule • 9 (4) Maintain a high level of service during the "move -in" phase g g P • of the effort C. Coordination Required w' n eq red ith Other Agencies: None, unless assistance from other agencies is required to prevent diminution of service during move -in phases of ro'ect P J d. Budget Implications: Project already is budgeted. Some P J Y g requirements for overtime pay might be incurred. e. Other Considerations: None C. Boards and Commissions This section of the Workshop focused on a review of the City's policies relative to the use of an operations of the various Boards and Commissions. 1. Neighborhood Advisory Committees a. There is a desire to have citizens go directly to the Planning Commission rather than having the Planning Commission refer land - use issues to neighborhood groups who then report back to the Planning Commission. • b. Process for Approaching This Issue: PP g (1) Explore how to streamline the process (2). Strive to make more effective use of the Planning Commission's and Council's time (3. Create a new policy on the referring of land use issues and citizen involvement (4) Reduce the number of "hoops" that applicants need to go through in obtaining required approvals from Planning Commission and Council (5) Clarify the new process and policy with the Planning Commission C. Next Step: Establish meeting with Planning Commission to resolve this issue and create appropriate new policies. • 10 2. Boards and Commissions Except Planning Commission a. Desired Actions: (1) Council allocates staff time that will be made available to each Board and Commission so that there can be a better utilization and control of Staff resources. (2) Limit the frequency of meetings of each Board and Commission except the Planning Commission or establish a policy where the Boards and Commissions will meet "on- call ". (3) Require that each Board and Commission establish a definite agenda for each of its meetings. b. Action Items to Address this Issue (1) Examine each Board and Commission and establish appropriate allocation of Stafftime and frequency of meetings for each. (2) Determine which issues the Council would like to address with each Board and Commission. (3) Establish a joint meeting between the City Council and the Board and Commissions or the Board and Commission chairs in January to resolve concerns identified by Council. (4) Conduct a City Council reception for the Board and Commissions to recognize their contributions to the City of Brooklyn Center. D. Elections The Council briefly discussed the upcoming municipal elections and the decorum that it wishes to abide by during the "election season ". The following issues were discussed and agreed upon among the Council members: 1. Candidates and Council members should focus on issues rather than personalities in their campaign activities. • 11 2. To the fullest extent possible, keep "politics" out of Council meetings and • deliberations. 3. Council members should provide feedback on any campaign statements or actions which are considered to be "inappropriate ". 4. All candidates and Council members respect the "gains" that the Brooklyn City Council has made as the governing body over the _last several years. 5. No one should participate in "behind -the- back" efforts. 6. All information requested from the City by candidates will be shared with Council members. E. City's Legislative Agenda 1. What does the City Council want from the State Legislature during the next season: I� a. Establish Highway 100 as a high - priority for funding b. Address some T.I.F. issues: • Assistance in getting one arm of the DNR to have jurisdiction • g g J urt tion over the Joslin site • Addressing housing issues and regulations in District 3. 2. The City will respond to requests for information and input made to Brooklyn Center by the Legislature or members of the Legislature. 3. The City will make no funding requests to the Legislature for this year. 4. The City Council must pre- approve participation in any funding requests or programs initiated by the Legislature. F. Orientation for New City Council (this item will be discussed at the next City Council work session). • 12