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HomeMy WebLinkAbout1992 07-30 CCM Work Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL WORK SESSION REGARDING THE 1993 PRELIMINARY BUDGET LEVY AND CONSIDERATION OF THE ROLE OF THE FINANCIAL TASK FORCE IN THE 1993 BUDGET JULY 30, 1992 CITY HALL CALL TO ORDER The Brooklyn Center City Council met for a work session and was called to order by Mayor Pro tem Jerry Pedlar at 8:30 p.m. ROLL CALL Mayor Pro tem Jerry Pedlar, Councilmembers Celia Scott, Dave Rosene, and Phil Cohen. Mayor Paulson arrived at 8:55 p.m. Also present were City Manager Gerald Splinter, Finance Director Paul Holmlund and Council Secretary Nancy Berg. The City Manager reviewed the following seven matters to be considered at this work session: L Council to direct staff regarding level of 1993 preliminary budget and levy. 2. Use of the prioritization process recommendations in the preparation of the 1993 budget. 3. Role of the Financial Commission in the 1993 budget consideration. 4. City Council requests for projects to be included in the 1993 budget process. 5. Review of the impact of loss of $300,000 in the use of Fund Balance in accordance with recently adopted Financial Policies. 6. Discuss the impacts of the continued use of certificates of indebtedness. 7. Other matters relating to the 1993 budget. The City Manager also reviewed the EDA levy consideration, cost of inflation and sales tax factor. Councilmember Cohen stated that having a guideline would be very helpful for setting levy limits. He asked if implementation of the Americans with Disabilities Act will require some modifications. The City Manager stated staff is studying the question of the Americans with Disabilities Act now and will not know the impact until late in August or early September. 7/30/92 1 The Finance Director used overhead slides to present some of the financial factors to the Council. Mayor Pro tern Pedlar stated the Council is now in the process of discussing the direction they want to go with the 1993 budget and levy. He further stated the Financial Commission has provided the Council with a report which is at least 60 days old. The Financial Commission's priorities might change as we move into the budget process. The City Manager explained to the Council this work session is just to start the Council thinking about the 1993 budget and to give staff some guidelines. This is an opportunity to give direction to the staff for the preliminary budget. Councilmember Cohen reminded the Council this is an election year and Council will need to be very careful to provide footnotes to any items for which funding is suggested. He stated the City of Brooklyn Center taxes are 15 to 20 percent of the residents total property taxes. The City Manager told the Council that the levy must be set by September 10, 1992. After that time and before the middle of December, the levy amount can be reduced but not increased. Councilmember Cohen asked Council to discuss certificates of indebtedness. He stated there is long -range savings in paying cash instead of going into debt. The City pays one -third more for equipment if not paid by cash. Mayor Paulson joined the work session at 8:55 p.m. Councilmember Rosene discussed State Aid asking the Council not to count on State Aid when structuring the 1993 budget. Mayor Paulson agreed that the City should have some protection in the budget if we do not have State Aid. Councilmember e ber Scott asked Council to think back to what has happened to the City of Brooklyn Center with State Aid and suggested the Council plan the budget without the possibility of receiving State Aid. The Finance Director reviewed the City of Brooklyn Center schedule of fund balance and answered questions of the Council. Councilmember Rosene stated it reflected a positive budget performance. The Finance Director reviewed the Management Policies of the City of Brooklyn Center, the restrictions and limitations put on the City Council and the City Manager. He stated the main concern right now is to determine what a proper tax levy will be. Councilmember Scott asked staff to compile a list of mandates by the federal, state and county governments and what the cost has been. 7/30/92 2 The Finance Director reviewed the value of city services and what it costs the homeowner -- approximately $20 a month. Councilmember Scott asked that this information be provided to the public. Councilmember Pedlar asked how the City is doing this year -- above or below the 1992 budget. The City Manager stated that right now the city will come under the proposed 1992 budget. Councilmember Pedlar asked how comparable worth will effect the budget and asked staff to provide that information. The City Manager informed the Council the preliminary budget will be submitted to the City Council between August 10 and 15. The proposed 1993 budget will be put on the Council agenda early in September. He suggested the Council might want to consider another work session sometime in late August to discuss the proposed 1993 budget. The Finance Director suggested the use of certificates of indebtedness could be phased out slowly over the next two to three years. Councilmember Scott stated it is hard to make decisions on certificates of indebtedness until the Council sees the preliminary list of expenditures for 1993. She agreed that it would be too large an impact on the budget if the Council does not phase out certificates of indebtedness. The City Manager presented three items the Council wants to consider: part-time communications coordinator, apartment buy -out program, and housing buy -out program. Councilmember Rosene stated he would like to see some assistance provided for citizens who attend city meetings such as day care and maybe dinner. He asked staff to prepare a cost estimate of such a program. The City Manager asked Council what role they want the Financial Commission to play in this budget. Councilmember Pedlar stated one thing the Council needs to look at is reorganization. Reorganization as it relates to individual departments and numbers of employees. He suggested that any position eliminations be accomplished through retirement and he is not suggesting eliminating any existing personnel. He asked staff to consider how many levels of management the City needs. The City Manager suggested providing the Financial Commission with the 1993 preliminary budget at the same time as the City Council. This would allow time for the Financial Commission to come back with their recommendations. Councilmember Cohen agreed with Councilmember Pedlar that the Financial Commission is more informed about the budget than the Council. They know more from the financial side and the Council knows it from the political side. He further stated the City is in good financial 7/30/92 3 shape but in a guarded condition. There was a motion by Councilmember Pedlar and seconded by Councilmember Scott to provide the Financial Commission the 1993 preliminary budget at the same time the City Council receives the 1993 preliminary budget. The motion passed unanimously. The City Manager asked Council members to submit any items to the staff that they want costed and staff will provide as soon as possible. Councilmember Cohen suggested a special meeting in August to go over the budget. The City Manager suggested it be put on as a discussion item on the City Council agenda and also a special work session on the budget the end of August. Councilmember Pedlar asked the Council to meet as soon after receiving the preliminary budget as possible. He further stated the department heads did a very excellent job of prioritization. He expressed his belief the department heads will come in with as "lean and mean" a budget as they can. Councilmember Rosene asked if we know what the other governmental entities are considering as their levies. The City Manager answered no, they are also in the same process. We will not know before the 10th of September. ADJOURNMENT There was a motion by Councilmember Pedlar, and seconded by Councilmember Rosene to adjourn the work session. The motion passed unanimously. The Brooklyn Center City Council Work Session adjourned at 10:24 p.m. <P J�L� CL. CLCY--, Deputy City Clerk Tod Paulson, Mayor Recorded and transcribed by: Nancy Berg Northern Counties Secretarial Services 7/30/92 4