Loading...
HomeMy WebLinkAbout2012 03-15 FCA AGENDA Brooklyn Center Financial Commission Thursday, March 15, 2012 — 6:30 PM All America Conference Room (Main Level of City Hall) I. Call to Order II. Approval of Agenda III. Approval of Minutes a. February 16, 2012 IV. Mayor and City Council Compensation for 2013-2014 V. Utility Billing Policies VI. Other Business a. City Council Open House for Commissions on April 11, 2012 at 6:30 VII. Adjournment Financial Commission Regular Meeting Minutes 16 February 2012 1. Call to Order The meeting was called to order by Mr. Newman at 6:33 PM Members Present: Commissioners Newman, Landis, Plunkett, Agbssou. Schueller, VanDerWerf, Hollingshead. Members Absent: None Staff present was Director of Finance Jordet. 2. Adoption of the Agenda Mr. Landis moved adoption of the agenda. Mr. Schueller seconded the motion. With all voting in favor, the motion was adopted. 3. Minutes Mr. Landis moved adoption of the minutes from the 21 July 2011 meeting. Ms. Hollingshead seconded the motion. With all voting in favor, the motion was adopted. 4. Election of Commission Chairperson Ms. Plunkett nominated Mr. Newman as Chairperson for 2012. Mr. Landing seconded the nomination. Nominations were closed. With all voting in favor, Mr. Newman was affirmed as Chairperson of the Financial Commission for 2012. 5. Appointment of Commission Vice Chairperson As required by the enabling resolution, Mr. Newman appointed Mr. Landis as the Vice Chairperson for 2012. 6. Review of the Enabling Resolution Mr. Jordet reviewed City Council Resolution 99-110, the most current revision of the action establishing the Financial Commission. 1 i 7. Report on Financial Advisor RFP Mr. Jordet reported that the RFP process for Financial Advisor reviewed and approved by the Commission resulted in the re-appointment of Springsted, Inc. as the City's financial advisor. 8. Discussion of the 2012 Work Plan Mr. Jordet reviewed the items that are expected to be ion the Commission's work plan for 2012, including review of the financial policies, review of a popular financial reporting format, implementation of mulit-year budgeting for governmental funds, joint budget meetings with the Commission and City Council, and the bi-annual review of City Council compensation. 9. There will be an Open House meeting of the City Council and all City commissions on Wednesday, 11 April 2012 at 6:30 PM in Constitution Hall at the Community Center. 10. Adjournment With no other business to transact, the meeting was adjourned at 7:44 PM. 2 SECTION II--GENERAL POLICIES City Council Code of Policies 2.05 Policy and Procedure on Mayor and Council Member Total Compensation 1. Need for Policy The community is entitled to a clearly articulated, written description of the policy and procedure for establishing the total compensation of local elected officials. 2. Policy A. Service on the City Council is a civic obligation and an honor. The total compensation of the Mayor and Council Members should, therefore, not encourage candidacies based on monetary rather than public service objectives. However, the compensation of Brooklyn Center elected officials shall be fair and equitable in order to attract qualified candidates for local elective office. B. The propriety of the compensation levels of the Mayor and Council Members shall be evaluated through comparisons with compensation paid to similar officials within the seven county metropolitan area. C. The compensation levels of elected officials should be regularly reviewed and adjusted to ensure compliance with the objectives of this policy and to avoid the need for drastic or sudden compensation adjustments. D. Compensation set pursuant to this policy and procedure shall be deemed to be the total compensation for elected officials of the City with the exception of expense reimbursement which shall be the same as provided all other City employees. 3. Procedure A. The City Manager shall biennially prepare a compensation report that contains an analysis of the compensation paid to elected officials of Minneapolis-St. Paul Area Metropolitan cities having a population within 10,000 of the City of Brooklyn Center that are generally fully developed {Such grouping shall include the cities of Richfield, Roseville, Maplewood, Fridley, Shoreview, White Bear Lake, Crystal, New Hope, and Golden Valley, in addition to the City of Brooklyn Center.