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HomeMy WebLinkAbout1992 12-10 CCP Special Session CITY COUNCIL AGENDA CITY OF BROOKLYN CENTER DECEMBER 10, 1992 7 P.M. 1. Call to Order 2. Roll Call 3. Opening Ceremonies 4. Continued Public Hearing 5. Resolutions: a. Resolution to Adopt the 1993 Proposed Budget b. Resolution to Authorize a Final Tax Levy for 1993 Budget Appropriations C. Resolution to Cancel part of a Tax levy Previously Certified for the Redemption of the $700, 000 Certificates of Indebtedness Sold in 1991 d. Approving a Final Tax Capacity Levy for the purpose of Defraying the Cost of Operation, Providing Informational • Service, and Relocation Assistance Pursuant to the Provisions of MSA 469.001 through 469.047 of the Housing and Redevelopment Authority of the City of Brooklyn Center for the Year 1993 6. Adjournment CITY OF BROOKLYN CENTER Council Meeting Date December 10, 1992 Agenda Item Number_ REQUEST FOR COUNCIL CONSIDERATION ******************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** ITEM DESCRIPTION: 1993 BUDGET DEPT. APPR : At Gerald G linter, City Manager MANAGER'S REVIEW/RECOABMNDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached ) The Brooklyn Center City Council conducted an initial state mandated budget hearing on November 30, 1992. At that meeting the City Council adjourned the hearing to December 10, 1992. State Law requires municipalities to adopt their budget and certify their tax levies at either the initial or the adjourned public hearing date for their annual budget. For Brooklyn Center this means you must adopt your budget and tax levies on the evening of December 10, 1992. You will recall the Financial Commission recommended the City Council cut $75,000 from the proposed 1993 budget, add this $75,000 to the contingency fund and approve the tax levy as proposed. Last week we received notification from the League of Minnesota Cities that our 1992 December Local Government Aid payment will be approximately $140,000 more than was anticipated. This increased amount is due to the fact that receipts into the Local Government Trust Fund from sales taxes exceeded original state estimates. There are a number of options available to the Council on the use of this money as indicated in the attached League of Minnesota Cities memorandum. We wish to emphasize one of the comments in their memorandum. Your staff has reviewed the options and it is most important that the Council not fund any ongoing operating cost increases with this one time windfall in 1993 which will not be available to fund these programs into 1994. At the initial budget hearing on November 30, 1992, public comment was made regarding the increase of full time employees while our population decreased over the past ten years. I have attached for your information tables indicating the number of employees by department over the ten year period. The Council should understand during this ten year period our population decreased from a high of approximately 32,000 to the current level of approximately 29,000. During this period of time there was a net increase of nine full time employees. During the same period of time we added ten additional police officers which meant this department was responsible for most of the increased employees. The addition of ten police officers to the department is an approximate 30% increase in our commitment to our highest priority which has been crime /drugs. At your November 30, 1992, hearing a Mr. Perry, 3831 Eckberg Drive testified that he couldn't understand why his proposed tax had increased nearly $500 while his value had been reduced by $4,500. At the time we suggested the problem could have been related to a change in his properties homestead status. Attached please find a memorandum from Assessor Mark Parish, confirming the fact that his tax increase was caused by a change in his homestead classification. A question was asked regarding the City's program for replacing vehicles versus rehabing them. Brooklyn Center currently considers replacing small trucks after fiv e to seven years and larger trucks (snow plows) after 10 to 12 years. We currently replace drive train elements in the larger trucks to extend there life beyond the 10 to 12 year time. The City Council requested the staff answer questions raised by Ms. Nancy Carlson, 6024 Aldrich Avenue North as they were submitted both orally and in writing at the November 30, 1992, budget hearing. Attached please find a memorandum covering Ms. Carlson's questions. RECOMMENDATION Your staff offers the following recommendations as they relate to the 1993 proposed budget: 1. Eliminate the water tanker ($77,750) from the Parks Maintenance budget and place that amount in the Contingency Fund as per the recommendation of the Financial Commission. 2. Receipt the one time windfall in LGA aid of $140,000 into the 1992 budget and allow it to remain in our Fund Balance to be held in reserve for funding forecasted state cuts in 1993. 