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HomeMy WebLinkAbout1990 12-05 CCM Special Session I 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 SESSION DECEMBER 5, 1990 CITY HALL CALL TO ORDER The Brooklyn Center City Council met in special session and was called to order by Mayor Dean Nyquist at 7:02 p.m. ROLL CALL Mayor Dean Nyquist, Councilmembers Celia Scott, Todd Paulson, Jerry Pedlar, and Philip Cohen. Also present were City Manager Gerald Splinter, Finance Director Paul Holmlund, City Assessor Mark Parish, Assistant Finance Director Charlie Hansen, and Administrative Aide Patti Page. INVOCATION The invocation was offered by Mayor Nyquist. PUBLIC HEARING - PROPOSED 1991 BUDGET Mayor Nyquist noted the budget planning process for the 1991 budget started in the spring of 1990. He explained the City Council has reviewed the proposed City budget two evenings previous to this evening's meeting. The City Manager gave a brief overview of the budget process and the schedule used for the proposed 1991 budget. He noted there are certain requirements under State law which must be met. He explained from November 15 through December 27 the county, school districts, and cities must hold public hearings for the proposed budgets. He noted the meetings of these three cannot be held on the same evening. He added the proposed budget must be certified to the County by December 28, 1990. The City Manager then explained some of the changes that occurred in the State policy in the past year. The City Manager noted the City's proposed budget has increased in two areas, those being additional police officers and moderate reforestation program. The Director of Finance stated staff is proposing current service levels be maintained with a moderate increase in the service levels for the police, fire, and reforestation programs. He noted the capital outlay portion of the 1991 proposed budget is $358,000 more than 1990. He noted one of the reasons for this is the request for a new fire pumper which will cost $255,000. He noted this new pumper will replace a 20- year -old pumper. He added the cost of the capital outlay will be spread over a three -year period using certificates of indebtedness. The Finance Director then went on to review certain areas of the proposed budget. He noted of the personnel requests contained in the proposed budget, nine positions were denied. He then reviewed the major sources of income for the City. He added local government aid may disappear entirely in 1991. He then went on to discuss the proposed property tax on the average home in Brooklyn Center. He noted the tax capacity rate will increase 2.64 %. He stated this would mean the City taxes on an average home in Brooklyn Center would increase 12/5/90 -1- $26. He stressed the fact this does not show the County or School District increases. He went on to note the average home in Brooklyn Center will pay $156.91 a year for the City's portion of the taxes. He noted this tax covers City services which include fire and police protection, street maintenance, snow removal, sidewalk maintenance, street lighting, traffic control, recreation programs and parks, health regulation, animal control, public facilities, planning and inspection services, and social services. The City Manager stated because of the State shortfalls some expenditures may not be made. He noted staff would cut back in whatever areas the City Council sees feasible. He noted it may be necessary to implement freezes on hiring or purchasing. Mayor Nyquist opened the meeting for the purpose of a public hearing on the proposed 1991 budget. He recognized Bob Robinson who stated he owns rental property in Brooklyn Center, Edina, and Minneapolis. He noted in Edina the proposed property tax increase was 3.9%, in Minneapolis the proposed increase was 4.3%, and in Brooklyn Center it is 12.2% plus an additional 2% for the storm drainage utility. He noted taxes on his rental dwelling in Brooklyn Center are $1,500 more than in Minneapolis on the same type of property. He noted he does not feel he receives any better services in Brooklyn Center than he does in Minneapolis. He noted he cannot vote in Brooklyn Center; however, his tenants can, and he will inform them who is to blame when he has to raise their rent. He noted in the last year he has received a paycut by one - third, and his wife has not received any type of pay increase. He inquired if Brooklyn Center employees have received a pay increase or if their wages have been frozen. He added that he has mostly elderly tenants within his building and he tries to keep the rental rates affordable. Mayor Nyquist noted the public hearings have always been held in the past for 4 review of the proposed City budget. He added this is not the first year the total operating budget has increased by five percent. He inquired if Mr. Robinson could give the Council some specifics on what areas he believes should be cut from the budget. The City Manager stated the tax rate in Minneapolis is higher, and there must be a difference in the property values between his Minneapolis property and his Brooklyn Center property. Mayor Nyquist recognized Dan Ramirez, 6201 June Avenue North. Mr. Ramirez inquired what expenses were transferred to Brooklyn Center from the State. The City Manager explained no expenses were transferred to Brooklyn Center; however, the local government aid (LGA) was transferred from Brooklyn Center to the school district aids. The Finance Director stated salary increases were not built into each department budget. He stated these are contained within the unallocated department budget. Mr. Ramirez inquired why each department has projected an increase if the salaries were not figured. The City Manager explained there has been an increase in capital outlay requests, service contract expenses, and other increased operating cost. Mr. Ramirez stated he feels the storm drainage utility is a way for the City to get around the tax levy limit. The City Manager explained $115,000 was transferred from the general fund budget to the storm drainage utility to cover such items as street sweeping and other maintenance. 