} The report shall compute the average and median- amounts paid to Mayors and Council Members and correlate survey results to the current compensation of Brooklyn Center elected City officials. The City Manager shall assemble such additional information on compensation of City elected officials as may be requested to assist the Commission and Council in their review of elected official's compensation. B. The City Manager shall submit the compensation report to the City Council and the Financial Commission prior to June 1, for information pertaining to the f applicable calendar year. City of Brooklyn Center 08/14/06 Page 207 SECTION II- GENERAL POLICIES City Council Code of Policies ( C. The Financial Commission shall biennially review the City Manager's compensation report and discuss possible budgetary and public perception impacts of the indicated changes. Prior to July 1 of the same year, the Commission shall recommend to the City Council that the compensation of the Mayor and Council Members either remain the same or be changed to some specific amount in the manner prescribed by law. D. Consistent with the City Charter, Section 2.07, the Mayor and Council Members may, after conducting public hearings, set their compensation by ordinance. No change in compensation shall be in effect until January 1, following the next succeeding general election. 4. Authority The authority for establishing compensation for the Mayor and Council Members is found in Minnesota Statutes 415.11 and the City of Brooklyn Center Charter, Section 2.07. Reference: City Council Resolution No. 98-91; City Council Minutes 1/10/94 h City of Brooklyn Center 08/14/06 Page 208 City of Brooklyn Center Comparative Mayor and Council Wages Fiscal Years 2009 through 2092 2010 Census 2009 2010 2011 2012 City Population Mayor I Council Mayor Council Mayor Council Mayor Council Golden Valley 20,371 $ 11,619 $ 8,696 $ 11,619 $ 8,696 $ 11,793 $ 8,826 $ 11,793 $ 8,826 Maplewood 38,018 $ 12,302 $ 10,827 $ 12,302 $ 10,827 $ 12,302 $ 10,827 $ 12,855 $ 11,314 Fridley 27,208 $ 10,531 $ 8,650 $ 10,531 $ 8,650 $ 10,525 $ 8,632 $ 10,525 $ 8,632 Richfield 25,298 $ 9,688 $ 7,520 $ 9,979 $ 7,746 $ 9,979 $ 7,746 $ 10,179 $ 7,901 New Hope 20,339 $ 10,673 $ 7,552 $ 10,673 $ 7,552 $ 10,673 $ 7,552 $ 10,673 $ 7,552 Roseville 33,660 $ 9,300 $ 7,020 $ 9,300 $ 7,020 $ 9,300 $ 7,020 $ 9,300 $ 7,020 Crystal 22,151 $ 10,308 $ 7,930 $ 10,308 $ 7,930 $ 10,308 $ 7,930 $ 10,411 $ 8,009 White Bear Lake 23,797 $ 7,680 $ 5,400 $ 7,680 $ 5,400 $ 7,680 $ 6,480 $ 7,680 $ 6,480 Brooklyn Center 30,104 $ 11,166 $ 8,549 $ 11,166 $ 8,549 $ 11,166 $ 8,549 $ 11,166 $ 8,549 Shoreview 25,043 $ 8,976 $ 6,648 $ 8,976 $ 6,648 $ 9,060 $ 6,720 $ 9,060 $ 6,720 Average 26,599 1 $ 10,224 $ 7,879 $ 10,253 $ 7,902 $ 10,279 $ 8,028 $ 10,364 $ 8,100 Median - $ 10,420 $ 7,741 $ 10,420 $ 7,838 $ 10,416 $ 7,838 $ 10,468 $ 7,955 Brooklyn Center as a % of: Average 113.18% 109.21% 108.50% 108.90% 108.19% 108.63% 106.49% 107.74% 105.54% Median - 107.16% 110.44% 107.16% 109.07% 107.20% 109.07% 106.67% 107.47% Notes: Golden Valley: Pays per diem of$ 50 per extra meeting to a maximum of$ 150 per month. Also provides city-owned laptop computer for Mayor/Council member use New Hope: Pays per diem of$25 per EDA meeting, provides laptop computer and DSL service at residence. Maplewood: Provides computer if requested. Crystal: 2012-first time they have budgeted a stipend for technology of$ 250 per year per member. Fridley: Council wage is for At-Large member. Ward Council members receive$ 7,654 annually Brooklyn Center: Rolled technology reimbursement into base wage in 2000. Population statistics from 2010 United States Census 2012councilwagecomp.xlsx 3/14/2012 SECTION II- GENERAL POLICIES City Council Code of Policies UTILITY POLICIES 2:30 Policy for Public Utility Account Collections 1. Purpose The purpose of this policy is to provide an orderly and reasonable method for the collection of accounts of the various utilities operated by the City of Brooklyn Center and any which may be added in the future. This policy is intended to follow with the provisions of Minnesota State Law, Brooklyn Center City Charter, and City Ordinance. Utilities currently operated 'by the City of Brooklyn Center and the corresponding ordinances are as follows: Water, Sanitary Sewer, Storm Drainage, and Street Light Service District, Chapter 4; and Recycling, Chapter 7. 2. Policy In keeping with Minnesota State Law, all municipal utility services shall be considered to, be services to the property, not to the person. All residential utility services shall be billed to the owner of the property, not to the tenant. Commercial and industrial properties may be billed to either the owner or the tenant. Utility services shall be billed to the appropriate party by the Finance Department according to the rate schedule adopted annually by resolution by the City Council. Utility accounts shall become due immediately following billing and must be paid by the due date printed on the bill. Special assessment against the benefited property of any delinquent unpaid accounts shall be