3490 Lexington Avenue North Sty Paul, MN 55126 League of Minnesota Cities (612) 490 -5600 December 26 LGA Payments to Increase November 30, 1992 Dear City Official: Due to stronger than expected sales tax revenues, the Local Government Trust Fund (LGTF) is now projected to have a surplus of approximately $30 million for the current biennium. Under current law, this money must be distributed to local governments in proportion to their LGA, equalization aid and community social services aid for 1992. The resulting aid increases will be one -time increases that will not be built into the aid base for future year aid distributions. The Department of Revenue advised us today hat the aid increase will be approximately 8.5% p Y PP Y of the total amount of LGA and equalization aid each city was originally certified to receive in • calendar year 1992. This amount will be added to the December 26 payment. At this time, the Department of Revenue does not intend to notify cities of the amount of the increase prior to the time checks are mailed for the December payment. The LGTF is working as intended, with the amount of property tax relief increasing as revenues into the Trust Fund increase. City LGA was cut in 1991 and 1992, and the sales tax was imposed on local government purchases in order to balance the state budget. The aid increase this December will help offset the impact of the state sales tax that cities now must pay, will help make up for cuts in 1991 and 1992, and will help prevent future property tax increases. Unfortunately, the timing of the official notice from the Department of Revenue that will accompany the December payment will be too late for cities to adjust their 1993 levies to reflect the additional state aid. How should cities respond? Even without official notice from the state, some cities may want to reduce their 1993 property tax levies to reflect the additional revenue they expect to receive in December. Others may want to spend the money on needed special projects or maintenance that has been deferred. Finally, others may want to save the money to help reduce their property tax levy for 1994. There is some risk in each approach. The most important advice we can offer is for you to clearly document your use of this unanticipated aid increase For example, if you decide to reduce your 1993 levy, clearly document and publicize the amount and reason for the reduction. Similarly, if you save the money to reduce your 1994 levy, make this decision public and explicit, and earmark the money separate from (EEECFTE) CITY OF BROOKLYN CENTER ----------------------- COMPARISON OF FULL -TIME EMPLOYEES -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - BUDGET YEARS 1983 TO 1993 ------------------------- INCREASE OR DEPARTMENT 1983 1993 ( -) DECREASE CITY MANAGER'S OFFICE (1) 7 6 -1 ASSESSING DEPARTMENT 3 4 1 FINANCE DEPARTMENT 8 8 0 GOVERNMENT BUILDINGS DIVISION (2) 7 2 -5 MANAGEMENT INFORMATION SYSTEMS DIV 0 1 1 POLICE DEPARTMENT 41 54 13 FIRE DEPARTMENT 0 1 1 COMMUNITY DEVELOPMENT DEPARTMENT 5 5 0 ENGINEERING DIVISION 9 9 0 STREET MAINTENANCE DIVISION 14 13 -1 VEHICLE MAINTENANCE DIVISION 4 4 0 RECREATION DEPARATMENT 6 6 0 COMMUNITY CENTER (2) 0 2 2 PARKS MAINTENANCE DIVISION 11 7 -4 ECONOMIC DEVELOPMENT AUTHORITY (1) 0 2 2 115 124 9 (1) One position was transferred from City Manager's Office to the Economic Development Authority. (2) Two positions were transferred from Government Buildings to Community Center. (EEECFTI) CITY OF BROOKLYN CENTER ----------------------- CHANGE IN FULL -TIME EMPLOYEES ----------------------------- BUDGET YEARS 1983 TO 1993 POSITIONS ADDED DURING THE TEN YEAR PERIOD DESCRIPTION DEPARTMENT /DIVISION NUMBER -------------------------------------- - - - - -- ------------- - - - - -- - - - - -- ASSESSING TECHNICIAN ASSESSING DEPARTMENT 1 MANAGEMENT INFORMATION SYSTEMS COORDINATOR MANAGEMENT INFORMATION SYSTEMS 1 POLICE LIEUTENANT POLICE DEPARTMENT 1 POLICE OFFICERS POLICE DEPARTMENT 10 SECRETARIES POLICE DEPARTMENT 3 FIRE CHIEF FIRE DEPARTMENT 1 HOUSING INSPECTOR COMMUNITY DEVELOPMENT DEPARTMENT 1 ECONOMIC DEVELOPMENT AUTHORITY COORDINATOR ECONOMIC DEVELOPMENT AUTHORITY 1 Total Added 19 POSITIONS ELIMINATED DURING THE TEN YEAR PERIOD DESCRIPTION DEPARTMENT /DIVISION NUMBER -------------------------------------- - - - - -- ------------- - - - - -- - - - - -- CUSTODIANS GOVERNMENT BUILDINGS DIVISION 3 POLICE ADMINISTRATIVE ASSISTANT POLICE DEPARTMENT 1 PLANNER COMMUNITY DEVELOPMENT DEPARTMENT 1 STREET /PARKS SUPERVISOR STREETS MAINTENANCE DIVISION 1 MAINTENANCE II PARKS MAINTENANCE DIVISION 4 Total Eliminated 10 ---------- - - - - -- - -- ---------------- - -- ' I (EEECFT2) CITY OF BROOKLYN CENTER CHANGE IN FULL -TIME EMPLOYEES I I ----------------------------- BUDGET YEARS 1983 TO 1993 SUMMARY OF NET INCREASE POLICE DEPARTMENT POSITIONS ADDED: --------------------------------- POLICE OFFICERS 10 POLICE LIEUTENANT 1 POLICE SECRETARIES 3 Total Police Positions Added 14 POLICE DEPARTMENT POSITIONS ELIMINATED: -------------------------------------- ADMINISTRATIVE ASSISTANT 1 NET POLICE DEPARTMENT POSITIONS ADDED 13 OTHER CITY POSITIONS ELIMINATED 4 NET FULL -TIME CITY POSITIONS ADDED 9 POLICE OFFICERS NO. OF POLICE CALLS FOR YEAR OFFICERS SERVICE 1992 31 N/A 1991 31 22,509 1990 29 23,517 1989 27 24,155 1988 24 22,642 1987 24 22,359 1986 22 21,143 1985 21 20,574 1984 21 19,252 1983 21 19,727 MEMO RANDUM TO: Mayor Todd Paulson Council Members Gerald G. Splinter, City Manager FROM: Mark P. Parish, City Assessor 5� DATE: December 2, 1992 RE: Stanley Perry 3831 Eckberg Drive Mr. Perry spoke at the Truth in Taxation hearing Monday evening regarding his proposed tax increase of nearly $500 while his value was reduced by $4,500. Mr. Perry stated that he did not understand how this could occur. Mr. Perry and I spoke briefly Monday evening and after reviewing our records on Tuesday, I spoke with him in an attempt to clarify this matter. The reason for the tax increase is the loss of the homestead classification. Stanley and Pearl Perry own this property as well as a home in Brooklyn Park. For the 1990 pay 1991 • assessment, they applied for homestead under the divorce /separated provisions of Minnesota law and claimed that Pearl was the occupant of the Brooklyn Center home and Stanley was the occupant of the Brooklyn Park home. For the 1991 pay 1992 assessment they were advised that documents would need to be submitted to prove their marital status of divorced /separated in order to continue their qualification. No information was provided and the classification was reduced to fifty percent (50%) homestead- -two owners, one occupant. For the 1992 pay 1993 assessment, a homestead card was mailed on January 2, 1992. A reminder letter was mailed on February 14, 1992. We received no response and on March 16th mailed an Amended ded Market Value notice with the classification changed to Residential Non- Homestead. We did n • of receive a response until approximatel two weeks a P PP y go, following the mailing of the Proposed Tax Notices. Prior to Monday's hearing, Mr. Perry spoke with our office three times. When I spoke with Mr. Perry on Tuesday, he said Pearl still lived here and that Brooklyn Center taxes were outrageous. In an attempt to verify occupancy and possible qualification for homestead, we discussed residency, drivers license, and voter registration. Pearl voted in Brooklyn Park and signed the 1992 pay 1993 homestead card for the Brooklyn Park home. Therefore, their homestead is apparently in Brooklyn Park and the Brooklyn Center property is correctly classified as non - homestead. i e Several items disclosed by Mr. Perry in our discussion were noteworthy. 1) In 1991, we were not provided with separation documents as the cost of preparation by an attorney was equal to one year's added tax burden. In other words, Mr. Perry is knowledgeable about the tax increase and claimed separation in an attempt to obtain multiple homesteads. 2) Mr. Perry states he will tell everyone to avoid Brooklyn Center at all costs because the tax rates are outrageous. This is both untrue and unfortunate. The reason the tax is high is the non - homestead classification as prescribed by state law. I truly believe he understands that, but he is angry that he is making a $1,500 contribution at closing for the non - homestead portion and is lashing out in hopes of relief. There is no lawful way for Brooklyn Center to provide that relief. 3) In light of the universal call for tighter enforcement of housing maintenance codes for housing and residences, Mr. Perry is upset with the City of Minneapolis and the Truth in Housing inspection. The Perry's had sold their home with a contingency that the buyers sell their home in Minneapolis. Following the required inspection, the buyers backed out due to the cost involved in bringing their home into compliance. Again, Mr. Perry lashes out at "the City" in his frustration. My point is this: everyone is in agreement that they want their community neat, safe, and clean. However, once the rules are in effect, they feel that big brother is unfairly meddling in their private enjoyment of their home, or costing them money he do not wish to spend. Y Y Pe In closing, Mr. Perry's concerns have been reviewed and the classification and resulting tax is correct. It may not be fair, but it is correct. Mr. Perry is not happy, but he does understand the reasons. If any of you have additional questions on this or other matter raised at the Truth in Taxation hearing, please contact me at 569 -3310. -2- MEMORANDUM TO: Mayor Todd Paulson Councilmember Philip Cohen Councilmember Celia Scott Councilmember Jerry Pedlar Councilmember Dave Rosene FROM: Gerald G. Splinter, City Manager DATE: December 8, 1992 SUBJECT: 1993 BUDGET INFORMATION At the November 30, 1992, budget public hearing, a number of issues were raised relative to the operation of the Earle Brown Heritage Center. The Council, in turn, asked staff to address the specific items of concern to Ms. Nancy Carlson, 6024 Aldrich Avenue North. First, Ms. Carlson, in her statement both written and verbal, has suggested that I am a member of the Brooklyn Center Taxpayers Association. I am not now nor have I ever been a member of that organization or any other political organization. Second, it was pointed out that the Earle Brown Heritage Center is running in a deficit. This is true; however, it has always been projected and a matter of public record that the Heritage Center would operate in the red for a period of three to five years which is not unlike any start up business in the private sector. At the current growth rate, it should be anticipated that the Heritage Center should be operating in the