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HomeMy WebLinkAbout2020 09-21 CCM Joint Financial Work Session MINUTES 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 SEPTEMBER 21, 2020 CALL TO ORDER CONTINUATION OF SEPTEMBER 18, 2020 WORK SESSION 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 continued from the September 18, 2020 Work Session. 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 Commission Chair Teneshia Kragness and Commissioner Emmanuel Kpaleh. Also present were City Manager Curt Boganey, Deputy City Manager Dr. Reggie Edwards, Finance Director Mark Ebensteiner and City Clerk Barb Suciu. BUDGET REVIEW Mayor Elliott stated this meeting was scheduled last Friday to continue the budget review, to ensure that the budget is not being increased and to consider the financial stress that residents are experiencing. He added it is important to deliver good services to residents while meeting important needs of all City departments. He noted City Operations are under stress to deliver services during these difficult times. Mayor Elliott stated the City Council wants to see if there is more that can be done to decrease spending in ways that will help relieve the burden on local taxpayers, while still meeting critical needs. City Manager Curt Boganey stated the main consideration in this presentation is how to relieve the taxpayer burden while continuing to provide residents with quality services, and also address the City Council priorities. He added some indications from the City Council were that the maximum levy identified by City Staff was too high. He requested feedback and comments from the City Council regarding what it means to have too high of a tax burden increase from their perspective. Finance Director Mark Ebensteiner reviewed current information from other metro area cities regarding their preliminary tax levy. He added all cities have different strategies and face different issues, but the information gives an idea of where Brooklyn Center falls in terms of percentages of increase. He added the list goes from 7.8% increase at the top, to 2.58% at the bottom, which is Brooklyn Center. Mr. Ebensteiner stated most cities view this as their maximum amount, which leaves some margin for cutting budgets before final adoption in December 2020. Financial Chair Kragness asked whether there are any local cities that did not have any increase. Mr. Ebensteiner stated the cities that are included are the ones that responded to a survey submitted by City Staff. He added no cities that responded had a 0% increase. Mr. Boganey requested City Council input in identifying which maximum amount they would find reasonable and acceptable. He showed a “levy change acceptability” chart, showing total supplemental budget amounts and related percentage of increase. Mr. Boganey stressed the importance of considering that the levy does not affect all residents in the same way, based on taxable home market values. He stated every homeowner will be affected differently. He added the chart includes 5 levy percentage choices, and the numbers are not perfect. He added, however, this exercise will provide an indication about any modifications that can be offered. He noted the critical question is, what is the highest that the City Council would be willing to accept as a levy increase. Mayor Elliott stated he finds it difficult to make a decision without having a more expanded discussion regarding what the different levy increases would result in. He added the City of St. Paul proposed budget reductions for nearly every City department, but no levy increase and no layoffs. He noted that is the kind of budget outcome he would feel most comfortable with during these difficult times. Mr. Boganey stated this exercise is in response to the City Council’s comments on Friday that they wanted to refine the proposed preliminary budget. He added a balanced preliminary budget does not preclude additional review and reduction before December 31, 2020, but it indicates an upper limit that the City Council would support. He noted identifying a maximum preliminary levy amount will help City staff develop a balanced budget. Mr. Boganey stated the City Council will be asked about which of their priorities is most important, so City Staff knows where to start in terms of bringing the budget in line with the levy. He added, based on City Council priorities, adjustments can still be made up until December 31, 2020. Boganey called for comments from City Council. Councilmember Graves stated she is fine with the recommended levy as the maximum. She added she hears that the Mayor is interested in a 0% increase, but she is comfortable with the maximum. Councilmember Ryan asked, with the maximum of 1.93%, whether changes would only have to be made to the supplemental budgets, or if Operations budgets would be affected as well. Mr. Boganey stated the changes can all come out of the supplemental budgets, which represent a total of $466,000. He added that is not to say it should be done. He noted he is asking the City Council for direction on this issue. Councilmember Ryan stated he would support the 1.93% levy as the maximum, but he is flexible. He added he does not want to affect Operations budgets. 