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HomeMy WebLinkAbout2010 12-13 HRAP HRA MEETING City of Brooklyn Center • December 13, 2010 AGENDA 1. Call to Order —The HRA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including HRA (Housing and Redevelopment Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Housing and Redevelopment Authority (HRA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes — Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. 1. September 13, 2010 — Regular Session 4. Commission Consideration Items a. Preliminary Market Value Levy and Budget Resolutions 1. Resolution Establishing a Final Market Value Levy for the Purpose of Defraying the Cost of Operation, Providing Informational Services and Relocation Assistance Pursuant to the Provisions of Minnesota Statutes Chapter 469.033 for the City of Brooklyn Center Housing and. Redevelopment Authority for Fiscal Year 2011 Requested Commission Action: — Motion to adopt resolution. 2. Resolution Approving the Final Budget for the City of Brooklyn Center Housing and Redevelopment Authority Pursuant to Minnesota Statutes Chapter 469 Requested Commission Action: — Motion to adopt resolution. S. Adjournment HRA Agenda Item No. 3a MINUTES OF THE PROCEEDINGS OF THE • HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION SEPTEMBER 13, 2010 CITY HALL — COUNCIL CHAMBERS 1. CALL TO ORDER yn g p The Brooklyn Center Housing and Redevelopment Authority (HRA) met in Regular Session called to order by Chair Tim Willson at 7:46 p.m. 2. ROLL CALL Chair Tim Willson and Commissioners Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich. Also present were Executive Director /City Manager Curt Boganey, Director of Fiscal and Support Services Dan Jordet, Director of Business and Development Gary Eitel, Assistant City Manager /Director of Building and Community Standards Vickie Schleuning, City Attorney Charlie LeFevere, and Carla With, Timesaver Off Site Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lasman moved and Commissioner Ryan seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. June 28, 2010 — Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. PRELIMINARY MARKET VALUE LEVY AND BUDGET RESOLUTIONS 1. HRA RESOLUTION NO. 2010 -02 ESTABLISHING A PRELIMINARY MARKE VALUE LEVY FOR THE PURPOSE OF DEFRAYING THE COST OF OPERATION, PROVIDING INFORMATIONAL SERVICES AND RELOCATION ASSISTANCE PURSUANT TO THE PROVISIONS OF MINNESOTA STATUTES CHAPTER 469.033 FOR THE CITY OF BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY FOR FISCAL YEAR 2011 • 09/13/10 -1- DRAFT Executive Director Curt Boganey introduced the item and stated the purpose of the proposed resolution. He explained the HRA can levy up to .0185% of the taxable market value to fund the HRA budget. Mr. Boganey noted that this is a market value levy so it will increase or decrease as the market value of the City changes. This year the market value has declined so the levy receipt will also decline. Commissioner Roche moved and Commissioner Lasman seconded adoption of HRA RESOLUTION NO. 2010 -02 Establishing a Preliminary Market Value Levy for the Purpose of Defraying the Cost of Operation, Providing Informational Services and Relocation Assistance Pursuant to the Provisions of Minnesota Statutes Chapter 469.033 for the City of Brooklyn Center Housing and Redevelopment Authority for Fiscal Year 2011. Motion passed unanimously. 2. HRA RESOLUTION NO. 2010 -03 APPROVING THE PRELIMINARY BUDGET FOR THE CITY OF BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY PURSUANT TO MINNESOTA STATUTES CHAPTER 469 Executive Director Curt Boganey introduced the item and stated the purpose of the proposed resolution. Commissioner Yelich moved and Commissioner Ryan seconded adoption of HRA RESOLUTION NO. 2010 -03 Approving the Preliminary Budget for the City of Brooklyn Center Housing and Redevelopment Authority Pursuant to Minnesota Statutes Chapter 469. Motion passed unanimously. 5. ADJOURNMENT Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Housing and Redevelopment Authority meeting at 7 :49 p.m. Motion passed unanimously. • 09/13/10 -2- DRAFT • HRA Agenda Item No. 4a City of Brooklyn Center A Millennium Community To: Mayor Willson and Council members, Lasman, Ryan, Yelich and Roche From: Cornelius L. Boganey, City Manage Date: December 9, 2011 RE: 2011 Budget Adoption All Funds Overview In February 2011 the City of Brooklyn Center will celebrate one hundred years as an incorporated community. There is a year long list of celebratory events planned for this historical milepost in the life of a great community. During the last one hundred years the City has grown and changed in every way imaginable, from a slightly populated rural farming community to a fully developed suburb of 29,000 plus residents. With the changes have come many challenges. In this regard 2011 will be no different. As in the past,we will do what citizens of Brooklyn Center have always done; we will face the challenges head on and create new opportunities so Brooklyn Center continues to be"A Great Place to Start a Great Place to Stay! The proposed 2011 budgets reflect the revenues and expenditures developed in City Council joint work sessions with the Financial Commission during the months of June,;uly, August, and November. The expenditure levels are focused on maintaining services