black with the 1995 budget. The Heritage Center has now been open a little over two and one -half years. Conferences and conventions are often booked two and three years in advance. The Center is now in that cycle where we are booking significant future business as well as repeat business. As an example, in 1991 we had an average of $24,694 in monthly sales of future events. In 1992, a year in which we added a salesperson to the staff, we have averaged $34,704 in monthly sales, or a 40.5 percent increase. The point is that it takes several years of operation before a business of this nature could anticipate making a profit. In 1991 the overall loss was $359,000. In 1992 we are anticipating a loss of approximately $280,000, not the $187,000 as referenced at the public hearing. That is a 22 percent reduction in one year. The 1993 budget shows a $108,418 loss which is a 61.3 percent reduction. This business is growing as anticipated. . This dramatic reduction is made possible by the addition of the C Barn, a new contract with the caterer, some management reorganization at the Inn, and the addition of an additional Memo to Council - 2 - December 8, 1992 salesperson. The Heritage Center is a business that was established during a recession and has been growing in that same economic climate. Few businesses have been profitable from the day the door is opened and obviously the Heritage Center is not an exception. Third, the question is raised as to why we are hiring another salesperson, and further it was stated that their salaries are excessive. The Heritage Center has requested a third salesperson for the simple reason that it desperately needs additional help in that area. The sales position at the Heritage Center involves much more than just sales and can hardly be equated with a sales clerk position. Not only do the sales people have to convince the client that the Heritage Center is the appropriate place for their event, as opposed to the Northland Inn, Hyatt, Radisson South, Radisson St. Paul, Minneapolis Convention Center, or any of our other competitors, they are authorized within limits to negotiate a contract with prospective clients. They have to get a contract executed by understanding the client's needs better than the client. In many cases, they become event planners not just sales people. Given the wide variety of events held at the Center, they need to know what services, what equipment, and what space needs are generally needed to assure a successful event. Prior to the execution of a contract, they need to make sure that these items have been addressed. Once the contract has been signed, they function as event coordinators to assure the event meets the expectations of the client. This can mean many follow -up meetings with the client (need changes) prior to the event and very often attending the event to make sure there are no last minute problems or to resolve the same. The Earle Brown Heritage Center has an excellent reputation for service which has transformed into substantial repeat business and the sales people are key to that. Currently, the sales people spend approximately 40 percent of their time working with new sales leads. The rest of their time is spent with clients preparing for their event. As the Center has become more successful, their ability to pursue new leads (business) has diminished. Indeed, during busy periods, it can be several days before a salesperson can get back to a phone inquiry let alone leave the site to do sales work. In short, the two people have been maximized and they need help to keep up with the increasing demand for the facility. If the Council should elect not to add this position, there should be a corresponding minimum reduction of $90,000 in revenue from the budget. As to the salaries of the sales people and the others noted at the public hearing, the sales people tend to be at the lower end of the pay scale as opposed to our competition. Tom Fullerton, president of Atrium Catering, is in the process of hiring two additional sales staff. He is looking at a salary of $35,000 to $43,000, plus incentives, in order to get experienced, qualified sales people. Indeed, he stated that several people have turned the position down because of the salary. It should be noted that the salaries as expressed at the meeting • included fringe benefits, workers' compensation, insurance premiums, and so forth. Tom Fullerton, whose background is in hotel management, has indicated that sales salaries in the Memo to Council -3 - December 8, 1992 hotel business start in the mid to high $20s into the $30s, plus commissions. Our sales salaries range from $26,940 to $32,784 with no commissions. The following are the actual salaries of the full -time employees at the Heritage Center. Heritage Manager $43,643 Maintenance Supervisor 37,464 Salesperson 1 30,072 2 28,992 3 (budget for 1993) 27,612 Maintenance Custodian 26,366 Secretary 21,696 Receptionist 19,481 Innkeeper 27,380 As to the question raised about whether we have considered a base salary plus commissions for the sales people, the answer is yes. If we operated like most of our competition in this area, it would cost us more. Fourth, the question was raised about the capital outlay