considered as the primary means of collection. Shutting off of water service to the benefited property shall be an alternate means of collection in any situation where special assessment isn't possible or practical and for situations where the customer has failed to provide a water meter reading for more than four quarters. Any City utility service for which a rate schedule is established by resolution is eligible for collection by means of either special assessment or water shut off. 3. Procedure A. Normal Billing and Collection 1. A meter card is mailed to each residential property 28 days prior to the billing date. Readings must be submitted to the Finance Department by the date printed on the meter card. Penalties for failure to submit a meter reading will be charged on the date of billing as defined by the rate schedule. Customers who fail to submit a meter reading card for four quarters will be required to submit a meter reading or face the shut off of water service. 2. A public utility bill is due 28 days from the date of billing. City of Brooklyn Center 08/14/06 Page 237 SECTION II- GENERAL POLICIES City Council Code of Policies 3. The late payment penalty as defined in the rate schedule shall be applied five working days after the due date. 4. A delinquent billing is generated for each account unpaid after 35 days from the date of billing. Customers have 21 days to pay this delinquent bill. B. Delinquent Accounts 1. Delinquent accounts shall be pended as a special assessment. 2. Rental property(Commercial or Industrial) a. If delinquency not incurred by current tenant, 1. obtain a meter reading and date of change of occupancy, and calculate final bill for previous tenant. 2. if a forwarding address is available for the previous tenant, send a final bill. Send an informational copy to the property owner. 3. if no address is available, notify property owner of delinquent final bill. 4. if not paid in 28 days, the unpaid amount shall be certified as a special assessment. b. If delinquency incurred by current tenant, follow normal. procedures for delinquent bills and certification by special assessment to the property tax. C. Final Bills 1. All final bills unpaid after 28 days shall be pended as a special assessment. For residential properties undergoing sale to new owners, where a utility bill exists which had not been pended to the assessment rolls prior to the date of closing on the sale to the new owner,the unpaid balance of the old owner shall not be applied to the account of the new owner. 2. Rental Property(Commercial and Industrial) a. All final bills unpaid after 28 days shall be-billed to the property owner, due in 28 days after the date of the billing. b. If not paid in 28 days, the unpaid amount shall be certified as a special assessment. City of Brooklyn Center 08/14/06 Page 238 SECTION H- GENERAL POLICIES City Council Code of Policies ( 3. Other Property a. After 28 days unpaid, the bill shall be perided as a special assessment, and a letter of explanation sent to the new property owner. b. Two or more attempts 28 days apart shall be made to collect from .the previous property owner. If unpaid, the bill shall be certified as a special assessment. D. Returned Checks Checks which are returned to the City for non-sufficient funds, account closed, or otherwise not honored by the bank shall be charged the maximum service fee allowed by Minnesota Statutes. 4. Special Assessments For accounts that remain uncollected after performance of the normal billing and collection procedure, special assessment against the property shall be considered as a primary means of collection. A. The annual City Council resolution adopting the utility rate schedule shall establish the number of assessment.cycles per year and a schedule for public .hearings to be held at City Council meetings for the purpose of adopting a certification roll of delinquent utility accounts for special assessment. At least one certification cycle will be timed each year to coincide with Hennepin County's requirements for certification to the following year's taxes. Additional certification cycles may be set in the annual resolution. B. A certification cut-off date shall be established at which time all accounts which have been billed a delinquent bill and the account is unpaid as of the due date on the delinquent bill, shall have the balance on the account included in the preliminary special assessment certification roll. C. A notice of public hearing will be published in the City's official newspaper at least two weeks prior to the public hearing. A notice of public hearing and a copy of the proposed special assessment roll will be sent by first class mail to each affected property owner at least two weeks prior to the public