HomeMy WebLinkAbout2003.06.30 CC Minutes - Budget WorkshopMINUTES 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,
City Council budget workshop of June 30, 2003
Page 2
which stated that the Council could issue up to $760,000 in equipment certificates to fund and
purchase vehicles and equipment in the 2003 CIP.
Granger made motion, Puleo seconded, directing staff to issue $760,000 in equipment certificates to
fund and purchase vehicles and equipment in the 2003 CIP.
All aye. Motion Carried.
Ron also suggested that Council direct staff to prepare the 2004 budget to recapture 60% of the 2004
loss of state aid
Miron made motion, Haas seconded, directing staff to prepare the 2004 budget to recapture 60% of the
2004 loss of state aid.
All aye. Motion Carried.
Miron made motion, Haas seconded, directing staff to prepare the 2004 City budget based on the
maximum levy allowed by state statute with NO increase in the urban tax rate.
All aye. Motion Carried.
ADJOURNMENT
Miron made motion, Haas seconded, to adjourn at 9:35 pm.
All aye. Motion Carried.
Michael A. Ericson
City Administrator