and on the achievement all strategic goals and the priority outcomes adopted by the City Council on March 8th 2010. Generally,the 2011 budget continues operations established in prior years. Given the challenges presented by reduced Sate funding and the general downturn in the economy,the budget includes no additional full time employees, no general wage increase and expected vacancy factor of three FTE's. The overall General fund budget increase is 2.49 %and the overall levy increase is 2.53%. The City property tax impact on the Median Residential Property ($137,440) is a slight reduction of$1.73 or 0.20%. The most recent data from Hennepin County indicates that the proposed levy will result in the following; 91.25 % of all taxable properties in Brooklyn Center(residential,commercial and industrial)will pay lower City property taxes in 2011. Of the remaining 8.75%property taxes will increase from 0.1%to 20%. Less than 1% of properties will receive a tax increase of 10% or greater. 6301 Shingle Creek Parkway Recreation and Community Center Phone& TDD Number Brooklyn Center, MN 55430-2199 (763)569-3400 City Hall& TDD Number(763)569-3300 FAX(763)569-3434 FAX(763)569-3494 www.cityofbrooklyncenter.org The Levy Tax Capacity General and Debt Service Fund Levies HRA Market Value Levy for property taxes payable in 2011 On September 13th 2010 the City Council adopted the 2011 preliminary budget and maximum tax levies. The proposed levy is at the same level adopted at the September 13th 2010 meeting and developed in joint work sessions with the City Council and Financial Commission. There are three funds that require a tax levy;the General Fund,the Debt Service Fund and the Housing and Redevelopment Authority Fund. The proposed final levy is as follows: Tax Levy: General Fund Operations Limited Levy $ 6,806,374 Police and Fire Special Levy $ 5,173,806 2011 LGA Unallotment Levy $ 296,138 2011 LGA/MVHC Supplemental Cuts Levy $ 504,022 Foreclosures Special Levy $ 125,000 Housing and Redevelopment Authority $ 310,831 Police and Fire Bonds $ 695,632 Total Levy $ 13,911,803 2010 GENERAL FUND AMENDED BUDGET In response to the $504,022 supplemental unallotment of Local Government Aid/Market Value Homestead Credit(MVHC), on May 10, 2010 the City Council amended the approved 2010 budgets of the General Fund, EDA Fund, and Public Utility Funds. The net effect of these amendments was to decrease the General Fund Budget from $16,443,922 to $16, 003,578 and to increase the Utility Fund Budgets by $77,093 to $9,722,398. 2011 General fund levy The proposed 2011 general fund property tax levy excluding MVHC is $12,366,994. This represents a levy increase of$493,940 or a 4.16% increase over the 2010 amended budget. Unallotment levies are proposed to increase from $505,602 in 2010 to $800,160 in 2011. This 58%increase is clear evidence of the continuing trend to shift the cost of City operations from State revenue sharing to the City property tax. The 2004 Debt Service levy will decrease 2.73% 2 or$19,551 in 2011. The HRA levy is set at the statutory limit of.0185 % of the estimated taxable market value. Due to the declining tax base, revenue from this source will decrease $38,914 or 11.13% from the 2010 levy. 2011 GENERAL FUND REVENUES: Total estimated revenue for 2011 is$ 16,402,573. This compares to $16,443,922 in the original 2010 budget and$ 16,003,578 in the amended 2010 budget. Total taxes inclusive of the proposed levy, MVHC payments and lodging tax collections of$750,000, are expected to increase from$12,750,022 to $13,610,340 or 6.75%. Licenses and Permits revenue is estimated at$606,390 compared to $710,937 in 2010. The license revenue decrease of 14.17% is based on conservative expectations of continued slow economic growth and moderate new redevelopment activities. Intergovernmental Revenue estimates decrease to $ 828,265 from$1,139,587 in the amended 2010 budget. All of this decrease occurs in the estimates of Local Government Aid/MVHC. The 2011 budget follows the Council direction to reduce city reliance on unreliable sources such as State shared revenues for City going operations. As a first step toward reducing General Fund reliance was to limit budgeted State shared revenues (MVHC and LGA)to 4.5% of the general fund operations. This policy limits the combined total of LGA and MVHC to $ 738,346. This amount is significantly less than to $2,042,771 currently legislatively allotted to the City under current State Law. Given recent history of State revenue unallotment and given the current$6.2 billion State budget deficit forecast for the next biennium, it seems unlikely that the State will meet its Statutory LGA/MVHC formula levels. By limiting General Fund reliance on State General assistance to 4.5% of General Fund Operations and establishing a$200,000 contingency the Council has mitigated the iimpact that expected State cuts might have on General Fund operations. Estimated Charges for Services increase in 2011 to $944,158 compared to $892,562 in the 2010 amended budget. This increase is largely related to increased code enforcement activities of vacant building registrations, re-occupancy inspections and vacant building registration. GENERAL FUND EXPENDITURES Strategic Focus For the last several years the City Council has remained focused on the achievement of critical strategic goals. Each