09/21/2020 Page 2 Councilmember Butler stated she agrees with Councilmember Ryan that she does not want to take away funding from General Operations. She added she does not feel comfortable with a $66 increase per household given the financial constraints that the community will be under for the next few years. She noted she is okay with 1.29% increase. Commissioner Kragness stated she supports a 0% increase, even if it means priorities will not be funded, or will need to be delayed. She added it will send a message to residents that we are all in this together. She noted a 0% increase to allow the community to adapt to what is happening right now. Mayor Elliott agreed with Commissioner Kragness, in terms of what message is being sent to the community by approving this budget. He stated these are difficult financial times, and it is difficult for City Staff to be proposing a budget under these conditions. He stressed the importance of continuing to provide quality City services and meeting the needs of the community. He added the pandemic lockdown has meant that the City must find ways to scale back, and maybe more of the burden can be placed elsewhere. He noted the City of St. Paul has proposed cuts in every department, but does not have a tax levy increase and no layoffs, which makes him think it is possible to do something like that, to send a positive message to residents who are struggling with the crisis. He expressed his support of a 0% levy increase. Mayor Elliott stated he would like to be mindful of the fact that the City Council approaches this issue with great intention, and everyone’s considerations are justified. He stressed the importance of balancing the benefits of supplemental items and offsetting impacts to the community. He added $66 per household would support these initiatives that are focused on mitigating the impacts of the virus in the community. He noted he believes residents will support programs to mitigate disparate outcomes in the community. Mayor Elliott stated the supplemental items are incredibly important and he is in favor of moving forward with all of them. He added, for instance, the City Council leadership budget will provide funding for the City Council so it can operate in ways that it was not in the past, which could result in adjustments to other costs and operations. He noted this requires a deeper dive for City Staff to figure out what more can be adjusted in the way the City delivers services, to adjust those areas and not these other ones. Mayor Elliott stated he would like to underscore the importance of the programs that have been proposed. He added he has been an advocate for some of those programs. Mr. Boganey requested input from Councilmember Lawrence-Anderson, to determine where the majority of the City Council stands. City Council Lawrence-Anderson stated she supports the proposed levy as it stands. She added she respects that people are having financial difficulties, but she supports an increase of 1.93% and $66 per year. Mayor Elliott stated everyone supports the programs that have been proposed, but it is necessary to have balance to ensure that the City is not increasing the tax burden if they do not have to. He 09/21/2020 Page 3 added he would like to get information about budget cuts in areas other than the supplemental areas, for example, the community center, which is not like it was, and perhaps there are areas where adjustments can be made because of the pandemic. Mr. Boganey assured the City Council that City Staff have done an extraordinary job of reviewing every department budget at a detailed level. He added no department has an increase over 1.5% or 2%, which indicates there was a lot of scrutiny. Mayor Elliott stated that the City of St Paul asked their departments to cut their budgets by approximately 7%. He added he understands that none of Brooklyn Center’s departments were significantly increased. Mr. Boganey stated cities are different, and it is difficult to compare budgets. He added there are many unknowns and variables, including what they spend their money on, what they were able to cut from the budget; what kinds of service and quality of services is provided. He noted each city has its own unique budgeting circumstances, and while cities can learn from each other, it is difficult to try to duplicate another City’s budget. Mr. Boganey stated he appreciates that the City of St. Paul was successful in their budget efforts, but this discussion should start with Brooklyn Center. He added City Staff can review ways to cut base budgets while minimizing impact. He noted, however, every department took many factors into consideration when developing their base budgets. He reiterated he is not suggesting that more cannot be done. Commissioner Boganey requested feedback and comments from the Financial Commissioners who joined the meeting. He added the consensus appears to be that three