HomeMy WebLinkAbout2012 08-20 CCP Joint Session with Financial Commission AGENDA
CITY COUNCIL/FINANCIAL COMMISSION JOINT WORK SESSION
Monday, August 20, 2012
6:30 p.m.
City Hall—City Council Chambers
L Call to Order
II. 2013 Budget Priorities
III. General Fund Levy
a. Preliminary Budget Impact
b. Property Tax Payer Impact
IV. Proposed Levy Maximum
V. Adjournment
MEMORANDUM - COUNCIL WORK SESSION
DATE: 17 August 2012
TO: Curt Boganey, City Manager
FROM: Daniel 7ordet, Director of Finan
SUBJECT: 2013 General Fund and Prope ax Levy
Recommendation:
It is recommended that the City Council consider providing direction to staff regarding budget
priorities and a maximum property tax levy for the 2013 General Fund budget.
Background:
During the past three months staff has been assembling revenue and expenditure information for
the 2013 and 2014 operating budget for the General Fund. The initial assembly of information
showed a deficit gap between revenues and expenditures of$ 1,414,577. The initial information
did not include any increase in the property tax levy for 2013. This evening the process will be
to discuss Council budget priorities, provide an overview of the General Fund budget for 2013
and to suggest the expected result of changes to the levy.
The large assumptions in the first draft of the budget included:
• a 3%increase in the base wage for employees;
• use of 50%of the legislatively allotted LGA for 2013;
• reductions in fee revenue for Building and Community Standards function of 14.3%;
• reduction of recreation program revenues of 13.22%;
• a contingency set aside of$ 200,000.
Some of the other changes from 2012 to 2013 include:
• inclusion of$ 50,000 for the Brooklyn Bridge youth program;
• expiration of the Auto Theft Grant funding police personnel and discontinuing the
position;
• adjusting vehicle replacement funding contributions;
• additional help in the Assessing division as the result of tax court appeal representation
needs;
• an increase of 5%in legal fees for criminal and civil representation;
• an additional engineering employee in Public Works;
• new intern funding in the City Manager's and Finance offices;
• additional funds for landscaping and building repairs for General Buildings;
• replacement of an emergency siren;
• inclusion of funding for operation of the Youth Recreation Center at BC High School;
• additional capital equipment in Public Works Engineering;
• a number of adjustments for supplies,training,computer replacements.
Mission:E'nsurhtky an attractive,chart,safe,inclusive community that enhances the quality of life
for all people anal preserves the public trust
MEMORANDUM - COUNCIL WORK SESSION
As of this date, a few changes have been initiated to the first draft of the budget to reduce the
deficit gap. These include the following:
• establish the increase in base wages at 2% saving $ 95,000;
• additional $ 150,000 of CDBG funding revenue for Building and Community Standards
operations;
• adjustment of vehicle replacement charges representing a 5% annual increase in funding
for each of the three largest divisions saving $ 174,464;
• mid-year elimination by attrition of the auto theft grant officer whose grant funding
expires mid-year saving $ 34,000;
• other reductions of equipment and allocations totaling$ 50,000.
Applying these reductions to the first draft budget deficit gap leaves a deficit gap of about
$ 910,000. Several additional solutions may be considered to further narrowing this gap to zero
and producing a balanced budget with minimal impact on programs and service levels.
• elimination of the $ 200,000 contingency allocation;
• elimination of base wage increases eliminates about$ 180,000 in expenses;
• elimination of new position requests eliminates about$ 100,000 in expenses;
• use of the entire allotment of LGA in the budget planning adds $ 205,000 in revenue;
• reductions in spending for services provided by General Fund divisions by an additional
$ 225,000.
If the Council is willing to increase the property tax levy for 2013 some or all of the above steps
become unnecessary. The attached Exhibit 1 shows possible property tax levy scenarios and the
resulting increases in the overall property tax levy in dollar and percentage terms. Levy increases
in these examples range from 6.25% if property tax covers the entire $ 910.000 gap to 2.28% if
property taxes are levied at $ 335,000 additional dollars for 2013. Each of these scenarios will
be described and discussed at the August 20, 2012 joint work session of the City Council and
Financial Commission.
