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HomeMy WebLinkAbout2019 09-16 FCM 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 16, 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, April Graves, Kris Lawrence-Anderson, and Dan Ryan. Also present were Financial Commissioners Tia Hedenland, Taofeek Ishola, Abate Terefe, 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 Deputy City Clerk Alix Bentrud. APPROVAL OF AGENDA There was a motion by Councilmember Ryan and seconded by Councilmember Lawrence-Anderson to approve the agenda as submitted. The motion passed. 2020 CITY MANAGER’S RECOMMENDED PRELIMINARY LEVY Mr. Boganey stated City Staff would present the City Manager’s recommended Budget and Preliminary Levy. He added this would be reviewed at the City Council’s September 23, 2019 meeting, and the City Council is expected to adopt a final levy by the end of September 2019. He noted, after the levy is adopted, the City Council can adopt a reduction in the levy but not an increase. Mr. Boganey stated a series of budget work sessions had been held to determine whether the preliminary budget is in line with the continued direction of the City Council and whether the pace is sufficient to complete strategic priorities. He added the consensus of the City Council was to approve a levy increase of 6% or less. He noted the City Council had received that information, and a draft City Council budget has been prepared, including all areas except the City Council and Mayor’s budget. Mr. Boganey stated the initial levy increase of 11.2% was too high, and City Staff knew there would need to change. He added tonight’s meeting is to review the changes that City Staff is proposing to bring the budget in line with the goal of 6% levy. Finance Director Nate Reinhardt reviewed budget adjustments up to this point as a result of July 29, 2019, Work Session at which budget overview and goals were reviewed. He added a preliminary 2020 budget is the result of this and subsequent work sessions. Councilmember Ryan asked where the $50,000 excess increment is coming from. Mr. Reinhardt stated tax increment based on the tax rate is received when the market value increases. He added the difference between the two rates produces excess taxes that goes into the General Fund. He noted the funds are distributed based on how much the rate is changed. Mr. Reinhardt reviewed reductions, including the elimination of a proposed part-time IT staff position. Mr. Boganey stated the proposed budget allows the completion of 1 public art program instead of the three programs that were approved and anticipated. Deputy City Manager Reggie Edwards agreed, adding the project that will be completed involves decoration of waste receptacles around the City, to encourage people to use them, and be conscious of where their trash goes. He gave a brief review of this demonstration project, a well as a proposed City Hall mural on the exterior of the building, and another type of public art. He noted these three projects were proposed, but only one will be pursued. Mr. Boganey stated funding could potentially be available if these projects were to be approved in 2020 and completed in 2021. Councilmember Ryan stated there had been a discussion about a new Public Works staff position who would maintain and beautify public rights of way and streetscapes. He added he hopes that can move forward to ensure that public areas are well-maintained, and the Shingle Creek Crossing managers will maintain their properties to the same standards. Mr. Edwards stated the 2019 Master Beautification Plan is still moving forward, with options for funding mechanisms, and will continue to move forward in the future. Mr. Elliott requested clarification regarding recruitment and Metro Transit. Mr. Edwards stated City Staff advertises open City positions on the inside and outside of Metro Transit buses that run through Brooklyn Center, to reach a population that would not otherwise be made aware of open positions. Mayor Elliott asked whether funds will be available for professional recruitment if Human Resources will no longer have that function. Mr. Boganey stated recruitment would be funded out of each individual department rather than the Human Resources budget. Mr. Reinhardt stated the two proposed Patrol Officer positions have been eliminated, as well as maintenance project funding and software upgrades, for a total reduction of $261,626 from the Police Department. Mr. Boganey stated he hopes to have a study completed that will provide data on patrol demand and provide recommendations for whether additional police officers would add value to the Department. 09/16/2019 Page 2 He added utilization of all patrol officers would be evaluated and analyzed carefully to determine patrol requirements and ongoing operational demands. Mr. Boganey stated the process for reducing the levy was two-fold: each department head was given a maximum 4% increase over current operations, and they were requested to evaluate and determine high priority funding areas. He added some Departments had few cuts as they did not have expanded services. Councilmember Graves stated it would be helpful to see the total budget with adjusted percentages. Mr. Reinhardt stated Page 53 shows a departmental page with deductions. Councilmember Graves requested clarification regarding “Patrol Overtime.” Mr. Boganey stated patrol overtime is estimated and included in the proposed budget as a certain amount of overtime is historically