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1993-11-03 CC Budget MtgALBERTVILLE CITY COUNCIL BUDGET MEETING November 3, 1993 Albertville City Hall 7:00 PM PRESENT: MAyor Mike Potter, Councilmembers John Vetsch, Duane Berning, Sharon Anderson and Albert Barthel, City Clerk Linda Houghton, City employees Ann Culley, Mike Rutkowski and Ken Lindsay Mayor Potter called the special meeting to order. The purpose of the meeting is to set wages for City employees for 1994 and to review the remainder of the 1994 budget. City Clerk Linda Houghton has proposed a 5% wage increase across the board. Employee performance reviews have been completed and reviewed by the Council on August 9, 1993. Councilmember Vetsch stated that no employees are not necessarily given a raise annually, but rather raises should be based on employee merit and their reviews. The Council agreed to review each employee individually. Mayor Potter proposed that Ann Culley be offered a 5% wage increase for 1994. A 5% increase would amount to a $0.43 increase per hour. Potter stated that Ann's reviews have been good and warrant an increase in pay. Councilmember Anderson stated that the average wage increase according to the League of Minnesota Cities magazine is 3.44% ($.30 per hour). She suggested that Ann be offered a 3.44% increase in wages and review again in six months. Potter recommended a compromise and suggested Ann be offered a 4% increase. Anderson made a motion to offer Ann Culley a 4% increase ($0.35 per hour) and re-evaluate her rate of pay in six months. There was no second to the motion and the motion died. Barthel made a motion to set Ann Culley's 1994 hourly rate at $8.98 (a $0.30 per hour increase). Anderson seconded the motion. Barthel and Anderson voted aye. Berning and Vetsch voted no. Mayor Potter cast the deciding vote in favor of the motion. The motion carried. The Council considered a wage increase for employee Mike Rutkowski. Anderson suggested that Mike receive the same 3.44% increase as approved for Ann. Councilmember Berning stated that because Mike Rutkowski is now in charge of the parks, he is in favor of offering Mike a 5% increase in wages ($0.45 per hour) n because of the added responsibility. Berning made a motion to set Mike Rutkowski's 1994 hourly wage at $10.14 per hour (a $0.48 per hour increase). Barthel seconded the motion. Berning, Barthel and Anderson voted aye. Vetsch voted ALBERTVILLE CITY COUNCIL BUGET MEETING November 3, 1993 Page 2 of 3 no. The motion carried. The Council considered the 1994 wages for Ken Lindsay. Councilmember Vetsch stated that he would like to freeze Lindsay's hourly rate for 1994 as his current rate of $14.92 per hour, because Lindsay has less responsibility since Mike has been put in charge of the parks. Both Councilmembers Berning and Anderson agreed with Vetsch. Linda pointed out that Lindsay's wages have been frozen since 1992. She also explained that there have been increases in the size of the City of Albertville and consequently more work involved. The expanded wastewater treatment facility probably will also increase Ken's work load. Vetsch made a motion to freeze the 1994 hourly rate for Ken Lindsay at $14.92 per hour. Berning seconded the motion. Vetsch, Berning, and Anderson voted aye. Barthel voted no. The motion carried. The Council considered the 1994 wage for City Clerk Linda Houghton. The clerk is currently paid $14.43 per hour. Linda stated that although she does not feel that the 5% increase across the board for employees is unjustified, she would not ask for a larger increase than the 3.44% increase the Council approved for Ann Culley. Barthel made a motion to set the 1994 hourly wage for Linda Houghton at $14.93 (a $0.50 per hour increase). Anderson seconded the motion. Barthel and Anderson voted aye. Berning and Vetsch voted no. Mayor Potter cast the deciding vote in favor of the motion. The motion carried. Councilmember Berning questioned if Councilmember Anderson was satisfied with the decision to freeze employee Ken Lindsay's hourly rate. Anderson indicated she was slightly uncomfortable with the decision and stated that she felt if employees are given nothing the Council will get nothing in return. She proposed to offer Ken Lindsay a 1% hourly rate increase. Lindsay stated a 1% raise was "a slap in the face" and he would not accept that. Councilmember Berning asked Mayor Potter to clarify his position on the wage increases. Potter stated he had been in favor of a 5% increase for Ann, opposed to the 3.44% that was passed. He stated that the administrative end of the City is the most important aspect and wages should reflect that. He also stated that he would have preferred to bring Ann and Mike's hourly rate more in line. .Both positions are assigned similar points. The wages increases the Council has passed have now separated the wage difference even more. ALBERTVILLE CITY COUNCIL BUGET MEETING November 3, 1993 Page 3 of 3 Councilmember Berning explained that he was opposed to wage increases for both Linda and Ann because it is his belief that the City should have a part-time administrator. He stated that he believes both Linda and Ann do a good job, but he was opposed to hiring Ann as secretary in 1991 because he thinks a part-time administrator is necessary. The other Councilmembers are in basic agreement with the need for a part-time administrator. Linda questioned whose position Berning was proposing to eliminate --the clerk's or the secretary's --if a part-time administrator is hired. Mayor Potter stated that some adjustments may have to be made. When Ann Culley asked for a definition of this adjustment, Potter stated no decision has been made. Linda questioned the Council's reasoning behind hiring a part-time administrator if, as has been stated, that both she and Ann are doing a good job. She was told that a part-time administrator could possibly save the City money in legal services and could recruit businesses to the City. Berning stated that he believes the clerk/treasurer job is very difficult and time consuming and that an administrator could cut the work load. Linda will create an additional department for "Shop" instead of placing the shop area into "Buildings & Plant". Anderson made a motion to continue this budget meeting to Monday, November 15, 1993, at 7:00 PM. The Council will review the final preliminary 1994 budget at that meeting. Barthel seconded the motion. All voted aye. Michael Potter, Mayor i Linda Hougfiton, erk