HomeMy WebLinkAbout2011 07-21 FCA AGENDA
Brooklyn Center Financial Commission
Thursday, July 21, 2011 — 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. May 19, 2011
IV. Review of Information on Account Collections
V. Review of Commission Attendance Information
VI. Update on Prior Issues
a. RFP for Insurance Agent
b. RFP for Financial Advisor
VII. Other Business
a. Joint Meeting with City Council on August 3, 2011
b. Joint Meeting with City Council on August 15, 2011
c. Joint Meeting with City Council on August 29, 2011
d. Other Commission Business
VIII. Adjournment
Financial Commission
Regular Meeting Minutes
19 May 2011
1. Call to Order
The meeting was called to order by Newman at 7:42 PM
Members Present: Commissioners Newman, Landis, Schueller and Agbssou.
Members Absent: Berglin and Plunkett. Council Member Roche was absent. Staff
present was Director of Fiscal & Support Services Jordet.
2. Adoption of the Agenda
Without objections, the Agenda was declared adopted as presented.
3. Minutes
Mr. Schueller moved adoption of the minutes from the 17 March 2011 meeting. Mr.
Landis seconded the motion. With all present voting in favor of the motion the
Minutes for the 17 March 2011 meeting were declared adopted as presented.
4. Review of RFP for Financial Advisor
Mr. Jordet explained the policy requirements for RFP's being issued on a regular
basis. He then reviewed the RFP for Financial Advisory Services specifically and
explained the process as it will involve the Financial Commission.
Mr. Landis moved that the RFP for Financial Services be recommended to the City
Council. Mr. Schueller seconded the motion. With all present voting in favor, the
motion was adopted.
5. Update on Prior Issues
Mr. Jordet informed the Commission that the City Council had received its
memorandum about the use of State revenue and had accepted it with appreciation.
Mr. Jordet informed the Commission that the RFP's for Insurance of Record had
been distributed and that several firms had expressed interest in submitting
proposals.
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6. Other Business
The question of Commission member attendance was raised. In the enabling
resolution for the Commission, adopted by the Council in 1991 and revised through
1999, a section labeled Resignations-Removal from Office states that a
Commissioner may resign voluntarily, or will be considered to have automatically
resigned after three consecutive unexcused absences or unexcused absences from a
majority of Commission Meetings within one year. Mr. Jordet was asked to tally the
attendance record for the Commission from 1 January 2010 to the present and
report to the next Commission meeting.
No other business was brought before the Commission.
7. Adjournment
With no other business to transact, the meeting was adjourned at 8:08 PM.
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Memorandum
Date: 18 July 2011
To: Financial Commission
From: Daniel Jordet, Director of Fiscal & Support Services
Re: Utility Account Collections Discussion
Attached are the minutes from the last meeting at which this topic was
discussed. Finance staff is finishing assembly of some of the items discussed so
that they may be considered in the discussion.
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MMIC
Financial Commission
Regular Meeting Minutes
21 July 2011
1. Call to Order
The meeting was called to order by Newman at 7:03 PM
Members Present: Commissioners Newman, Landis, Plunkett and Agbssou.
Members Absent: Schueller (excused), Van Der Werf (excused), and Berglin
(unexcused). Council Member Roche was present. Staff present was Director of
Fiscal & Support Services Jordet.
2. Adoption of the Agenda
Without objections, the Agenda was declared adopted as presented.
3. Minutes
Mr. Landis moved adoption of the minutes from the 19 May 2011 meeting. Ms.
Plunkett seconded the motion. With all present voting in favor of the motion the
Minutes for the 19 May 2011 meeting were declared adopted as presented.
4. Review of Information on Acccount Collections
Mr. Jordet reviewed the prior conversation about billings and collections and
distributed some additional material about comparison cities. Additional points of
discussion included reporting of payment status to consumer credit rating agencies,
preprinting payment terms and consequences on the back of billing forms,
assessment of unpaid bills with interest, marking on envelopes that the envelope
includes the utility bill, skipping the first letter in the assessment process, and a
range of write off options ranging from any final bills to no write offs at all. It was
decided that the Commission would follow the same procedure as used for the
Council request on LGA and review a draft memorandum of response to the City
Council at its next meeting.
5. Commission Attendance Information
Mr. Jordet Reviewed the Financial Commission attendance record compiled for
meetings in 2010 and 2011. It was noted that Mr. Berglin's unexcused absences
(four) exceeded the number specified in the enabling resolution (three consecutive)
that constitute an automatic resignation from the Commission. As per the enabling
resolution, Mr. Roche will inform the City Council of the resignation.
