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HomeMy WebLinkAbout1993 10-18 CCM Special Work Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL WORK SESSION OCTOBER 18, 1993 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in special work session and was called to order by Mayor Todd Paulson at 7:00 p.m. ROLL CALL Mayor Todd Paulson, Councilmembers Celia Scott, David Rosene, Barb Kalligher, and Kristen Mann. Also present were City Manager Gerald Splinter, Director of Finance Charlie Hansen, and Council Secretary Debbie Wolfe. Councilmember Kalligher questioned the Council's viewpoints regarding the Commission appointments which will be discussed at the next City Council Meeting. She stated she would like to see all commissioners appointed by the end of the year so their terms would begin effective January 1, 1994. She requested staff to prepare a list of potential commission candidates and suggested the timeframe from November 1 -30, 1993, be used to run the newspaper advertisement for interested candidates and also to give the staff an opportunity to determine which existing commission members were interested in serving another term. She indicated she would like the Council to make their selection for commission members at the first or second regular City Council Meeting in December. Mayor Paulson suggested he and the City Manager review the names of commission members who are up for terms and bring for discussion at the next City Council meeting. Councilmember Kalligher suggested existing commission members who are interested in another term should not have to fill out an application but their attendance at commission meetings should be reviewed. Councilmember Rosene stated commission members currently requesting another term should receive consideration but they should not be automatically given another term. The most qualified persons should be appointed to the commissions. 10/18/93 - 1 - Councilmember Kalligher stated she has been approached by some commission members stating they are the wrong sex or happen to live in the wrong neighborhood and fear they won't be reappointed because of it. Councilmember Scott stated she has heard similar comments and some are concerned about being on the commission for a number of years. She suggested since the Council liaison is aware of which commission members have been active on the commission, a recommendation should come from the liaison. Councilmember Kalligher questioned the Council whether it would be appropriate to get a report from each commission. Councilmember Scott suggested each commission Chair and liaison be asked which members should be reappointed. Councilmember Mann stated she is aware that some commission members are seniors who tend to go south for the winter and are not active during those months. She suggested those members could be told there are other applicants willing to serve 12 months a year for the commission on a full -time basis. Councilmember Kalligher reiterated she wants the terms to all begin in January. Mayor Paulson directed staff to prepare the advertisement for applicants and prepare a list of existing commission members willing to reapply. Councilmember Scott added she would like the attendance information also provided for Council consideration. Councilmember Mann stated if a current commission member is doing a good job on the commission that member should be able to serve another term. Councilmember Rosene stated if a current commission member is doing a good job that should outweigh sex and geographic location. The City Manager stated he will prepare for Council review the list but the attendance records may take a little longer since each commission would need to be contacted. PRESENTATION BY STAFF OF 1994 PROPOSED BUDGET The City Manager reviewed the major factors influencing the 1994 budget: 1. The general fund portion of the proposed 1994 budget increases $476,567 (4.50 %). Capital outlay requests appear to decline, but this is deceiving. Vehicle purchases are now going to be made from the Central Garage internal service fund. When vehicles are considered, total capital outlay is increasing. Many of the capital outlays will 10/18/93 -2- result in productivity improvements. The budget calls for the addition of two police officers during the 1994 year, one starting on January 1, 1994, and the other on July 1, 1994. It also calls for the addition of one dispatcher, starting on May 1, 1994, raising the complement of police dispatchers from six to seven. These positions, funded for part of the year 1994, will cause a further budget increase in 1995 when they will have to be funded for the full year. Comparing to budget year 1985, the number of sworn officers has risen from 29 to 42, a 45% increase. Officers dedicated exclusively to patrol have risen from 14 to 22, a 57% increase. In the same period, the number of civilian employees (dispatchers, secretaries, code enforcement, & administrative) has risen from 12 to 15, a 25% increase. A full -time Fire Chief was added in 1988 to enhance that area of Public Safety. During the same 10 years, the number of non public safety, full -time employees has decreased from 71 to 69. 2. The 1994 proposed budget reflects the auditor's recommendation of establishing a Central Garage internal service fund. There are changes in the individual departmental budgets because of this implementation as there will be charges totaling $888,069 for vehicle maintenance and depreciation now showing up in department budgets, and there will be no separate vehicle maintenance department in the General Fund budget. 3. In 1994 there is a significant increase in the elections budget because of costs incurred by the general election occurring in 1994 ($20,000). 