Councilmembers are supportive of a maximum preliminary levy of $348,000 as a maximum amount for the City Council Priorities. Commissioner Kpaleh stated he has a problem in that he does not have enough information to make a decision. He added he has not received a meeting packet and does not have anything to review. He noted he has not received a Financial Commission meeting packet for many months, and the last one was delivered by Officer Bradley. He asked how he can get meeting information before the meetings. Mr. Boganey stated tonight’s meeting was scheduled late on Friday, and City Staff has been busy working through the weekend to develop the information. He added there was no time to get information out to attendees prior to tonight’s meeting. He noted he would have City Staff look into why Commissioner Kpaleh is not receiving a meeting packet. He apologized to Commissioner Kpaleh for the misunderstanding. Ms. Suciu stated all the meeting invitations are sent electronically with a link in the packet. All City documents are currently posted on the City website. Mayor Elliott requested that the City Clerk confirm Commissioner Kpaleh’s current email address and contact information. He added a printed meeting packet can be provided for him prior to 09/21/2020 Page 4 meetings if that works better for him. He asked whether City Staff can send Commissioner Kpaleh an email with the agenda attached as a pdf. Ms. Suciu agreed, adding there is a tight turnaround for getting the packets out. Mr. Boganey stated this conversation, related to priorities in the supplemental budget, is not meant to imply that additional cuts will come from the supplemental budget. He added the City Council feedback and comment is requested on the priorities they would like to preserve in the budget. He noted this information will assist City Staff in deciding what areas can be reduced. Mr. Boganey reviewed the funding strategies in the City Council priority areas: Equitable Spending; Equitable Operations; Leadership Role – City Council; Economic Stability – Residents; Beautification; Public Health; Accountability – Policing Activities; Transparency; Preservation and Environmental Protections; and Engagement. Mr. Boganey asked the City Council and Commissioners to identify their top three or four priorities for funding. He added the purpose of this exercise is to figure out which areas have a consensus of support from the City Council and should stay in the budget. Mayor Elliott stated he would like to recognize that these items represent approximately 2% of the budget. He asked whether there will be slides to review the other 98% of the budget. Mr. Boganey stated that would require doing each departmental budget presentation again. Elliott stated again this is only 2% of the total budget. He added most of these items already have City Council consensus around them, as these are the Council priorities. He noted these items are not where the money is, and this is difficult to do this exercise. Councilmember Graves stated Mr. Boganey had indicated that City Staff can revisit the base budget to find areas where cuts can be made from departmental budgets. She added she feels that it would be easier to identify her bottom 3 items rather than her top items. Councilmember Graves stated the items that are most important to her are supporting staff, so that would be Equitable Operations, although there are issues under that priority that are more important than others. She added Economic Stability for Residents is very important, but she feels the public health costs could be reduced, as well as Accountability. Councilmember Graves stated she does not think the City Council Leadership role is important. She added that would be the least important item for her Mayor Elliott stated, to be clear, he would prefer to do this exercise when he has more budgets to choose from. Mr. Boganey stated City Staff will consider areas that can be reduced in all the other budgets before anything is cut from the list of priorities. 09/21/2020 Page 5 Councilmember Ryan stated the City Council Leadership item is additional funding of $20,000 that is not necessary. He added there are ample opportunities for online training with the League of Minnesota Cities. He noted, in the interest of time, he supports the same priorities as Councilmember Graves. Councilmember Butler stated Beautification is a very important issue for her, and Public Health is important because of the pandemic. She added she also supports funding for Economic Stability and Equitable Operations. Councilmember Ryan state Accountability – Policing Activities is an important item, but the City Council will be getting more reports than in the past, and there is already an accountability board for the police, which is the City Council. He noted that is something that can be cut under the circumstances. Mayor Elliott stated he supports all the priorities that have already been identified, and should stay in the budget, and he will not pick 3 or 4 to cut. He added it is not appropriate to make choices from 2% of the budget