City Council Minutes 12-01-1984
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MI UTES
SPECIAL MEETING - M NTICELLO CITY COUNCIL
December 1, 1984 - 7:30 A.M.
Members Present: Arve Grimsmo, ran Fair, Ken Maus, Jack Maxwell,
Dan Blonigen.
Members Absent:
None.
Also Present:
tor Eidem.
A special meeting of the City Co was duly held on Saturday,
December 1, 1984, at 7:30 A.M. i City Hall. The Mayor
called the meeting to order and that the sole item of
business was to discuss salary roposals for non-union personnel
for the year of 1985. City Admi istrator Eidem briefly reviewed
the information that had been s plied to members of the Council,
such data relating to existing ayroll and its relation to the
overall budget, recent union se tlements, and information he
had received from other city ad inistrators with respect to
proposed 1985 salaries. Eidem indicated that the total salary
package for 1984 reflected a 4. 4 increase over 1983 and that
the October C.P.I. Minneapolis/ t. Paul, had been released at
4.6% over the year previous. H indicated that utilizing the
forecasting method seemed to be fairly satisfactory at least
in 1984. He indicated that whe establishing 1984 salaries,
not all of the salary pool had een utilized. He went on to
note that certain monies that h d been deferred to accommodate
the assumption of new duties wi h relation to computers had
not been spent and thus was sti 1 in the budget.
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There was a brief discussion am
respect to the status of comput
that the review of computer nee
slowly. One question was raise
of computer would allow a reduc
that he had discussed that noti
and a reduction in work force w
he noted, that putting a comput
allow the City to provide faste
the same level of manpower. He
capabilities, the existing staf
duties beyond what is currently
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Mayor Grimsmo raised the questi
of Economic Development and his
explained that the Director of
house listed and was hoping to
ngst all Council members with
r acquisition. Eidem noted
s was progressing, though rather
as to whether or not the acquisition
ion in work force. Eidem indicated
n with several computer experts,
highly unlikely. However,
system into service would
, more reliable service with
also noted that because of computer
could assume more and greater
defined for each position.
n with respect to the Director
potential relocation. Eidem
conomic Development had his
ell his place in st. Cloud in
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order to achieve the relocation
to economic development and the
Housing and Redevelopment Author
of living increase assigned to M
the General Fund, but that the H
had authorized a salary expendit
Executive Secretary. This amoun
to pay for the duties provided t
in the percentage increase as pr
One final point Eidem
their considering the
the State Legislature had reduce
to PERA from 5.5% to 4.25%, thus
of 1.25% on overall salary expen
in a sense, was found money, and
re-assigning a portion of this m
Councilmember Maus asked if the
PERA would be substantially redu
Eidem indicated that at this tim
It consequently was decided then
saved by the City, it was not to
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Mayor Grimsmo elected to open th
to percentage increases he felt
took the position that based on
the projected increases in city
in PER A contribution, that 5.5%
to create a salary pool.
Special Council Minutes - 12/1/84
o Monticello. With respect
ssignment of duties to the
ty, Eidem noted that the cost
. Pelvit would come out of
using and Redevelopment Authority
re exclusive for his role as
out of their budget is intended
the HRA and would not be included
posed.
ring before the Council before
nt of a salary pool was that
the employer's contribution
giving the City a net savings
e. He indicated that this,
requested the Council to consider
ney into the salary package.
roposed benefit schedule from
ed by the loss of City contribution.
that was not being proposed.
that while the money was being
the detriment of the employee.
conversation with respect
ould be appropriate. Grimsmo
he projected increases in inflation,
ax valuation, the reduction
ould be an appropriate figure
Councilmember Fair, noting he 1985 Union increase was
5.4%, stated she felt that n-union people should not be
below that figure. Eidem, ponse to Fair's question, noted
that union personnel do receive n extra ~ day hOliday and also
are provided with sick leave/severence pay provisions that non-union
personnel do not receive. Fair indicated that, taking that
into consideration, she supports a 5.5% increase.
Councilmember Maus asked if there had been any contemplation
of increasing employee fringe be efits. 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 pac age would not necessarily be
ready to be initiated by the 1st of 1985. Maus indicated that
he was originally thinking 5% w uld 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.
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Councilmember Maxwell stated th t he supported the 5.5% increase
for the very same rationale as ouncilmember Maus. He indicated
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Specia1 Counci1 Minutes - 12/1/84
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that he had arrived at the meetin thinking 5% wou1d be adequate,
but upon noting the union projection was willing to also accept
5.5%.
Councilmember B10nigen stated he supported a 5% increase. He
indicated that he did not agree ith Mayor Grimsmo in that the
increase in valuation necessitat d an increase in salaries.
He stated that the City should n t take an "easy come/easy go"
position and that salaries shoul not be tied to the City's
valuation. He stated he much pr ferred inflation related increases.
Mayor Grimsmo responded that he idn't mean to convey an "easy
come/easy go" attitude, but rath r felt that if it was determined
the qua1ity of work was worthy 0 increase and the City had
the "ability to pay", then the C'ty ought to, in fact, pay.
Grimsmo indicated that he was on y referring to ability to pay
and not to a notion that just be ause the money is there, give
it away in salaries.
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It was the consensus of the Coun il that, rather than make a
motion for one figure, it would e acceptable to total up the
percentages proposed and divide hat total by 5 (representing
the five Council members) and th product would be the final
percentage. At that point, Eide added the four 5.5 percentages
and the one 5 percent for a tota of 27. He then divided that
by the five Council members, arr ving at a 5.4% average increase.
Based on the total payroll for t e same 15 employees in question,
a 5.4% increase of $309,370.00, hich is the 1984 payrol1, would
yield a salary pool of $16,707.0 .
Motion by Blonigen, second by Fa
to establish a salary pool for n
the City Administrator and Liquo
1985 at $16,710.00. There being
meeting was adjourned.
r, and carried unanimously
n-union employees, excluding
Store clerks, for the year
no additional business, the
Thomas A. Ei em
City Administrator
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