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HomeMy WebLinkAbout2019 07-29 CCM Joint WorksessionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/FINANCIAL COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA JOINT WORK SESSION JULY 29, 2019 CITY HALL — CITY COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Financial Commission Joint Work Session was called to order by Mayor Elliott at 6:30 p.m. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, Kris Lawrence -Anderson and Dan Ryan. Councilmember April Graves was absent and excused. Also present were Financial Commissioners Taofeek Ishola and Dean Van Der Werf. Also present were City Manager Curt Boganey, Deputy City Manager Dr. Reggie Edwards, Director of Fiscal & Support Services Nate Reinhardt, and City Clerk Barb Suciu. APPROVAL OFAGENDA There was a motion by Councilmember Lawrence -Anderson and seconded by Councilmember Ryan to approve the agenda as submitted. The motion passed. BUDGET DISCUSSION Mayor Mike Elliott stated this is the second in a series of joint work sessions of the City Council and Financial Commission regarding the 2020 Budget review process. He added the work sessions would elicit input from the City Council and Financial Commissioners and provide direction for City Staff. City Manager Curt Boganey stated the City Manager is required by City Charter to provide a balanced budget on an annual basis. He added the focus for tonight is the General Fund, related to the budget but also financial limitations within which the City Council wants City Staff to deliver the budget. He stressed the importance of ensuring the proposed budget is consistent with the goals and direction of the City Council, as well as input and feedback from the Financial Commission. Finance Director Nate Reinhardt stated tonight's Joint Work Session would include a review of the 2020 Budget process, including objectives, goals and outcomes; strategic priorities; Local Government Aid; and an interactive exercise to provide direction to City Staff about budget development. He reviewed the objectives of the Work Sessions: to ensure that the necessary programs are in place, and 2020 budget requests will continue to provide the necessary services as the City strives to meet strategic goals. He added additional advancements might be required. He noted the questions to be answered are whether the City Council and Financial Commission are in agreement, and the maximum levy adjustment that would be proposed. Mr. Reinhardt stated the 2020 budget would require a 11.27% increase to maintain current levels of service and includes a tax levy of approximately $78,000. He added an increase of $310,000 in revenues in 2019 will reduce the amount of required property taxes. He noted operationally budget advancements of 5-6% will be required. Councilmember Lawrence -Anderson required clarification regarding $310,000 in revenue. Mr. Reinhardt stated that is a result of Local Government Aid (LGA) and building permit fees. Mr. Boganey stated the budget requests submitted by Department heads have not been amended or adjusted. Mr. Boganey stated, in his opinion, the City Council has historically approved and adopted excellent budget policy, both in expenditures and revenues. He added policies have originally been reviewed by the Financial Commission for recommendation to the City Council, to ensure that minimum requirements are met, and the budget is balanced. He commended the City Council and Financial Commission for keeping good policies in place. Mr. Reinhardt reviewed strategic priorities in the 2020 Budget, including "resident economic stability". Goals and resources are development and implementation of the Business Retention Program; programs for local start-ups and entrepreneurs with barriers to ownership; and the BrookLynk internship program. Mr. Reinhardt reviewed the next strategic priority, "targeted redevelopment". Goals and resources are Corridor Land Use Study for Brooklyn Boulevard; identification of key intersections that complement the City's transportation investment; master development planning at Sears site including a review of land use, assistance with finding development and achieving goals for the site; work with Alatus to move forward with first phase of the Opportunity Site. A new Associate Planner position will take on daily planning duties. Mr. Reinhardt stated the next strategic priority is "inclusive community engagement". Goals and resources are continue building out Community Engagement division; increased social media and community outreach; a full-time Community Engagement Specialist position is proposed to replace the current part-time position; funding to support Sister Cities Commission; funding allocation for each neighborhood for activities. Councilmember Lawrence -Anderson requested clarification regarding funding for the Sister City Commission. Mr. Boganey stated funds would be allocated to support the Commission's activities, including outreach, marketing, and establishing Sister City relationships. Commissioner Van Der Werf requested clarification regarding the funding allocation for neighborhoods. Deputy City Manager Reggie Edwards stated a funding pool is proposed for $1,000 per neighborhood, so residents can seek funding support for neighborhood meetings and activities. Commissioner Van Der Werf stated this could be transformative, and a real opportunity. Mayor Elliott agreed, adding it gives residents an incentive to organize events and activities, because they know the funding will be available. 