year the budget has been a crafted as a policy implementation tool focused on strategic goal achievement. The 2011 budget is no different in this regard. The City Councils six strategic goals for 2011 are to: ensure a safe and secure community; aggressively proceed 3 with city redevelopment; stabilize and improve residential neighborhoods; positively address the community demographic makeup and increasing cultural diversity; continue to maintain and upgrade City infrastructure, and environmental sustainability. In addition as the City Council provided further guidance it directed that for 2011, we focus as much effort as possible in the areas of;reducing crime and the fear of crime, Opportunity Site redevelopment,EDA owned property redevelopment,neighborhood code compliance, foreclosure mitigation, youth services, equipment, public building maintenance and improvements and neighborhood street and utility improvements. We believe that the proposed budget is designed to accomplish the strategic goals and focus areas as directed by the City Council 1. Ensure a safe and secure community • The threat and fear of real or perceived crime among citizens and others will be reduced • Citizens will feel and be safe in their homes, areas of concern and throughout the City The proposed budget continues funding for the Community Services Unit that includes Community Response Officers, crime analysis, and crime prevention activities and the new youth intervention officer in the Grant Initiatives Fund. This is a unit consisting of both sworn and unworn personnel carrying out proactive problem solving initiatives. The unit consists of one Lieutenant who manages the five sworn Community Response Officers, an Analyst, and a Crime Prevention Specialist. Results demonstrate that this proactive, fact based, focused and coordinated efforts of a unit that is not spending nearly all of its time responding to calls for service has produced results contributing to crime reduction in the City. Year to date in 2010 Total Part 1 Crimes have been reduced 19.91%. Total Property Crimes have been reduced 19.65% and Total Violent Crimes have been reduced 22.58%. This budget will continue implementation of the recommendations from the PERF violent crimes study completed in 2007. Many of the recommendations have been incorporated in the City Department work plans as a way to further affect a reduction in violent crimes especially those committed by young adults and adolescents. Of course it is equally important that the City continue to provide patrol, emergency response, investigation and administration, while the new units focus on problem areas and prevention activities. The 2011 budget also meets this objective. 4 2. Aggressively proceed with implementation of the City's redevelopment plans • Private redevelopment will expand and improve • Opportunity Site redevelopment will commence • EDA owned properties redevelopment will proceed expeditiously The Business and Development Department composed of EDA/HRA, Planning and Assessing staff will remain focused on business attraction,business retention, community marketing and redevelopment assistance programs. This focused effort will continue to be critical as we work to achieve the redevelopment mission in a very difficult economic environment. Throughout 2010 as a cost cutting measure,the Planner position remained vacant. This position will be filled in early 2011, improving our ability to deliver results in this critical strategic area. In 2010, supported with TIF and Federal Stimulus funding in partnership with Hennepin County, Three Rivers Park District the Bass Lake Road Streetscape/Trail Enhancement project was completed. This represents a significant improvement to the Bass Lake Corridor making it a more attractive,pedestrian friendly environment supportive of commercial redevelopment. Implementation of elements of the Shingle Creek improvement project will be completed in early 2011 further enhancing the physical and aesthetic environment in the commerce area of the City. Even though the poor condition of the general economy makes redevelopment difficult,the City efforts are starting to show signs of success. The GSA FBI field office headquarters is expected to be 95% completed by year end. The proposed Northwest Service Center on Brooklyn Blvd is expected to start construction in early spring. Progress is being made that is expected to clear the way for construction to commence on the delayed Howe Fertilizer site redevelopment project toward the end of 2011. We are hopeful that the proposed Luther Auto Dealership redevelopment on the East side of Brooklyn Blvd will commence in 2011. Finally and perhaps most significantly the EDA is expected to consider a proposal for the redevelopment of Brookdale Mall in early 2011. If this project is approved, construction of this major retail redevelopment will commence in early 2011 as well. 3. Stabilize and Improve residential neighborhoods • Citizens will benefit from a diverse stock of housing types and styles • Owners and occupants in residential neighborhoods will comply with city codes and regulations which will be adequate to assure a safe,well maintained, and attractive community 5 • Owner occupied housing will increase as a percentage of total housing • Problems associated with foreclosures will be dramatically