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HomeMy WebLinkAbout2019 12-02 CCM Special BudgetMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL MEETING DECEMBER 2, 2019 CITY HALL — COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center City Council Special Meeting was called to order by Mayor Mike Elliott at 6:30 p.m. 2. ROLL CALL Mayor Mike Elliott and Councilxnembers Marquita Butler, April Graves, Kris Lawrence - Anderson, and Dan Ryan. Councilmember Kris Lawrence -Anderson was absent and excused. Also present were City Manager Curt Boganey, Acting Finance Director Andy Splinter, and City Clerk Barb Suciu. 3. 2020 BUDGET 3a. CONSIDERATION OF 2020 BUDGET AND PUBLIC HEARING City Manager Curt Boganey stated the purpose of this Special City Council meeting is to consider the 2020 Budget and hold a public hearing before potential City Council acceptance of the Budget and approval of final tax capacity levy for the General Fund. The City Council is asked to consider the adoption of the 2020 Annual Operating Budget and 2020-2034 Capital Improvement Plan, as well as the adoption of the 2020 Capital Program. Acting Finance Director Andrew Splinter reviewed the City's budgeting process, including consideration of strategic priorities, proposed levies; an overview of revenue and expenditures; and property taxation. He added tonight the City Council is requested to open the public hearing and receive public comment, before considering action on the proposed levy, budget and capital improvement plan, as required by Statute. He noted the budgeting process began July 15, 2019, at the Financial Commission's meeting. At this meeting the Capital Improvement Plan was reviewed, followed by an overview at the City Council's July 29, 2019 meeting. Mr. Splinter stated the City Council adopted the preliminary levy on September 23, 2019, and adopted utility rates on November 25, 2019. He added the focus has been economic stability and targeted redevelopment, as well as enhancing community image, creating safer communities, and transportation investments. He noted the proposed budget ensures investment in these key areas. Mr. Splinter reviewed the City tax levies for General Fund operations of $17.9 million; Public Improvement Debt Service Bond of $1.5 million; a final year of abatement for the Embassy 12/02/19 -1- Suites project of $95,000; for a proposed 2020 levy of $19.5 million, which is an increase of 5.87% or $1.1 million from 2019. The Housing and Redevelopment Authority (HRA) levy is proposed at approximately $405,000, which is an increase from $24,971 in 2019. Since 2014, the City of Brooklyn Center has been under the Statewide average for levy amounts, but in 2019 the City's average levy is slightly higher than the Statewide average. Mr. Splinter stated General Fund revenues show a total increase in property tax revenue slightly lower than 5.87%, but changes in tax increment distribution bring it up to 6%. The general property tax levy is approximately $1 million, with 75% revenue from property taxes, 7% other taxes, and 5% intergovernmental taxes. Mr. Splinter reviewed expenditures by fimction, including general government, increase to $4.4 million in 2020, primarily due to the expansion of communication and community engagement. Mayor Elliott asked whether Community Development will be adding another staff member. Mr. Splinter confirmed this. Councilmember Graves requested clarification regarding "Other Services." Mr. Splinter stated that refers to insurance, City building accounts, and unallocated items. Mr. Boganey stated the most significant increase is in wages for employees, with a 3% base wage increase that is consistent with collective bargaining unit negotiations. He added there is a net increase in the Community Engagement position, which was part-time in 2019 but proposed to be full-time for 2020. Additionally, a full-time Human Resources Development Specialist to implement inclusion and diversity as well as the equity process and coordinate the diversion initiative. He noted the in 2019, the HR position was budgeted at part-time, but it has been challenging to find a candidate with the necessary skills and experience who is interested in a part-time job. Mr. Boganey stated the proposed full-time Associate Planner position is new. This position will be involved in planning, development and new planning applications as well as the Opportunity Site planning. He added the new proposed part-time Housing Inspector position as a means of retaining a current Housing Inspector who will retire in 2-3 years. He noted funding for election judges is included, which is required in 2020. Councilmember Butler requested clarification regarding the allocation of $230,000 for expansion of Community Development office space in City Hall. Mr. Boganey stated that it would be addressed under the Capital Improvement Plan portion of the meeting. Mr. Boganey reviewed costs associated with new software, including NovusAgenda for City Council packets, POLCO for resident surveys; implementation of an online performance review system for City Staff; Invisio strategic planning software for reporting; a new IMS system for the online permitting process. 