City Council Minutes 07-08-1985 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
July 8, 1985 - 6:30 P.M.
A special meeting of the City Council was duly held at 6:30 P.M.,
Monday, July 8, 1985, in the City Council Chambers. The special
meeting was called by Mayor Grimsmo for the express purpose of
discussing goals and objectives for the 1986 Budget. Members
present were Arve A. Grimsmo, Bill Fair, Fran Fair, Jack Maxwell,
and Dan Blonigen. Members Absent: None. Also in attendance
was City Administrator Eidem.
Mayor Grimsmo opened the discussion indicating that it is the
City Council's role to establish policy guidelines within which
the staff can create an operating budget. He stressed that he
would like the discussion to remain relatively general in scope
and policy. He stressed that he did not want to see the meeting
get bogged down with discussion over particular expenditures
at this time. He went on to note that there would be additional
budget meetings in the future as the budget took final form.
Mayor Grimsmo opened his comments referring to several years
ago when the sewer and water enterprise funds operated in the
deficit when based upon their own rates. He noted that the sewer
and water rates had been adjusted over the past couple of years
to get these funds up to paying for themselves. Councilmember
Bill Fair asked if the funds were currently paying for themselves.
Eidem responded that sewer user charges and revenues were covering
the cost of operations but that the water fund in 1984 was about
$9,000.00 short. Grimsmo again stated his position that he believes
that the enterprise funds should be self sustaining and operate
without tax. He put the question to the other Council members
for their opinion. Councilmember Blonigen stated that he felt
user charges and fund revenues should cover all operating costs
in the enterprise funds. He stated that to utilize ad valorem
tax would be inappropriate in the enterprise fund. Fran Fair
also was in favor of user charges sustaining the operations of
the water and sewer enterprise funds. Councilmember Fran Fair
went on to state that with respect to the 1986 Budget, she maintained
continued support for a certain amount to be levied in the capital
improvement revolving fund. She also stressed that some projects
which seemed to be stalled be completed in 1986, for example,
the ball fields, the downtown rehabilitation, and park expansion
and beautification. Councilmember Fair went on to say that money
should be budgeted to implement the early phases of the expanded
water project and to get City Hall computerized. Councilmember
Maxwell agreed that certain projects which seem to be not moving
should be addressed early, and also supported the concept that
user charges should totally cover enterprise funds.
Special Meeting Council Minutes - 7/8/85
Mayor Grimsmo said he wished to interject one other concern with
respect to budget. He indicated that he has long held that the
greatest asset of the City is the people it employs. He stated
that he would like to see the Council grant a larger slice of
the pie for personnel expenses in the upcoming years. He acknowledged
that Monticello is perhaps one of the better equipped cities
in the area; but over the last few years, in his estimation,
the Council has been lax on rewarding its personnel. Councilmember
Bill Fair said that he had no trouble with satisfactorily rewarding
employees, but felt that the City should rely on the results
of the comparable worth study currently underway and that perhaps
the City could achieve equity upon the completion of that study.
Councilmember Blonigen responded to Arve's comments that City
salaries are considered a bit low. Blonigen stated that he feels
there is a duplication of duties and performance. He also stated
that he would like to hear more from department heads in a direct
way. Mayor Grimsmo, and Councilmembers Bill Fair and Fran Fair,
all indicated that they didn't see the necessity of having each
department head come to Council meetings to report on nuts and
bolts. They concurred that it is the department head's responsibility
to fully inform the Public Works Director, who will then carry
the message either to the Administrator or to the Council. Mayor
Grimsmo then turned the conversation back to the budget and policy
statement.
Administrator Eidem stated that the staff had already met to
discuss goals and policies for 1986 and that increases at best
were proposed to be moderate. Eidem stated that his main concern
arose from the various loss of revenues being suffered by the
City. Eidem indicated that Monticello would receive zero increase
in local government aid. He also noted that there was substantial
movement afoot on the federal level to terminate Federal Revenue
Sharing. Eidem indicated that his goal was to hold the tax levy
at a zero percent increase even though that may not reflect a
zero dollar increase. He stressed, however, that such a freeze
might be impossible in light of the various revenue cutbacks.
Mayor Grimsmo responded that it might be somewhat unrealistic
to want to hold the tax levy at the current level and that such
efforts, while being desirable, could eventually result in a
major increase rather than slight increases each year. Eidem
responded that he saw it as his role to demonstrate sound fiscal
management and careful restraint in spending while preparing
the preliminary operating budget; and upon review of that preliminary
budget, it should be the Council, as policy makers, to make those
crucial decisions to increase and decrease in certain areas.
Eidem said that staff could establish a priority list for capital
improvements from which the Council could authorize additional
expenditures, but that it is difficult for staff to come in with
a long list asking for more money on an annual basis. Eidem
stated that he thought the policy and the need had to be identified
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Special Council Meeting Minutes - 7/8/85
and recognized by the City Council; and consequently, the expenditure
would be authorized by the City Council.
Mayor Grimsmo asked Eidem if he had a feel for the desires of
the City Council and had received the kind of direction he hoped
to get so that the budget preparation may get underway. Eidem
indicated he did. There being no further business, the meeting
was adjourned at 7:20 P.M.
Th mas A. Eide
City Administrator
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