hearing. D. The owner of the property shall have the option of paying the balance due on the account until the date the notice of public hearing is mailed. After the date the notice of public hearing is mailed, payments will still be accepted, but will include the certification charge. i City of Brooklyn Center 08/14/06 Page 239 SECTION H- GENERAL POLICIES City Council Code of Policies E. The public hearing will be held at a City Council meeting at which the property owner shall have the opportunity to object to the special assessment. F. After the public hearing, for each special assessment sustained by the City Council, the property owner shall have the option: 1. To prepay the special assessment and the special assessment certification charge listed on the preliminary roll, but without additional interest after the public hearing,within 30 days of the public hearing date. 2. To prepay the special assessment and the special assessment certification charge after 30 days of the public hearing date, but before the county certification deadline, with interest at the rate set in the adopted rate schedule, accrued beginning on the 31st day following the public hearing date through the date of payment. 3. To pay the special assessment as billed to them by Hennepin County on their property tax statement with an assessment term of one year. G. After the 31st day following the public hearing, the certified roll, minus any prepayments, shall be delivered to Hennepin County. 5. Water Shut Offs The City reserves the right to shut off water service to properties in situations where special assessment isn't practical or possible. Brooklyn Center Ordinance 4-202 provides that water service may upon reasonable notice be discontinued for nonpayment of individual accounts or for disregard of duly established rules and regulations pertaining to the operations of the water distribution system. The following is the procedure to be followed when it is necessary to discontinue water service to any customer. Appropriate procedures for various circumstances of a water shut-off shall be as follows: A. For public utility accounts in arrears, or when a closing bill is more than 30 days overdue; for non-payment of the account by a property which is tax exempt and doesn't pay property taxes; or for non-payment of the account by a property which is in another city and that city doesn't cooperate with a request to special assess the delinquent account: 1. A "Final Notice" letter is sent to each delinquent account unpaid 56 days .after the date of billing. This notice informs customers that they have 11 days to select one of the following three options for handling their account. a. Deliver payment in full to the City. City of Brooklyn Center 08/14/06 Page 240 SECTION II- GENERAL POLICIES City Council Code of Policies b. Sign and return a payment agreement to the City. A minimum acceptable agreement includes a partial payment of at least 1/4 of the total amount due paid within 14 days, and the full payment within 30 days of the date of the final notice. If that payment agreement is not met,the property will be red tagged. C. Provide a written letter to the* City requesting an administrative hearing before the City Council at their next regularly scheduled meeting. At this meeting, the customer must show cause as to why the City Council should remove their name and account from the list of accounts for which service is to be discontinued. The City Council may either sustain the requirement for payment, modify the required terms of payment, or order staff to take such actions as it deems are necessary. If no written request is received, it is assumed the customer waives the right to a hearing. 2. On the 70th day, a "red tag" is delivered to properties where the account remains unpaid, a payment agreement has not been made or isn't being adhered to, and where no request for a hearing has been made. This notice informs customers that payment is due within five days or water will be immediately shut off. ( 3. Once service has been shut off for non-payment, the entire balance due and a restoration of service fee must be paid prior to service being turned on. The restoration of service fees will be established in the adopted rate schedule and will include a fee for restoration during normal business hours and a higher fee for restoration when workers must be called back on overtime. B. For a customer who short-circuits the special assessment process by paying the balance on the account with a check, then the check is returned to the City for non-sufficient funds or account closed after a critical step in the assessment process has been missed: 1. A "Final Notice" letter is sent to each delinquent account immediately upon receipt