12/02/19 -2- Mr. Boganey stated the City's IT system maintenance and infrastructure software is through a consortium of local municipalities. The consortium is more cost-effective and attracts expertise that the City could not afford independently. He added the City had been a member of the LOGIS government software provider for 20 years. Mr. Splinter stated the 15-year Capital Improvement Plan encompasses public improvements, including utilities and streets, park improvements and building maintenance. The 2020 Capital Improvement Plan totals $10.83 million. Including the Grandview North improvements of approximately $6.6 million; $1 million for the rehabilitation of Water Tower 1; $406,000 for Shingle Creek stabilization, and miscellaneous projects including ponds rehabilitation, replacement of parks equipment and building improvements. Councilmember Butler expressed concern about renovating City Hall with these funds when there is a chance that there will be a new City Hall component in the Opportunity Site. Mr. Boganey stated the Community Development Department has the lowest amount of square footage in City Hall. He added that this department had a significant increase in staffing and new positions that they are unable to fill due to lack of space. He noted the goal is to create a more efficient environment for the employees. Mr. Boganey agreed that it is a significant investment. He added this type of capital improvement project would not be expended if there is any likelihood that City Hall will be relocating within the next 2-3 years. He noted he considers this budget item to be a placeholder, which is not atypical when identifying long-term capital projects. Mr. Boganey stressed the importance of finding office space solutions for the Community Development Department to ensure that they can operate efficiently. He stated Community Development currently has 130 square feet per employee, which is lower than any other department. Mayor Elliott asked whether this is something that is a real need. He wondered how much space this project would create and how many offices. Mr. Boganey stated he believes this will create two additional offices. Mayor Elliott stated adjacent to Community Development is the Finance Department with an available open office and a free space near the Finance Director's office. He asked whether Community Development staff could use those spaces and whether other alternatives like this have been discussed. Mr. Boganey stated City Staff has looked at multiple alternatives. He added temporary arrangements need to be made for these staff, including the rearrangement of cubicles and the creation of an adequate workspace that will improve efficiency and customer service. He noted 12/02/19 -3- renting office space somewhere else is also an option that could be pursued rather than investing in renovations that won't be recovered. Mayor Elliott requested a follow-up on this issue. He added it seems like a long-term need. Mr. Boganey stated every department knows that they can make a case for improving their workspace, and supports this request. He added no other department in City Hall is as cramped for space as Community Development, and the other departments realize that. Mr. Boganey stated improvements are necessary to increase efficiency and make room to be able to fill open positions. He added City Hall could stay where it is for ten years, and the Community Development Department will require improvements to their workspace. Councilmember Ryan stated he appreciates Councilmember Butler's comment on this issue. He added, to be clear, this is a placeholder in the Building Capital Improvement Plan, which has that type of flexibility built into it, so the City does not have to micromanage future funding. He noted the initial Phase 1 of the Opportunity Site is not finalized, and City Hall is not even part of the Phase 1 discussion. Councilmember Ryan stated Mr. Boganey has suggested the possibility of renting office space outside of City Hall, but at this point it is a placeholder and something that will be addressed during next year's budget process. Councilmember Butler asked whether there would be a City Council vote for approval before office improvements are