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-3- The problems previously raised regarding the fencing for the Craig & Company property at 3909 Silver Lake Road were discussed further in the staff minutes and in Larry Hamer's November. 6th memorandum. Mr. Childs reported Mr. Berg had visited the site and found the post holes for the required fencing to be dug and had indicated he believed the required landscaping and fencing will be completed before the November 30th deadline. Mr. Hamer ' s inspection verified there is no drainage problem to justify delaying the fence erection. Motion by Councilman Ranallo and seconded by Councilman Letourneau to adopt the resolution which authorizes a budget transfer of $1 ,000 for additional overtime salary which will result from a Fire Depart- ment retirement , unforeseen at the time .the budget was prepared. RESOLUTION 81-072 A RESOLUTION MODIFYING THE 1981 BUDGET Motion carried unanimously. He had learned at the Managers ' meeting November 10th that, under Minnesota law, municipalities are not allowed to supplement Workmen ' s Compensation payments for injuries on the job, Mr. Childs told the Council. He now believes the City may have to go back and credit against sick -pay for employees who have already been compensated in this manner but is waiting for an Attorney General 's opinion to that effect to do so. The labor organization whose members will . be affected by this ruling, will be notified , even though they are probably aware of the law which has been in effect for many years . Mr. Childs concluded his comments on the November 5th staff meeting by telling the Council the plans which have been made by staff to deal with the anticipated cuts in aid to cities; whether they should be 20 percent, or $49 ,000 , or $125 ,000 at fifty percent. Some of the projects which may have to be delayed include the purchase of a squad car, fire training sessions and building maintenance postponements as well as equipment purchases for the parks , all of which, he added, will have to be done eventually. The Manager told the Council the Council Contingency Fund will have to be decreased along with other funds and the City will probably have to go back to the 1981 _spending level for street maintenance, which will result. in doing less than in 1981 because of inflationary influences. Mr. Childs said the staff believes these cuts can be handled without severely cutting services. Councilman Sundland complimented the staff, for having the foresight to develop contingencies for dealing with the severest cuts in state aid. Councilman Ranallo was concerned , however, with further delaying seal coating projects throughout the City, since the Public Works Department had fallen behind on those projects already. Mr. Childs told him the City had already purchased the crack filling materials and intends to use it all up but has deferred any purchases and laid off two part-time workers because of the budget crisis . Mayor Haik reported attendance at a conference of north suburban communities where Governor Quie had said he hoped there will be a