HomeMy WebLinkAbout2018 06-04 CCM Joint Session with the Financial CommissionMINUTES 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
JUNE 4, 2018
CITY HALL - COUNCIL CHAMBERS
ENi U [III] i I] D
The Brooklyn Center City Council met in Joint Work Session with the Financial Commission
and the session was called to order by Mayor Pro Tem Ryan at 6:40 p.m.
ROLL CALL
Mayor Tim Willson and Councilmembers Marquita Butler, April Graves, Kris Lawrence-
Anderson, and Dan Ryan. Also present: City Manager Curt Boganey, MMKR's James Eichten,
MMKR's Jackie Huegel, Finance Director Nate Reinhardt, Assistant Finance Director Andrew
Splinter, and Deputy City Clerk Rozlyn Tousignant.
Others present were Financial Commissioners David Dwapu and Dean Van Der Werf. Financial
Comissioners Anna Burke, Jeffrey Dobbs, Tia Hedenland, Teneshia Kragness, Dan Schueller,
and Abate Terefe were absent and unexcused.
APPROVAL OF AGENDA
Councilmember Lawrence-Anderson moved and Councilmember Butler seconded to approve
this evening's agenda. Motion passed unanimously.
PRESENTATION OF AUDITOR REPORT AND MANAGEMENT LETTER
James Eichten, CPA, partner with Malloy, Montague, Karnowski, Radosovich, & Company
(MMKR), the City's Auditing Firm, was introduced to review the City's Audit Report and
Management Letter.
Mr. Eichten outlined the auditor's role and the Audit Opinions and Findings which included the
following:
• Financial Report - Unmodified or Clean Opinion
• Internal Controls Over Financial Reporting - No Findings
• State Laws and Regulations - Compliant
• Single Audit of Federal Awards - Not required for calendar 2017
Mr. Eichten reviewed the Management Report prepared by MMKR and pointed out highlights
relating to the Audit Summary and Governmental Funds Overview along with information on
Taxable Market Values, Tax Rates, Governmental Funds Revenue per Capita, Governmental
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Funds Expenditures per Capita, General Fund Financial Position, General Fund Revenue by
Source, General Fund Expenditures by Function, Enterprise Funds Change in Financial Position,
Water Fund, Sanitary Sewer Fund, Liquor Fund, and Earle Brown Heritage Center Fund. He
also recapped that the City had received a clean opinion on financial statements; and that the City
is continuing with ongoing assessment of financial projections and results including General,
Other Operational, and Enterprise Fund Activities.
COUNCIL/COMMISSION QUESTIONS
Mayor Willson inquired whether removing Surly Brewing's Darkness Days will have any
impactful effect on the City's revenue going forward. Mr. Boganey and Mr. Reinhardt responded
that Darkness Days generates approximately $20,000 each year that the City will no longer earn.
Councilmember Graves followed up by asking who is responsible for the City's Liquor Stores'
advertising. Mr. Boganey replied that the City handles advertising internally.
Marquita Butler addressed the new event center opening at the Earle Brown Bowl site and
questioned whether the establishment would affect business at the Earle Brown Heritage Center.
Mr. Boganey responded that while there may be some business drawn to the new event center,
the clientele and event-styles may differ from that of the Earle Brown Heritage Center.
Councilmember Graves asked for clarification on a graph provided by City Staff regarding
property valuation/taxes. Mr. Boganey explained that the City has relatively affordable housing
stock, because of this the tax rate is higher in order to compensate for the lower levels of high-
end housing.
STAFF OVERVIEW OF COMPREHENSIVE ANNUAL FINANCIAL REPORT
Finance Director Reinhardt reviewed the 2017 Comprehensive Annual Financial Report (CAFR)
and pointed out that there is a positive General Fund Operating Budget of $664,850; the General
Fund Assigned and Unassigned Fund Balance represents 52.7 percent of next year's budgeted
expenditures; and there is a fund balance >52 percent that will be transferred to the Capital
Projects Fund ($149,630). He also outlined financial highlights in each of the following
sections: General Fund Revenues, General Fund Expenditures, Enterprise Funds, Utility Funds,
and other miscellaneous items.
COUNCIL/COMMISSION QUESTIONS
Mayor Willson asked if the Topgolf is in a TIF district. Mr. Splinter responded Topgolf is not in
a TIF district and that it will receive a valuation in late 2018, be levied in 2019 and the City
would first make collection in 2020.
Mayor Willson brought-forth the topic of increasing revenue for Lions Park and the Centerbrook
Golf Course. A discussion was held regarding the matter. Councilmember Graves followed up
by asking about the Community Activities, Recreation & Services Department's operational
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savings from the previous year and whether the City could use those funds to offer more
recreational programming. Mr. Boganey replied that a portion of all City savings goes into the
CIP Fund. Mr. Boganey went on further to state that the City could look into using the CIP Fund
towards recreational initiatives.
ADJOURNMENT
Councilmember Ryan moved and Councilmember Graves seconded to adjourn the Work Session
at 7:55 p.m. Motion passed unanimously.
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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 City
Council from the City of Brooklyn Center Joint Work Session with Financial
Commission held on June 4, 2018.
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 June 11, 2018, Regular Session.
City Clerk
Mayor Pr/ Tern
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