6. Update on Prior Issues
RFP's for Insurance Agent of Record were reviewed, interviews conducted with two
of the five proposers, references checked on those two firms, and a
recommendation developed. On Monday, 25 July 2011, the City Council will
consider a resolution appointing Northern Capital Insurance Group as agent of
record for the City.
RFP's for Financial Services Advisor were distributed and all firms receiving the RFP
(four) indicated that they will respond.
7. Other Business
Mr. Newman brought attention to the calendar of upcoming meeting with the City
Council to consider the 2012 budget.
No other business was brought before the Commission.
7. Adjournment
With no other business to transact, the meeting was adjourned at 7:45 PM.
A3r
Financial Commission
Regular Meeting Minutes
20 September 2010
1. Call to Order
The meeting was called to order at 6:33 PM by Mr. Newman.
Members Present: Commissioners, Newman, Landis, Plunkett, Agbossou and Schueller and
Council Member Ryan. Staff present were City Manger Boganey and Director of Fiscal &
Support Services Jordet.
2. Agenda
Mr. Landis moved adoption of the Agenda. Mr. Agbossou seconded the motion. With all
voting in favor, the Agenda was adopted
3. Introductions and Materials
Ms. Plunkett and Mr. Agbossou were introduced as the most recent Commission appointees.
4. City Financial.Condition
Mr. Jordet briefly reviewed the status of the 2010 budget as of 30 August 2010,
5. 2011 Budget Status.
Mr. Jordet reviewed the City Council actions on preliminary budget and preliminary tax levy
adoption. He also reviewed the remaining joint work session schedule and topics for
completion of the 2011 budget process.
6. Discussion of City Billing and Collections Practices
The City Council has asked that the Financial Commission review the collection of utility
accounts in order to discover whether there is a way to reduce the number and amount of
delinquent utility bills that must be assessed. Questions about the process included what
the current process is (explained by Mr. Jordet, what other cities do (suggestion that staff
check with the"comparison cities', what results do cities who bill on a monthly basis rather
than a quarterly basis get, what is the cost to the City for collections outside the regular
payment process, and what percentage of the utilities that are assessed are actually
collected? Several potential actions were discussed, including monthly billing, monthly
payment plans, credit card payments, ACH pa_ yments, an early pay discount, raising the
penalties for late payment, raising the fees for assessment of utility bills.There were other
questions about the demographics of the owners of properties that are assessed for non-
payment of utility bills. Staff will pursue responses to these questions and develop a report
to be delivered to the Financial Commission during the first quarter of 2011.
8. Adjournment
With no other business to transact, the meeting was adjourned at 8:12 PM.
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Memorandum
Date: 18 July 2011
To: Financial Commission
From: Daniel Jordet, Director of Fiscal & Support Services
Re: Commission Attendance
At the 19 May 2011 regular meeting of the Financial Commission staff was asked
to assemble the attendance record for members from 2010 and 2011. That
record is attached.
Also attached is a copy of the City Council resolution governing the formation
and operation of the Financial Commission. On the third page of that resolution
I have bracketed the information about attendance requirements and sanctions.
This item has been placed on the agenda for the 19 July 2011 regular meeting.
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City of Brooklyn Center'
Financial Commission Attendance Tally
2010 Calendar Year
Meeting
Dates Type Newman Shogren-Smith Berglin Schueller Landis Agbossou Plunkett
3/30/2010 Regular X X X X X - -
6/7/2010 Regular X X X X X - -
6/2112010 Joint w/Council X X X X X - -
7/19/2010 Joint w/Council X X E X E - -
8/4/2010 Joint w/Council X E U X X - -
8/16/2010 Joint w/Council X E X X E - -
appointed 8123110
8/30/2010 Joint w/Council X X U E E - X
appointed 9113110
9/20/2010 Regular X E U X X X X
11/1/2010 Joint w/Council X X U X X X X °-
2011 Calendar Year
1/20/2011 Regular X U E X X X U
3/17/2011 Regular X U U X X X X
5/19/2011 Regular X resigned U X X X E
6/6/2011 Joint w/Council X - U X X X U
X =Present !�
E =Absent/Excused
U =Absent/Unexcused
RESOLUTION NO. 91-115
RESOLUTION NO. 92-99
RESOLUTION NO. 92-168
RESOLUTION NO. 95-78
RESOLUTION NO. 98-13
RESOLUTION NO. 99-110
RESOLUTION ESTABLISHING A BROOKLYN CENTER FINANCIAL
COMMISSION AND DEFRRNG DUTIES AND RESPONSIBILITIES
WHEREAS,the Brooklyn Center City Council established by Resolution Nos.91-115
and 92-99 an ad hoc task force for the express purpose of reviewing the fiscal impacts of State of
Minnesota budgetary problems on Brooklyn Center and assisting the City Council in formulating
priorities and responses to a limited fiscal resource situation; and
WHEREAS, on June 22, 1992,the ad hoc City Financial Task Force presented to the
City Council a report entitled "General Fund Budget Prioritization Process"which was accepted by
the City Council; and
WHEREAS, there is an ongoing need to formulate priorities and responses to
continuing limited fiscal resources.
