09/28/2009 Council Packet - Laserfiche WebLink

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SPECIAL WORK SESSION August 25, 2009 DRAFT A council member had been contacted by an employee asking the council to consider alternatives to workforce reduction such as furloughs. It was clarified that the council is looking at all possibilities including a retirement incentive. There was a discussion about a storm water utility and franchise fees as possible revenues sources. It was noted by Director Rolek that most cities in the metro area have implemented a storm water utility and he added it is generally considered a more equitable way to meet the water quality mandate because it removes the cost from the levy and reaches users in a different way. The franchise fee is widely used in the area as well. Staff will be reporting at an upcoming work session on those two revenue options. A council member noted that the budget for 2011 may be just as or more difficult as 2010 and the council may want to reserve the storm water and franchise fee options for those difficult times ahead. Regarding fund balance, Mr. Rolek noted his reservations in recommending any use of that- important resource. It is a one -time use and must be considered cautiously however it could be a good stop -gap until the economy and budget start revitalizing. A council member noted that the city's leadership has worked hard to keep stable or lower the tax rate in the past. If that choice continues, it is important to be cognizant of the impact on staff, citizens and services. It is clearly a difficult time for cities and tough choices on both ends — taxes and services — are being made. Mr. Rolek noted that governments generally feel the impact of an economic downturn such as this later because of the taxation process etc. It is important however to remember that the city needs to be ready for the rebound when it comes. City employees were in attendance at the meeting and were invited by the council to engage in the discussion. Bart Anderson, AFSCME Council 5 business agent for Local 2454 read a letter prepared by the union membership. He also noted concern regarding the proposal for early retirement in that it has not been properly negotiated through the collective bargaining process. He will be reviewing the program documents and will work with Mr. Tesch if there are concerns. He is also concerned that the union has not been asked to engage in a meet and confer process in regard to proposed layoffs. Mr. Anderson noted the great concern of the Local membership with the current situation as well as the membership's interest in working together with the council and city to meet the challenges. Tim Hillescheim, on behalf of the 49ers union, suggested they would welcome the chance to talk about options and how their members can be a part of collectively working together to solve some of the city's budget problems. Lisa Hogstad, Community Development Secretary, remarked that the written report received by the council indicates the duties that would be lost with the proposed work force reduction. She is concerned that the information presented is incomplete and that those employees do much more and the city will lose much more than what is being presented. •