City Council Minutes 03-09-2009 Budget WorkshopMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday March 9, 2009 5 p.m.
Members Present: Clint Herbst, Tom Perrault, Glen Posusta, Brian Stumpf and Susie
Wojchouski.
Members Absent: None
Call to Order.
Mayor Herbst called the meeting to order at 5 p.m. and declared a quorum present.
2. Discussion of proposed cuts in 2009 budget.
Finance Director Tom Kelly updated the Council on the latest budget forecast for the state and
its impact on the City. The state's budget deficit has been reduced somewhat by application
of the stimulus funds. In order to get the budget issues resolved the state may have to call a
special session of the legislature with the possibility of a shut down of state operations if the
issue cannot be resolved in July which is the start of the state's budget year. All of the City's
market homestead for 2009 in the amount of $263,000 will be cut. This aid is split among the
various funds the City levies for. The general fund share of the market homestead aid is
$178,000. City staff came up with a list of proposed budget cuts which Tom Kelly reviewed
with the Council. Staff is recommending that the Council adopt the cuts proposed in the
budget memo. Staff tried to come up with additional sources of revenue and expenditure cuts.
Tom Kelly pointed out that some of the proposed cuts may impact the level of service.
Brian Stumpf asked about the contribution to Community Education and questioned if the
City had not already made a cut to that item. This is something staff will research further.
Susie Wojchouski brought up several items proposed in the 2010 capital improvement budget
and questioned whether those couldn't be delayed. Clint Herbst responded that those items
could be looked at but they would not impact the 2009 budget. Tom Kelly cautioned against
pushing back the purchase of equipment items as that will put these items into purchase time
of other equipment needs. Clint Herbst asked if Tom Kelly had a chance to discuss the
proposed cuts with the department heads. The Council was informed that there were two
meetings of department heads where budget cuts were discussed. Brian Stumpf noted that
some of the proposed changes such as the straight eight would affect all personnel and he
asked when the changes would go into effect. Clint Herbst indicated the changes would not
take effect until April. Staff addressed other specific questions raised by the Council relating
to the budget and city operations.
Clint Herbst asked if the state was proposing any change in the way the power companies
were being valued. Jeff O'Neill noted the Coalition of Utility Cities was pursuing changes to
the valuation method. Tom Kelly reported that the $355,000 the City is supposed to receive
in transition aid (aid the city receives because of the loss in property valuation for the power
company) has not yet been cut from the budget but it is a possibility that the state could still
do so. The Council discussed whether it would be better to have the old formula back in place
or receive the transition aid.
Tom Perrault asked about overtime and how that would be monitored. Tom Kelly explained
that for the Finance Department their overtime was driven by conversion to the new finance
system. He then updated the Council on the progress of the system conversion.
Glen Posusta asked about the cell phone policy. Tom Kelly responded that they are looking at
how the minutes are divided up and who really needs a cell phone. The City's cell phone
contract has been moved to the state contract and the City is realizing some savings by that
move.
SUSIE WOJCHOUSKI MOVED TO APPROVE THE CUTS PROPOSED AND USE OF
CITY RESERVES TO ARRIVE AT THE $263,210 WHICH REFLECTS THE IMPACT ON
THE CITY OF THE GOVERNOR'S PROPOSED BUDGET REDUCTIONS. GLEN
POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
3. Adiourn.
TOM PERRAULT MOVED TO ADJOURN AT 5:30 P.M. BRIAN STUMPF SECONDED
THE MOTION. MOTION CARRIED UNANIMOUSLY.
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Recording Secretary