reduced. • Residential property values will improve and citizens will be proud of their neighborhood and community In addition to the improvement in the way foreclosed and vacant properties are monitored and managed by the new Department of Buildings and Standards,the Business and Development Department will continue to implement the two new incentive programs to attract new property owners, acquire and rehabilitate vacant foreclosed properties in 2011. Since 2009 we were able attract more than 80 new home owners to acquire vacant foreclosed properties. Inaddition the EDA has a cq uired seven strategically located vacant properties as we plan for future redevelopment, using the revised NSP program we have acquired eight foreclosed properties for substantial rehabilitation and sale to as owner occupied units. The vacant property ordinance took effect in February 2009 and 739 vacant homes have been registered over two years,making it easier to track ownership, secure and maintain these properties and improve the attractiveness and conditions of the housing stock. We will also continue to provide public education to citizens about ways to prevent foreclosure. The Building and Community Standards Department, has implemented Council approved changes to the rental property licensing ordinance. The ordinance changes are designed to create incentives and hold landlords and occupants accountable for conditions and use of rental properties. So far the evidence suggests that this performance based ordinance is helping to improve the quality of rental properties and the quality of management. In 2010 we implemented the voter approved Administrative Hearings process which has expedited resolution of many neighborhood nuisance violations. The new ownership of Gateway Commons Apartments (formerly Centerpoint Apartments) has demonstrated how management and investment can improve the living environment of a rental community. While this property was long identified as a problem property with numerous code violations and police calls, it has been completely transformed into a safe, attractive living community with very few police calls for service. 6 In 2011 we will be initiating a policy that will allow townhome communities to apply for the establishment of a Neighborhood Improvement Area under state law. If an area and project is approved it could provide an avenue to receive financing for needed improvements to some of our aging townhome developments. In 2011 Business and Development Department will continue to research and pursue ways of diversifying the housing stock. 4. Positively address community demographic make-up and increasing cultural diversity. • All demographic groups will be represented and encouraged to participate in civic, governmental, community organizations and activities • Youth will be adequately served with recreation and educational programs and activities • Social, health and housing needs of the aging and moderate income populations will improve The City continues to extend and improve our outreach efforts to attract employees and volunteers from all ethnic and cultural groups of our community. Staff training in the areas of cultural competency will continue. The Brooklyn Bridge effort with the City of Brooklyn Park, involving youth in decision making and planning continues to evolve and improve our ability to constructively engage youth from throughout the community. 5. Maintain and upgrade infrastructure improvements • City government buildings, major equipment and physical assets of the City will be maintained and improved • Neighborhood streets and utilities will be maintained and improved • Neighborhood streets and utilities will be maintained and improved • The traveling public will benefit from multi-modal transportation options fostered and/or provided by the City • Citizens will benefit from the expansion and improvement of needed technology infrastructure as cost effective, feasible options become available The City will continue the previously established street reconstruction program in 2011 with of the largest annual programs in recent years. To take advantage of current competitive construction costs we have expanded next years' reconstruction 7 program by adding the East Palmer Lake Project Area previously scheduled for 2012 to the 2011 Logan Neighborhood project. The principal City funding for this program is the franchise fee. The City has prioritized and scheduled this program using a condition based formula in order to use the limited resources available in the most cost effective manner. In 2010 the City implemented a joint use agreement with the Three Rivers Park District. The agreement will extend responsibility for improvement and maintenance of our regional trail system to the Three Rivers Park District. This agreement has reduced City maintenance cost and it authorizes the Park District to extend and make improvements to our Regional Trails. In 2010 a regional trail study was conducted and in 2011 a new regional trail plan will be adopted. We expect the district will then apply for funds to further expand and improve the Regional trail system in Brooklyn Center. The City has a capital replacement plan for storm water, sanitary sewer and water system improvements. In addition the City has a park improvement plan and an improvement funding program