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CITY COUNCIL WORK SESSION September 8, 2010 <br /> APPROVED <br /> 46 obligations). The budget presented is quite lean and he advises that adjustments should <br /> 47 address what services will be impacted. <br /> 48 <br /> 49 A council member received clarification that the capital equipment replacement costs <br /> 50 indicated in the expenditure increases is actually additional funding to those efforts. <br /> 51 When asked, staff also explained some unemployment and benefit pay out expenses are <br /> 52 related to positions dropped from the budget this year. A question was also posed <br /> 53 regarding the possibility of additional debt refinancing at lower interest rates but the <br /> 54 Finance Director explained that the timing as well as significant savings must be possible. <br /> 55 The bridge at 35E and CSAH 14 will not have an impact on the budget directly as city's <br /> 56 portion will be covered by special assessments and further the city's obligation is to <br /> 57 Anoka County. Another member questioned why elimination of employee furloughs is <br /> 58 projected to save $125,000 when the original savings were supposed to be closer to <br /> 59 $100,000, and Mr. Rolek explained that some of the elements (PERA benefits for <br /> 60 example)brought the savings higher. Upon request, Mr. Rolek also explained that the <br /> 61 cost of living salary increase for the police department is related to the agreement to hold <br /> 62 off on that until the last month of 2010. <br /> 63 <br /> 64 The mayor suggested the council look at the big picture first and then examine details. <br /> 65 He recalls the previous year's budget discussion and reductions related to the loss of city <br /> 66 activity and related work force. He sees that activity has not returned and the economy <br /> 67 has not recovered,valuations are almost ten percent down and since reductions were <br /> 68 minimized the previous year, there is still work to be done in that area. The budget that is <br /> 69 being presented to the council now proposes an increase and he doesn't feel that is <br /> 70 appropriate. An organizational review would have helped this situation but that hasn't <br /> 71 happened yet. He asked that the council consider their overall goal first and whether that <br /> 72 includes raising taxes. <br /> 73 <br /> 74 Regarding furloughs, a council member suggested that the time off represents <br /> 75 approximately 1.5 FTE position and questioned, since the city functioned without that <br /> 76 during 2010, couldn't that amount be cut permanently? The finance officer responded <br /> 77 that it's difficult to compare a reduction over the whole of the workforce in comparison to <br /> 78 reducing specific positions with specific duties. <br /> 79 <br /> 80 The council concurred that they are not interested in raising taxes and that the biggest part <br /> 81 of the picture becomes personnel. They will attempt to talk about priorities and service <br /> 82 impacts and make decisions based on that information. When asked about open <br /> 83 positions, Mr. Rolek explained that within the Police Department there are three open <br /> 84 positions and one additional position that will be vacant for a military deployment period. <br /> 85 The senior services position is also expected to be vacated by retirement at the end of the <br /> 86 year; staff has discussed filtering some of that work into the city's recreation services area <br /> 87 and not staffing the senior center but still having it open for visitors. <br /> 88 <br /> 2 <br />