7/29/2019 Page 2 Mr. Boganey stated City Staff will set up a policy for the proposed neighborhood funding pool, assuming it is approved for inclusion in the budget. Councilmember Lawrence -Anderson stated there should be goals and objectives before funding is made available. Mr. Boganey agreed, adding City Staff will verify that funds are being used for the intended purpose. Councilmember Ryan stated City Staff can bring forward recommendations on this proposed funding. He added he would support scaling appropriation to need, and revisit this in detail later. Mr. Reinhardt reviewed the next strategic priority. Mr. Reinhardt stated the next strategic priority is "enhanced community image". Goals and resources are the addition of Full -Time Park Maintenance position; implementation of the results of the Public Art Program study, continuation of City marketing campaigns; the addition of a Part -Tune Graphic Designer. Councilmember Ryan stated he agrees with the general objectives. He added a campaign under this heading could be "Clean is Green", supporting the improvement of the environment, educating the public and neighborhood groups about trash disposal and recycling. He added the City Council could review this at a work session. Mr. Boganey stated there is a group that includes City Staff working on a number of concepts related to this issue. He added Councilmember Ryan's concept could be turned over to them. Councilmember Ryan agreed. Councilmember Butler stated she would support paying someone to pick up trash rather than hiring a new Graphic Designer. She added she would rather apply funding towards improving the City's image by hiring someone keep public areas clean. She noted she has been on sidewalks in Brooklyn Center that are overgrown with weeds. Councilmember Lawrence -Anderson agreed, stating she has seen bus stops that need to be addressed. She added she contact the Public Works Director regarding weeds on Unity Avenue in a rain garden area, and an overgrown lot on 63rd Avenue. She added she would support the idea of a grass roots campaign to keep the City clean. Mayor Elliott stated the task force mentioned by Mr. Boganey could focus on environmental design and strategically placed signage, as well as more green spaces to improve people's reactions to Brooklyn Center. Mayor Elliott asked whether the proposed Full -Time Maintenance position would be dedicatedto maintaining and cleaning up parks. Mr. Boganey stated that position will focus on streetscapes. He added this will allow Public Works to maintain the City's landscaped street scape areas. 7/29/2019 Page 3 Mr. Reinhardt stated a strategic priority is a "safe, secure and stable community". Goals and resources are adoption and implementation of comprehensive strategy to reduce youth violence; a Code Enforcement Inspector position; new software to improve management of Code enforcement and rental licenses; a changeable message board for use by City departments; the addition of 2 Patrol Officers; a Technology intern; Lotus election software; training of electionjudges; completion of security review of risk areas; and 2 City Council retreats in 2020. A female audience member stated, regarding the addition of 2 Police Officers, she would support training residents to handle emergency situations, to de-escalate a situation rather than bringing in a police officer. She noted the proposed addition of 2 Police Officers. Mayor Elliott stated Police Chief Tim Gannon gave a presentation at a recent City Council meeting regarding the mental health co -responder model, in which mental health -trained personnel are embedded with police to provide assistance and de-escalate the situation. He added Chief Gannon pointed out that police responders should be the first on the scene to assess next steps. He noted there are certain aspects of civilian response and involvement that would need to be addressed, including lack of training and effectiveness as well as the necessity of hiring a lot of people so someone is available at all times. Mayor Elliott stated the important questions to ask are whether there are enough officers trained to handle the number of incidents that require de-escalation, and whether community members who would potentially be trained in de-escalation would reflect the community as awhole. Councilmember Butler stressed the importance of Police Officer training, including mental health and unconscious bias awareness training. She added information should be available regarding funding that is spent on training, as well as who is doing the training, as some trainers are better qualified than others. Councilmember Butler stated the City Council usually does a retreat every other year. She asked why there are 2 retreats planned in 2020. Mr. Boganey stated there has been many changes to the City Council in the past year, and it has been several years since the City Council addressed strategic priorities. He added it is reasonable for the City Council to consider having a secondretreat. Mayor Elliott stated the City's overall strategic priorities may change and evolve over time, and it can take time to implement policies and see results. He added, at the same time, the City must be able to respond to the needs of the community as they arise and things change. Councilmember Ryan agreed, adding there is a balance between flexibility but with a sense of continuity. He added he believes strongly in the strategic priorities to remind the community that City operations are well -focused on ongoing critical services that have always been provided, and to not take them for granted. Councilmember Ryan stated the main reason to have an additional retreat is that the City has a new mayor. He added, in the past, it has been the practice to have a retreat when there is a change on the City Council. 