anticipated. Councilmember Graves stated the recruitment of additional officers was eliminated. She asked whether it is more advisable to pay overtime than officer salaries. Councilmember Lawrence-Anderson agreed, adding overtime would be $250,000, but hiring two potential officers would cost $175,000. Mr. Boganey stated this is an operational issue, and totals are estimated. He added budgeting for overtime is more cost-effective than additional officers, because much overtime is unavoidable. He noted overtime is an estimate, driven by staffing. Mr. Reinhardt stated Fire & Emergency Preparedness had a reduction of $45,000 for computer replacement. He noted the portable message board, as well as miscellaneous fire and emergency preparedness programs, were eliminated, and miscellaneous computer-related funding. Mr. Reinhardt stated a proposed park maintenance employee position was eliminated from the Public Works Department, as well as funds for the repair of engineer vehicles. Mr. Boganey stated a new Parks Maintenance Supervisor has recently been hired and is currently assessing staffing needs. He added the new Supervisor will complete this evaluation process before the 2020 budget is reviewed. COMMUNITY DEVELOPMENT Mr. Reinhardt stated the Housing Gap Analysis Study - professional services fees are proposed to be moved to TIF #3. He added the proposed part-time administrative assistant position would be eliminated for a total of $120,000 reduction. Mr. Reinhardt stated Community Activities, Recreation, and Services (CARS) had proposed a reduced City Hall and Community Center maintenance budget of $117,000. 09/16/2019 Page 3 Mayor Elliott requested clarification regarding the Housing Gap Analysis Study. Mr. Boganey stated that a study is proposed for the TIF budget. He agreed to confirm the details and provide additional information. Mayor Elliott requested clarification regarding grass cutting. Mr. Boganey stated that it is a Code Enforcement issue and has been reduced as the process has become very efficient, and less funding is required for abatement. Mr. Reinhardt stated some Logis software is no longer needed for Building and Community Standards, which is a reduction, as well as modified estimates for the garage, including fuel cost for vehicles, replacement costs, annual allocations for each vehicle for repairs and maintenance, and central garage operations. Mr. Boganey stated it could be considered a lease. Councilmember Graves requested clarification. Mr. Boganey stated the City pays for replacement and ongoing maintenance costs, which includes overhead for the building, garage, and staff as well as fuel. He added vehicles that are no longer used are sold by the garage, and proceeds go back to the garage fund. Mr. Reinhardt stated a central garage presentation would be provided for the City Council in fall 2019. Mr. Reinhardt stated new projects seemed to have the least impact on City Council priorities. He added individual departments were reviewed to ensure that the impact of reductions, or no reductions, were fully understood. Mayor Elliott asked whether the 3.3% increase takes into account proposed additional staff. Mr. Reinhardt confirmed this. Mayor Elliott asked whether the cost of maintaining services or 3.9% includes adjustment for inflation or cost of living. Mr. Boganey stated personnel cost increases are generally living-related. Mayor Elliott asked whether personnel costs increase by $800,000 every year. Mr. Reinhardt stated City Staff budgets the same way as the previous year. Mr. Boganey agreed, adding negotiated labor agreements are also a factor. He added the City matches non-union adjustments with union-negotiated adjustments. Councilmember Graves requested clarification regarding “Supply Services Charges for Requested Advancements.” Mr. Boganey stated that refers to new activities that would require start-up costs that will not occur every year. 09/16/2019 Page 4 Councilmember Graves asked whether “Supply Service Charges” refers to programs that provide services and support and give back to the community. Mr. Boganey stated this refers to supplies and services contracts, such as public art projects and election services, that will not be personnel-related costs. Councilmember Ryan stated the actual benefit or value of expenditure could be subjective. He added some people might support community art projects while others question whether it is a benefit. He noted this is a worthy concern but difficult to address. Mr. Reinhardt stated research has shown that most metro area cities have a levy of approximately 6%. Councilmember Lawrence-Anderson requested clarification regarding Community Center charges. Mr. Reinhardt stated those numbers relate primarily to the number of swimming lessons, which had to be reduced due to a lack of instructors. Mayor Elliott requested clarification regarding “Court Costs.” Mr. Reinhardt stated court fines might be allocated by Hennepin County to offset City costs. He added it has been up and down the past few years. Mr. Boganey stated there is a formula that dictates the City’s total share. Mr. Reinhardt stated the expenses budget of $23.8 million means a balanced budget. He added $16.8 million, or approximately 70%, are related to personnel costs. Councilmember Graves asked whether the “expenses by function” pie charts from the past few years can be used to determine whether there has been a shift. Mr. Reinhardt stated he could review the charts in the “General Government” area, to which has been added “Communications and Engagement.” Mayor Elliott asked whether there is any other staff doing City Planning. Mr. Boganey stated there is currently 1 City Planner, who also serves as the Zoning Administrator. He added the Community Development Director recommended an additional full-time position, and he supports that recommendation, with the increase in the amount of development activity and demands on that position. He noted an additional Planning Department staff member would give the City the ability to be timelier in processing applications, reviewing plans and doing the work correctly. Mr. Boganey stated the Zoning Administrator role would be approximately 20% of the new staff’s job, ensuring that the Zoning Code is enforced. This position would also be responsible for platting and re-platting. 