12/5/90 -2- He noted this was mandated by the State of Minnesota, and the City is allowed to charge user fees to pay for the storm drainage utility. Mr. Ramirez inquired why there was an increase in the personnel when Brooklyn Center's population is decreasing. The City Manager noted there is an increased need for services because of areas like Brookdale and the industrial park in Brooklyn Center. He explained population is not the only factor driving the personnel and services provided.. Mr. Ramirez inquired as to the number of police officers the City employs. The City Manager stated there are 43 police officers on the payroll. Councilmember Cohen stated some things are beyond the control of the City. He noted the criminal element is taking over the community and personnel must be added to protect the residents and the businesses within Brooklyn Center. He noted there are more social service needs now in Brooklyn Center and cited problems pertaining to battered spouses and the many elderly residents in the City. Councilmember Cohen stated the City staff and Council must react to these problems, and they must meet the forces from outside the community. Mayor Nyquist noted that Brookdale, a regional shopping center, brings in ten times the population of Brooklyn Center. Mr. Ramirez stated he would like information as to how much each department head is paid. Mayor Nyquist recognized Dan Middlestead who stated he had some questions regarding the Economic Development Authority. The City Manager noted the money indicated in the revenue section for EDA is the revenue collected from the tourism tax. He noted this money is transferred to the Economic Development Authority. Mr. Middlestead inquired if independent audits are completed each year. The City Manager stated an audit is completed each year, and as part of this audit, they do a broad comparison of Brooklyn Center to other cities in Minnesota. Mr. Middlestead inquired if the City uses a different audit firm each year. The City Manager stated the audit needs are reviewed periodically which has currently been every three years. Mayor Nyquist recognized Kathy Larson, 3825 Eckberg Drive. Ms. Larson stated she appreciates the situation the City Council is in with regard to crime and drugs within Brooklyn Center. She stated, however, she did not understand why so many requests for personnel were made for such an old City. The City Manager stated when things get old they need more repair. He noted there are a completely different set of problems and issues which must be addressed at this time than there was 30 years ago. He added there are also new State requirements which must be met, and there has to be the personnel to handle these things. He referenced a state mandate pertaining to the fire department. He noted our fire department is strictly volunteer with one full -time member being the Fire Chief. He noted part -time and volunteer personnel cannot keep up with the schooling and other requirements to meet the State mandate. Ms. Larson noted the City of Plymouth only raised its taxes 9 %. She inquired why Brooklyn Center's went up 12 %. The City Manager noted the City of Plymouth has a significant commercial tax base, and they also do not receive local government aids at this time. Ms. Larson inquired if Brooklyn Center receives all Section 8 subsidies due to the City. The City Manager noted Section 8 subsidies go to the applicant and they choose where to live. He noted the City has no control over these subsidies. Ms. Larson inquired if the City will be converting or building new apartments for Section 8 purposes. Mayor Nyquist recognized Mr. Robinson, an apartment owner, 12/5/90 -3- who stated as an apartment owner he can choose whether to rent to Section 8 applicants or not. He noted the City is not involved in this process at all. Councilmember Cohen stated the City has no control and receives no benefit from the Section 8 program. Mayor Nyquist recognized Greg Peppin, 6824 Drew Avenue North. Mr. Peppin stated he fully approves of the Truth and Taxation process. He stated he understands the need to maintain the existing service levels; however, there comes a time when the City staff and Council has to make the tough decisions. He noted this is something that he and other residents have to do every day, but he does not see the government making any cuts. He added he does not perceive a problem with increasing the staff level compared to the decreasing population; however, he feels there are some personnel positions which are not totally necessary. He stated he questions the logic of lobbying for money which the City is not going to receive. He noted this must be a terrible expense. The City Manager stated the City of Brooklyn Center has not spent a lot of money in the past on lobbying. He