7/29/2019 Page 4 Mr. Boganey stated there has always been an annual retreat for the City Council, but the last few years the need for an annual retreat was less apparent. He added many communities have a 2 annual City Council retreats. The female audience member stated, with regard to inclusive community engagement, it is difficult to get residents to come out into the community, as one person's idea of welcome may not overlap with someone else's ideas. She added it is important to have an idea of what culture means, as different people have different ideas about that. She noted there are adults who do not speak English, and it may be hard for them to get involved. She expressed her concern that this should be included in the dialogue. Councilmember Ryan stressed the importance of being mindful of the family situations of the City's residents, and that the demands of daily life may prove to be a challenge in terms of getting involved in the community. He added resources like conununications media, social media and public polling can help get messages out and get an idea of what people's thoughts and feelings are. He noted getting more responses will be helpful in this process. Mayor Elliott stated he is happy to get anyone from outside this group to come to the meetings, as that is part of the overall effort to be responsive to the community. He stressed the importance of listening to the community's ideas and input to help improve the position of the City of Brooklyn Center. Councilmember Butler stated the audience member's comments resonated with her, as she has expressed her frustration that the Opportunity Site workshops did not reflect the community, although they got better as they went along. She added she hopes the audience member might be interested in getting involved in the Community Engagement Task Force. Mayor Elliott asked whether information is available about the race and gender make-up of the Police Department. Mr. Boganey agreed to provide that information. Mayor Elliott stressed the importance of having an open discussion about race, to ensure that everyone is coming from the same place even if their ideas are not the same. He added open and honest discussions about race and culture are the best way forward and will be inevitable as Brooklyn Center is such a diverse city. Councilmember Ryan stated he agrees that is an important conversation, although perhaps it would be better to have it at a different place and time. Mayor Elliott stated the budget work sessions are an appropriate place to discuss hiring additional Police Officers or embedded staff for de-escalation of police situations. He added budget determines policy and, ultimately, outcomes. Mr. Reinhardt stated the next strategic priority is "key transportation investments". He added goals and resources include development of Brooklyn Boulevard Corridor Proj ect Phase 2, from Bass Lake 7/29/2019 Page 5 Road to 65"' Avenue, with anticipated completion in 2021; work on the Highway 242 study with regional partners; and completion of street reconstruction projects. Mayor Elliott stated he and Mr. Boganey attended the Highway 252 meeting, and the project is coming along. He added the next phase will be community open houses and recommendations from the Technical Advisory Committee. Mr. Boganey stated recommendations will also be received from PAC. Mayor Elliott stated contractors that are selected for projects like the Highway 242 corridor should represent women and minority communities. He added a State-wide effort is underway to engage local conullunity organizations to ensure that women and minorities receive equal treatment in the awarding of construction contracts. He noted any referrals can be directed to him or Mr. Boganey. Mr. Boganey agreed, adding Workforce Development Specialist Brett Angell will be the point person for these types of Community Development issues. He added residents are welcome to contact him as well. Councilmember Butler asked whether the Highway 252 Phase 1 project will include Brooklyn Center welcome signs. Mr. Boganey confirmed this, although he does not know when they will be installed. Mr. Reinhardt stated the City of Brooklyn Center will see an increase in Local Government Aid (LGA) in 2020 of approximately $330,000. He added the City is limited to using 50% of these funds for General Operations, and the remainder for capital improvements. He noted LGA makes up approximately 4% of the General Operations Fund, and the City has reduced its reliability on LGA over the past 20 years. Mr. Reinhardt stated, according to preliminary estimates from the County Assessor's Office, the City's estimated tax market value has increased by 10.6% or $218 million. Mayor Elliott requested clarification regarding the market value increase. Mr. Reinhardt stated that is based on improvements and increases in current values. Mr. Boganey stated he assumes a significant portion of the increase is due to new commercial and industrial construction. He added revenues from building permits and new projects were at an all-time high. He noted City Staff can provide further clarification on this issue. Mr. Reinhardt stated most residents will experience a 7.6% increase in assessed property value from 2019 to 2020. He added the median value home is at its highest since 2008 and has increased by 73% since 2014. Mr. Boganey stated the chart on page 23 shows the correlation between the increase in commercial and residential tax capacity, with commercial at 13% and residential at 9.5%. Mr. Reinhardt stated the chart shows the impact of change in market values and the City levy, using hypothetical values to calculate taxes for each classification. He added the values were increased based on total market value. 7/29/2019 Page 6 Mr. Reinhardt stated the median value home paid $1,174 in property taxes, and that would increase by about $10 if the 2020 levy is the same. He added the median value home can expect to see an annual tax increase of $11 for every I% additional levy. Councilmember Ryan stated there might be a situation where a commercial business declines or moves out of the City, but there is a strong housing market in Brooklyn Center for homes within a certain price range. He added a declining commercial property tax base would cause an increase in residential property taxes. Mr. Boganey agreed, adding tax capacity is distributed among the different property tax types. Councilmember Ryan stressed the importance of the Opportunity Site for the future of Brooklyn Center, to grow the tax base and provide financial benefits to homeowners as well as renters. Mayor Elliott stated the Opportunity Site could change the type of renters in Brooklyn Center, and put pressure on the City's existing renters with regard to what they can or cannot afford. He asked what determines the market rate for property in Brooklyn Center. Mr. Boganey stated the City was developed for the most part between 1940-1970. He added market value is