NOW,THEREFORE,BE IT RESOLVED by the Brooklyn Center City Council that
there is hereby established within the City of Brooklyn Center an advisory Financial Commission as
follows:
Subdivision 1. TITLE: This organization shall be known as the Brooklyn Center
Financial Commission.
Subdivision 2. SCOPE: The scope of activity of this Commission shall consist of
advising the City Council regarding matters relevant to the City's financial status.
Subdivision 3. PURPOSE: The Commission shall serve as an advisory body to assist
the City. Council in evaluating and developing fiscal policies, fiscal procedures,
Mayor and Council Member total compensation,budgetary and capital matters, and
such other issues as may be assigned to the Commission by the City Council or
referred to it by the City Manager. The Commission may also identify and
recommend to the City Council issues and matters for Commission and/or staff
review.
Subdivision 4. COMPOSITION: The Commission shall be composed of a
chairperson and six (6) members, all of whom shall be appointed and serve as set
forth in Subdivision 5.
Subdivision S. MEMBERS METHOD OF SELECTION-TERM OF OFFICE-
REMOVAL:
Chairperson: The Chairperson shall be elected by majority vote of the Financial
Commission membership. The election shall be conducted at the Financial
Commission's first regular meeting of the calendar year, or in the case of a vacancy,
within two regularly scheduled Financial Commission meetings from the time a
vacancy of the chair occurs. The Chairperson may be removed by majority vote of
the Financial Commission membership. The Chairperson shall assure fulfillment of
the following responsibilities in addition to those otherwise described herein:
1. Preside over meetings of the Commission;
2. Appear or appoint a representative to appear,as necessary,before the City
Council to present the viewpoint of the Commission in matters relevant
to the City's financial status as it relates to business under consideration
by the City Council;
3. Review all official minutes of the City Council and other advisory
commissions for the purpose of informing the Financial Commission of
matters relevant to city finances.
Vice Chairperson: A Vice Chairperson shall be appointed annually by the
Chairperson from the members of the Commission. The Vice Chairperson shall
perform such duties as may be assigned by the Chairperson and shall assume the
responsibilities of the chair in the absence of the Chairperson.
Members' Term of Office: Members of the Commission shall be appointed by the
Mayor with majority consent of the Council. The terms of office shall be staggered
three-year terms, except that any person appointed to fill a vacancy occurring prior to
the expiration of the term for which his or her predecessor was appointed shall be
appointed only for the remainder of such term. Upon expiration of his or her term of
office, a member shall continue to serve until his or her successor is appointed and
shall have qualified. Terms of office for members of the Commission shall expire on
December 31 of respective calendar years.
In the event an appointed Commissioner suffers from an extended illness, disability,
or other activity preventing proper fulfillment of duties, responsibilities, rules and
regulations of the Commission,the Commissioner maybe temporarily replaced by an
interim Commissioner appointed by the Mayor with majority consent of the City
Council.
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Oualifications for Membership: Members of the Commission shall be residents of
the City of Brooklyn Center while serving on the Commission and have an interest in
the financial operations of the City.
Representation Requirements: Members shall be appointed upon the basis of
qualification and interest and to reflect a general representation of the diversity of the
community.
Conflict of Interest: Commissioners shall comply with provisions of the City of
Brooklyn Center's business ethics policy.