noted, however, he has seen other cities who spend a lot of money on lobbying and they also get their aids. The City Manager noted it may sound like the City Council and staff are complaining about the State mandates and went on to explain while these mandates are good and necessary, they cost money and the State does not provide any way of paying for these mandates. Councilmember Scott stated the audience is not the only ones frustrated by this process. She noted this has been a long process for the staff and Council. She explained this proposed budget has been reviewed, cut, shaved, and sliced, and whatever is left in this proposed budget is what the Council feels is absolutely necessary to maintain the levels of service which the City is currently providing. Mayor Nyquist recognized Ulyssess Boyd, 4807 Azelia Avenue North. Mr. Boyd stated he has lived in Brooklyn Center since 1954, and he has seen the property taxes accomplish such things as paved streets, sewer and water improvements, and he realizes maintaining service levels means increased taxes. He stated he feels the Police Department should be increased by three police officers because it is better to prepare for war in a time of peace. He added there are other things that could be eliminated to pay for this third police officer. Mr. Boyd noted that the children's chorus was phased out in 1990. He inquired if there was a lack of interest in Brooklyn Center or if it cost the City of Brooklyn Center money. The City Manager noted the City of Brooklyn Center was jointly funding this program with the City of Brooklyn Park. He noted it cost the City between $1,500 and $2,000 each year. He noted this program was also a duplication of programs offered through the schools and because of the phase -out, the program is still operating within the schools. Mayor Nyquist recognized Don Rzeszutek, 5501 Knox Avenue North. Mr. Rzeszutek stated he is happy with Brooklyn Center, and he feels it is a well maintained City, and the staff and Council have kept the taxes at a minimum. He inquired as to where the expenditure and incomes for the golf course can be found. The City Manager explained the golf course, like the municipal liquor stores, are operated as an enterprise fund. He noted the income received must pay the expenses incurred, and no property taxes are used for this. He noted the accounting for the golf course and municipal liquor stores are not found in the 12/5/90 -4- i general fund. Mr. Rzeszutek stated he works for a large company in Minneapolis, and he is facing a two -year freeze on his wages. He noted last year he received a 4% increase, but it did not cover the increased cost of garbage pickup and gas. He noted residents have to tighten their belts and so does the City. Mayor Nyquist recognized Don Gilbert who stated he understands the reasoning for the personnel increases but noted if they all seem to relate back to the commercial areas, why don't the commercial areas bear the brunt of the taxes. The City Manager noted the commercial and industrial areas of Brooklyn Center do bear the brunt of the taxes; however, they are a drain on the services. He noted commercial and industrial areas are a plus to the City's tax base. The City Assessor stated a home with a property value of $100,000 may pay $1,000 in taxes, and a commercial property with a $100,000 property value would pay $5,000 in taxes. He noted Target and the other commercial areas within the City are paying quite heavily, and they are screaming to the State of Minnesota for a decrease. Mr. Gilbert noted the staff is projecting a decrease in income; yet, they are projecting an increase in expenditures. He stated he did not understand this. The City Manager noted the increase in expenditures is due to the capital outlay items that were approved and other operating cost increases. Mr. Gilbert inquired where the fines and forfeitures from unclaimed and drug forfeiture property are reflected. The City Manager stated the State of Minnesota requires a different accounting process for these funds, and they do not appear in the general fund. Mr. Gilbert stated he received a 5% pay decrease from his employer and inquired how he can justify a 5% increase to the City employees when he cannot even afford to buy Christmas presents for his family. A discussion then ensued regarding property tax credits available for elderly and low income residents. The City Manager noted information for these credits can be obtained through the assessing department or wherever tax forms are available. Councilmember Pedlar stated he gets the feeling the members of the audience feel this proposed budget is a "done- deal." He stated he believes there is more discussion necessary before the Council can adopt the budget. Mayor Nyquist recognized Rita Buehler who stated she does not understand why there is such a large increase in all the services. She noted money has been taken out of the general fund and put into the storm drainage utility to pay for such things as street sweeping. She inquired if this money has been eliminated from the property tax, why is the increase still so high. The City Manager explained there are still other proposed increases for the additional police officers and the forestry program. He noted every $25,000 cut from the budget drops $1 from the average homes property taxes. Mr. Gilbert noted the City seems to have a casual attitude about $1 or $2 increases. He noted it all adds up to the