City Council Minutes 12-01-1984 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
December 1, 1984 - 7:30 A.M.
Members Present: Arve Grimsmo, Fran Fair, Ken Maus, Jack Maxwell,
Dan Blonigen.
Members Absent: None.
Also Present: City Administrator Eidem.
A special meeting of the City Council was duly held on Saturday,
December 1, 1984, at 7:30 A.M. in the City Hall. The Mayor
called the meeting to order and noted that the sole item of
business was to discuss salary proposals for non-union personnel
for the year of 1985. City Administrator Eidem briefly reviewed
the information that had been supplied to members of the Council,
such data relating to existing payroll and its relation to the
overall budget, recent union settlements, and information he
had received from other city administrators with respect to
proposed 1985 salaries. Eidem indicated that the total salary
package for 1984 reflected a 4.64 increase over 1983 and that
the October C.P.I. Minneapolis/St. Paul, had been released at
4.6% over the year previous. He indicated that utilizing the
forecasting method seemed to be fairly satisfactory at least
in 1984. He indicated that when establishing 1984 salaries,
not all of the salary pool had been utilized. He went on to
note that certain monies that had been deferred to accommodate
the assumption of new duties with relation to computers had
not been spent and thus was still in the budget.
There was a brief discussion amongst all Council members with
respect to the status of computer acquisition. Eidem noted
that the review of computer needs was progressing, though rather
slowly. One question was raised as to whether or not the acquisition
of computer would allow a reduction in work force. Eidem indicated
that he had discussed that notion with several computer experts,
and a reduction in work force was highly unlikely. However,
he noted, that putting a computer system into service would
allow the City to provide faster, more reliable service with
the same level of manpower. He also noted that because of computer
capabilities, the existing staff could assume more and greater
duties beyond what is currently defined for each position.
Mayor Grimsmo raised the question with respect to the Director
of Economic Development and his potential relocation. Eidem
explained that the Director of Economic Development had his
house listed and was hoping to sell his place in St. Cloud in
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order to achieve the relocation to Monticello. With respect
to economic development and the assignment of duties to the
Housing and Redevelopment Authority, Eidem noted that the cost
of living increase assigned to Mr. Pelvit would come out of
the General Fund, but that the Housing and Redevelopment Authority
had authorized a salary expenditure exclusive for his role as
Executive Secretary. This amount out of their budget is intended
to pay for the duties provided to the HRA and would not be included
in the percentage increase as proposed.
One final point Eidem wished to bring before the Council before
their considering the establishment of a salary pool was that
the State Legislature had reduced the employer's contribution
to PERA from 5.5% to 4.25%, thus giving the City a net savings
of 1.25% on overall salary expense. He indicated that this,
in a sense, was found money, and requested the Council to consider
re -assigning a portion of this money into the salary package.
Councilmember Maus asked if the proposed benefit schedule from
PERA would be substantially reduced by the loss of City contribution.
Eidem indicated that at this time that was not being proposed.
It consequently was decided then that while the money was being
saved by the City, it was not to the detriment of the employee.
Mayor Grimsmo elected to open the conversation with respect
to percentage increases he felt would be appropriate. Grimsmo
took the position that based on the projected increases in inflation,
the projected increases in City tax valuation, the reduction
in PERA contribution, that 5.5% would be an appropriate figure
to create a salary pool.
Councilmember Fair, noting that the 1985 Union increase was
5.4%, stated she felt that the non-union people should not be
below that figure. Eidem, in response to Fair's question, noted
that union personnel do receive an extra 12 day holiday and also
are provided with sick leave/reverence pay provisions that non-union
personnel do not receive. Fair indicated that, taking that
into consideration, she supported a 5.5% increase.
Councilmember Maus asked if there had been any contemplation
of increasing employee fringe benefits. Eidem indicated that
there was no proposal to expand the fringe benefit package,
but was investigating a potential cafeteria approach to benefits.
Eidem indicated that such a package would not necessarily be
ready to be initiated by the 1st of 1985. Maus indicated that
he was originally thinking 5% would be appropriate, but noting
that the union increase for 1985 was 5.4%, he had changed his
position and was now willing to accept a 5.5% increase.
Councilmember Maxwell stated that he supported the 5.5% increase
for the very same rationale as Councilmember Maus. He indicated
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that he had arrived at the meeting thinking 5% would be adequate,
but upon noting the union projection was willing to also accept
5.50.
Councilmember Blonigen stated he supported a 5% increase. He
indicated that he did not agree with Mayor Grimsmo in that the
increase in valuation necessitated an increase in salaries.
He stated that the City should not take an "easy come/easy go"
position and that salaries should riot be tied to the City's
valuation. He stated he much preferred inflation related increases.
Mayor Grimsmo responded that he didn't mean to convey an "easy
come/easy go" attitude, but rather felt that if it was determined
the quality of work was worthy of increase and the City had
the "ability to pay", then the City ought to, in fact, pay.
Grimsmo indicated that he was only referring to ability to pay
and not to a notion that just because the money is there, give
it away in salaries.
It was the consensus of the Council that, rather than make a
motion for one figure, it would be acceptable to total up the
percentages proposed and divide that total by 5 (representing
the five Council members) and the product would be the final
percentage. At that point, Eidem added the four 5.5 percentages
and the one 5 percent for a total of 27. He then divided that
by the five Council members, arriving at a 5.4% average increase.
Based on the total payroll for the same 15 employees in question,
a 5.4% increase of $309,370.00, which is the 1984 payroll, would
yield a salary pool of $16,707.00.
Motion by Blonigen, second by Fair, and carried unanimously
to establish a salary pool for non-union employees, excluding
the City Administrator and Liquor Store clerks, for the year
1985 at $16,710.00. There being no additional business, the
meeting was adjourned.
Thomas A. Ei em
City Administrator
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