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Home My WebLink About2020 12-07 CCM Special MeetingMINUTES 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 7, 2020 1. CALL TO ORDER The Brooklyn Center City Council Special Meeting was called to order by Mayor Mike Elliott at 6:30 p.m. The meeting was conducted via Webex. 2. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence - Anderson, and Dan Ryan. Also present were City Manager Curt Boganey, Finance Director Mark Ebensteiner, and City Cleric Barb Suciu. 3. 2021 BUDGET 3a. CONSIDERATION OF 2021 BUDGET AND PUBLIC HEARING City Manager Curt Boganey stated the purpose of tonight's meeting is to review the proposed 2021 Budget and hold a public hearing. He added there will bean opportunity for members of the public to speak on the budget and ask questions, and for the City Council to receive comments on the budget proposal. He thanked the Finance Department, including Finance Director Marl-, Ebensteiner and Assistant Finance Director Andy Splinter who have provided great leadership in putting together a budget in what has been a time of great uncertainty for everyone. He thanked the Department Heads who have been responsive to the goals expressed by the City Council. He thanked the Financial Commission and City Council for providing clear and specific direction related to the proposed budget for consideration. Mr. Boganey stated the budget process requires the City Manager to submit an annual operating budget to the City Council. Study sessions were held with the Financial Commission to review the proposed budget, keeping in mind the City Council's strategic priorities and ten (10) focused initiatives. Mr. Boganey stated City Staff was directed to focus on ten (10) initiatives of Equitable Spending, Equitable Operations, Leadership, Economic Stability, Beautification and Cleanliness, Public Health, Accountability -Policing Activities, Transparency, Preservation and Environment Protections, and Engagement. Finance Director Mark Ebensteiner presented the proposed 2021 City levy of $19,942,911, which represents an increase of $433,601, which is a 2.22% increase from 2020. Of this total levy, $18.4 million is for General Operations and $1.54 million is for improvement bonds for debt service. Of the levy increase, $84,000 or .4% is related to increased debt service payments. The Housing and 12/07/20 -1- Redevelopment Authority levy, based on a percentage of City market value, will be $452,913, which is an increase of $47,844 from 2020. This levy provides a funding mechanism for economic development activities. Mr. Ebensteiner presented annual levy increases from year to year and Statewide average comparisons, to provide historical context. The City of Brooklyn Center, and other Minnesota cities, have seen property taxes increase over the last few years, due to increases in personnel and infrastructure cost. Mr. Ebensteiner stated the 2021 General Fund's budgeted revenues of $23,755,527 is a decrease in total revenues from 2020. He reviewed sources of revenue for the General Fund, including General Fund property tax levy, excess tax increment distribution, lodging tax, licenses and permits, and local government aid. Approximately $400,000 of fund balance will be utilized to fill the shortfall in lodging tax collections and a $55,000 transfer in will assist in funding the living wage initiative. Mr. Ebensteiner stated the 2021 General Fund expenditures of $23,755,527 match revenues, so a balanced budget is proposed. Most expenditures are related to personnel costs and impact all City functions. There were General Fund increases in many of the City functions and decreases in others. City functions included under the General Fund are Police Department; General Government; Public Works, Community Activities, Community/Recreation Services (CARS), the Fire Department, and Community Development. Mr. Ebensteiner stated the 15-year Capital Improvement Plan covers projects for public utilities, streets improvements, park improvements, and capital maintenance building improvements. The 2021 capital improvements projects total $38.9 million, and various funding sources for these projects include State and federal funding, and not necessarily the levy. Mr. Ebensteiner stated residents may see a change in their property tax bill. Some of these charges include change in value; increase in property taxes requested for operations of General Fund activities and programs; and four different school districts with different levies and property tax implications. The average residential property tax distribution for a median value home is 40% City taxes, with the remainder from the School Districts, Hennepin County, and other special taxing districts. Mr. Ebensteiner stated the overall estimated market values increased by 7.1% from 2020 to 2021. He added this is the 7th straight year of increase, and 7th year of significant increase in residential and apartment values. The median value residential home in 2021, as assessed by the Hennepin County Assessor's Office, is estimated at $207,000, compared to $198,000 in 2020, for a 4.5% increase. Estimated amount for taxes payable in 2021 for a median valued home will be $1,245. Mr. Ebensteiner stated a decrease in the tax rate is anticipated for 2021, at 66.079% down from 66.589% in 2020, which represents a .5% decrease from last year. He added a 1% levy increase would result in an approximate $17 increase in property taxes to a median value home. Mr. Ebensteiner stated that concludes his presentation. 