4. This year proposed is to initiate the use of an estimated 2% uncollectible allowance for property taxes. This is intended to finance any anticipated shortfall in property tax collections, which is estimated to be $115,019. 5. Lodging tax revenues are estimated to decrease in 1994. In 1993, a reduction in revenue was experienced due to the loss of tax receipts from Park Inn International, and this is anticipated to continue into 1994. 6. Liquor license revenue for 1994 is projected at $13,200 less because of the fact that in 1993 the Park Inn did not renew its liquor license and renewal is not anticipated in 1994. 7. In 1993, revenues for recreation were estimated largely due to the water slide revenue, at too high a level. Those revenues have been adjusted down $131,003 and expenditures were also reduced a significant amount, as the expenditures in 1993 for the water slide were also estimated at too high a level. 10/18/93 -3 - 8. Fines and forfeitures are declining 28% from the 1993 estimates. This is a continuation of a four -year trend toward lower court fine revenue. Revenues had been stable at the new projected rate for about eighteen months, so the bottom of the trend may have been hit, but it does represent a $56,000 decrease from 1993 budget estimates. 9. Interest income for the General Fund will decline from the $210,000 estimated for 1993 to $170,000 estimated for 1994. This is happening because $750,000 is to be transferred from the General Fund to the Central Garage Fund to cover past depreciation on the vehicles the Central Garage will now be responsible for. Future interest earnings on the $750,000 will be credited to the Central Garage Fund, instead of the General Fund, and will help to cover the inflation in new vehicle prices. 10. The overtime appropriation in the streets department has been increased from the 1993 level of $10,000 by $6,000. As a part of the prioritization process, the Council asked overtime to be cut in a number of different areas and evaluate the impact of cutting that overtime. In 1992, $20,000 was budgeted for street department overtime and in 1993 it was cut to $10,000. In 1994 staff is recommending an increase in that appropriation to $16,000 as it is believed that remaining at the $10,000 level would severely impact the snow plowing service level if there are more frequent snow events on weekends. The $16,000 appropriation proposed in 1994 is believed to cover a more average number of weekend snow plowing events. 11. In the parks department budget proposed is the purchase of a 16 -foot ($63,000) rotary mower for the parks system. The mower would replace two 72 -inch mowers and dramatically increase the efficiency of the mowing operation. It now takes, under normal weather conditions, five full days to complete the mowing cycle. Replacing the two existing 72 -inch mowers with the larger unit would reduce the mowing time to four days. The two mowers to be replaced are currently due for replacement and their replacement costs would be $24,000. The new larger mower, while costing approximately $40,000 more, is significantly more efficient. The parks personnel have evaluated this new mower based on the experience of neighboring communities who currently own similar models. This acquisition would allow for one seasonal worker to be reassigned from mowing duties and free up other full- and part -time personnel which would replace the need for adding an additional full -time park personnel. The park department is currently falling behind in its maintenance of parks and facilities, and the addition of this piece of equipment will allow additional personnel hours to fill in that shortfall. 12. One initiative taken to mitigate the impact of the proposed budget is to transfer $240,000 from the Refunding Bonds of 1987 debt service fund to the Certificates of Indebtedness debt service fund at the end of 1993. This transfer will allow the City to pay off the remaining $160,000 balance of the Certificates of Indebtedness and the 10/18/93 -4- remaining $80,000 balance of the Certificates of Indebtedness of 1993. In the absence of this move, it would be necessary to make principle and interest payments of $172,800 on the Certificates of Indebtedness of 1992 and principle and interest r payments of $46,400 on the Certificates of Indebtedness of 1993, during the 1994 budget year. This would have further increased the 1994 tax levy by $219,200 and greatly aggravated the tax impact on property owners. The Refunding Bonds of 1987 debt service fund has a surplus in it because it is a special assessment fund. Prepayments on the special assessments have been invested over the years and earned more interest income than was anticipated. 13. The tax impact of the proposed 1994 budget will be magnified on single family homes in Brooklyn Center due to the shrinking of the commercial and industrial tax base from its 1993 levels. The City Assessor indicates that the 4.50% increase in the general fund budget will result in a $31.47 annual (17.2 %) increase in the taxes on a $73,000 Brooklyn Center home. A significant portion of this increase is due to a shift in taxes from the commercial and industrial properties to homesteaded properties because of the loss of value in the commercial /industrial areas. The homestead residential property values have been stable and increased slightly. This is a phenomena which is impacting virtually all communities in the metropolitan area. The City Manager continued by reviewing the 1994 Proposed Budget for each City Department. City Council = Unit 111 There are slight increases in the proposed city council budget. The increase in operating supplies reflects the inclusion of community service awards as recommended by the human rights and resources commission. Professional services include funding for another joint meeting of the council and advisory commissions. The City Manager reviewed the Proposed Dues and Subscriptions. League of Minnesota Cities $13,500 Association of Metropolitan Municipalities 6,900 LMC Labor Relations Consulting Service Program 4,000 U.S. Conference of Mayors 1,850 Minnesota Mayors Association 20 North Metro Mayors Association 9,000 Minnesota Women Elected Officials 30 National League of Cities 1,300 Total $36,600 Mayor Paulson questioned the reason for belonging to the League of Minnesota Cities and asked if the insurance can be obtained if not belonging. The City Manager responded it is a definite cost savings to belong to the organization. 