for the Earle Brown Heritage Center. Each of these programs is detailed in the Capital Improvement Program which has been reviewed during the budget development process and will be presented for Council approval. In commemoration of the City Centennial, Central Park has been renamed Centennial Park in Brooklyn Center. In 2007 the City completed a comprehensive study of the structural components of General Buildings i.e. City Hall, Community Activities Center, Fire Stations and Police Buildings. With information collected from this report,the staff developed an infrastructure improvement plan for these critical facilities. The recommendations from this study have been incorporated into the proposed capital projects budget In 2010 the City reached an agreement with the Developer of the Embassy Suites that authorizes the City/EDA to construct a link connecting the EBHC to the Hotel. Design for this project is underway, and funding program will be presented to the EDA so that construction can be completed in 2011 if authorized by the EDA. 6. Environmental sustainability • Public appreciation for the environment will be improved, recycling and energy conservation will improve within the community • The purchasing power of the City will support the goal of environmental sustainability 8 In 2010 we were awarded a Federal Grant to fund energy efficiency improvement at the Public Works Building and The EBHC. The City will continue many of its past efforts of household recycling,use of recycled goods and materials in our capital projects and daily business operations, and storm water management. In 2011 we will implement the new water conservation utility rate structure. The Street light utility will explore and pilot test the use of alternative energy lighting in 2011. In 2011 we will develop a plan to comprehensively inventory current City efforts and develop a comprehensive action plan to address the many environmental sustainability issues in the community. IN 2010 the staff participated in a community environmental sustainability forum, and anticipates doing so again in 2011. In 2011 we will develop a comprehensive strategic approach to achieving this significant Council goal with objective of implementation not later than 2012. THE HOUSING AND REDEVLOPMENT AUTHORITY LEVY State law establishing a Housing Redevelopment Authorities provides for an operating levy of up to 0.0185 % of the taxable market value within the jurisdiction to carry out the purposes of the authority. In Brooklyn Center after forming an HRA the City established an EDA which assumed and expanded the HRA responsibilities into the areas of economic development. To fund the activities of the EDA,the HRA levy is required. The HRA levy is expected to generate $ 310,831 in 2011 revenue. The EDA fund provides for the operating budget for the EDA and the costs are expected to be $389,677. In addition use of the HRA levy proceeds, and interest earnings of$5,000,the balance of EDA funding will come from a use of Fund Balance. This budget includes funding full time positions of the Business and Development Director, Community Development Specialist, and staff support positions in this department. THE DEBT SERVICE FUND LEVY The current outstanding exclusively tax supported General Obligation Bond Debt of the City is composed of a single issue; the 2004A Police and Fire Bonds. The outstanding principal balance due on these 10 year bonds as of December 31, 2010 will be $ 2,025,000. The debt service due in 2011 will be $696,632. These bonds are expected to be paid in full by February 2013. SPECIAL REVENUE FUNDS Economic Development Authority Fund This fund provides for the management and administration of City Development efforts. The purpose of this fund is to preserve and improve City neighborhoods by fostering housing stock 9 preservation, commercial and industrial development and redevelopment creating job opportunities,tax base stability and growth. The activities of this fund directly support City Goals#2 and#3. Projects included in the 2011 work plan are the 57th and Logan redevelopment project, Shingle Creek Daylighting Plan,the Brookdale Ford Redevelopment, Opportunity Site Redevelopment Projects, Brookdale Mall Redevelopment, Luther Dealership Project,Howe Fertilizer Redevelopment, and others. 2011 programmed expenditures; $389,677. Housing and Redevelopment Authority Funds collected by the HRA will be transferred to the EDA for redevelopment activities. 2011 programmed expenditures; $310,831 Community Development Block Grant In 2011 we will continue to use CDBG funds to support the code enforcement and neighborhood revitalization priorities of the City Council. 2011 programmed expenditures; $203,588 TIF District#2 In support of goal #2 aggressive redevelopment,this Fund accounts for all TIF revenue and expenditures from this Downtown Redevelopment District. This financing tool was primarily responsible for redevelopment of the Earle Brown Terrace and Earle Brown Commons Senior residential projects. The District must be decertified by the end of the year 2011. The City Council may wish to consider a plan amendment in 2011, so that funds available in the district may be used for other high priority redevelopment projects. 