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City Council Minutes Page 2 <br />August 14, 2023 <br />----------------------------- <br /> <br /> <br />------------------------- <br />Large Builders National Renting Trend <br />The Council noted newspaper articles have been written about a national trend of builders keeping <br />homes they’ve constructed and renting them instead of selling in order to self-finance in these current <br />economic times. He questioned if it could be a potential issue the city should review. <br /> <br />Furniture and Things Community Center Budget <br />The Council discussed the following: <br /> <br /> Should we consider moving maintenance of the facility to the city building maintenance <br />division and how it would affect current costs. Mr. Portner stated it would most likely be cost <br />neutral. <br /> Utilities budget is very high and what was the final determination of the utility study. Can Elk <br />River Municipal Utilities find a way to give the facility, as a government building, a break <br />without affecting other users. Mr. Stremcha stated the recommendation in the study only had <br />a savings of about $10,000. Mr. Portner noted there is good data as to where the demand <br />charge is for this facility because it is managed by the city and possibly the demand charge <br />period could be reduced. <br /> Discussed the $350,000 deficit that would typically be paid by the fund balance and concern <br />for it being at approximately $7,400 at the end of 2024. <br /> Was there a study done of the staffing needs for the facility. Personnel Services expenses are <br />close to $1 million. Last December the Commission asked Mr. Hecker and Mr. Dalton to take <br />a hard look at Personnel Services and what it takes to run the facility so that in 2024 there is <br />not an unbalanced budget. Mr. Stremcha asked if the current levels of service meet <br />expectations. Councilmember Westgaard stated we should be evaluating if we are getting the <br />most out of our full-time positions and if the staffing is right to meet expectations. He <br />provided a scenario of having three Zamboni drivers who are not doing what is expected, <br />such as cleaning toilets, and we want building maintenance to take over, then staffing levels <br />are not right. He stated everyone wants to work 8:00 a.m. to 4:00 p.m. and the facility is open <br />from 6:00 a.m. to 10:00 p.m. The Council questioned why the study has not happened and <br />that this budget should be sent back to staff and the commission noting the budget needs to <br />balance or the Council must be shown why the staffing levels are needed. There was <br />discussion about other areas of the facility not covering their share of the costs, such as the <br />field house and rental rooms and whether the rates are high enough for these spaces. <br />Councilmember Wagner stated they need to set a balanced budget, so we know what we need <br />to bring in for revenue and to set rates and contract negotiations with actual data. <br /> Revenue needs to be broken down better in the budget detail sheets. <br /> <br />4. Adjourn <br /> <br />The meeting was adjourned at 7:27 p.m. <br /> <br />___________________ <br />John J. Dietz, Mayor <br /> <br /> <br />