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Mounds View City Council Page Five <br />Regular Meeting December 8, 1993 <br />Gastereich stated that he has had no pay increase for the past five years <br />and that this past year he was forced into early retirement. Mr. <br />Gastereich suggested that the Council dispense with the tunnel vision. <br />Mr. Gastereich also stated that the $50,000 used for the golf course <br />should come back to the City in the form of a loan to be paid back. <br />Orduno stated that this money was coming out of the collected franchise <br />fees, that it was not a loan. <br />John Heron, 2109 Hillview Road, stated that the interest-rates have come <br />down and this drives up property taxes. Heron stated that this means <br />that rental fees will go up and because many are on fixed incomes they <br />will move. Mr. Heron asked at what point do the increases stop. <br />Mayor Linke explained that the City is looking at a Housing Intern and a <br />Economic Development Coordinator to help increase the quality of life in <br />town. <br />Mr. Heron stated that values will drop again, business values have <br />dropped and rents-will have to go up to compensate. <br />• Torrie Johnson, 7730 Long .Lake Road, asked how the City is doing on <br />actual 1993 budget expenditures vs. what was budgeted for 1993. <br />Mayor Linke stated that revenues are down, i.e., the franchise fee isn't <br />what was projected. <br />Orduno stated that the City will have to pay $26,000 to Superfund as the <br />City has been sued by East Bethel. <br />Torrie Johnson asked if there was a guideline .that delegated what <br />percentage of the salaries goes to total budget. <br />Mayor Linke stated that it was based on 49 FTE's for 1994. Out of the <br />49 employees, 18 of those are from the Police Department and 50~ is taken <br />by them and what is left over is spread out among the remaining 30+. The <br />City is out of compliance with regards to pay equity and that could cause <br />loss of state aid. <br />Orduno stated that City employees are paid on internal comparisons not <br />market values. <br />Bruce Gehring, 2522 Ridge Lane, asked if the City is getting more money <br />that it is putting in to fiscal disparities. <br />Orduno stated that the City is still on the winning end. Orduno stated <br />that the out-state cities receive more state aid. <br />