10/18/93 -5 - Councilmember Kalligher asked what the $9,000 to belong to the North Metro Mayors Association included. The City Manager stated this covers lobbying efforts for the City. Councilmember Rosene stated he would like to have a discussion about Mayor and Councilmember's salaries at some point prior to approval of the final budget. Commissions = Unit 112 The City Manager stated the Charter Commission is charged with the responsibility of periodically reviewing the City Charter and recommending changes as it may deem necessary. The other commissions serve as appointed advisory bodies to the City Council. The statutory amount of $1,500 is recommended for the 1994 charter commission budget. The remaining request of $8,000 is for professional services to be proposed by the human rights and resources commission for diversity issues and training. Councilmember Kalligher questioned whether the proposal for the $8,000 will be reviewed by the Council, and the City Manager stated it will come before the Council for final approval. City Manager's Office = Unit 113 The City's Manager's Office provides the general administrative services required for the management of City Affairs. Activities include, but are not limited to, preparation of agendas, minutes, and other types of information desired by the City Council, central purchasing, personnel administration, processing of inquiries and complaints received from the public, and overall management of City operations. There are a number of proposed changes in the requested 1994 budget for the city manager's office. Decreases are seen in operating supplies and legal notices to reflect actual expenditures. Increases are seen in several areas. Professional services includes a small amount for consulting fees for issues related to the Americans with Disabilities Act (ADA). Medical services increased with the addition of VDT eyewear, a benefit already offered to employees. A rise in employment advertising reflects the greater role of the city manager's office in recruiting personnel at various levels throughout the City. Dues and subscriptions increased slightly due to inflation and to accommodate a request from the communications coordinator for a publication. There is a request to increase the part -time communications coordinator's hours from 20 to 25 hours per week. This would maintain the same work day hours, but allow attendance at evening meetings or other activities during regularly unscheduled time. 10/18/93 -6- Mayor Paulson stated he would like to see the position description and evaluation for the part -time communications coordinator. Councilmember Mann questioned the Central Garage Rentals and the Personnel Coordinator being part of the City Manager's budget. The City Manager responded the Personnel Coordinator is due for a step increase next year and is proposed to also receive the 1.75% salary increase. The City Manager added currently the State has frozen salaries but step increases are still given to those employees due for them. In lieu of salary increases benefit increases were given to employees. Councilmember Kalligher requested staff to find out exactly what the State employees were given and determine the cost of providing similar benefit increases to City employees. The City Manager stated in negotiations with the public works employees union, they have requested the same package the state employees were given. The City Manager added the State did not ever give a dollar value to the increased benefit package. Councilmember Kalligher requested staff to report as to when the Personnel Coordinator last received a step increase. The City Manager stated he believes it was 1 year ago but will check and report back to the Council his findings. Elections and Voter's Registration = Unit 114 The City registers all new voters, processes transfers and deletions, and cooperates with Hennepin County to provide an accurate computerized listing of eligible registered voters in the City of Brooklyn Center. As of September 28, 1993, there were 17,051 voters in the City. Section 4.01 of the Brooklyn Center City Charter provides for regular municipal elections to be held in even - numbered years only. The 1994 Elections and Voter's Registration budget provides for the cost of personnel, training, supplies, postage, building rentals, maintenance agreements, and printing required to conduct one primary and one general election. It also provides for costs incurred from the registration of new voters and the maintenance of voter records. One third of the administrative assistant /deputy city clerk's and administration /elections secretary's salaries and fringe benefits have been allocated to the Elections and Voter's Registration function. Assessing = Unit 115 Assessing values and classifies each parcel as of January 2nd of each year for property tax purposes. Additionally this department maintains the Property Data System (PDS) database on all real property within the