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HomeMy WebLinkAbout1992 11-16 CCM Special Session MINUTES OF THE PROCEEDINGS OF THE THE BUDGET WORK SESSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION NOVEMBER 16, 1992 CITY HALL CALL TO ORDER The Brooklyn Center City Council met for a budget work session and was called to order by Mayor Todd Paulson at 7:05 p.m. ROLL CALL Mayor Todd Paulson, Councilmembers Celia Scott, Dave Rosene, and Philip Cohen. Also present were City Manager Gerald Splinter, Finance Director Paul Holmlund, Director of Planning and Inspection Ron Warren, EDA Coordinator Brad Hoffman, Assistant Finance Director Charlie Hansen, City Assessor Mark Parish and Council Secretary Nancy Berg. Also present were the members of the Financial Commission: Donn Escher, Pat Boran, Ron Christensen, Vi Kanatz, Denis Kelly, Ulyssess Boyd and Gregg Peppin. The City Manager and the EDA Coordinator presented the Economic Development Authority and Housing and Redevelopment Authority 1993 proposed budget and answered questions of Council and the Financial Commission. Councilmember Scott inquired if the lot located at 53rd Avenue and Lyndale could be used as a Park and Ride. The City Manager answered the MTC and RTB have looked at three areas in Brooklyn Center for Park and Rides, but this was not one of them. He agreed to suggest it to the MTC. The EDA Coordinator explained the appropriations have increased to allow the City to acquire more homes and apartment buildings. He also explained the rental to owner conversions has also increased to provide some incentive for single - family homes that are currently rented to become owner - occupied. He stated there are approximately 400 homes that are non homestead in Brooklyn Center right now, and it is proposed to convert as many as 20 homes a year. The EDA Coordinator presented the Earle Brown Heritage Center Fund 1993 proposed budget. He explained there are three areas to the Heritage Center: the Convention Center, the Inn on the Farm and the commercial office rentals. 11/16/92 -1- The EDA Coordinator explained the 1992 budget had projected more revenue from food and beverage than has been received to date. He further explained after the Superbowl, the management company was dismissed as were four other management companies, and the Convention Center is just beginning to again schedule food and beverage meetings. The EDA Coordinator also explained the 1992 budget included some major events being proposed by the first food and beverage company ;(the D'Amico brothers), those revenues were also lost. The EDA Coordinator stated the Convention Center operates at a base cost of $1700 a day, and the Inn on the Farm operates at a base cost of $666 a day. He explained it is projected the Earle Brown Heritage Center will break even in about two years. The EDA Coordinator informed Council sales in the last four months have been oin g g u tremendous) • therefore, th P y, e EDA is ro osin to add a third sales position. P P g F The EDA Coordinator stated there has been a management change at the Inn on the Farm which has started to successfully promote corporate get - aways. He further explained the goal with the Inn on the Farm is 65 to 75 percent occupancy, which is the break -even point. The EDA Coordinator reported the Earle Brown Heritage Center office space is doing very well and has always been fully occupied. Pat Boran suggested the general fund expenditures be decreased for 1993. The City Manager answered the proposed budget includes an increase of only 1.39 percent. Mr. Boran asked on average how much the City of Brooklyn Center's tax will be increasing, the City Assessor answered 13 percent. The Finance Director presented the three recommendations provided to Council and staff by the Financial Commission: 1. The Financial Commission supports the property tax increase contained in the proposed 1993 budget because of the need to maintain an adequate fund balance and the possibility of the return of levy limits in 1994. 2. The Financial Commission recommends the City Manager be requested to suggest further expenditure reductions in the amount of $75,000. 3. The Financial Commission recommends any savings from further expenditure reductions be added to the contingency gency fund. Donn Escher, Chair of the Financial Commission, explained the Financial Commission has been examining his budget g u get at their last four or five meetings, and the Financial Commission is very impressed with the competence and leadership f h rY P p p o the City Manager, 11/16/92 -2- the Finance Director and the whole staff. Mr. Escher stated the Commission had first thought the budget should be cut by $200,000, and after many hours of discussion, the compromise of $75,000 was reached. Pat Boran stated the City cannot continue to deplete the fund balance; the City cannot spend more than it earns. Councilmember Scott stated the reason the City previously used the fund balance was because monies promised by the State were not provided. Councilmember Cohen stated the Council is looking at two big budget cuts: the health operation and consolidation of the EDA and the Planning and Inspection Departments. He further stated the City is also looking at consolidating the dispatch services with other surrounding communities. Councilmember Cohen asked the members of the Financial Commission whether the $75,000 should be removed from a priority one, two or three level. Donn Escher recommended the $75,000 be taken from a Priority request so as not to affect services. Councilmember Cohen stated he respects the work of the Financial Commission, and he strongly believed the Council is on the right track and it will take the recommendations of the Financial Commission under serious consideration. Ron Christensen stated the City can no longer fund expenditures through loans requiring interest payments rather than interest earnings. He suggested the Council inform residents if they want to maintain services, they will have to pay for it. Nancy Carlson stated the average citizen just wants to get what they pay for. Ron Christensen asked Ms. Carlson if she is not getting what she paid for. Ms. Carlson answered no, and gave the Heritage Center as an example. Ms. Carlson disagreed with the addition of another salesperson, especially at the proposed salary. She suggested a management firm be hired to operate the Heritage Center. The Financial Director stated the City had unsuccessfully tried a management firm at the Heritage Center. The Finance Director explained the City is required to provide equitable pay to its employees, and the proposed salary falls within those guidelines. Nancy Carlson stated there are so many people on fixed incomes, there is devaluation of property, the Council has to take a real good look at its budget. She stated city business must look at what other businesses are doing. The people want police, fire, and clean streets. Councilmember Cohen stated when the City hired the Police Chief, the Council had to adjust the salary because of the market for a good police chief. He stated the community is getting older and needs rehabilitation and maintenance, and it takes staff to do this. Councilmember Cohen stated you have to have someone running the City, and you have to pay them fairly. 