request. The recommendation for capital outlay is $35,716, not $54,000 as stated. Actually, Ms. Carlson answered the question herself. To quote her "In all my years in the private sector when we set up for large offsite meetings, we rent equipment tailored to our needs." That is exactly why the Heritage Center wants the vast majority of the capital outlay. When a company or anyone sponsoring an event wants a piece of equipment, we rent it to them; it's part of the business. The equipment requested reflects those items that are frequently requested. It is more profitable to rent them our own equipment (pay back is a year or less) than to rent it and take a percentage of the gross. For less frequently requested items, we rent it and receive a percent of the rent charged the client. If we own it, we get all of the rent. Again, if you elect to eliminate items from the capital outlay, there should be a corresponding increase in rental expenditures and a decrease in rental revenues. Who's paying for the capital outlay? Obviously, the client. Why is there a budget line for rental? Because we rent less frequently requested items and we need to account for that expenditure (note that it is offset on the revenue side). All other capital outlay reflects items necessary for the operation or maintenance of the Center, the addition of a sales position, or the requirement of the Americans with Disabilities Act. Fifth, it was noted that labor (salaries and fringes) run 58 percent of revenues and that 35 to 40 percent is the norm. As I answer this, I assume the individual meant expenses not revenues. The actual ratio is 51.7 percent, not 58 percent. While I can't reply to the accuracy of the 35 to 40 percent ratio, let's accept it as accurate. However, virtually all like Memo to Council - 4 - December 8, 1992 business would have to carry a capitalization cost such as a mortgage to their expense side. If such an expense we applied to the Inn, the labor to expense ratio would be around 35 percent. Sixth, it is correct that the Inn has experienced losses, although the projected loss for 1993 is $122,904 not $139,600 as stated at the public hearing. It should be noted that the projected loss is part of the overall projected loss of $300,058, not in addition to it. The salaries of all the personnel reflect an estimate of the part -time hours that might be needed to cover the Inn seven days a week. There is not a single hostess making $28,100, nor a housekeeper getting $12,400 and so forth. It is correctly observed, however, that the use of part -time help is an area in which we hope to reduce our costs. In July of this year, the EDA, which has been very much concerned with the operation of the Inn, initiated some reorganizational moves and we are not through. In September a new Innkeeper was hired. We anticipate a lowering of our labor cost through consolidating job classifications. At the public hearing it was stated that the industry standard for cleaning a room is 30 minutes. While that is true, it is the standard for rooms such as those found at a Holiday Inn. Further, that standard applies only to cleaning the room; it does not include common areas, windows, laundry, firewood, and so forth. At the Inn all of the rooms have Whirlpool tubs that take longer to clean than regular tubs, plus there is a shower. The Innkeeper and the Hostesses now do all of the cooking. Nevertheless, labor at the Inn is being carefully scrutinized by the new Innkeeper for areas of potential cost savings. Seventh, the wisdom of spending $30,000 per year on a business retention /job expansion program was questioned. In Brooklyn Center, single family homes make up about 25 percent of the City's tax base. The remaining is made up of commercial /industrial and multifamily properties. The vast majority of that 75 percent are commercial /industrial properties. As Brooklyn Center starts to redevelop, it is vitally important to the future of Brooklyn Center that we retain the businesses that are already here. It is important to our job base, to the services and shopping opportunities that make Brooklyn Center a desirable place to live and is vital to the City's financial health. It is often assumed that the City knows all of the businesses located in the community, the products or services they provide, the number of employees working at the site, as well as the goods and services those companies purchase. The truth is that that is an incorrect assumption. The survey that was alluded to is but the first step in the implementation of a business retention /job expansion program which is vital to the long term health of this community. It should also be noted that the survey is funded with a federal grant (CDBG funds), not property tax dollars and constitutes the only activity or program directed at the businesses of Brooklyn Center. Memo to Council -5 - December 8, 1992 Eighth, the EDA Coordinator position is not new, although 100 percent of the funding for the position is proposed to be funded through the EDA in 1993. Under the City's budget, it is proposed to consolidate the EDA with the Planning and Inspections Department. The consolidation eliminated a department head position. As proposed, the EDA Coordinator