An important question to be answered in discussions on the level of property tax for 2013 is what
the impact will be on taxpayers if property taxes are raised by the various proposed scenarios.
Impact models will be developed and distributed for discussion prior to the August 20, 2012
meeting.
At the end of that meeting, staff hopes to receive direction from the Council on the appropriate
level of property tax for 2013. Using this guidance, staff will prepare the documents for
adoption of both a preliminary property tax levy and a preliminary General Fund budget by the
City Council on September 10,2012.
Council Goals:
Strategic:
1. We will proceed aggressively with implementation of City's redevelopment plans
2' We will stabilize and improve residential neighborhoods
3. We will ensure a safe and secure community
Missioan.Ensuring;an attractive,clean,safe,inclusive community that enhancers the quali(v of life
fir all people axd preserves the public trust
MEMORANDUM - COUNCIL WORK SESSION
4. We will improve the city's image
5. We will value and benefit from the community's demographic makeup and cultural
diversity
6. We will increase the engagement of all segments of the community
7. We will continue to maintain the city's infrastructure improvements
8. We will encourage citywide environmental sustainability efforts
Ongoing:
1. We will provide streamlined, cost effective, quality services with limited resources
2. We will ensure the financial stability of the City
3. We will move toward maintaining or lowering the level of the City's property taxes
4. We will ensure the city's influence at the legislature
5. We will ensure the City drinking water is high quality and that the storm water is
properly managed
Mission.Ensurin;an attractive,clean,safe,inclusive community that enhances the quality of fife
for all people and preserves lite public trust
EXHIBIT I
City of Brooklyn Center
Pay 2013 Property Tax Levy Alternatives
as of 16 August 2012
A 8 C D E F G H
Levied 7T777Uvied Levied Zero Levy Increase l Cover Entire Gap Eliminate Wage Incr. Use all LGA Eliminate Contingency
Pay Pay Pay Pay Pay Pay Pay Pay
2010 2011 2012 2013 2013 2013 2013 2013
1 General Property Tax Levy 6,684,916, 6,766,374 1 13,070,243 13,070,243 1 13,970,243 13,790,243 1 13,585,243 1 13,385,243
2 Police&Fire Levy: 5,122,581 5,173,806
3 Fire Relief Association Pension 65,945 40,000 12,711 12,711
12,711 12,711 11 12,711 1 12,711
. 4 Foreclosure Levy: 125,000 125,000 125,000 125,000 125,000 1 125,000 1 125,000 1 125,000
5 2008 LGA Unallotment: 42,100
6 2009 LGA Unallotment: 463,502
7 2010 LGA Unallotment 296,139
9 2010 Supplemental Cuts
504,022
Improvement Bond Levy
10 Abatement Embassy Suites - - 41, 41,644 41,644
644 41,644 i 41,644
11 2004A Bonds Levy.- 715,183 695,632 708,581 711,725 711,725 711,725 711,725 711,725
12 HRA Levy.• 349,745 310,831 i 302,288 246,160 246,160 246,160 1 246,160 1 246,160
13 TOTAL LEVY 13,568,972 13,911,803 14,218,823 14,207,483
15,107,483 14,927,483 14,722,483 14,522,483
14 General Fund Portion 12,504,044 12,905,340 13,207,954 13,207,954 14,107,954 13,927,954 13,722,954 13,522,954
15 General Fund Portion Change 700,028 401,296 302,614
900,000 i 720,000 515,000 315,000
16 Percentage 5.9% 3.2% 2.3% 0.0% 6.8% 5.5% 3.9% 2.4%
17 Total Dollar Increase 675,764 342,831 307,020 (11,340) 888,660 1 708,660 503,660 303,660
18 Total%Increase 5.29/q 2.53% 1: 2.21% (0.08%) 6.25% 4.98% 3.54% 2.14%
2013 tax levy worksheet
Strategic Plan Brooklyn Center
Ongoing Goals
1. We will provide streamlined, cost effective quality services with
limited resources
2. We will ensure the financial stability of the City
3. We will move toward maintaining or lowering the level of the City's
Property taxes
4. We will ensure the city's influence at the legislature
5. We will ensure the City drinking water is high quality and that the
storm water and sanitary system is properly managed
Strategic Goals
1. We will aggressively proceed with implementation of City's
redevelopment plans
2. We will stabilize and Improve residential neighborhoods
3. We will ensure a safe and secure community
4. We will Improve the image of the City with citizens and those outside
of the City's borders
5. We will value and benefit from the community's demographic makeup
and cultural diversity
6. We will increase the engagement of all segments of the community
7. We will continue to maintain and upgrade City infrastructure
improvements
8. We will encourage city wide environmental sustainability efforts
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Strategic Plan Brooklyn Center 1 2012
Desired Outcomes and Success Targets
0.G.1.We will continue to provide streamlined, cost effective quality services
with limited resources
The quality of service delivered by the City will consistently meet or
exceed customer expectations (d.o.1)