Resignations-Removal from Office-Vacancies: Commissioners may _resign
voluntarily or may be removed from office by the Mayor with consent by majority
vote of the City Council. Three consecutive unexcused absences from the duly called
Commission meetings or unexcused absences from a majority of duly called
Commission meetings within one calendar year shall constitute automatic resignation
from office. The City Council liaison shall inform the Mayor and City Council of
such automatic resignations. Vacancies in the Commission shall be filled by Mayoral
appointment with majority consent of the City Council. The procedure for filling
Commission vacancies is as follows:
1. Notices of vacancies shall be posted for 30 days before any official City
Council action is taken;
2. Vacancies shall be announced in the City's official newspaper;
3. Notices of vacancies shall be sent to all members of standing advisory
commissions;
4. Applications for Commission membership must be obtained in the City
Clerk's office and must be submitted in writing to the City Clerk;
5. The City Clerk shall forward copies of the applications to the Mayor and
City Council;
6. The Mayor shall identify and include the nominee's application form in
the City Council agenda materials for the City Council meeting at.which
the nominee is presented;
7. The City Council, by majority vote, may approve an appointment at the
City Council meeting at which the nominee is presented.
Compensation: Commissioners shall serve without compensation.
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Subdivision 6. RULES AND PROCEDURES: The Commission shall adopt such
rules and procedures not inconsistent with these provisions as may be necessary for
the proper execution and conduct of business.
Subdivision 7. MEETINGS: The _initial meeting of the Commission shall be
convened at the call of the Chairperson within thirty(30) days after appointment by
the Council. Thereafter, regular meetings shall be held with date and time to be
determined by the Commission. Special meetings may be called by the Chairperson.
Subdivision 8. STAFF: The City Manager shall assign one member of the
administrative staff to serve as staff to the Commission. The staff member assigned
shall perform such clerical and research duties on behalf of the Commission as may
be assigned the City Manager.
Subdivision 9. EX OFFICIO MEMBERS: The Mayor, or his or her City Council
designee, shall serve as an ex officio member of the Commission,privileged to speak
on any matter but without a vote, and shall provide a liaison between the
Commission and the City Council.
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2012 Budget Calendar
(all meeting dates are in 2011 unless otherwise noted)
ON Council Meeting Schedule
2012 Budget
(revised)
August 3 (Wed) 6:30 PM Tax Base, Tax Levy and Revenue Issues
August 15 6:30 PM Capital Improvements Plan
Capital Project Funds
August 29 6:30 PM Governmental Funds and Tax Levy
(General Fund, Grant Funds, TIF Funds, Debt
Service Funds) including staffing implications
September 6 (Tue) 6:30 PM Governmental Funds and Tax Levy
(General Fund, Grant Funds, TIF Funds, Debt
Service Funds) including staffing implications
September 12 7:00 PM Adopt Preliminary 2012 Tax Levy and Budget
October 17 6:30 PM Utility Funds and Rates
November 7 6:30 PM Enterprise and Internal Service Funds
November 28 7:00 PM Adopt Utility Rates for 2012
Adopt Pay Plan/Cafeteria Contribution for 2012
December 5 7:00 PM 2012 Budget and Taxation Presentation and
Hearing
December 12 7:00 PM Adopt Final 2012 Tax Levy
Adopt Final 2012 Budgets
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BROOKLYN CENTER FINANCIAL COMMISSION
Chairperson and six members
(revised July 2011)
Rex Newman Steve Landis
3107 61st Avenue North 7118 Grimes Avenue North
Brooklyn Center, MN 55429 Brooklyn Center, MN 55429
RexNewman @comcast.net landis.steve @gmail.com
(763) 561-2760 (h); (763) 391-4921 (w) (763) 503-7899
Appointed: 1/8/2007 Appointed: 2/10/2010
Term expires: 12/31/2011 Term Expires: 12/31/2012
Philip Berglin Teneshia Plunkett
601 Bellvue Avenue 5906 Vincent Avenue North
Brooklyn Center, MN 5430 Brooklyn Center, MN 55430
pberglin@gladiusbar.com tplunkett@ymaii.com
(763) 549-5542 (h); (763) 862-7300 (w) (763) 412-7248 (c)
Appointed: 4/23/2007 Appointed: 8/23/2010
Term expires: 12/31/2013 Term Expires: 12/31/2011
Dan Schueller Koffi Agbossou
5937 Emerson Avenue North 1300 67th Avenue North