in initiatives that the City Council has identified. He noted he finds this exercise difficult, when it is such a small piece of the budget. Councilmember Graves stated she is not concerned about the City Council – Leadership item, nor the establishment of a Citizen Review Board. She added she would like to support Beautification which is more important at this time. She noted the City is already making progress with police data collection and changes suggested by the MAC, as well as recommendations from the Attorney General’s Report, and the “8 Can’t Wait” initiative. Councilmember Ryan stated he agrees with all of Councilmember Graves’ suggestions. He added his fourth selection would be Transparency. Commissioner Kpaleh stated it was mentioned that other sections of the budget will be reviewed before any cuts are made. Mr. Boganey confirmed that he stated that the rest of the budget will be reviewed by City Staff before any cuts are made. Mayor Elliott stated Commissioner Kpaleh is referring to the fact that any proposed cuts should be reviewed by the City Council and Financial Commission. Mr. Boganey stated a preliminary levy must be adopted by Monday, September 28, 2020. He added the City Council will still have until December 2020 to finalize the budget and make additional cuts. Mr. Boganey requested feedback and input from Councilmember Kris Lawrence-Anderson. Councilmember Lawrence-Anderson stated she is happy with the levy as proposed, and she does not have any further comments. 09/21/2020 Page 6 Mayor Elliott stated he does not feel comfortable cutting these programs. He added the police accountability portion of the budget is incredibly important, and a MAC member commented on the need of having a separate accountability committee. He noted these are all initiatives that the City Council has supported and developed over time, and any changes should occur in the major portion of the budget. Mr. Boganey stated there may be some items in the general fund budget that can be reduced. He added those activities would be absorbed into the existing base budgets. Councilmember Graves stated she asked Police Chief Gannon on Friday how he managed to increase project costs without increasing the budget. She added there may be ways in which some costs could be absorbed. Councilmember Graves expressed her frustration about the number of meetings over the past few weeks, as well as this particular meeting, which was scheduled at a time that prevents her from being able to show up for her full-time job. She added there were 4 meetings scheduled last week, and 3 meetings this week. She noted she does not have the capacity to have that many meetings and did not anticipate the number of hours she would be sitting in meetings when she decided to run for City Council and re-election. She expressed her desire that the number of meetings should decrease so she can continue to do her full-time job and support her family. Councilmember Butler stated she completely agrees with Councilmember Graves and thanked her for bringing it up. She added she is feeling very stressed with the many responsibilities of the City Council, her home life, and re-election campaign. She noted she agrees the City Council should look for other ways to plan meetings, and having late meetings is very difficult. Councilmember Ryan stated he concurs with his colleagues that there are too many meetings and they are too long, and he emphasizes with their positions as full-time working people with families. He added he is retired, and his schedule is flexible, but there are too many meetings, and there are ways that the City Council can expedite its business through more preparation time prior to meetings. He noted this has been an exceptional year, but given that, the City Council has not had this issue in the past, and it was an issue before the pandemic. Councilmember Lawrence-Anderson stated she appreciates her fellow Councilmember’s comments, and she concurs with all of them. She added there are too many meetings. She noted the City Council can expedite its business much more effectively rather than having 4 meetings per week. Mayor Elliott stated he does not necessarily want to have all these meetings, and he does not like going to 10:00 p.m. either. He added he would rather meet earlier in the day. He noted it is difficult to be effective and efficient and work through an agenda with many different unrelated items. Mayor Elliott stated the role of the City Council is to be a decision-making body, but also a legislative deliberative body, and that takes time and requires public discourse. He added he agrees it is necessary to find a way to have less meetings, and shorter meetings. He noted he appreciates 09/21/2020 Page 7 this conversation, but it is veering off topic, and the budget discussion should be wrapped up. He noted this topic can be revisited at the end of the meeting. Mr. Boganey stated City Staff has the feedback and perspective they needed in terms of City Council priorities, limits and recommended spending adjustments. He added he understands the