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HomeMy WebLinkAbout2011 11-07 CCM Joint Work Session with Financial Commission MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA JOINT WORK SESSION WITH FINANCIAL COMMISSION NOVEMBER 7, 2011 CITY HALL - COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Joint Work Session with the Financial Commission and the session was called to order by Mayor Tim Willson at 6:30 p.m. ROLL CALL Mayor Tim Willson and Councilmember Kay Lasman. Councilmember Carol Kleven arrived at 6:35 p.m. Councilmember Dan Ryan was absent and excused. Also present: City Manager Curt Boganey, Fiscal and Support Services Director Dan Jordet, Community Activities, Recreation and Services (CARS) Director Jim Glasoe, and Deputy City Clerk Maria Rosenbaum. Others present were Financial Commissioners Anissa Hollingshead, Rex Newman, Dean Van Der Werf, Dan Schueller (arrived at 6:35 p.m.), and Teneshia Plunkett (arrived at 6:45 p.m.). REVIEW OF ENTERPRISE FUND BUDGET PROPOSALS City Manager Curt Boganey discussed that tonight's meeting was to provide an overview of the Enterprise Fund Proposals for Brooklyn Center Liquor, Centerbrook Golf Course, Earle Brown Heritage Center (EBHC) Operations and EBHC Capital Funds. Fiscal and Support Services Director Dan Jordet discussed the Brooklyn Center Liquor Fund is doing well with wine sales increasing and cash flows are projected to continue to grow at one percent in overall sales, three percent in other areas, cost of sales continuing at 73.5 percent of sales, and it is proposed to continue with Capital Improvement Fund transfers of $200,000. He informed that the lease for Liquor Store 2 is coming up in 2013 and improvement/enhancement information will be coming to the City Council for approval. City Manager Boganey informed Centerbrook Golf Course Fund will be the most challenging operation and the intent tonight is to help create an action plan to address fundamental issues that will require feedback and possibly policy direction. This fund has struggled to break even in past AR Dire 1 oe was resent to provide information with couple ears and CARS Director Jim G as regards to the p g p Y P fundamental changes needed. 11/07/11 -1- CARS Director Glasoe outlined goals to help with making Centerbrook financially viable, current market conditions, course attributes, targeted audiences, and operational changes. He informed that George Jennrich, current Grounds Supervisor, will be retiring early next year and that with the proposed staffing and other operational changes, this retirement will not affect the goal of ensuring quality course conditions. He also discussed that a survey had been done indicating that there is no reason to stay at Centerbrook after a round of golf. With that in mind, the proposals for club enhancements, disc golf, and a driving range would be very beneficial. Fiscal and Support Services Director Jordet provided a financial overview and discussed thain order to retire the current cash deficit it is being proposed to use General Fund revenues in excess of expenditures up to the projected $166,291 needed to bring the fund cash balance back to zero, and use an allotment of General Fund balance in excess of policy need for cash flow purposes (50 to 52 percent of following year's budget). Funding alternatives would be more customers /more rounds of golf, or support course from other non - operating funding sources such as General Fund (Property and Lodging Taxes), or Enterprise (EBHC Operations, Brooklyn Center Liquor Operations, or Utility) Funds. With this recommendation of more customers /more rounds of golf it is hoped that it would create additional revenues of $8,500 and with the use of non - operating funds, up to $28,500 for 2012 fiscal year (could be from mix of non - operating sources but would recommend Brooklyn Center Liquor for short term and longer term could include General Fund support long with Brooklyn Center Liquor). There was discussion regarding the recommendations proposed and the possibility of getting figures for the option of closing down Centerbrook entirely. Although that is not the direction at this time being proposed it would be helpful to put into perspective the cost of keeping Centerbrook open and what it would cost to close it down. Along with the figures of closing it down, land and legal restrictions should be presented as well. CARS Director Glasoe informed EBHC is doing well and sales for 2012 were behind last year's pace by $192,000 in total sales through the end of July; however, now ahead $196,000 as of the end of September. Along with that positive note, 67 weddings have already been booked for 2012. Fiscal and Support Services Director Jordet provided a financial overview and discussed that future projections are based on three percent annual increase in personnel costs annually, three percent increase in supply costs per year, cost of goods sold being 48.75 percent of customer receipts, service costs rising 2.5 percent per year, and continued $200,000 per year budget transfer from the Operating Fund. NEXT STEPS City Manager Boganey discussed the next meeting on November 21, 2011, will be to discuss the Street Reconstruction and Building Maintenance Plan Funding. After that meeting the following meetings will take place: 11/07/11 -2- November 28, 2011 Adopt Utility Rates and Pay /Cafeteria Plan December 5, 2011 Budget Hearing December 12, 2011 Adoption of Final Tax Levy and 2012 Final Budget ADJOURNMENT Councilmember Lasman moved and Councilmember Kleven seconded to adjourn the Work Session at 8:05 p.m. Motion passed unanimously. 11/07/11 -3- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of the of the City Council of the City of Brooklyn Center Joint Work Session with Financial Commission held on November 7, 2011. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its November 28, 2011, Regular Session. City Clerk Mayor 11/07/11 -4-