2011 programmed expenditures; $10,000. TIF District#3 In support of goal#2,this fund accounts for all revenues and expenditures for District 3. Major redevelopment projects within this district include 691h and Brooklyn Boulevard, 66th and Highway 252 including the theater and townhomes, as well as the area in and around Brookdale Mall. The district also includes portions of the Opportunity Site, and the parcels along Hwy 694/Hwy 100 and James Circle. Expenditures from this fund after May 18, 2011 fund may only be used for debt service payments and limited expenditures of up to 25% of the increment collected. Included in this 25%cap is a requirement that 15% of all increments collected during the life the district must be used in support of moderate and low income housing projects. 2011 programmed expenditures; $1,997,030. In 2011 the EDA may consider the removal of the Brookdale Mall Parcels from this district. Recent analysis indicates that the removal of the Mall from the district may be necessary to 10 assure sufficient increment to fund the debt service due in future years. It may also be necessary to remove the Mall parcels from the district as a way to promote the redevelopment of the Brookdale Mall retail area. TIF District#4 In support of goal#2,this fund accounts for all revenues and expenditures from District 4. Funds from this district were used to clean up a contaminated site for redevelopment. The resulting redevelopment includes, Supply Technologies - Wagner Spray Tech(Former Wickes Warehouse), Toro Distributing, Caribou Coffee corporate headquarters and other projects with an estimated market value of$20,000,000 with more than 400 jobs. Prior to redevelopment the property had a$2,000,000 assessed market value. The expected decertification date for this pay-as-you go district is 2020; 2011 programmed expenditures; $337,720. City Initiatives Grants Fund This fund accounts for a variety of special purpose grants. The grants include Miscellaneous Police Grants, Auto Theft Grants, COPS Grants and Recreation Grants. Grants from this fund will be used to support the Juvenile Intervention Officer within the Police Department. This position will be federally funded for three of four years. The Recreation grants include a first time capacity building grant directed at meeting the recreational needs of underserved populations; Programmed 2011 expenditures $167,732. DEBT SERVICE FUNDS The debt service fund tracks revenues and processed payments for bonds issued to the City for various purposes. The outstanding bonds include Street Improvement Bonds,Police and Fire Building Refunding Bonds,and Tax Increment Bonds. The 1997 Street Improvement Bonds will mature on February 1,2011. 2011 programmed expenditure; $3,585,054. CAPITAL PROJECT FUNDS Capital Improvement Fund In support of City Goal#4 Infrastructure maintenance and improvement,the Capital Improvements Fund accounts for the monies available from many sources i.e. general fund, enterprise funds and utility funds to pay for government buildings,park improvements and to purchase land for public use such as parks and public facilities. The CIP includes a twelve (12) year forecast of capital needs in the park system. The 2011 program includes West Palmer Lake Shelter Replacement, and Soccer Fields in Centennial Park, contingent upon grant funding approval. Programmed expenditures; $456,000. 11 Infrastructure Construction Fund Also in support of goal#5,the Infrastructure Construction Fund, formerly the Special Assessment Construction Fund accounts for the financing of improvements funded all in part by special assessments and transfers from public utility funds. The 2011 program includes the Logan Neighborhood Street Reconstruction, Shingle Creek Parkway Street Improvement, Traffic Signal Replacements, Storm Water Pond Rehabilitation,Unity Avenue Reconstruction and East Palmer Lake Neighborhood Reconstruction.2011 planned expenditures; $9,542,500. MSA Fund Also in support of goal #5 the MSA fund accounts for the use of State share gasoline tax revenue used for maintenance and reconstruction MSA designated thoroughfares. 2011 programmed expenditures; $1,073,000. Street Reconstruction Fund In support of goal #5, the Street Reconstruction Fund accounts for revenue used for reconstruction of streets. A majority of these funds are derived from Franchise Fees. The estimated franchise fee revenue in 2011 is $686,071. 2011 programmed expenditure; $2,006,000. Earle Brown Heritage Center Capital Fund In support of goal#5,the EBHC Capital Fund provides for the,repair and replacement of depreciated and or obsolete capital items. As part of a thirty year plan, 2011 programmed expenditures include Carriage Hall carpet, divider wall and panels, oven replacement,wireless access improvements, security system, and electronic reader board. 2011 programmed expenditures; $447,400 Technology Capital Fund In support of goal#5,the Technology Fund serves as a mechanism to fund and plan for capital projects related to communication and electronic technology acquisition and replacement. Revenue to this fund in 2011 is a$70,767 general fund transfer plus interest earnings. Projects included in the 2011 program are server upgrades, network hardware, network infrastructure, security card access, security monitoring and multi function devices. 2011 programmed expenditures; $187,240. 