2003.06.30 CC Minutes - Budget Workshop

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MINUTES FOR THE CITY COUNCIL BUDGET WORKSHOP OF JUNE 30, 2003 Acting Mayor Becky Petryk called the meeting to order at 7:30 pm. PRESENT: Granger, Haas, Petryk, Puleo Mayor Fran Miron arrived at 8:29 pm. City Administrator Michael Ericson CD Director John Rask Finance Director Ron Otkin Public Works Director Chris Petree Hugo Fire Chief Jim Compton I' Assistant Chief Greg Burmeister 2°a Assistant Chief Jadon 011ila PRESENTATION OF MID -YEAR BUDGET REVIEW City Administrator Mike Ericson stated that when the City Council set its goals in January, they requested that a workshop be schedule in June to review the status of the budget. CD Director John Rask reviewed with Council and staff the Power Point presentation from the December 2002 Council meeting, at which the budget was adopted. Finance Director Ron Otkin then reviewed with Council the March 2003 measures that were taken to provide safeguards to the budget. Employee salaries were frozen until the Minnesota State Legislature finished its work; reduce to one from two, and delay hiring of public works worker to October, and use equipment certificates to purchase the $100,000 plow truck. He commended the Council on levying to the amount allowed by the state last December, as per City policy since the cities that did not, lost that levying authority, as per the changes in the state tax law in the 2003 se3ssion. To date, the City already has 94 housing building permits, where 120 were budgeted for revenue purposes. Ron reported that the City is in good financial shape. Ron stated that the legislature did not freeze public employee salaries, and that the City has not had any financial problems. The $19,300 in 2003 employee salaries and payroll taxes are covered in the Council approved budget. REVIEW CITY STAFF ACCOMPLISHMENTS CD Director John Rask and City Administrator Mike Ericson provided Council with a Power Point presentation of the accomplishments of staff to date. Council directed staff to reduce contract help and staff responded by doing so. The Public Works Department has successfully transitioned from Washington County for public works. RECOMMENDATION ON TEMPORARY SALARY FREEZE Council was generally pleased with the mid -year review of the budget, and the Council directed staff focus to "do more with less". After members shared their support for the quality of work: Haas made motion, Petryk seconded, to lift the salary freeze. All aye. Motion Carried. 2003 CAPITAL IMPROVEMENTS PROGRAM Finance Director Ron Otkin then reviewed with Council the other recommendation in his staff memo,