League of Women Voters

Kathryn Summa, LWV Observer

All council members present except for Jon Denison, 4th Ward.  All newly elected council members and Mayor in the audience.

There were three subjects on the Work Session Agenda:   (1.) 2009-2013 Capital Improvement Plan review and Budget Wrap-up,   (2.) Water Division Cold Storage Building,  and (3.) Discussion on the EDA (Economic Development Authority).

There was some discussion of whether to leave item #3 on the Agenda since it was placed there at C. Denison's request and he was not present. It was decide to leave it on for the time being, subject to the length of the meeting.

Agenda item #1: Joel Walinski, Interim City Administrator, outlined the three sections of this item:   1. Benefit package,  2. CIP  (Capital Improvement Plan) , and 3. General Fund changes.

Elizabeth Wheeler, Human Resources Director, began with a detailed presentation of the city's employee benefits package. She gave the history of the 1982-1984  Pay Equity state legislation and progressed through the Health Insurance Plan as it stands today. Recognizing the difficulty and complexity of health care issues today, for both employer and employees, she explained the need to constantly search for better financial and health care solutions. To that end, 2009 will see the City establish a Health Insurance Study. A group comprised of city staff, employees and healthcare professionals will work through the first nine months of the year to explore the possibilities of better costs and care, so that in late Fall the employees can enroll in the best plan the City can offer.

The City has already begun a schedule of healthy preventative regimens such as walking programs, which will be enlarged next year to include classes in nutrition and alternative medicine. Congratulations on this effort.

Kathleen MacBride, the city's Finance Director, had several handouts for the Budget discussion. The first was  a multi-page 'green sheet'  of City  Facilities Projects on the CIP.  Ms. MacBride asked that the Council make priority decisions on the two biggest City Facility projects - the Safety Center and the  Library - although the renovations for City Hall were also included.

Dixon Bond stated that City Hall renovations were a very political issue that he felt the new council would have to discuss, regardless of decisions made by this council in their last month. Mr. Walinski  emphasized that this was only a plan, to get through a December 15th vote, and to give guidance to the new council.

In addition to the $200,000 plus Johnson Controls energy renovation contract, it was decided that the additional $240,000 window replacement  was the most pressing need.

The general consensus was to move ahead slowly, in phased stages,  and  keep from "over commitment".

The Public Safety Building was discussed next. Mr. Walinski laid out the basic proposed costs for land purchase or swap, and  initial design.  C. Pokorney felt it was necessary to look at the real needs, as the library committee has done.  Mr. Walinski  said that the City's facilities architect has had numerous discussions with the  Police and Fire Chiefs; more information on those , and locations, would come to the new council in January.

C. Pokorney again pointed out that the library committee had been very effectively organized in their presentation of needs and that it was unlikely that the city could afford to do two such large projects in two successive years, and that discussion could not "dance around these two projects forever".

More discussion ended in consensus that the Safety Center would be the first priority, followed by the Library.

The next portion of the budget item dealt with Streets and Related Infrastructure. Included here was a very interesting discussion of the Viking Terrace Bridge. This bridge connects residents of the Viking Terrace area  with Highway 3, by going  over the railroad tracks.

Mr. Walinski explained that there are various safety  questions,  not limited to the walking surface which has developed holes, but also the basic supporting structure of the bridge. At this time, regular maintenance and safety inspection of the surface need to be supplemented by determining the safety of the supporting basic structure. There had been a  budget placeholder of $55,000 for these ongoing safety procedures, but that amount was deemed to be in excess  of what was needed to implement safety and inspection procedures, so was reduced to $20,000.

C. Pokorney repeatedly emphasized the need for pedestrian connectivity from Viking Terrace to Highway 3  which has sidewalks to the downtown.

Ms. MacBride's second handout showed the Capital Projects Funds which are:  City Facilities Fund,  Vehicle and Equipment Replacement Fund,  Parks Fund,  and the Transportation Fund. These funds are used to account for the construction or acquisition of capital assets.  Annual budgets are adopted for these funds which receive designated dollars from the property tax levy.

An interesting project for 2009  is the proposed development of the skateboard park.  A total of  $235,000 is shown in this fund budget, but would be dependent upon $85,000 of that amount being raised by private  contribution.

Ms. MacBride's third handout was entitled  "Impact of the Proposed Property Tax Levy Increase for 2009". My understanding is that the actual levy amount will almost certainly remain at the proposed maximum percentage of increase; no finalization can be made with certainty without the City having their new LGA (local gov't aid) amounts from the State. There is an expressed fear that Governor Pawlenty will seek to resolve  MN's budget deficiencies by further cuts to LGA.

In the final summation of possible cuts to the city budget there was an extended discussion of the possible $30,000 reduction gained by a "partial wage freeze for higher level employees".  Although this cut was suggested by the City's Finance Director, the council decided to not put this cut into effect.  C. Nelson  observed that groceries cost the same for city employees who were losing jobs as they did for management employees who might have a wage freeze imposed.  C. Davis stated that the "city staff had stepped up dramatically ..." and that freezing management wages wouldn't change anything or save jobs; "... these are key leaders going forward."

The consensus was that the  partial wage freeze, totaling $30,000, should be removed from the possible budget cuts.

Agenda  item #2: At 10:15 this item was presented by Doug Lien, the Water Division Director.  The Water Department is proposing  to build  a cold  (unheated) storage building to alleviate their need for more storage and workshop space. Several possible locations were discussed and evaluated.

Joel Walinski concluded that he was hearing the council look at a slightly "dressed-up" building, and an additional location adjoining the city's street shop.

Agenda item #3: The "Discussion on EDA" was only briefly  touched on with a couple of questions about the liquor store process, as it was now 10:30.  Mr. Walinski briefly mentioned the seven, now reduced to five, applications from the RFP (request for proposal) process, but said the "base model" for the liquor store would be to make the required OSHA repairs, and do the deferred maintenance, possibly  $300- 400,000 .

That was briefly  compared to the $3,000,000 placeholder in the budget.

C. Bond asked if it was "possible to stay at the old store"?   Mr. Walinski replied,  " ...very possible".

Meeting adjourned at 10:45 PM.