12 ENTERPRISE FUNDS Liquor Fund In support of safe community goal#1 and the ongoing goal to reduce property taxes,the City manages a municipal liquor operation. This fund accounts for all revenues and expenditures related to the operation of two municipal liquor stores. Revenue growth and profitability is expected to continue in 2011. In 2010 we entered into a new lease for Store#1 on Bass Lake Road. The new lease added 1,350 square feet of space to provide for storage which facilitates increased profitability by expanding bulk purchases. In 2011 the liquor fund will transfer $208,198 to other funds for projects and operations. In 2011 the fund will make improvements to the Cooler Section at Store#1 and improve security systems at both stores. In 2011 programmed net income; after transfers to other funds is $69,346. Centerbrook Golf Course Operating Fund In 2010 we implemented incentive programs to increase rounds played by league golfers with moderate success. This program will continue in 2011. In addition several new marketing programs will be introduced to introduce the course to local business commuters we will also continue our joint marketing efforts with Brooklyn Park and New Hope. This fund accounts for the revenues and expenditures of the nine- hole golf course owned and operated by the City of Brooklyn Center. 2011 estimate approximately 21,000 rounds of golf which is less than peak years of the past. 2011 programmed net income after depreciation; ($59,953). Earle Brown Heritage Center Operating Fund The award winning Earle Brown Heritage Conference Center provides a community resource for events and meetings while preserving a historical landmark of the community. This Fund accounts for all revenues and expenses associated with conference and meeting and leasing activities hosted by the Center including the maintenance repair of the facility itself.Next year revenues and profitability are expected to improve as we lease the D Barn at mid- year following construction of a new link to the Embassy Suites Hotel. We are also encouraged by interest generated by the Embassy Suite Hotel and small signs of economic recovery. We estimate 2011 annual cash flow before depreciation and capital transfer will be ($72,650) PUBLIC UTILTY FUNDS Water Utility Fund This fund provides for the distribution of potable water to customers. It includes funding for the operations, administration and water utility billing. In 2009 we completed installation of a new automated meter reading system throughout the City improving efficiency, reliability and customer service. In 2010 we implement a State mandated conservation water rate fee 13 system. The 2011 rate per 1000 gallons will increase from$1.34 to $ 1.40 to provide for the ongoing cost of operations and capital needs. Substantial water main improvements are expected to be completed in association with the neighborhood street project of 2011. 2011 programmed expenditures; $2,730,640. Sanitary Sewer Utility Fund This fund provides funding for the collection and conveyance of wastewater through a system of mains and lift stations. This fund also provides for routine and preventive maintenance of the system. The 2011 single family rates will increase from$63.87 to $65.79 per quarter to provide for the ongoing maintenance and capital needs of the system. In the third quarter of 2011 we anticipate implementing a consumption based fee for this service as way encourage water conservation and improving user equity. Significant system improvements are expected as part of the neighborhood reconstruction program of 2011. 2011 programmed expenditures; $3,539,550. Storm Sewer Utility Fund This fund provides for the collections and management of storm water throughout the city in compliance with State and Federal regulatory requirements. As part of the 2011 neighborhood street reconstruction program significant storm drainage improvements are planned. The single family quarterly, storm drainage fees for 2011 will be $ 14.48 compared to $14.34 in 2011. The 2011 programmed expenditure for this activity is $2,379,908. Street Lighting Fund This fund provides for electrical and maintenance fees paid to Xcel Energy for street lights owned by Excel Energy. It also provides for electrical service,maintenance, repair and replacement of lights owned by the City. The City owns ornamental lights in the Earle Brown commercial area, along Brooklyn Blvd and Xerxes Avenue and Bass Lake Road. The City also leases 915 lights from NSP. Another 97 lights owned by the City are located on traffic signal posts and mast arms.Next year staff will inventory and study the entire system to identify potential cost saving opportunities. Additionally we expect to conduct pilot tests of new energy efficient lightings systems to determine both the efficiency and efficacy for use in our system. The street light utility fee will increase from$3.84 to $3.95 per quarter in 2011; 2011 planned expenditures; $330,057. Recycling Fund This fund accounts for the operation and administration of the City's state-mandated curbside recycling program. Revenues are from customer service fees with expenses comprised of payments to the Hennepin County Recycling Group, a four city consortium. The recycling rate 14 for 2011 will be $8.43 compared $8.27 per quarter in 2010.The 2011 programmed expenditures; $ 279,739. INTERNAL SERVICE FUNDS Central Garage Fund The Central Garage Fund