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HomeMy WebLinkAbout2013 09-09 CCM Work Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION SEPTEMBER 9, 2013 CITY HALL—COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Tim Willson at 9:20 p.m. ROLL CALL Mayor/President Tim Willson and Councilmembers/Commissioners Carol Kleven, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Interim Finance Director Greg Andrews, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building & Community Standards Vickie Schleuning, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. UNFUNDED CAPITAL PROJECTS City Manager Curt Boganey explained that at the last meeting, the City Council/EDA had prioritized projects. He explained how the projects were then ranked with the following net result: Project Points Amphitheater 15 2014 Capital Maintenance Building Plan 15 Street Reconstruction 15 Brooklyn Boulevard Corridor 10 Council Chambers Technology 9 2015-2025 Capital Maintenance Building Plan 8 Community Center Renovations 8 City Hall Renovations 7 Highway 252 Improvements 6 Doors/Windows Community Center/City Hall 4 Mr. Boganey stated the estimated funding needs were considered over the next eight years, as shown in Chart 1, with no specific costs identified for the four lowest priority projects. He stated Chart 2 identifies various sources of funding that are potentially available compared with the estimated costs. Mr. Boganey stated Chart 3, includes an estimate of uncommitted balances that would be available December 31, 2013, and can be used for a purpose the City Council/EDA deems appropriate. It is recommended the funds be used for a similar purpose for which the funds were originally collected. 09/09/13 -1- Mr. Boganey reviewed all estimated fund balances, noting it is estimated there will be $7.2 million available to fund needed projects. Mr. Boganey stated the demand for 2014 is $4.9 million, leaving a balance of $2,277,166 going forward. He noted the chart identifies and estimates using one-half of the LGA ($650,000) each year for the following three years, and keeping excess tax increment at $200,000 since it ends in 2021. Also included are cable fees at $26,000 per year. Mr. Boganey noted TIF District 43 is generating significantly more revenue than was earlier estimated and over the next three years, the City can use these amounts through a budget amendment for the Brooklyn Boulevard Project. Mr. Boganey stated the net result is that it will cash flow through 2020 assuming four years of LGA. Mr. Boganey indicated that should the bonds not be sold until 2014 (available in 2015), the projections identify that six years of LGA would then be needed to make it cash flow. He stated this analysis assumes a fund balance of $300,000 and the estimates for revenues are fairly conservative. Mr. Boganey stated if the City Council/EDA supports this process, he would recommend it adopt a City Policy to assure these funds are set aside for these specific purposes. Councilmember/Commissioner Ryan indicated his support for this option, noting this plan identifies needs (not wants) and outlines a roadmap for funding. Mayor/President Willson stated the current Legislature has authorized LGA through 2016 so he does not expect it will be received in 2017 but perhaps it can be made up during the three years prior. In addition, the City Council/EDA will need to be cautious about any un-allotment by the Legislature. Councilmember/Commissioner Kleven asked about the projection for a new water treatment plant. Mr. Boganey stated it was not included because if constructed, it will use Water Utility Funds. Councilmember/Commissioner Lawrence-Anderson asked for the definition of an Improvement Sinking Fund. Interim Finance Director Greg Andrews stated an Improvement Sinking Fund is a debt service fund to pay off bonds. The City collects taxes to pay the debt but is allowed by State Law to levy in excess of the bonds to cover taxes/assessments that are not paid. This has resulted in generating excess revenues. It is the City's practice that when the bonds are retired the surplus that may have accumulated is rolled off to the next maturing debt service fund. Councilmember/Commissioner Lawrence-Anderson stated she supports this proposal. Councilmember/Commissioner Ryan stated should LGA go away, it is not an unmanageable amount to make up. Mr. Boganey concurred, noting the estimates are conservative. Councilmember/Commissioner Myszkowski stated her support for this proposal and time put into reviewing this by the City Council/EDA and staff. She commented on a recent StarTribune article relating to increasing housing values and disappointment that it included a comment that Brooklyn Center's values are still pretty low. 09/09/13 -2- The majority consensus of the City Council/EDA was to support the funding proposal for capital projects and direct staff to prepare a resolution of approval for consideration at a future City Council meeting. Mr. Boganey asked if there was City Council/EDA support to consider revisions to the Community Center/City Hall. Councilmember/Commissioner Kleven stated support to consider renovations first to the Community Center. Councilmember/Commissioner Lawrence-Anderson stated support to first address the roof, wall, and amphitheater, and then prioritize the larger projects. The consideration of e ma�orrty consensus of the City Council/EDA was to support further con renovations to the City Hall/Community Center. ADJOURNMENT Councilmember/Commissioner Lawrence-Anderson moved and Councilmember/Commissioner Kleven seconded adjournment of the City Council/Economic Development Authority Work Session at 9:55 p.m. Motion passed unanimously. 09/09/13 -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 a Work Session of the City Council of the City of Brooklyn Center held on September 9, 2013. 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 September 23, 2013, Regular Session. )4n ' City Clerk Mayor 09/09/13 -4-