City Council - 11/16/2010 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY, NOVEMBER 16, 2010 CITY CENTER
5:00—6:25 PM, HERITAGE ROOM II
6:30—7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Phil Young, Council Members Brad Aho, Ron Case, Jon Duckstad, and
Kathy Nelson
CITY STAFF: Interim City Manager Jay Lotthammer, Police Chief Rob Reynolds, Fire Chief George
Esbensen, Public Works Director Eugene Dietz, Community Development Director Janet Jeremiah,
Communications Manager Joyce Lorenz, City Attorney Ric Rosow, and Recorder Lorene McWaters
BUDGET ADVISORY COMMISSION: Annette Agner, Eapen Chacko, Richard King—Vice
Chair, Jon Muilenburg, Richard Proops, Gwen Schultz, Don Uram—Chair
Heritage Room H
Don Uram, Eapen Chacko and Gwen Shultz were absent.
I. JOINT MEETING WITH THE BUDGET ADVISORY COMMISSION
2011 Budget Recommendations
Interim City Manager Jay Lotthammer introduced Budget Advisory Commission Vice Chair
Rick King. King presented a PowerPoint on the BAC's recommendations regarding the
2011 operating budget and CIP.
King said the BAC made its initial recommendation on the 2011 budget to the City Council
in September. They recommended that the 2011 budget remain flat. They also
recommended that the two percent wage adjustment remain in the budget,but that
reductions should be made in other areas to attain a flat budget. The BAC recommended
that Department Directors identify areas for reduction.
At its October 26 meeting, the BAC refined its recommendation as follows:
• Keep the 2011 budget flat over 2010 and retain the two percent wage adjustment
• Maintain the tax levy approved by the City Council in September to reduce the 2011
budget deficit
The motion, which carried 5-0, was to, "Forward to the City Council the following
recommendation for the 2011 operating budget: Zero change in spending from 2010 to
2011; $751,932 increase in the tax levy from 2010 to 2011 (2.61% increase in tax levy); and
operating deficit of approximately $600,000.
City Council Workshop
November 16, 2010
Page 2
The BAC supports the projects listed in the Capital Improvement Plan. They noted that 95
percent of the projects are for maintenance, the CIP currently does not have sustainable
funding, and the fund balance will be depleted in a few years. The BAC recommends
exploring various funding sources for the CIP, including an increase in the tax levy once the
economy improves, franchise fees and special assessments for road improvements.
Council Member Nelson asked why the recommended wage adjustment is 2 percent, since
that is higher than inflation. King said employee salaries were frozen in 2010, and for the
City to retain its core of employees it is necessary to pay competitively. Interim City
Manager Lotthammer agreed that the two percent recommendation is not driven by inflation
but by the market.
Commissioner Proops said he feels the increase in medical costs should be borne by the
employees rather than the City.
Nelson said she feels the City should implement the Fire Duty Crew, and asked what sort of
discussions the BAC had about that. King said the BAC took the Fire Department's
recommendation to add a Duty Crew under advisement,but decided—in the context of the
overall budget—not to support the recommendation for 2011. King said the BAC did not
feel the budget should be increased for that initiative.
Council Member Case noted that the Police Department's request for two additional police
officers is not included in the recommended budget. He asked what that will look like in
terms of service provided by the Police. Police Chief Reynolds noted that the addition of
two officers would raise the Police Department staffing level to the 2008 recommended
level. Reynolds said there may be some reduction of quality of life services, and their
services might be less proactive and more reactive. There may be some decrease in levels of
traffic enforcement.
Case asked where the recommended half million dollars in reductions would be made.
Lotthammer said there would have to be either program cuts or reductions in staffing.
Budget Advisory Commission Appointments
Lotthammer told the Council that Don Uram's resignation from the Budget Advisory
Commission leaves an opening with two years left on the term. The Council discussed
which candidate to appoint from the pool of applicants.
Council Chamber
II. OPEN PODIUM
A. Nancy Tyra-Lukens—City Manager Search
Tyra-Lukens said she has spoken with Greg Albrecht about the search process, and
she is comfortable with the timeline and process he outlined.
III. ADJOURNMENT