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HomeMy WebLinkAbout2020 09-02 CCM Joint Financial Work SessionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/FINANCIAL COMMISSION CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA JOINT WORK SESSION SEPTEMBER 2, 2020 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. The meeting was conducted via Webex. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence -Anderson and Dan Ryan. Also present were Financial Commissioner Chair Taneshia K ragness and Financial Commissioners David Dwapu, Taofeek Ishola, and Dean Van Der Werf. Also present were City Manager Curt Boganey, Finance Director Mark Ebensteiner and City Cleric 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. PRELIMINARYPROPERTYTRX ESTIMATES Finance Director Mark Ebensteiner provided a review of preliminary property tax estimates and impacts. Mayor Elliott stated Mr. Ebensteiner had stated that City Staffworked with County representatives to understand impacts to the budget. He requested clarification. Mr. Ebensteiner stated, with a proposed 0% levy increase, tax rates decreased from 66.589% to 64.427%. He added, however, this represents a $25 increase in property taxes. He noted City Staff reviewed this more closely to gain an understanding of additional impacts and determined that the fiscal disparities allocation decreased slightly. Mayor Elliott asked whether property tax payment rates are higher than last year. Mr. Ebensteiner stated the tax rate has decreased by 2.126%. He added, however, the fiscal disparities calculation also decreased, and there could be some changes, but it is generally comparable. Mayor Elliott asked whether residents have been able to make payments this year. Mr. Ebensteiner stated the June 2020 settlement was comparable with other years, and there is not a significant number of delinquencies. He added the County allowed an extension and delay in payments until June 2020. Mayor Elliott asked whether the State or County have indicated what the forecast is for collection of tax payments in the foreseeable future. He added there is a lag in data regarding State and Federal support and stimulus programs. Mr. Ebensteiner stated he has asked similar questions in League of Minnesota Cities' webinars. He added the collection in June 2020 was consistent with other years. He noted he has not received any indication on future collections. Mr. Boganey stated no definitive information has been provided, but any change in property tax payment behavior would probably happen in 2021. He added residents may have prioritized property tax payments before other financial obligations, as it is a high priority for property owners. Mayor Elliott asked whether taxes must be paid under forbearance. Mr. Boganey confirmed that taxes will still have to be paid. He added there may be forbearance on mortgage payments, but that does not include taxes. Councilmember Ryan stated the good news is also that the Governor and the Department of Economic Development acted quickly to receive funding for lost wages assistance program through FIMA. He added this funding would enable recipients of unemployment insurance to receive additional funds. He noted the program is limited to 6 weeks, but the money will help residents who have suffered employment disruption because of the pandemic. 2021 BUDGET PRIORITIES Mr. Boganey reviewed the City Council's budget priorities for 2021, including goals and resources to focus on initiatives. He added City Staff put together a list based on City Council feedback and comment regarding 2021 budget priorities and how base budget resources should be used to achieve them. • Accountability related to police activities • Beautification and cleanliness —EDA funding of $50,000 to incentivize businesses and $25,000 from the General Fund for a sustainable annual funding program • Economic stability for businesses —EDA funding of $25,000 to assess of local business needs and conduct a survey to engage local non -profits and the business community, EDA funding of $100,000 to expand the revolving loan fund and $50,000 for the small business loan program as well as $50,000 to expand technical assistance capabilities; use existing resources to create a business resource website • Economic stability for residents —formalize and expand local hiring goals; formalize local purchasing program, including $5,000 in EDA funds to develop a local hiring policy, as part of the City's business subsidy policy; finalize the local procurement policy and online local business list, and expand business licensing requirements; use existing resources to promote home ownership and wealth -building programs; use of federal funds for rental and mortgage assistance; $100,000 to conduct housing policy study; work with City Attorney to develop a tenant protection Ordinance, and the use of $150,000 to adopt a naturally occurring housing preservation program 9/2/2020 Page 2 • Promote and facility food security — BC Community Food Collaborative was recently approved by the City Council to be funded by the EDA; partner with local food shelves; collaborate with educational institutions on skills development • Promote local job creation and local hiring - utilize neighborhood engagement liaisons for outreach; create opportunities for under -employed and unemployed residents; adopt an equitable development score card and implementation process; BC community grants program approved by the City Council to be continued into 2021, and will require an additional $30,000 from the General Fund • Emergency response plan — to be reviewed and updated for City Council review by June 3 0, 2020 • Enterprise -wide engagement —this initiative will require $15,000 funding to ensure engagement is understood appropriately and applied consistently across the organization; continue projects in the future; "Health on the go" initiative, funding of $100,000 from CARES funding and $25,000 annual General Fund support • Equitable city spending — foirnalize and implement a local spending and procurement program policy