01/27/2003 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES JANUARY 27, 2003 APPROVED 1 Mayor Bergeson welcomed Senator Mady Reiter to the meeting and indicated she will be providing a • 2 legislative update. 3 4 Senator Reiter introduced herself stated she is proud to represent a portion of Lino Lakes. She also 5 represents Circle Pines, Lexington and Shoreview. She stated she has been assigned to the 6 Transportation Committee, the Commerce Committee, which has recently been combined to include 7 cable communication and most of the utilities, and to State Government Budgets. 8 9 Senator Reiter indicated she was here to talk briefly about the four and one-half billion dollar deficit 10 in the spending budget. She stated that the economy right now is going okay in Minnesota, but has 11 not come all the way back since the September 11, 2001 tragedy. 12 13 Senator Reiter indicated the State loss in capital gains has been nine million dollars, and combined 14 with the health care costs has hurt the State budget. She added that Northwest Airlines revenues have 15 had a part in the deficit also, with fewer people traveling. 16 17 Senator Reiter stated one thing being looked at is a two-year freeze on salary increases on all levels of 18 government. She indicated anyone who campaigned extensively during the previous election 19 received a clear message that tax increases would not be tolerated. In light of this, a freeze is 20 necessary on all levels of government from State through cities, school districts, watershed districts, 21 etc. She indicated there are 25,000 employees at the University of Minnesota, and while they cannot 22 tell the University specifically they cannot increase salaries, they can take away $10 million in aid, 23 which would force them to make that decision themselves. She stated there were 129,000 employees • 24 in school districts and 40,500 in county positions. She indicated she didn't have the exact number of 25 city employees. She added that every police officer, fire department employee, anyone due to receive 26 an increase is not going to get it. She stated that with this freeze the senators are supposed to receive 27 a 12 percent raise, which obviously they won't do. 28 29 Senator Reiter indicated there are a few areas they've been told are off limits, including K-12 30 education. She indicated a task force has been formed to look at the allocation of funds per district, 31 and they have to get a handle on it. She stated currently Minneapolis receives $16,000 per student, 32 and St. Paul receives $11,000 per student, whereas Lino Lakes and other areas receive only $6700 or 33 $6800 per student. She indicated they need to look at the pieces that drive how that amount is 34 determined, and property taxes will be looked at also. She added Homeland Defense is also off 35 limits. She stated Lino Lakes is very frugal. They receive only $157,000 in state aid. Senator Reiter 36 stated that while she is not a proponent of holding back salaries, the taxpayers will hold government 37 in line and she is here to ask for support from the City. 38 39 City Administrator Waite Smith asked if multi-year union contracts would be hampered by this action 40 as well. Senator Reiter stated her assumption would be that anything in progress would go forward. 41 She indicated the State has not approved the freeze yet. 42 43 City Administrator Waite Smith indicated there were three items on the agenda to approve this 44 evening, including a union contract that is a year old already. She asked if they should continue with 45 those items or if they should be tabled until further information comes out. Senator Reiter indicated 46 she would defer to the City Attorney to make that decision, as it could take the entire session to • 47 decide to move forward. 48 2