of the returned check from the bank. The established fee for processing a returned check shall be added to the account. This notice informs customers that they have 11 days to select one of the following three options for handling their account. a. Deliver payment in full of the total amount which was to be assessed plus the fee for a returned check to the City. b. Sign and return a payment agreement to the City. A minimum j acceptable agreement includes a partial payment of at least 1/4 of the total amount which was to be assessed plus the fee for a returned check, paid within 14 days, and full payment within 30 City of Brooklyn Center 08/14/06 Page 241 SECTION II- GENERAL POLICIES City Council Code of Policies ( days of the date of the final notice. If that payment agreement is not met, the property will be red tagged. C. Provide a written letter to the City requesting an.administrative hearing before the City Council at their next regularly scheduled meeting. At this meeting, the customer must show cause as to why the City Council should remove their name and account from the Est of accounts for which service is to be discontinued. The City Council may either sustain the requirement for payment, modify the required terms of payment, or order staff to take such actions as it deems are necessary. If no written request is received, it is assumed the customer waives the right to a hearing. 2. Two weeks after the date of the Final Notice letter, a."red tag"is delivered to properties where the account remains unpaid, a payment agreement has not been made or isn't being adhered to, and where no request for a hearing has been made. This notice informs customers that payment is due within five days or water will be immediately shut off. 3. Once service has been shut off for non-payment, the entire balance due and a restoration of service fee must be paid prior to service being turned on. The restoration of service•fees will be established in the adopted rate ( schedule and will include a fee for restoration during normal business hours and a higher fee for restoration when workers must be called back on overtime. C. For a customer who refuses to submit a meter reading for four quarters or refuses to allow the City access to a property for maintenance of a meter as provided in City Ordinances, Chapter 4, Section 201, Subdivision 6. 1. After the City has contacted the owner through normal business channels and the owner has refused to provide a meter reading or allow access to a property for required maintenance, a "Final Notice" letter is sent to the owner and to the service address, if different. This notice reproduces the legal authority establishing the City's need for access, describes the work to be performed, and informs customers that they have two weeks to make arrangements with the City to afford access to the property. 2. Two weeks after the date of the Final Notice letter, a"red tag" is delivered to properties where the meter reading or access have been denied. This. notice informs customers that access is required within five days or water will be immediately shut off. 3. Once service has been shut off for denial of a meter reading or access, the meter reading or access must be allowed and a restoration of service fee must be paid prior to service being turned on. The restoration of service fees will be established in the adopted rate schedule and will include a fee City of Brooklyn Center 08/14/06 Page 242 SECTION II- GENERAL POLICIES City Council Code of Policies for restoration during normal business adopted rate schedule and will include a fee for restoration during normal business hours and a higher fee for restoration when workers must be called back on overtime. D. For a property owner making a request for the City to shut off water service: 1. The property owner must complete and sign a City form requesting and authorizing the shut-off or provide an equivalent written request. Billing for water, sanitary sewer, storm drainage, street light service district, and recycling program will continue; a. at the minimum rates designated in the City's utility rate schedule while the water is shut off for a period-of one month or more; or b. at the regularly scheduled rates when water is shut off for less than one month. 