Brooklyn Center, MN 55430 Brooklyn Center, MN 55430
dschue5 @yahoo.com ezekiel5@hotmail.fr
(763) 566-6417 (763) 291-8295
Appointed: 1/11/2010 Appointed: 9/13/2010
Term Expires: 12/31/2011 Term Expires: 12/31/2013
Dean Van Der Werf
6736 Regent Avenue North
Brooklyn Center, MN 55429
derwerf @comcast.net
(763) 561-0146 (h); (612) 386-8395 (c)
Appointed: 7/11/2011
Term Expires: 12/31/2012
2011 City Council Liaison: Tim Roche
(v) (763) 569-3447
councilmemberroche @ci.brooklyn-center.mn.us
City Manager: Curt Boganey
(w) (763) 569-3303
cboganey @ ci.brooklyn-center.mn.us
Director of Fiscal & Support Services: Daniel Jordet
(w) (763) 569-3345
djordet @ ci.brooklyn-center.mn.us
[July 18, 2011]
Comparative Utility Billing Practices
Late
Billing Assessment Assessment Payment Account
Frequency Frequency Fee Penalty Write-Offs
Richfield Q Annual $ 50.00 10% No
Roseville Q Quarterly $ - 10% No - City Attorney opinion to assess ALL
Fridley Q Annual $ - 10% Rarely
Shoreview Q Annual $ - 10% Rarely - new owner (few foreclosures)
Golden Valley Q Annual $ 30.00 10% Under $ 10.00
Brooklyn Center Q Semi/Annual $ 30.00 10% Under $ 25.00
7/21/2011
Memorandum
Date: 1 March 2010
To: Curt Boganey
City Manager
From: Daniel Jordet
Director of Fiscal & Support Services
Re: Certification of Delinquent Utility Bills
Each spring and fall, the City of Brooklyn Center certifies delinquent utility bills to
Hennepin County for collection as part of the ensuing year's property tax bill.
This process starts with a letter to the customer notifying them that their
account is past due and that the amount will be certified against their property
taxes. This first letter details the process and the legal authority for certification.
Customers are given the opportunity to pay their outstanding bill without
additional penalty prior to this certification.
Some customers respond to this letter and pay their bills. Some do not. Those
that do not receive a second letter indicating that their account will be certified
for collection with property taxes following a public hearing. The date, time and
location for the public hearing are included in this notice. Again, some
customers will pay their account balances after receipt of this letter while some
do not.
Over the past few years the numbers of customers and the dollar amounts in
question have been as follows:
Number of Accounts
2007 2008 2009 2010
Spring Fall Spring Fall Spring Fall Spring Fall
1st Letter 1,231 1,372 1,462 1,470 1,417 1,254 1,282
2nd Letter 756 802 960 965 985 810 859
Final Assessment 604 662 794 838 779 638 684
Dollar Values
2007 2008 2009 2010
Sprinq Fall Spring Fall Spring Fall Spring Fall
1 st Letter 329,512.91 353,887.75 349,170.57 415,146.42 394,132.56 329,126.75 346,266.22
2nd Letter 260,158.91 231,049.14 294,841,65 307,484.82 329,763.77 255,163.81 273,254.88
=inal Assessment 222,408,60 197,452.01 249,602.10 276,533.13 258,617.12 205,993.76 224,410.73
Memorandum
Date: 7 September 2010
To: Curt Boganey
City Manager
From: Daniel Jordet
Director of Fiscal & Support Services
Re: Certification of Delinquent Utility Bills
Each spring and fall, the City of Brooklyn Center certifies delinquent utility bills to
Hennepin County for collection as part of the ensuing year's property tax bill.
This process starts with a letter to the customer notifying them that their
account is past due and that the amount will be certified against their property
taxes. This first letter details the process and the legal authority for certification.
Customers are given the opportunity to pay their outstanding bill without
additional penalty prior to this certification.
Some customers respond to this letter and pay their bills. Some do not. Those
that do not pay receive a second letter indicating that their account will be
certified for collection with property taxes following a public hearing. The date,
time and location for the public hearing are included in this notice. Again, some
customers will pay their account balances after receipt of this letter while some
do not. Those that do not pay after the second letter are included in the final
assessment roll.
The numbers of customers and the dollar amounts in question are as follows:
Number of Accounts
2010
Sprinq Fa II
1st Letter 1,282 1,284
2nd Letter 859 789
Final Assessment 684
Dollar Values
2010
Sprinq Fa II
1st Letter $ 346,266.22 $ 311,366.26
2nd Letter $ 273,254.88 $ 240,384.76
Final Assessment $ 224,410.73