09/16/2019 Page 5 Mayor Elliott asked whether there is any other City Staff working on Planning issues and whether a full-time position is necessary to augment it. Mr. Boganey stated Ms. McIntosh is the only City Planner. Mr. Reinhardt stated Earle Brown Heritage Center would be proposing two additional Sales positions for 2020. Mayor Elliott stated he would like to see this data without self-funded enterprise employees. Mr. Reinhardt agreed to forward a staffing chart that was in the last meeting packet with data arranged by the fund. Mr. Boganey stated historical information regarding the General Fund and Enterprise Fund could be provided for the City Council’s review. Mr. Reinhardt stated, based on preliminary estimates from the County Assessors’ Office, the taxable market value is estimated to increase by 106% for taxes payable in 2020. He added this is identical to the increase from last year. He noted this applies to industrial, rental, and residential increase assessed property values. Mr. Reinhardt stated residents increased the assessed value of their homes this year by 7.6%. He added, over the past six years, there has been a 73% increase in the value of the average median home. Mayor Elliott asked what would be a historical high for the commercial tax base contribution. Mr. Boganey stated he does not have any data, but he would assume that the Brookdale Mall development when it was newly developed would have been high. Mayor Elliott stated the average single-family home would pay $59 more on average for the levy. Mr. Boganey stated he could provide information from the County after the levy is approved, so the City Council and Commissioners can see the percentage of properties and what percentage they are paying. Mr. Reinhardt stated City Staff is requesting adoption of the preliminary levy at the City Council’s September 23, 2019, Regular Meeting. The levy can only be decreased but not increased. Councilmember Graves asked why the Housing and Redevelopment Authority (HRA) levy has a smaller percentage of increase. Mr. Boganey stated including the HRA levy in the overall levy increase would have a relatively small impact. Mayor Elliott stated he is happy that the City can get to a lower rate of levy. He stressed the importance of balancing services that are offered based on priorities and reducing the burden to 09/16/2019 Page 6 taxpayers. He added he hopes that as the City moves forward, ways to increase residents’ incomes are considered through workforce development, entrepreneurship, and business opportunities. He noted balanced priorities would be a result of a higher median income combined with creative ways to provide services. Councilmember Ryan stated, in the past, the Finance Department has provided a chart that compares Brooklyn Center taxes with peer communities, to counteract false rhetoric regarding high taxes. Mr. Boganey agreed to provide that information. Mr. Boganey asked whether there is any interest in increasing the maximum levy to provide additional funding for the Mayor and City Council’s budget. He added now is the time to discuss this, as the maximum levy cannot be increased. Councilmember Ryan stated Councilmembers have the option to share their travel allotment with other Councilmembers if they have chosen not to go out of state or participate in local conferences. Councilmember Butler stated she does not believe there is an additional need for funding for travel, as there are organizations with grants and other resources. She added additional travel for Councilmembers should not increase the levy. Councilmember Ryan agreed, adding. Councilmembers can borrow an allotment for travel from another Councilmember who has not used their travel funding. Mr. Boganey stated City Councilmembers could travel almost unlimited amounts within Minnesota and are allowed two out-of-state trips. He added there is additional funding for training. Councilmember Graves stated it would be a great idea to do something for the community, like town hall meetings, or some type of community engagement. Mr. Boganey stated that type of funding could be available out of appropriations or contingency. Mr. Boganey stated City Staff would prepare to move forward with the budget and preliminary levy as discussed this evening. ADJOURNMENT There was a motion by Councilmember Graves and seconded by Commissioner Ryan to adjourn the meeting. The motion passed. The Brooklyn Center City Council/Financial Commission adjourned at 9:02 p.m. 09/16/2019 Page 7 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 16, 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 October 28, 2019, Regular Session. City Clerk Mayor 09/16/2019 Page 8