made. Mr. Boganey confirmed this type of expenditure requires City Council approval. Councilmember Butler stated $230,000 is a lot of money to spend on an office renovation, and residents who hear about this would probably agree. She added it is the City Council's responsibility to question expenditure of taxpayer money, and that is not "micromanaging". Councilmember Ryan stated he did not mean the dollar amount is insignificant, but rather the fact that the placeholder allows the City Council to support resolution of this issue for City Staff. He agreed it is very appropriate to look at dollar amounts. Mr. Boganey stated this issue would come back to the City Council, and a decision will be required within the year. He added City Staff will continue to review alternatives as well as how to ensure the value of any potential investment is recouped. Mayor Elliott asked how the renovation project would be paid for. Mr. Splinter stated this is included in the Capital Improvement Fund, which is largely funded by Local Government Aid. 12/02/19 -4- Mr. Splinter stated Capital Improvement projects funding for 2020 include a $7 million bond issue funded through water utility, storm sewer utility and property taxes. He added there are sufficient funds for the Grandview Park project, and it will not need to be bonded. Mr. Splinter stated the market value of the median residential home in Brooklyn Center was $184,000 in 2019 with a taxable value of $166,320. He added, in 2020, the median value increased $14,000 to $198,000 with a taxable value of $178,580, or an increase of $15,000. Mr. Splinter stated City tax rates are expected to decrease, as the total levy of 5.87% is lower than the 12% total increase in the City's value. Councilmember Ryan moved, and Councilmember Graves seconded to open the public hearing. Motion passed unanimously. A resident spoke during the public hearing, thanking the City Council for their willingness to hear and respond to residents. He added he believes City Staff deserves a new office. He noted he believes mental health issues are of great concern, and he is glad to see the City Council is addressing that. The resident stated he has values that he can offer to the City, as he is a grant writer and database administrator. He asked what kinds of grants the City applies for. Mr. Boganey stated the City's departments review grant funding that is available in their area of responsibility. He added the City applies for grant funding on a regular basis. The resident stated the City Council does a great job. He asked whether there are any regulations about hiring a third -party administrator to pursue grant funding. Mr. Boganey stated he would follow up with the resident. He apologized for not having done so sooner, as the resident spoke at a recent City Council Work Session at which Mr. Boganey had agreed to contact him. Councilmember Butler moved and Councilmember Ryan seconded to close the public hearing. Motion passed unanimously. 3b. CITY MANAGER'S BUDGDET TRANSMITTAL LETTER FOR 2020 FISCAL YEAR Commissioner Graves moved and Commissioner Ryan seconded to Accept the Letter of Transmittal, Transmitting the 2020 Budget Adoption. Motion passed unanimously. 3c. RESOLUTION NO.2019-XX ADOPTING FINAL TAX CAPACITY LEVIES FOR THE GENERAL FUND AND DEBT SERVICE FUNDS AND MARKET VALUE 12/02/19 -5- TAX LEVY FOR THE HOUSING AND REDEVELOPMENT AUTHORITY FOR PROPERTY TAXES PAYABLE IN 2020 Commissioner Ryan moved and Commissioner Butler seconded to adopt RESOLUTION NO. 2019-XX Approving Final Tax Capacity Levies for the General Fund and Debt Service Funds and Market Value Tax Levy for the Housing and Redevelopment Authority for Property Taxes Payable in 2020. Motion passed unanimously. 3d. RESOLUTION NO.2019-XX ADOPTING THE 2020 ANNUAL CITY BUDGET Commissioner Ryan moved and Commissioner Graves seconded to adopt RESOLUTION NO. 2019-XX Adopting the 2020 Annual City Budget. Motion passed unanimously. 3e. RESOLUTION NO. 2019-XX ADOPTING THE 2020-2034 CAPITAL IMPROVEMENT PLAN AND ADOPTING THE 2020 CAPITAL PROGRAM Commissioner Graves moved and Commissioner Butler seconded to adopt RESOLUTION NO. 2019-XX Adopting the 2020-2034 Capital Improvement Plan and Adopting the 2020 Capital Program. Motion passed unanimously. 4. ADJOURNMENT Councilmember Ryan moved and Councilmember Butler seconded adjournment of the Special City Council meeting at 7:33 p.m. Motion passed unanimously. 12/02/19 -6- 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 Special Regular Session of the City Council of the City of Brooklyn Center held on December 2, 2019. 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 January 13, 2020, Regular Session. Barbara Suciu, City Clerk �' Mike Elliott, Mayor