determined by how much a buyer is willing to pay, and that is true for residential, rental, commercial and industrial property. He noted an appraisal should be related to and reflect the market value. Councilmember Butler stated she read that Brooklyn Center is one of the top housing markets in the State of Minnesota. Mr. Boganey stated he does not have the statistic, but Mr. Reinhardt has shown with residential property values over the last several years that Brooklyn Center has been catching up to other areas over the past 3-4 years, and that has been a significant increase. He noted Brooklyn Center is also a hot market because of affordability. The female audience member asked whether the City could put a restriction on the amount of luxury apartments are being developed so people can afford to live in Brooklyn Center. She added this has been done in other communities, including Golden Valley and Maple Grove, and Brooklyn Park is working on a similar initiative. Mr. Boganey stated this is called an "inclusionary zoning requirement". He added it is hoped that the City can adopt a similar requirement, although other communities have had been building a lot of new apartments, and Brooklyn Center has not. He noted another issue is that those communities may have a limited amount of affordable housing, while Brooklyn Center has an abundance of naturally occurring affordable housing. Mr. Boganey stated that will be a topic of discussion for the City Council. Mayor Elliott stated "naturally occurring affordable housing" is the most readily available type of affordable housing across the country as well as in Brooklyn Center. He stressed the importance of determining how much affordable housing is naturally occurring and how much is legally binding. 7/29/2019 Page 7 Councilmember Ryan stated the City has partnered with a cooperative non-profit organization committed to managing property and maintaining affordable rates. He added every affordable housing development that has come before the City Council has been passed. He noted he supports the City Council's continued review and discussion on this important issue. Mr. Reinhardt stated the next three budget meetings will include General Fund budget requests from Department heads. He added the meeting dates are August 7, August 19 and September 4, after which the City Manager's recommended preliminary levy will be presented to the City Council for adoption by September 30, 2019, as required by State statute. Mr. Reinhardt stated the meeting attendees would be asked questions related to the 2020 budget as part of an interactive exercise. He added this will be helpful for City Staff as they establish parameters. Mr. Edwards read the interactive survey questions: 1. What levy increase would you consider easily acceptable? 2. What levy increase would you consider easily acceptable with strongjustification? 3. What levy increase would you consider unacceptable and cannot support? 4. Do you believe that efforts outlining the budget presentation align with the intended strategic direction of the City? Mr. Boganey asked whether the attendees would share insight into their responses. He added this would help City Staff understand the responses better. Councilmember Lawrence -Anderson stated the process is supposed to be anonymous, and attendees may not want their responses to be on the record. Mr. Edwards read question #5 — "Do you believe that efforts outlining the budget presentation represent a sufficient pace with the efforts and resources to achieve the strategic parts in a timely manner?" Mr. Boganey stated the attendees could contact him to discuss their responses if they do not want to talk about it publicly. Mayor Elliott stated there is not enough information to determine whether the pace is sufficient, and whether enough resources are being allocated. Commissioner Van Der Werf stated many Brooklyn Center residents live on a fixed income, and the levy increase would be of great concern to them. Mayor Elliott agreed. He stressed the importance of being mindful about raising the levy significantly. He added the levy has been increasing steadily, and there is a cumulative effect. 7/29/2019 Page 8 Mayor Elliott stated "resident economic stability" is an important priority, to ensure that the needs of older residents are met. He added he hears that a lot, from older residents who are on a fixed income, that they are unable to afford the taxes in Brooklyn Center. Mr. Edwards stated, regarding "resident economic stability", the two initiatives that came out as most supportive are "promoting home ownership" and "development of business". Mayor Elliott stated supporting local businesses has a big effect on household income, and home ownership creates stability and builds generational wealth. He added these are two key initiatives that should be supported at the local level. Mr. Boganey stated the Associate Planner position would focus on targeted development, especially the Opportunity Site. He added this will allow the City Planner to address broader responsibilities. He noted the amount of development activity is significantly greater than what has been seen in the last 10 years. Mayor Elliot stated "Other" should be available as an option, as people might have other suggestions. Mayor Elliott asked what the portable changeable message board would be used for. Mr. Boganey stated this idea originated with Emergency Management as a useful tool for communication. He added several other departments have indicated that they would use it as well. Mr. Boganey asked whether there is support for the pilot interactive survey program. Mayor Elliott stated that discussion can be postponed as it is not time sensitive. ADJOURNMENT There was a motion by Councilmember Ryan and seconded by Commissioner Butler to adjourn the meeting. The motion passed. The Brooklyn Center City Council/Financial Commission adjourned at 9:24 p.m. 7/29/2019 Page 9 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 July 29, 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 August 26, 2018, Regular Session. City Clerk 7/29/2019 Page 10 Mayor