to ensure that City spending is directed into local businesses, with funding of $15,000 for consultation fees to get the program developed and operational in 2021 • Equitable operations - a full-time position in Human Resources will lead the City's equity efforts, including a racial equity score card completed by March 2021; to review policies and practices to ensure that current Ordinances do not have a non justified disparate impact; ensure that City work force is representative of the Brooklyn Center community; look at programs to create pathways to full-time employment with the City of Brooklyn Center; raise part-time employees to a minimum wage of $16.00 per hour, and consider benefits for regular part-time employees, including paid time -off; funding for part-time staff to expand community center hours to be more reflective of the community's interests and needs; continue with BrookLynk interns and coordinate with Brooklyn Bridge Alliance to include youth to serve on City advisory boards, with City Council approval • Innovation —the City Council has expressed its support of innovative projects, including a potential pilot evaluation process to be funded through CARES funding • Public health— health and wellness issues in Brookyn Center have become more critical, and City Staff are reviewing how the City can be involved in what has typically been a County responsibility, to supplement the County's efforts; this includes the CARES -funded "Health on the Go" bus and food collective, which are intended to be operational in 2021, as well as consideration of ways that CARS can become a health and wellness agency, overseeing the City's efforts in that area, to expand beyond recreation into broader public health issues; and inclusion of an imbedded social worker in the Police Department, to be funded by $60,000 that is already included in the base budget 9/2/2020 Page 3 • Transparency — this is a goal that is critical to the City's efforts in 2021, including online tools and software to increase efficiency in sharing data on the City's website • Preservation and protection of natural enviromnent — a goal in 2021 is to move the City to Step 5 of the League of Minnesota Cities' GreenStep Program Is Boganey stated the estimated total for EDA-funded programs is $5805000. He added there are resources available for these initiatives, as the EDA fund has ongoing revenue, TIF funding and reserves. Mr. Boganey stated a 0% general levy increase as discussed would result in an increase of $25 in armual property tax for the median value home in Brooklyn Center. He added the additional general fund programs would require a general levy increase of 2.03%, or an additional $56 in property taxes for the median value home. ADDITIONAL WORK SESSIONDATES Mr. Boganey stated three additional work sessions will be required to ensure the budget and levy are ready for City Council consideration and preliminary adoption on September 28, 2020. He added September 8, 2020 is already on the calendar as a special meeting. He noted the budget may be decreased but not increased after September 28, 2020. He requested the City Council's consideration of dates in September for three work sessions. Councilmember Butler stated she is unavailable on Thursday nights. Councilmember Lawrence -Anderson stated she is not available on September 11, 2020. The City Council agreed on the following dates for upcoming work sessions: September 8, 11 and 15, 2020 with an additional date of September 22, 2020 if needed. Mayor Elliott stated some time should be set aside for larger departments, for instance, Policing and Safety, which has a larger share of the budget. Councilmember Ryan stated three meetings should be sufficient to complete the budget consideration, given the careful preparation by City Staff as indicated by tonight's presentation. He added he believes this is a budget framework intended to do the most good for the City's residents in the greatest need, and addresses problems of the City's image, public confidence in the police, business and community development, and equity. He noted he finds the budget outline to be in line with the City Council's stated priorities and needs. Mayor Elliott stated he would like to see an allocation for conducting a systemwide study around understanding systemic racism throughout the organization. He added this issue was raised earlier by Councilmember Butler. He stressed the importance of getting assistance from experts in the field to understand where systemic racism might be perpetuated, and how to improve and do better in service to the community. He noted this initiative could cost $70,000-100,000, in partnership with 9/2/2020 Page 4 other organizations. He reiterated that this is an imperative issue that must be addressed, and this is an adjustment that he would like to see. Councilmember Graves commended City Staff on putting together a budget that reflects the values and previous discussions of the City Council and Commissioners. She added she has heard that renters are not able to take advantage of incentives to buy a home until after they close on their new home. She asked whether City Staff can confirm that, and whether the City can look into whether lenAers are practicing fair lending practices, as part of the City's work around equity and transparency. Mr. Boganey agreed to look into those issues. Chair Kragness stated she agrees with the statements made by the City Council with regard to the preliminary budget. ADJOURNMENT There was a motion by Councilmember Ryan and seconded by Commissioner Lawrence -Anderson to adjourn the meeting. The motion passed. The Brooklyn Center City Council/Financial Commission adjourned at 7:37 p.m. 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: l . That attached hereto is a full, true, and complete transcript of the minutes of the City Council fiom the City of Brooklyn Center Joint Work Session with Financial Commission held on September 2, 2020. 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 28, 2020, Regular Session. City Clerk 9/2/2020 Page 5 Mayor