Success Targets
1. Customer surveys for City services delivered will reflect customer satisfaction from
not less than 90%of respondents
Service delivery will improve on an ongoing basis
Success Targets
1. Implementation and execution of continuous improvement program throughout all
departments
2. Qualification for Malcolm Baldridge or comparable quality improvement award.
3. Cost effectiveness performance benchmark comparisons from each department will
reflect upper quartile performance for each high priority benchmark measure
0.G.2. We will ensure the financial stability of the City
City funds will be protected against loss (d.o.1)
Success Targets
1. All City funds will be FDIC insured up to the legal maximum per account
2. Any funds in excess of the FDIC maximum in any one account will be properly
collateralized.
3. The City's investment portfolio will be diversified sous to minimize potential losses
on individual securities.
The City administration will provide meaningful short, intermediate and
long term fiscal planning (d.o.2)
Success Targets
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Strategic Plan Brooklyn Center
1. The operating budget document will provide annual and multi year operating plans.
2. Staff will annually provide life-cycle capital plans for all long-lived assets.
City will take appropriate actions to buffer essential services against the
effects of significant economic downturns (d.o.3)
Success Targets
1. Fund reserves as indicated by year end cash balance will be maintained at levels
allowing for short term funding of operations in emergency situations
2. Essential services as determined by the City Council will be funded from non-volatile
resources.
City will position itself for economic growth (d.o.4)
Success Targets
1. The City will keep current and adhere to the Comprehensive Plan
2. Capital Improvement Plans will reflect the intentions of the Comprehensive Plan
O.G.3.We will move toward maintaining or lowering the level of the
City's property taxes
Except in extraordinary circumstances the property tax levy will not
increase faster than the rate of inflation (d.o.1)
Success Targets
1. Property tax levy increases do not exceed the rate of inflation.
2. If the tax levy increase exceeds the rate of inflation a clear, extraordinary
circumstance is identified.
The City will expand the proportion of industrial and commercial tax
base to relieve the residential property tax burden (d.o.2)
Success Targets
1. The City commercial/industrial tax base increases at a rate faster than the residential
tax base.
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Strategic Plan Brooklyn Center 1 2012
The inflation adjusted property taxes paid by the median family
household will be stabilized or reduced over time (d.o.3)
Success Targets
1. The inflation adjusted city property taxes payable for the median valued single family home
will be equal to or less than the calculated city taxes payable for the prior year.
O.G.4.We will ensure the city's influence at the legislature
State and Federal legislators will be kept informed regarding City needs
that may be affected by legislation (d.o.1)
Success Targets
1. Annually, the City Council and Staff will assess legislative needs and communicate
directly with appropriate Local, State and Federal legislators
We will maintain positive ongoing relationships with Local,State and
Federal legislators (d.o.2)
Success Targets
1.- Legislative officials will address the City Council annually regarding their efforts on
behalf of our shared constituents.
2. Legislators will sponsor and support legislation on behalf of the City
O.G.S.We will ensure the City drinking water is high qualit and that
the storm water and sanitary system is properly managed
The City's drinking water will meet or exceed safe drinking water
standards of the State of Minnesota (d.o.1)
Success Targets
1. City will meet or exceed all safe drinking water standards.
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Strategic Plan Brooklyn Center
I-
2. The water supply will be protected against emerging and potential water contaminants.
Storm water runoff will be managed in an efficient and environmentally
sensitive manner (d.o.2)
Success Targets
1. City will implement and maintain all priority elements of the Brooklyn Center Local Water
Management Plan by 2012.