perspective of looking at the base budget before other areas. He noted City Staff have identified the areas that the City Council feels are most important. OPTIONAL STRATEGY FOR ADDRESSING THE LEVY QUESTION Mr. Boganey stated City Staff has provided recommendations for two options that are available to the City. He requested feedback and comment from the City Council. Mr. Boganey stated the overall levy could be reduced by reducing the maximum rate for the HRA, which would generate approximately $460,000 in 2021 in the HRA levy. He added the negative effect of this option would be a bigger levy increase in a year or two, and resources that would normally go to the EDA would be reduced, which would restrict EDA activity. Mr. Boganey stated the other option for City Council consideration is the inclusion of income from development, including permits and fees, that is planned to occur in 2021. He added this would include the C-Alan Homes’ triplex development and Alatus’ multi-family apartments in Phase 1 of the Opportunity Site. He noted it is estimated that revenue from those projects will be approximately $100,000 and is not currently reflected in next year’s budget. Mayor Elliott stated he does not believe it is necessary to include revenue that the City does not have or is not confirmed yet. He added that is not a good way to budget. He noted when the development fees are received, they will be a windfall for the City budget, but he does not recommend including it at this stage. Councilmember Ryan stated he is comfortable with supporting option 2, as long as the City Council behaves in a reasonable manner and development projects continue to move forward. He added he does not support cutting the HRA levy, as that is how EDA operations are funded. He stressed the importance of development of the City’s commercial and industrial base, to generate revenue and reduce the burden on taxpayers and renters. Councilmember Graves stated she does not think it is necessary and not a good idea to cut the HRA levy. Councilmember Butler agreed. Mr. Boganey requested clarification on the items on which the City Council has agreement. Mayor Elliott stated the City Council indicated they do not support either cutting the HRA budget or including development fees that the City does not have. Councilmember Ryan stated he indicated that he is opposed to option 1 but supports option 2, as suggested by the City Manager. Mayor Elliott requested clarification regarding the options. 09/21/2020 Page 8 Mr. Boganey stated the first option was to reduce the HRA budget. He added the second option was to include income from upcoming development projects as part of the budget. He noted this is a common practice if there is a strong indication that the project will proceed, which is the case with the C-Alan Homes development. Mr. Elliott stated in his view it makes sense to do the budget without those fees, which can be incorporated in next year’s budget when they are received. Mr. Boganey reiterated that the budget does not have to be approved until December 2020, and City Staff will have a better sense of development projects by then. POLICE DEPARTMENT MEETING – WEDNESDAY SEPTEMBER 23, 2020 Mr. Boganey stated Police Chief Tim Gannon’s father passed away this morning. He requested that the meeting regarding the Police Department that is currently scheduled for Wednesday, September 23, 2020 be delayed until after Chief Gannon’s return. Mayor Elliott stated he will be sending condolences to Chief Gannon on behalf of the City Council. He added he called the meeting on Wednesday and of course it makes sense to delay until Chief Gannon can attend. He asked Mr. Boganey when Chief Gannon will be available. Mr. Boganey stated he is unsure, but two weeks out is probably reasonable. CITY COUNCIL MEETINGS – FREQUENCY AND DURATION Councilmember Graves stated, with regard to keeping the meetings shorter and more productive, there are often repetitive statements which can be reduced by paying attention to the amount of time one is speaking. She noted she knows what her role is on the City Council, and the role that the City Council plays within the community, and she does not additional information on that subject. She stressed the importance of deciding what meaningful statements need to be said instead of thinking out loud. She noted she tries to use these tips and they are helpful for her. Mayor Elliott encouraged Councilmembers to reach out and provide feedback if they have specific comments that are directed at other members. Councilmember Ryan stated the City Council’s post-election retreat will be an appropriate time to have a robust discussion on this topic. ADJOURNMENT There was a motion by Councilmember Graves and seconded by Mayor Elliott to adjourn the meeting. The motion passed. The Brooklyn Center City Council/Financial Commission adjourned at 8:12 p.m. 09/21/2020 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 September 21, 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 October 14, 2020, Regular Session. City Clerk Mayor 09/21/2020 Page 10