10-27-1997 CC MIN - Laserfiche WebLink

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Elk River City Council Minutes October 27, 1997 Page 7 COUNCILMEMBER DIETZ MOVED TO CONCUR WITH THE MAYOR'S PROPOSAL FOR PART TIME FIRE DEPARTMENT SALARIES AND THAT THE ONLY NEGOTIABLE POINT IN THE PROPOSAL IS WHERE THE TRAINING HOURS WILL START. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. B. Taxes - Mayor Duitsman indicated that what the Council decides to do this year will affect other years and pro]ects such as the Lake Orono, Ice Arena, and East Highway 10 development project. Mayor Duitsman explained that it is his goal to increase the development fund by $.5 million dollars by decreasing the cash flow reserves in an orderly fashion. Mayor Duitsman indicated it was also his goal to decrease the 1998 tax revenues. Councilmember Farber indicated that if the city does not increase the tax rate and revenues it will be playing catch-up in the following years. He indicated that Elk River is a growing city and the state has forced the issue of a tax rate increase due to the tax class changes approved by the legislature. The City Council reviewed different scenarios for balancing the budget and reducing the tax increase. After fudher discussion regarding this issue it was the consensus of the Council to work toward a .74 tax rate increase from 24.683 to 25.423 which is a 3 percent increase, by cutting $149,650 from tax revenues. The City Administrator indicated that he would proceed to make adjustments in this amount from the budget and bring the issue back to the Council on November 3 for review. C. Contribution Policy - The City Administrator indicated that it is staff's recommendation that the city continue to follow state guidelines as its contribution policy. No decision was made regarding the city's contribution toward the requests made this evening. D. Consider 1998 Pay Resolution - COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 97-118 ADOPTING THE 1998 PAY PLAN FOR NON ORGANIZED EMPLOYEES. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 7. Other Business Assistant City Administrator Lori Johnson informed the Council that staff will be revising the personnel ordinance to include policies that have been adopted, including the proposal for the sick time severance pay, and to bring it up to date. The City Administrator updated the Council on the County Government Center construction. He indicated that the city has been requested by the county to reduce some of its fees. He indicated that the total amount of city fees is approximately .$130,000 with an additional .$180,000 in assessments for the public improvements. The City Administrator indicated that he has informed the County Administrator that in order to be consistent with the schools, churches, and other facilities, the city would not be able to forgive the fees.