S.G.1.We will aapressively proceed with implementation of City's
redevelopment plans
Private redevelopment will expand and improve (d.o.1)
Success Targets
1. At least 50%of the privately owned residential vacant properties will be redeveloped 2016
adding to the adjusted for inflation taxable value of the City. Redevelopment of these properties
will commence by 2012.
2. At least 80%of privately owned vacant commercial properties will complete redevelopment
by 2016 adding to the adjusted for inflation taxable value of the City. Redevelopment of these
properties will commence by 2012.
3. At least 50%of the blightedjecono mica Ily obsolete commercial properties will be redeveloped
by 2016 adding to the adjusted for inflation City tax base. Redevelopment of these properties
will commence by 2012.
"Opportunity Site" redevelopment will commence (d.o.2)
Success Targets
1. 30%of the privately owned properties north and east of John Martin Drive will commence
redevelopment by 2016.
2. All of the privately owned properties north and east of John Martin Drive will complete
redevelopment by 2021 adding to the adjusted for inflation value of the City.
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Strategic Plan Brooklyn Center
3. At least 50%of EDA owned and privately owned properties located south and west of John
Martin Drive will commence and complete redevelopment by 2016 adding to the adjusted for
inflation taxable value of the City.
4. All EDA owned and privately owned properties located south and west of John Martin Drive will
commence and complete redevelopment by 2021 adding to the adjusted for inflation taxable
value of the City.
EDA owned properties redevelopment will proceed expeditiously(d.o.3)
Success Targets
1. At least 50%of the EDA properties owned (non-Opportunity Site)commercial properties will
commence redevelopment by 2012.
2. All EDA owned commercial property will have completed redevelopment by 2021 adding to the
adjusted for inflation taxable value of the City.
S.G.2.We will stabilize and Improve residential neighborhoods
Citizens will benefit from a diverse stock of housing types and styles
(d.o.1)
Success Targets
1. The number of home improvements and remodels will increase.
2. The value added home improvements will exceed $7,500 average valuation per permit
in each neighborhood (i.e. garage additions, bathrooms, bedrooms, 2"d stories, energy
efficiency) annually.
3. Housing and accommodations for seniors will be available for aging residents consistent
with the demand for housing by this demographic group.
4. There will be new housing construction to accommodate the needs of those seeking a
modern housing and move up housing choices
Owners and occupants of housing in residential neighborhoods will
comply with City codes and regulations which will be adequate to ensure
a safe well maintained and attractive community (d.o.2)
Success Targets
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Strategic Plan Brooklyn Center 1 2012
1. Of all residential properties inspected 90%will be in full compliance with property
maintenance codes (%violation types)
2. All residents surveyed are aware of, understand and support the enforcement of city
housing and neighborhood codes
Owner occupied housing will increase as a percentage of total housing
(d.o.3)
Success Targets
1. At least 95%of single family residential properties will be owner occupied.
2. At least 95 %of all new housing will be built for owner occupancy
Problems associated with foreclosures will be dramatically reduced or
eliminated (d.o.4)
Success Targets
1. 90%of qualified vacant properties will be registered and in compliance with the vacant
building ordinance.
2. All vacant properties will be in compliance with property maintenance codes.
Residential property values will improve and citizens will be proud of
their neighborhood and community (d.o.5)
Success Targets
1. By 2013 the average residential sales price will stop declining
2. By 2016 residential sales prices will increase at a rate equal to or greater than rate of
increase in comparable communities
3. All residential properties will be well maintained and landscaped
4. All residents surveyed will say they are proud of their neighborhood.
5. All residents surveyed will say they are proud of Brooklyn Center.
S.G.I We will ensure a safe and secure community
The threat and fear of real or perceived crime among citizens and others
will be greatly reduced (d.o.1)
Success Targets
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Strategic Plan Brooklyn Center
1. Reduce violent crime by 10%or more each year
2. Reduce property crime by 10%of more each year
Citizens will feel and be safe in their homes, areas of concern and
throughout the City. (d.o.2)
1. City survey results will reflect that all residents feel safe in their homes.
2. City survey results will reflect that all residents feel safe throughout the City. (No places deemed
unsafe)
3. City survey results will reflect that all residents feel safe walking alone at night in their
neighborhood
S.G.4.We will improve the image of the City with citizens and those outside of
the City's borders
Citizens and others throughout the State will recognize Brooklyn Center
as a safe, quality, attractive community in which to live, work, and play
(d.o.1)
Success Targets
1. The rate of property value increase in each property classification will equal or
exceed the average rate of increase in the Hennepin County and in the State.