residents, and it begins to hurt. Councilmember Pedlar stated he is sorry if Mr. Gilbert is receiving the wrong impression, but the Council's attitude is certainly not cavalier regarding these increases. He stated he would like to recommend a cost reduction through a functional analysis program. He stated the City of Brooklyn Center should be run as a business. Mayor Nyquist inquired if there was anyone else who wished to address the Council. No one appeared to speak. The City Manager noted the Council can 12/5/90 -5- continue the public hearing until the next meeting or close the public hearing tonight. Councilmember Cohen stated he believes the audience present this evening is entitled to comments from the Council. He noted there have been a number of questions why there is a need for a reforestation program or a forester in Brooklyn Center. He explained over the last few years the City has removed thousands of trees and by not doing anything, the Council and residents are leaving a lousy legacy to their children and grandchildren. He noted there are many State and Federal mandates which require work by the the City. He noted the government agencies are quick to tell us what to do, but they will not give us the money to pay for the mandate. He added the cities who have full -time lobbyists at the legislature get the money they are seeking, and if Brooklyn Center gets the short -end of the deal, it's their own fault. Councilmember Cohen stated if the State of Minnesota takes away the local government aids from the cities, he is sure there will be massive lay -offs within the City. He added there would also be service cuts which would mean less snow removal, less park maintenance, and less street maintenance. He added he would hope the City would not cut the police force. He noted it is time for people to look at the facts. He stated Brooklyn Center is growing older, and the residents are staying in their homes longer. He noted these homes and the City itself must be better maintained so the community and housing stock is left in good shape for our children and grandchildren. Mayor Nyquist recognized Don Rzeszutek who stated we must begin working on the politicians of the State. He noted these politicians would not run their households the way they run the State. Councilmember Paulson stated he would like to echo Councilmember Pedlar's comments and noted he would like to continue to look for ways to cut the budget. He stated when he was holding his door knocking campaign for Mayor, he was surprised how many people were willing to pay more taxes to increase the police protection in the City. He noted it would be quite easy for the staff or City Council to make the taxes decrease; however, the result the community would see would be more crime, more drugs, less snow plowing and elimination of other types of services. There was a motion by Councilmember Paulson and seconded by Councilmember Pedlar to continue the public hearing on the proposed 1991 budget to the December 18, 1990, City Council meeting. The motion passed unanimously. Councilmember Cohen asked the City Manager what the decrease would be in local government aids which the governor -elect is recommending. The City Manager noted if there was a 100% local government aid cut, it would mean $1,955,000.69 less to the City of Brooklyn Center. He noted the governor elect is looking at three choices: 100% cut, a two -third local cut which would mean $1,303,000 decrease, or a one -third cut which would mean $651,690. RECESS The Brooklyn Center City Council recessed at 9:30 p.m. and reconvened at 9 :40 p.m. 1991 COUNCIL MEETING SCHEDULE Mayor Nyquist noted there have been two proposed meeting schedules presented for 12/5/90 -6- the Council this evening. There was a motion by Councilmember Pedlar and seconded by Councilmember Scott to move the City Council meetings to Tuesday evening. Councilmember Paulson noted he has MTC meetings on Tuesday afternoons. He added occasionally these meetings run into the early evening. Councilmember Scott inquired if it would be helpful if the City Council meetings started at 7:30 p.m. Councilmember -elect Rosene stated there would be some conflicts within his family if the meetings were moved to Tuesday evenings, but he could attend meetings either night. Councilmember Paulson inquired if it would be possible to set up meetings on both Mondays and Tuesdays. The City Manager noted it is best to set up a consistent schedule; however, the Council could change part way through the year. Councilmember Paulson stated there seems to be a conflict for himself with the MTC meetings, for Councilmember -elect Rosene and for the Park and Recreation Commission. Councilmember Pedlar stated it really didn't matter to him, he could attend either evening. Councilmember Cohen made a substitute motion to schedule Council meetings for Monday evenings. The substitute motion was seconded by Councilmember Paulson. The motion passed unanimously. Councilmember Scott inquired if it would be possible to receive the packets before 4:30 p.m. or 5 p.m. on Friday evenings for those people who are going out of town. The City Manager stated the Council should contact him if they need their packet delivered earlier on any particular Friday. ADJOURNMENT There was a motion by Councilmember Cohen and seconded by Councilmember Paulson to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 9 :55 p.m. Q a�is� - �L L - Deputy City Clerk Tod Paulson, Mayor 12/5/90 -7-