would be the Community Development Director responsible for zoning administration, planning, housing code enforcement (Chapter 12), all housing programs, including the acquisition of apartment complexes, business revitalization /retention, the Earle Brown Heritage Center, as well as providing overview supervision of the City's purchasing. Ninth, the comment was made that young families no longer want to move into Brooklyn Center. In 1992 Brooklyn Center received $2,187,157 in first time home buyer mortgage money. On a statewide basis, an approximate 40 percent of the mortgage money was used. In Brooklyn Center, approximately 86.3 percent of the mortgage money was used, i.e., houses were purchased. That was twice the statewide average, as well as the best of the Metropolitan area cities. The fact that Brooklyn Center was able to use its money seems to be an indication that young families do want to move here. Finally, it has been implied during the budget process that our budget is fat, the City is inefficient, poorly managed, and staff is incompetent. I would like to point out the average homeowner ($75,000 home) in Brooklyn Center pays slightly more than $20 per month for all of the services the City provides. The cost includes property taxes and state aids received for LGA and HACA. For $20 per month, the residents receive police, fire, parks, a community center, street maintenance, snow removal as well as the numerous other services the City provides. The Financial Task Force has reviewed the budget in great detail and approved it. Employees of Brooklyn Center have enthusiasticly participated in the Financial Commission's and City Council's Prioritization Process identifying cost reductions and revenue enhancements which reduced the 1993 proposed budget by $308,116. Brooklyn Center has a dedicated staff that is providing a dollars worth of service for a dollars worth of tax. HI -- MY NAME IS NANCY CARLSON AND I HAVE LIVED IN PCT 2 FOR 32 YEARS. I COME BEFORE YOU AS A CONCERNED CITIZEN. THIS ELECTION YEAR, WAS ONE OF THE LOWEST ETHICS AND NAME CALLING THAT I HAVE PERSONALLY SEEN IN ALL OF THE YEARS I HAVE LIVED IN BROOKLYN CENTER. WE HAD A GROUP IN BC THAT, GRAVELY DISTORTED RECORDS OF CANDIDATES RUNNING AND THE PRESENT MAYOR. I WOULD LIKE TO REMIND MY FRIENDS AND NEIGHBORS THAT GROUP WAS CALLED THE BCTA (BC TAX PAYERS ASSOCIATION) THEY TOLD YOU TO WATCH OUT, THE DEMOCRATIC MAYOR AND COUNCIL SEEKING CANDIDATES WERE GOING TO SPEND YOUR MONEY, RAISE YOUR TAXES, AND GIVE IT ALL TO THEIR CRONIES. WELL FELLOW TAX- PAYERS LET ME TELL YOU THE BCTA IS NOW AND HAS HAD THE CONTROL OF THE CITY COUNCIL FOR THE PAST 15 YEARS, THEIR PRESENT MEMBERS ARE COHN, SCOTT, THEIR ENDORSED CANDIDATE PEDDLAR AND THEIR HIRED GUN JERRY SPLINTER. LETS GET DOWN TO THE REASON WHY WE ARE HERE TONIGHT -- THE BUDGET I HAVE SERIOUS QUESTION, I FULLY UNDERSTAND THAT MANY OF THE ANSWERS WILL BE FORTHCOMING AT A LATER DATE; L _ O ER T -- YOU KNOW I HAVE TROUBLE UNDERSTANDING THE EARL BROWN . HERITAGE CENTER RUNNING IN THE RED FOR THE LAST 2 -YEARS (1991 359,000) PROJECT LOST OF 187,000 THAT IS A TOTAL OF 546,000 DOLLARS. NOW 1993 YOU ARE BUDGETING FOR A LOST OF 200,000 THAT WOULD BE A TOTAL OF 746,000. CAN YOU TELL WHY ARE YOU BUDGETING FOR ANOTHER SALESPERSON WHEN IT APPEARS THEIR SALARIES ARE IN EXCESSIVE. WITH SALARY AND FRINGE BENEFITS YOU ARE PAYING SALES PERSON #1 (37.7); #2 (36.5); #3 (34.9) ALONG WITH THOSE SALARIES WITH FRINGE BENEFITS YOU ARE PAYING A MANAGER ABOUT 52.2; A SECRETARY ABOUT 27.9; A RECEPTIONIST ABOUT 25.4 - -A MAINTENANCE SUPERVISOR AT 49.5; AND A MAINTENANCE CUSTODIAN ABOUT 35.6. HOW DO YOU JUSTIFY YOUR BUREAUCRATIC LACK OF CONCERN OF SPENDING TAX DOLLARS ON A LOOSING BUSINESS- - HAVE YOU EVER THOUGHT OF IMPLEMENTING ABASE SALARY STRUCTURE, WITH A GENEROUS COMMISSION FOR OUTSTANDING PRODUCERS - -- HOW MUCH OF OUR TAX PAYER DOLLARS ARE YOU GOING TO HAVE TO LOOSE BEFORE THE CITY BCTA COUNCIL DECIDES TO GET NEW CITY MANAGEMENT, WHO WILL TRIM THE FAT AND GET US IN THE BLACK. WHO IS THE MANAGEMENT OF CONVENTION CENTER ASKING FOR CAPITAL OUTLAY FOR ITEMS TO THE TUNE OF 54,000 FOR SUCH THINGS AS SLIDE PROJECTORS, EASELS, PORTABLE SCREENS, IN ALL MY YEARS IN THE PRIVATE SECTOR WHEN WE SET UP FOR LARGE OFF SITE MEETING WE RENT EQUIPMENT, TAILORED TO OUR NEEDS -- YOU COULD NEVER HOPE TO ACHIEVE ENOUGH EQUIPMENT TO SATISFY THE DEVISED NEED OF ALL OF YOUR CLIENTS, AND EVEN IF YOU WERE ABLE TO ACQUIRE THIS EQUIPMENT WHERE IS THE BUDGET FOR THE COSTLY REPAIRS THAT YOU WILL INCUR? ARE YOU RENTING THE EQUIPMENT AND CHARGING YOUR CLIENT OR THE TAXPAYERS. I SEE RENTAL IN YOUR BUDGET .... WHEN I LOOK AT THE PROPOSED BUDGET FOR THE INN ON THE FARM I AM REALLY BAFFLED -- YOU CONFUSE ME - -- IT APPEARS THAT YOUR COMPENSATION AND FRINGE BENEFITS RUN AT 58% OF YOUR REVENUE WHEN IN THE PRIVATE SECTOR 35 TO 40% WOULD BE CONSIDERED REASONABLE. THE INN LOST 54.7 IN 1991, HAS A PROJECT LOST OF 129.0 FOR 1992 YOU ARE PROJECTING A LOST OF 139.6 FOR 1993 - -- THAT ABT 323.3 IN THE RED - -- WHAT IS THE OCCUPANCY OF THE INN? CAN THE COUNCIL WHO IS MAJORITY BCTA TELL HOW CAN YOU JUSTIFY TO THE TAXPAYERS, THE FACT THAT WE HAVE AN INN KEEPER SALARIED AT ABT 34.0; AN ASST INN KEEPER SALARIED AT ABT 31.5; A