11/16/92 -3- Nancy Carlson stated people want more police officers. She suggested shifting salaries in the budget so residents have more services. The Finance Director stated he believes staff does operate effectively and efficiently. He explained the average home in Brooklyn Center pays approximately $20 a month in City taxes, and compared to other services you pay for each month, this is a good deal. Nancy Carlson asked where the City adjusts for people on fixed incomes. The City Assessor answered there are programs in the State of Minnesota which provide aid for eligible people. Mayor Paulson stated the Council is looking at either cutting services to decrease the taxes, or increasing taxes to maintain services. The 90s is going to be about how do we just have better government, a paragon so to speak. The City Manager stated the increase in this budget is less than 2 percent and noted the City is consolidating services. Ron Christensen agreed the State has contributed to the position the City is in. Nancy Carlson asked if the City always spends money it does not have. The City Manager answered no, the City does not. Nancy Carlson asked why the City continues to trust the State will provide aid. The Finance Director explained this is the reason for the fund balance, to cover such shortfalls. Ron Christensen stated the City cannot ignore the aid just in case it will not be provided, because then the City would have too much in the budget. Mr. Christensen agreed this is the problem facing the Council. Councilmember Cohen invited everyone to come to the public hearing on November 30, 1992, and give the Council their opinion to enable the Council to make a fair decision. Nancy Carlson asked what services are proposed to be cut. The City Manager answered it is proposed to transfer the health services to Hennepin County. Nancy Carlson asked if there are other duplication of services being provided by the City. The City Manager explained the City also contracts with the County for street light maintenance but that is not a duplication. He noted Brooklyn Center consistently tries to avoid duplication. Nancy Carlson asked why there is a payment of $50,000 in the proposed budget for battered women. The City Manager stated the amount is $30,000, which is mandated by the State. He explained State law required that each City provide protective services to a battered person. Councilmember Scott explained very often the State requires Cities to provide services, but does not give the cities any way to provide funding for these programs. Ron Christensen stated the decision is very complex. The Council must look at the taxes and look at fixed income. He further stated the Financial Commission has looked at the 11/16/92 -4- budget for a whole year, and provided Council and staff with the prioritization process of what is valuable and what is not valuable. Councilmember Scott stated the City Council appreciates the work of the Financial Commission. Ron Christensen stated the Financial Commission has also worked with the City Manager and the Financial Director to develop an understandable presentation for the public hearing on November 30, 1992. Councilmember Cohen stated Brooklyn Center is one of the few communities with a citizens' Financial Commission. He further stated the Financial Commission has been able to review this budget thoroughly with staff, and it is a matter now of ironing out the details. Denis Kelly explained the $75,000 figure was a compromise by the Financial Commission. He suggested staff take a look at all positions in the City, take a look at where the City can cut a minimum of $75,000. Councilmember Cohen stated when the Council approves the budget, the Financial Commission will then start working with administration on the 1994 budget process. He agreed there must be adequate money in the contingency fund to provide for any possible shortfall. Ron Christensen agreed the proposed budget is going up less than the inflation rate, but this does not mean it couldn't be less. Pat Boran asked for Council's reaction to the 8.6 percent increase and the $75,000 cut for the contingency fund. Councilmember Scott answered she did not think the Council could cut another $75,000 -- the Council can make some cuts, but not the whole $75,000. Councilmember Rosene agreed with Councilmember Scott. He stated he liked the fact the Financial Commission compels the staff and Council to take another look at the budget. He further stated the Financial Commission is a real asset. Councilmember Rosene also agreed with the 8.6 percent increase in taxes to enable the City to discontinue using general fund balance for operating procedures. Councilmember Rosene also supported the EDA levy to ensure housing renovation and the upkeep of the apartments. Mayor Paulson stated he had voted against the preliminary levy because he thought it was excessive. He believed staff and Council could eliminate the $75,000, however this would create a great deal of animosity. He stated the budget process continues, and encouraged everyone to attend the public hearing on November 30, 1992. Mayor 11/16/92 -5- Paulson asked everyone to respect each others views as the City continues to go through the budget process. Councilmember Cohen stated if the Council cannot achieve the $75,000, he hoped the City's financial position will be aided through the legislative session. Nancy Carlson asked the Council not view this so negatively. She asked they continue the budget process with a positive attitude -- an attitude which will enable the Council to find the $75,000 in cuts. Councilmember Cohen asked the Financial Commission if they are satisfied with the responses of the Council. Ron Christensen answered he understood the Council's concerns, but the Council must look at cutting the $75,000. Vi Kanatz stated with creativity the Council will be able to find the $75,000. She agreed the public hearing may provide the Council with ideas. Mayor Paulson stated the Council will continue to work through this process, and the Council will need the input of the residents at the public hearing. Ulyssess Boyd stated the Council must maintain the quality of life in Brooklyn Center, and to provide the same services will require a tax increase. He encouraged a strong budget, and agreed with a tax increase. The City Manager announced there will be North Metro Mayor's Association meeting on Wednesday, November 18, 1992 at Constitutional Hall to meet with Representative Orfield. Mayor Paulson thanked the Financial Commission for their support. ADJOURNMENT The Budget Work Session of the City of Brooklyn Center was adjourned at 10 p.m. Todd Paulson, Mayor Recorded and transcribed by: Nancy Berg Northern Counties Secretarial Service 11/16/92 -6-