accounts for the expense associated with providing services and fuel for a wide range of City vehicles such as fire trucks, squad cars, dump trucks, mowers, loaders, pickups and staff cars. In addition the Garage services minor equipment such as chain saws, trailer pumps and generators. When the garage provides these services the direct and indirect costs are allocated to the department benefiting from the service. All revenue into this fund comes from other City sources. So revenues and expenditures in this operation do not represent additional income or additional expenses to the City. The fund is strictly used to keep track of the costs so that the appropriate City agency is charged. Due to revenue constraints,the rate of contributions to this fund has been reduced in recent years. In future years it will be important to escalate the rate of contribution to assure adequate pay as you go funding. 2011 programmed; expenditures $1,701,008. Post Employment Retirement Benefit In support of the ongoing Council goal of assuring financial stability, The Post Employment Retirement Fund has been established as a sinking fund used to fund health insurance for eligible retired employees. On January 1, 2005,the City Council limited the number of employees eligible for certain post retirement benefits. 2011 programmed expenditures; $173,800. Employee Compensated Absences Fund This fund accounts for employees' compensated absences and the resulting liability to the City. Compensated absences include accrued vacation and sick time earned in accordance with City policy. 2011 programmed expenditures; $15,450. 15 City of Brooklyn Center HRA Agenda Item Memorandum TO: Curt Boganey, Executive Director FROM: Daniel Jordet, Assistant Treasurer DATE: 6 December 2010 SUBJECT: 2011 Housing and Redevelopment Authority Budget Recommendation: It is recommended that the Commissioners of the Brooklyn Center Housing and Redevelopment Authority adopt the attached resolutions establishing the tax levy and operating budget for the 2011 fiscal year. Background: The HRA adopted a preliminary resolution for property tax levy payable in 2011. That levy was based on the extension rate of 0.0185% of taxable market value. It produced a preliminary levy of $ 310,831. Those funds, when collected, are transferred in full from the HRA to the EDA for economic and community development operations. Financial Impact: The HRA transfers all dollars collected by its levy to the EDA leaving a zero sum for annual operations. • Commissioner introduced the following resolution and moved its adoption: HRA RESOLUTION NO. RESOLUTION ESTABLISHING A FINAL PROPERTY TAX LEVY FOR THE PURPOSE OF DEFRAYING THE COST OF OPERATION, PROVIDING INFORMATIONAL SERVICES AND RELOCATION ASSISTANCE PURSUANT TO THE PROVISIONS OF MINNESOTA STATUTES CHAPTER 469.033 FOR THE CITY OF BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY FOR FISCAL YEAR 2011 WHEREAS, Minnesota Statutes require that the final property tax levy be provided to the Hennepin County Auditor no later than December 28, 2010 for taxes payable in calendar year 2011; and WHEREAS, the City Council has received a resolution from the Housing and Redevelopment Authority of the City of Brooklyn Center establishing the final levy of the City of Brooklyn Center Housing and Redevelopment Authority for fiscal year 2011; and WHEREAS, the City Council of the City of Brooklyn Center, pursuant to the provisions of Minnesota Statutes 469.033, Subdivision 6, must certify the final property tax levy resolution of the Housing and Redevelopment Authority of the City of Brooklyn Center. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of City • of Brooklyn Center, Minnesota that a special tax is hereby levied on all taxable real and personal property within the City of Brooklyn Center at the rate of 0.0185% of the total market value of real and personal property situated within the corporate limits of the City of Brooklyn Center that is not exempted by law. BE IT FURTHER RESOLVED that the property tax levied under this resolution be used for the operations and activities of the Housing and Redevelopment Authority of the City of Brooklyn Center pursuant to Minnesota Statutes Chapter 469.001 to 469.047. December 13, 2010 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by commissioner 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. Commissioner introduced the following resolution and moved its adoption: HRA RESOLUTION NO. RESOLUTION APPROVING THE FINAL BUDGET FOR THE CITY OF BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY PURSUANT TO MINNESOTA STATUTES CHAPTER 469 WHEREAS, the Housing and Redevelopment Authority of City of Brooklyn Center has considered the final budget for Fiscal Year 2011. NOW, THEREFORE, BE IT RESOLVED by the Housing and Development Authority of the City of Brooklyn Center, Minnesota that revenues and appropriations for the Housing and Redevelopment Authority are hereby adopted as follows: Housing and Redevelopment Authority Revenues Property Taxes $ 310,831 Total Housing and Redevelopment Authority 310 831 Appropriations Transfer to EDA Fund $ 310,831 • Total Housing and Redevelopment Authority $310 December 13, 2010 Date Chair The motion for the adoption of the foregoing resolution was duly seconded by commissioner 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.