2. Citizen Survey results will reflect the perception that Brooklyn Center is a safe,
quality, attractive place to live work and play.
3. Positive press regarding the City of Brooklyn Center will increase.
S.G.S.We will value and benefit from the community demographic
makeup and cultural diversity
All demographic groups will be represented and encouraged to
participate in civic, governmental, community organizations and
activities (d.o.1)
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Strategic Plan Brooklyn Center 1 20:12
Success Targets
1. Members of all communities will have equal access and representation in civic,
governmental, community organizations and activities
Youth will be adequately served by recreation and educational programs
and activities(d.o.2)
Success Targets
1. All youth desiring to will be productively engaged in recreational activities or
educational programs
2. Participation in community programs and activities will reflect the demographic
makeup of the community.
The social,health and housing needs of the aging and moderate income
population will be improved (d.o.3)
Success Targets
1. Service gaps in the social, health and housing needs of aging and moderate income
community members will be reduced and eliminated over time.
S.G.6.We will increase the engagement of all segments of the community
S.G.7.We will maintain and upgrade City infrastructure improvements
City government buildings, major equipment and other physical assets
of the City will be maintained and improved (d.o.1)
Success Targets
1. Meet or exceed the minimum maintenance condition standard for City facilities.
2. Customers provide positive feedback pertaining to City facilities(clean,attractive buildings).
3,. Maintain public access and availability to City park facilities and infrastructure.
4. Reduce graffiti occurrences and complaints.
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Strategic Plan Brooklyn Center
Neighborhood streets and utilities will be maintained and improved
(d.o.2)
Success Targets
1. Citizens rate reconstruction projects as meeting or exceeding expectations via surveys sent
_ to project area residents.
2. Using a pavement index rating system, meet or exceed the established acceptable roadway
rating standard.
3. Reduce potholes and roadway complaints.
4. Reduce sewer blockage and watermain breakage/complaints.
5. Complete the citywide street and utility reconstruction program by 2021.
The traveling public will benefit from multi-modal transportation
options fostered and provided by the City (d.o.3)
Success Targets
1. Minimize an increase to future traffic delays and congestion.
2. Minimize the amount of regional traffic flow on local streets.
3. Increase alternative modes of transportation used.
Citizens will benefit from the expansion and improvement of needed
technology infrastructure as viable options become available (d.o.4)
Success Targets
1. Reduce City government expenses through the application of technology.
2. Improve City services to the citizens through the application of technology.
3. Preserve environmental resources and conservation of energy through the application of
technology.
S.G.8.we will encourage city wide environmental sustainability efforts
Public appreciation of the environment will be enhanced and expanded
(d.o.1)
Success Targets
1. By 2013 all residents surveyed will understand the value of recycling and energy
conservation and at least 70%will have changed their behavior in order to conserve
environmental resources.
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Strategic Plan Brooklyn Center
2. By 2016 energy consumption in the City will be reduced significantly.
3. By 2016 City Government energy consumption will be reduced significantly.
The purchasing power of the City will support the goal of an
environmentally sustainable community (d.o.2)
Success Targets
1. The City will purchase recycled materials whenever costs are reasonable and quality
is acceptable.
2. The City will increase the share of purchased recycled materials by 10%annually
through 2016.
3. The City will eliminate the use of products,chemicals or compounds that pose a risk
to human health or to the environment whenever a viable cost effective alternative
is available.
4. The City will purchase environmentally friendly equipment and vehicles whenever
performance requirements and costs are comparable.
final.stratep,ic plan 07.01.12.draft
June 26, 2012
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