2. Once service has been shut off at the owner's request, a restoration of service fee must be paid prior to service being turned on. The restoration of service fees will be established in the adopted rate schedule and will include a fee for restoration during normal business hours and a higher fee for restoration when workers must be called back on overtime. E. Cold Weather Rule The City of Brooklyn Center will not shut off water service between October 15 and April 15 if the shut off would affect the primary heat source of a customer. Customers must contact the utility billing staff and explain how the cold weather rule applies to them. Reference: City Council Resolution Nos. 2008-29;2000-55; 98-180; 97-86; 96-212; 93-13 l City of Brooklyn Center 03/10/08 Page 243 SECTION H- GENERAL POLICIES City Council Code of Policies 2.31 Policy Regarding the Sanitary Sewer Rate for the Elderly The City Council finds it in the best interest of the City to establish a sanitary sewer rate for the elderly as follows: 1. The rate is available to properties being billed residential sanitary sewer rates and where the head of household or spouse has attained the age of 62 years or older and a maximum of 2 persons permanently reside there. 2. The maximum of 2 persons in the residence may be exceeded by any additional persons who are at least 62 years of age or who are disabled. 3. Residents of owner-occupied homes applying for this program shall complete an application provided by the City once when entering the program and agree to notify the City of any changes in their household which might change their eligibility for the program. 4. Landlords of rental properties may apply for this program on behalf of their senior renters by annually completing an application provided by the City, agreeing that the benefit of the reduced rate shall flow through to the renter, and agreeing to notify the City of any changes in the rental of the property or the renter's household which might change their eligibility for the program. 5. Falsification of information submitted on the application or failure to notify the City of changes in eligibility shall constitute a violation of Chapter 4 of the City Ordinances and may be prosecuted according to Section 4-501 of Chapter 4 of the City Ordinances. 6. The sanitary sewer rate for the elderly shall be equal to 55% of the rate established annually for single-family homes. Reference: City Council Resolution Nos. 97-215; 86-155; 83-124 City of Brooklyn Center 08/14/06 Page 244 i SECTION II- GENERAL POLICIES City Council Code of Policies 2.32 Water Utility Meter Reading Policy Brooklyn Center Ordinance 4-105 requires that all water utility customers read their meters and provide those readings to the Utilities Division. Section 4-202 sates that water service may be discontinued to any property for disregard of duly established rules and regulations. The following is the policy regarding meter reading: 1. Residential Properties: A meter reading is due 18 days after the date of mailing meter reading cards. 2. Non-Residential Properties: Public Utilities Division_employees read non-residential property meters each quarter. 3. If a meter reading is not provided and the meter reading must be estimated, then a delinquent meter reading penalty shall be assessed to the customer on the next utility bill. Meter reading penalties are established annually with the utilities rate schedules. 4. Residential Properties: If after four consecutive quarters the customer has not submitted a meter reading, the Public Utilities Division shall notify the customer that they have 14 days to schedule an appointment for meter reading. Such notice shall also inform the customer that they have a right to.demand a hearing before a hearing officer designated by the City Manager to show cause as to why their water should not be shut off. The demand must be made in writing to the City Clerk within 10 days. If no written demand is received within that time period, then it is assumed the customer waives the right to a hearing. 5. Non-Residential Properties: If after two consecutive quarters the Public Utilities Division has not been able to read a meter, the customer shall be notified that they have . 14 days to schedule an appointment for meter reading. Such notice shall also inform the customer that they have a right to demand a hearing before a hearing officer designated by the.City Manager to show cause as to why their water should not be shut off. The demand must be made in writing to the City Clerk within 10 days. -If no written demand is received within that time period, then it is assumed the customer waives the right to a hearing. 6. Following the show cause hearing, the hearing officer shall make findings and recommendation to the City Manager,whose determination shall be enforced. 7. If by the end of the 14-day period the customer refuses to schedule an appointment or if the Public Utilities Division is unable to otherwise gain access to the building or obtain a reading, and if the customer has not demanded a public hearing, then the water shall be turned off immediately. Reference: City Council Resolution Nos. 2007-78; 93-63 1 City of Brooklyn Center 05/14/07 Page 245