City. This database is utilized by other departments within 10/18/93 - 7 - the City. Assessing is also responsible for administration of special assessments and provides valuation consulting services to other City departments. The City Manager stated the budget for the assessing department is the same as in 1993 with the exception of the addition of the central garage rental amount. The largest program of the Assessing Department continues to be residential appraisal, as it accounts for forty -six percent (46 %) of the budget and affects the majority of property owners. However, we will continue in 1994 to devote more resources to appeals and attempt to reduce both time and dollars spent on residential appraisal. The trend of rising tax rates and corresponding increases in the level of appeals continues. In 1992, there were approximately 90 appeals involving forty -four percent (44 %) of all taxes paid in the City. In 1993, approximately 100 appeals were filed involving fifty percent (50 %) of all taxes paid. Residential property contributes only approximately twenty -seven percent (27 %) of all taxes paid in the City. Ideally, the residential component of our budget should more closely reflect the revenue percentage, and correspondingly, we should be devoting more of the budget to non - residential properties. In order to respond to these appeals, the City is implementing new hand -held computers in the residential reinspection program to increase productivity. The hours saved will be reassigned to appeals. Additionally, Assessing continues to cooperate with other jurisdictions on appeals in order to minimize the fiscal impact. The trend shows no sign of abating in the future. Assessing has submitted a budget that attempts to address the expected workload with minimal increase in cost. For 1994, this unit's budget is presented in a program format. The City Manager noted the adjustable workstations for the Assessing Department have been eliminated from the budget since they will be part of the capital allocation money. Finance = Unit 116 The Department of Finance provides accounting and internal auditing services for all financial activities of the City. A system of fund accounting is maintained in which each fund is a complete set of records balancing within itself. In addition to the General Fund, which is the primary operating fund of the City, the Finance Department presently accounts for the financial activities of the Special Revenue funds, Capital Projects funds, Debt Service funds, Enterprise funds, Internal Service funds, and the Economic Development Authority (EDA). The Finance Department is also responsible for payroll, some personnel record maintenance, and public utilities customer billing. Services which are performed for the Liquor stores, Golf course, public utilities, and EDA are reimbursed by those funds to the General Fund. The 1994 proposed Finance Department budget anticipates continuing the current staff levels. This staff level has been maintained even though the department assumed, in 1991, the additional responsibility of accounting for the Earle Brown Heritage Center. 10/18/93 -8- In late 1991, the Department began implementing a new LOGIS financial accounting system known as IFAS. Brooklyn Center was one of the first two LOGIS cities to go up on IFAS. In 1992, phase I was completed, which duplicated the functions of the previous financial system. Phase II, which will provide many enhancements, is underway. These enhancements are key to our ability to transition to the new program budget that the City Council has established as an objective for the coming year. The Department is now working to set up the accounting procedures for the new Central Garage internal service fund. This fund will provide better information on the cost of each city vehicle, and departments' use of vehicles, than has been available before. This also is critical to the success of the upcoming program budget. In 1994, the Department will implement the new LOGIS utility billing system. This will produce bills that look similar to a NSP or Minnegasco bill. The system will have far more flexibility to handle variations from the routine billing situations. Mayor Paulson questioned when an employee starts a new position how is the starting salary determined. The City Manager responded it is a result of negotiation based on qualifications. The City Manager added he has the authority to move City employees within the 1 or 2 range but the City Council must approve any move into the 3rd range. City employees can be moved by the City Manager into A,B,C, step progression but a move into D or E step needs Council approval. Mayor Paulson questioned whether the City Council can change a policy regarding an increase for a particular person. The City Manager responded the Council can require a salary freeze for all step increases on non -union jobs. Mayor Paulson asked if all non -union employees salaries can be frozen. The City Manager stated yes but if done the employees would most likely form a union. Councilmember Kalligher requested staff research the cost impact if a salary freeze were to be done across the board. The City Manager stated he can cost out the "State Package" for all city employees and will do so for Council review. Councilmember Scott added employees are still entitled to their step increases even if their salary is frozen. The City Manager stated generally there are 3 -4 employees who do not receive salary increases every year. Mayor Paulson stated it would be nice if the salary program could be made easier. He fears if a resident were to request a copy of the budget they would not understand the system and may believe employees are being paid more than they are. The Council agreed and staff was directed to develop an easier to understand program using the same starting and ending salary amounts. 