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HomeMy WebLinkAbout2004-08-31 Council Minutes CITY OF CORCORAN BUDGET WORKSHOP AUGUST 31, 2004 H:\City Hall Information\CITY GOVERNMENT\Council, Commissions & Committees\Council Information\Council Minutes\Previous Years\2004 - Need to PDF\08.31.04 Budget Workshop.doc Acting Mayor Lymangood opened the Budget workshop at 6:30 p.m., on August 31, 2004 at the Corcoran City Hall. The purpose of the workshop was to address the City’s preliminary 2005 Budget. Present were Councilors Bucher, Gageby, Lymangood, and Thomas. City Staff present included Administrator Vergin and Police Chief Schutte. Mayor Guenthner was excused absent. MOTION by Bucher, seconded by Thomas, and carried unanimously to approve the agenda as presented with the addition of Open Forum, Letter to the Editor and Draft Newsletter. Open Forum No one was present in the audience. Police Officer Union Contract, 2005-2006 Administrator Vergin advised the council that there are three items in the proposed contract, an increase to the uniform allowance, a 3% wage increase for each year, and a proposed change to the shift differential hours. The council was in consensus to offer the uniform allowance increase and wage increase of 3%, however would not consider a change in the shift differential pay and strongly noted that there would not be any consideration for change in the future either, that the preference would be for there not to be a shift differential. Police Chief Labor Contract, 2005-2006 Administrator Vergin advised the council that there are two items in the proposed contract, an increase to the uniform allowance and a 3% wage increase for each year. The Council thanked Chief Schutte for his good work and contributions to the community. They requested that a performance analysis of the department be provided at some time in the future. Councilor Bucher indicated that he has been working with Chief Schutte and Administrator Vergin on some of that information. The Council was in agreement with the proposed changes to the contract. Health Insurance Costs A spread sheet had been provided that showed the costs of health insurance over the past three years. From 2002 to 2004 there had been an increase in premiums by 24.35%, however no adjustment has been made for the portion that the city contributes, that has stayed constant at a $500 cap per month. For 2005 there will be no premium increases, per the negotiated contract by Logis. The Council discussed and came to a consensus to raise the city’s portion to a $525 per month cap. Noting that they do appreciate what the employees do and are trying to make an attempt to balance costs. Overview of Operating Budget and Levy Reviewed the analysis which identified the rate of expenditures from 2004 t o the proposed budget for 2005. The overall proposed increase to expenditures is 5.23%, 3.12% related to cost changes and 2.11% related to scope in service changes. Call to Order Roll Call Agenda Approval Open Forum Police Officer Contract Police Chief Contract Health Insurance Costs Overview of Budget CITY OF CORCORAN BUDGET WORKSHOP AUGUST 31, 2004 H:\City Hall Information\CITY GOVERNMENT\Council, Commissions & Committees\Council Information\Council Minutes\Previous Years\2004 - Need to PDF\08.31.04 Budget Workshop.doc Reviewed the tax impact based on various tax rate options, ranging from a negative budget balance of ($63,000) to an excess budget balance of $100,000. Reviewed the Reserve Fund balance and policy; it is projected that there will be an excess in the 2004 budget, which has the potential to drive the reserve fund balance up by almost 5% over what the policy has projected for 2004. After considerable discussion it was the consensus of the Council to levy tax dollars that would meet the budget with an excess of revenues over expenditures in the amount of $32,000, which is equivalent to one-half the projected reserve fund designation. Letter to Sheriff and Letter to the Editor A draft letter prepared by staff was reviewed that was in response to Sheriff McGowan’s letter which prescribed three options regarding police protection within the City of Corcoran. Councilor Bucher also provided the council with a draft letter he had prepared. The council concurred that having a city department is an asset and the letter needs to address the positives that are a result of having a city owned department. That the City would not enter into a contract with the Sheriff, nor would they allow for the Corcoran Department to be absorbed by the Sheriff’s Department. Administrator Vergin was directed to revise the draft letter, utilizing both drafts and comments from the Council. Discussion also took place regarding the letter to the editor which addresses the proposal made to the City by the Hennepin County Sheriff. Concern that data is not apples to apples and can be misconstrued by the public. Other Business Councilor Bucher requested that replacement of squads be addressed in more depth when the Capital Equipment Plan is reviewed. It was suggested that a policy for replacement be prepared that addresses miles, years and maintenance. The draft newsletter was reviewed, comments for changes will be directed to Clerk Tillmann. The preliminary budget will be on the September 9, 2004 council agenda for consideration of adoption. MOTION by Bucher, seconded by Thomas and approved unanimously to adjourn, 9:16 p.m. _________________________________ Susan Vergin, City Administrator Response to Sheriff’s Letter Other Business Adjournment