12/07/20 -2- Mayor Elliott stated this is a difficult year to have a budget discussion, and a lot of effort has been put into trimming the budget. He added the City Council has had robust discussions with the Finance Commission and focused on essential budget items. He noted the budget is not perfect in his view, but there are many expenses that are required to be made to keep the City in operations. Councilmember Ryan stated, for the past two years, the City has worked with a developer on the $100 million Opportunity Site development, to be developed within the next 2 years. He added the development will be a combination of apartments and commercial properties. He noted, according to a recent presentation, the percentage of property taxes that fall on single-family properties depends upon the distribution of different property taxes within a taxing jurisdiction. Mr. Boganey agreed, adding tax capacity determines the type of classes or property that will pay a certain dollar amount. He stated a substantial increase in tax capacity to a class other than single family home will result in that other class of property picking up a larger share of the levy. He noted a substantial increase in any type of development will result in lower taxes being paid by single family residential property owners. Councilmember Ryan stressed the importance of the future development of the Opportunity Site and other developable property across the City, to increase the City's fiscal soundness but also take more of the burden off homestead property owners. He thanked Mr. Ebensteiner for his presentation. Mayor Elliott stated he does not disagree with Councilmember Ryan's point, but it is a simplified version of what will happen and the effect on Brooklyn Center's residents. He added it is conceivable that the share of the tax burden could be paid through development, but it is a question that requires further review. He noted the City Council had a presentation last week that indicated development may reduce residential property taxes, but housing costs will increase. Mayor Elliott moved and Councilmember Butler seconded to open the public hearing. Motion passed unanimously. No one wished to address this item. Mayor Elliott moved and Councilmember Graves seconded to close the public hearing. Motion passed unanimously. Mr. Boganey stated he would like to make a comment about his previous response to Councilmember Ryan's question. He added his response was a general one, based on an assumption that when improvement occurs, it will be reflected on the tax roll without tax abatement or tax increment financing, so the timing is different. He noted Tax Increment District #3 will soon be decertified, and its tax capacity will go into General Operations, which will represent a reduction in the tax rate for all properties. He noted significant tax abatement that accompanies new development will not immediately be seen to the full extent. 12/07/20 -3 - 3b. CITY MANAGER'S BUDGET TRANSMITTAL LETTER FOR 2021 FISCAL YEAR Councilmember Graves moved and Mayor Elliott seconded to Receive the City Manager's Budget Transmittal Letter for 2021 Fiscal Year. Motion passed unanimously. 3e. RESOLUTION NO.2020-116 ADOPTING THE 2021 ANNUAL CITY BUDGET Councilmember Ryan moved and Councilmember Lawrence -Anderson seconded to adopt RESOLUTION NO. 2020-116 Adopting the 2021 Annual City Budget. Motion passed unanimously. 3d. RESOLUTION NO. 2020-117 APPROVING THE 2021-2035 CAPITAL IMPROVEMENT PLAN AND ADOPTING THE 2021 CAPITAL PROGRAM Councilmember Ryan moved and Councilmember Butler seconded to adopt RESOLUTION NO. 2020-117 Approving the 2021-2035 Capital Improvement Plan and Adopting the 2021 Capital Program. Motion passed unanimously. 3e. RESOLUTION NO. 2020-118 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 2021 Councilmember Ryan moved and Councilmember Butler seconded to adopt RESOLUTION NO. 2020-118 Approving Final Tax Capacity Levies for General Fund and Debt Service Funds and Market Value Tax Levy for Housing and Redevelopment Authority for Property Tax Payable in 2021. Motion passed unanimously. Mayor Elliott moved and Councilmember Ryan seconded adjournment of the City Council special meeting at 7:30 p.m. Motion passed unanimously. 12/07/20 -4- 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 Special Session of the City of Brooklyn Center held on December 7, 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 January 11, 2021, Regular Session. City Clerk Mayor 12/07/20 -5-