10/18/93 -9- I I Councilmember Rosene stated it would be nice to communicate to residents that very few city employees are paid at the high end of their salary range. Audit - Unit 117 This appropriation provides the necessary funds to pay the costs of the annual independent audit of the City's financial records and accounts. The 1994 Independent Audit budget reflects the cost of the annual audit of the preceding year. The 1994 appropriation anticipates the same level of service as 1993 with a moderate increase in cost. The General Fund appropriation equals 70% of the total cost. The balance is paid by the Liquor, Golf Course, Water, Sanitary Sewer, and Earle Brown Heritage Center Funds. The Director of Finance reported six years ago the City committed to a three -year contract with Deloitte and Touche. That contract was renewed three years ago. The Council needs to decide whether to again renew the contract or issue a RFP. Councilmember Kalligher questioned if the City were to change auditors would there be an impact on Cliff Hoffman and the Central Garage. The Director of Finance stated there would be no impact as another auditor would most likely recommend the same idea of a Central Garage. Deloitte and Touche requested a 2% increase this year with COLA in the future. Councilmember Rosene stated he noticed Deloitte and Touche are auditors for many businesses and questioned whether they are considered the "top of the heap ". Councilmember Kalligher responded no, they are well known but others would be considered the "top of the heap ". The Finance Director stated the advantages to using a Iarger firm such as Deloitte and Touche are they have many specialists that can be brought in on special issues and have better name recognition with bond rating firms such as Moody's Investors Service. Councilmember Kalligher stated she would like to see what other firms would charge. Councilmember Scott requested the information from the last RFP be provided for Council review. Councilmember Mann asked if a RFP is issued, does the Council have to accept the lowest bidder. Mayor Paulson asked staff if it would be possible to do the RFP this year G along with the other RFP's staff is working on. The City Manager recommended the Council consider keeping Deloitte and Touche for the 1994 audit and in June 1994 send out a RFP for the 1995 audit. Legal - Unit 118 The City Attorney acts as legal counsel to the City Council and to the administrative staff and represents the City in court actions, both civil and criminal. The City retains a legal firm on a fee basis to perform the functions of the City Attorney. 10/18/93 - 10- The total legal counsel budget remains at the same level as 1993. Prosecution services, civil matters, and the retainer will stay unchanged. Councilmember Kalligher stated she would like to see a breakdown of what the retainer includes. The City Manager responded he will provide the Council with a sample one month bill and noted the cost is based on an hourly rate. Government Buildings = Unit 119 This unit provides for the upkeep and maintenance of all City buildings and provides for the payment of those installments of special assessments levied against City property. The 1994 Government Buildings operating budget proposal includes modest increases for inflation. No major program changes are proposed. Capital outlay requests have been proposed as either funded from the general fund budget or from the capital projects fund. Major general fund capital items include: installation of a pool ozonation system to improve water quality and reduce the use of chemicals in the Community Center pool and replacement of the pool filter disks. Items brought forward in the budget but recommended to be funded from the Capital Improvement Fund include: replacement of carpet throughout the Community Center; renovation of the Community Center wading pool, replacement of the roof on City Hall, and several projects related to the Americans with Disabilities Act (ADA) implementation plan. ADA items include renovation of restrooms on the upper and lower levels of the Community Center; construction of a family restroom in the upper level of City Hall; construction of a family changing room in the Community Center pool area; upgrading fire alarm systems in all city buildings to provide a visual as well as audio alarm; and other items for which no cost estimate is yet available. Data Processing = Unit 120 Councilmember Mann questioned whether training was provided with the purchase of new software. The City Manager stated no training is provided with the purchase but some support is. A discussion was held regarding the use of LOGIS versus the City having its own system. Staff recommended that LOGIS be continued to be used as it is the most cost effective means for accounting. The increase in training from $700 in 1993 to $10,000 in 1994 was questioned. The Finance Director responded that as the use of PCs has expanded rapidly, a gap has developed between the skill levels currently possessed by employees and what they ideally should be to fully utilize the equipment. It is expected to take two years at this training level to close the gap. 10/18/93 ADJOURNMENT There was a motion by Councilmember Kalligher and seconded by Councilmember Rosene to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council worksession adjourned at 9:45 p.m. A continuation of the worksession will be scheduled to continue discussion of the department budgets. Deputy City Clerk Todd Paulson, Mayor Recorded and transcribed by: Debbie Wolfe TimeSaver Off Site Secretarial 10/18/93 - 12 -