HOSTESS SALARIED AT ABT 28.1; A HEAD HOUSE KEEPER SALARIED AT ABT 12.4; A HOUSEKEEPER SALARIED AT 12.4 AND THEN THE COOK SALARIED AT 9.2. IN THE PRIVATE SECTOR A HOUSEKEEPER WORKING 8 HOURS WOULD BE EXPECTED TO CLEAN 16 ROOMS. - -- HOW DO YOU JUSTIFY THE NEED OF ALL THIS MANAGEMENT - -- GOING BACK TO MY ORIGINAL STATEMENT TO MY FRIENDS AND NEIGHBORS THE GOOD OLD BOYS (BTCA HAVE BEEN SPENDING OUR MONEY FOR YEARS AND RAISING OUR TAXES -- MINE IS GOING UP 13% WHILE MY HOUSE VALUE WENT DOWN. I AM ASKING YOU COHEN, SCOTT AND PEDDLAR WHY ARE YOU SPENDING GOOD TAX PAYER MONEY AND NOT GETTING A DOLLARS WORTH OF SERVICE FOR THE DOLLAR WE SPEND. I QUESTION THE BCTA MANAGEMENT AND MAJORITY CONTROLLING VOTE ON CITY COUNCIL. WHY DID YOU SPEND MONEY FOR A CITIZEN SURVEY TO FIND OUT OUR MAJOR CONCERNS WERE CRIME AND PROPERTY VALUE AND THEN CHOOSE TO SPEND OUR MONEY ON AN ECONOMIC DEVELOPMENT MANAGER WHO AND BUSINESS SURVEYS - -- WE WANT MORE POLICY OFFICERS -- WE WANT CODE ENFORCEMENT -- WE WANT YOU T LEAN P T O C U HE L S UM LANDLORDS AND THE L S UM HOMEOWNERS. WHY ARE YOU SPENDING OUR LIMITED TAX DOLLARS ON PROGRAMS FOR THE EDC ONLY TO HAVE EMPTY STORE FRONT TO SHOW FOR IT -- WHY ARE THE CRONIES OF THE BCTA REAPING TAX DOLLARS UNDER THE GUISE OF VOLUNTEER SERVICES ( PEACEMAKERS HAWES 10,000) DOMESTIC ABUSE /MEDIATION - NYQUIST 30/5.00) WHY DON'T YOU TELL HOW MUCH WE PAY COHN..... SCOTT -- COHEN -- PEDDLAR -- WHY DID YOU ACCUSE THE MAYOR OF THE VERY THING YOU ARE DOING. Member introduced the following resolution and moved its adoption: RESOLUTION NO. 92 RESOLUTION TO ADOPT THE 1993 PROPOSED BUDGET -------------------------------------------- BE IT RESOLVED by the City Council of the City of Brooklyn Center that the appropriations for budgeted funds for the calendar year 1993 shall be: GENERAL FUND ------ - - - - -- Proposed Unit No. Organizational Unit Amount -- - - - - -- ------------------------------ - - - - -- ----- - - - - -- 111 Council $ 81,791 112 Charter Commission 1,500 113 City Manager's Office 293,090 114 Elections and Voters' Registration 25,253 115 Assessing 192,120 116 Finance 154,599 117 Independent Audit 17,500 118 Legal Counsel 204,196 119 Government Buildings 353,705 120 Data Processing 308,663 131 Police Protection 3,308,778 132 Fire Protection 394,918 133 Community Development 250,039 134 Emergency Preparedness 42,354 135 Animal Control 26,650 141 Engineering 273,802 142 Street Construction and Maintenance 858,098 143 Vehicle Maintenance 407,231 144 Traffic Signs and Signals 39,500 145 Street Lighting 146,500 146 Weed Control 3,100 151 Health Regulation and Inspection 10,000 152 Social Services 35,647 160 Recreation and Parks Administration 319,643 161 Adult Recreation Programs 323,190 162 Teen Recreation Programs 13,114 163 Children's Recreation Programs 85,312 164 General Recreation Programs 92,980 167 Community Center 699,470 169 Parks Maintenance 705,846 170 Convention and Tourism Bureau 190,000 180 Unallocated Departmental Expenses 294,850 181 Unallocated Personal Services 234,974 182 Contingency 195,000 Total General Fund $10,583,413 1991 CERTIFICATES OF INDEBTEDNESS REDEMPTION FUND 243,000 1992 CERTIFICATES OF INDEBTEDNESS REDEMPTION FUND 185,200 1993 CERTIFICATES OF INDEBTEDNESS REDEMPTION FUND 49,600 ECONOMIC DEVELOPMENT AUTHORITY SPECIAL OPERATING FUND 183,339 TOTAL APPROPRIATIONS FOR BUDGETED FUNDS $11,244,552 ; and RESOLUTION NO. 92- 6E IT FURTHER RESOLVED by the City Council of the City of Brooklyn Center that the source of financing the sums appropriated are expected to be: General Property Taxes $ 5,362,438 Penalties and Interest on Property Taxes 2,000 Sales Taxes on Lodging 400,000 Business Licenses and Permits 172,565 Nonbusiness Licenses and Permits 127,665 Intergovernmental Revenue 3,219,168 General Government Charges for Services 40,000 Public Safety Charges for Services 21,000 Recreation Fees 1,010,716 Fines and Forfeits 200,000 Miscellaneous Revenue 344,000 Fund Balance Transfers 0 Transfers From Other Funds 345,000 TOTAL ESTIMATED SOURCE OF FINANCING $11,244,552 ------------------- - - - - -- ------------------------------------ Date Todd Paulson, Mayor ATTEST: Clerk The motion of the adoption of the foregoing resolution was duly seconded by member , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. i i Member introduced the following resolution and moved its adoption: RESOLUTION NO. 92_ - RESOLUTION TO AUTHORIZE A FINAL TAX LEVY FOR 1993 BUDGET APPROPRIATIONS ----------------------------------------------------------------------- WHEREAS, The City of Brooklyn Center is annually required by Charter and state law to approve a resolution setting forth an annual tax levy to Hennepin County; and WHEREAS, Minnesota statutes currently in force require certification of a proposed tax levy to Hennepin County on or before September 15, 1992 and a final tax levy on or before December 30, 1992. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center: 1. There is hereby approved for expenditures from general taxes, the following sums for the purpose indicated: GENERAL FUND $ 6,125,790 1993 CERTIFICATES OF INDEBTEDNESS REDEMPTION FUND 49,600 ECONOMIC DEVELOPMENT AUTHORITY SPECIAL OPERATING FUND 183,339 $ 6,358,729 The foregoing does not include levies already certified to the County for the payment of outstanding loans, which levies for the year 1993 are as follows: 1992 CERTIFICATES OF INDEBTEDNESS REDEMPTION FUND $ 185,200 1991 CERTIFICATES OF INDEBTEDNESS REDEMPTION FUND 73,000 TOTAL EXPENDITURES FOR THE YEAR 1993 FROM GENERAL TAXES $ 6,616,929 2. There is hereby levied upon all taxable property lying within the City of Brooklyn Center; in addition to all levies heretofore certified to Hennepin County as indicated in paragraph one hereof, the sum of $6,358,729, and the City Clerk shall cause a copy of this resolution to be certified to Hennepin County so that said sum shall be spread upon the tax rolls and will be payable in the year 1993. 3. This final tax levy supersedes any taxes previously levied for taxes payable in the year 1993 for the City of Brooklyn Center. ------------------- - - - - -- ------------------------------------ Date Todd Paulson, Mayor ATTEST: Clerk The motion of the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof and the following voted against the same: whereupon said resolution was declared duly passed and adopted. �C Member introduced the following resolution and moved its adoption: RESOLUTION NO. 92 RESOLUTION TO CANCEL PART OF A TAX LEVY PREVIOUSLY CERTIFIED FOR THE REDEMPTION OF THE $700,000 CERTIFICATES OF INDEBTEDNESS SOLD IN 1991 -------------------------------------------------------------------- WHEREAS, The City Council, on December 18, 1990, adopted Resolution 90 -274 which approved a budget for the year 1991 which authorized the sale of $700,000 of certificates of indebtedness; and WHEEREAS, The City Council, on March 25, 1991, adopted Resolution 91 -87 which awarded the sale of $700,000 of certificates of indebtedness and certified to the County tax levies for the years 1991, 1992, and 1993 to make the necessary debt service payments; and WHEREAS, The last of these levies is for the year 1993 in the amount of $243,000; and WHEREAS, In the year 1993, the City will make the final debt service payment on the Park Bonds of 1980 and expects to have the amount of $170,000 remaining in the debt service fund from interest earnings; and WHEREAS, Section 7.11 of the City Charter does provide the City Council with full authority to make transfers between all funds which may be created, provided that such transfers are not inconsistent with the provisions of related covenants, the provisions of the City Charter, or State Statutes. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, as follows: 1. The amount of $170,000 whall be transferred from the remaining surplus of the Park Bonds of 1980 debt service fund to the Certificates of Indebtedness debt service fund as part of the 1993 budget. 2. The 1993 tax levy for the 1991 Certificates of Indebtedness shall be reduced from the original $243,000 to $73,000. 3. The Director of Finance shall notify Hennepin County of the cancel- lation of $170,000 of the levy previously certified to the County. ------------------- - - - - -- ------------------------------------ Date Todd Paulson, Mayor ATTEST: Clerk The motion of the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 5 CL Member moved its adoption: introduced the following resolution and RESOLUTION NO. RESOLUTION APPROVING A FINAL TAX CAPACITY LEVY FOR THE PURPOSE OF DEFRAYING THE COST OF OPERATION, PROVIDING INFORMATIONAL SERVICE, AND RELOCATION ASSISTANCE PURSUANT TO THE PROVISIONS OF MSA 469.001 THROUGH 469.047 OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER FOR THE YEAR 1993 --------------------------------------------------------------- WHEREAS, the City Council of the City of Brooklyn Center is the governing body of the City of Brooklyn Center; and WHEREAS, the City Council has received a resolution from the Housing and and Redevelopment Authority of the City of Brooklyn Center entitled a "Resolution Establishing the Final Tax Levy for the Brooklyn Center Housing and Redevelopment Authority for the Year 1993 "; and WHEREAS, Minnesota statutes currently require certification of a final tax levy to the Hennepin County Auditor on or before September 15, 1992 and a final tax levy on or before December 25, 1992. WHEREAS, the City Council, pursuant to the provisions of MSA 469.033, Subdivision 6, must by resolution consent to the proposed tax levy of the Housing and Redevelopment Authority of the City of Brooklyn Center. x NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that a special tax be levied upon all real and personal property within the City of Brooklyn Center at the rate of 0.0144% of taxable market value of all taxable property, real and personal, situated within the corporate limits of the City of Brooklyn Center, Minnesota and not exempted by the Constitution of the State of Minnesota or the valid laws of the State of Minnesota. BE IT FURTHER RESOLVED that the said property tax levy be used for the operation of the Brooklyn Center Housing and Redevelopment Authority pursuant to the provisions of MSA 469.001 through 469.047. ---- - - - - -- ------------------------------------ Date Mayor ATTEST: Clerk The motion for the adoption of the foregoing resolution was duly seconded by member , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted.