2010-07-26 CC Minutes Workshop A, lbertvi lle
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ALBERTVILLE CITY COUNCIL
July 26, 2010
MINUTES
ALBERTVILLE CITY HALL 7:00 PM
Mayor Klecker called the budget workshop to order at 7:00 p.m.
ROLL CALL
PRESENT: Mayor Ron Klecker, Council members Tom Fay, Larry Sorensen, John Vetsch, and
Dan Wagner
OTHERS PRESENT: City Administrator Larry Kruse and Finance Director Lannes
City Administrator Kruse started the meeting by giving an overview of the budget process stating
this was the first initial budget workshop with the goal to adopt a preliminary budget at the
September 6 th Council meeting. Kruse stated once the preliminary levy is certified, it can go
down, but can't exceed the preliminary levy. The final levy is to be certified by December 10,
2010.
Finance Director Lannes reviewed the proposed 2011 budget in detail. The initial General Fund
Budget shows an increase of 5.58 %. The majority of the budget is flat at 1.68% increase, with
the following items making up the remainder of the increase: $60,000 increase in bituminous
overlay and seal coating; $50,000 SAC Loan Repayment plan amount; $35,342 increase in
Capital Reserves and the addition of $23,655 for the new library payment to St. Michael. The
1.68% increase provides for a 1% COLA in January and a 1% COLA in July for all employees
except the City Administrator. The net 1.5% COLA is estimated to offset increased employee
health insurance costs. It is proposed that all steps be frozen in 2011.
Kruse reported that many government units are not granting any wage increases in 2010 or 2011.
The budget presented is a starting point for that discussion.
Lannes stated the City has used one time funds to mitigate a levy increase for CSAH 19 South
project. In 2011, the debt levy is projected to increase 20.34% for an overall increase of 11.9 %.
Staff emphasized that using one time money in both 2009 and 2010 just postpones addressing the
debt issue.
M:\Public Data \City Council\Council Minutes\2010 Minutes\M 07 -26 -10 approved.doc
City of Albertville
City Council Minutes
July 26, 2010
Page 2 of 2
The Council asked staff to evaluate contracting out Building Department Services, FYCC,
voluntary employee furloughs and a breakdown of health insurance cost sharing and revenue
enhancements. All agreed the 11.9% was not acceptable and understood the dilemma dealing
with the CSAH 19 debt. Not included in the budget is a request from the Fire Department for
some type of a quick response pickup, which the Council supported and encouraged staff finding
a funding mechanism to accomplish purchasing something. Staff reported the Fire Relief
Association has requested a large increase in pension funding, which is also not in the budget.
Currently they are funded at $1,740 per year of service. The Department has an estimated 350
years of service, resulting in a $3,500 increase in cost for a $10 increase per year of service.
The Council asked staff to give an update at the next Council meeting.
ADJOURNMENT
CMs Sorensen/Wagner motioned to adjourn the Monday, July 26, 2010 regular City Council
meeting at 9:00 p.m. Motion carried unanimously.
Larry Krus City Administrator (recording secretary)
MAPublic Data\City Council \Council Minutes\2010 Minutes\M 07 -26 -10 approved.doc