Minutes - Council Work Session - 02/03/2009

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City Administrator Ulrich stated that the information from the County is that resident valuation has dropped 1'4.8% and commercial has dropped 1.9%. Councilmember Wise stated that some of the suggested cuts are for a one-time fix. He stated that the problem won't go away in the next year, which means the issues will still be here two or three years out. He stated that he thinks the City should look at something more drastic now because this is just a "Band-aid" for this year's budget shortfall. Councilmember Jeffrey stated that he couldn't agree more and a few years ago, at the college, they identified areas that may be interested in a voluntary reduction in hours, which was a substantial savings. He stated that this reduced staffing levels by 8 hours a week, but when the economy comes back, it doesn't necessarily mean that they can corne back to work full time. He stated that he feels the City should look at the big picture. Counci1member Look stated that he is displeased with the Governor's decision and would like to voice it in some manner. He stated that these types of actions, when health and human services are completely dysfunctional, and the money is taken from cities, is irresponsible. He stated that the Council needs to have less of a focus on tax base reduction and more on tax base retention. He stated that he would like to know how much the 14.8% reduction for residential and 1.9% reduction for commercial, is, in relation to our budget. Finance Officer Lund stated that for last year's budget the levy was $8 million of about a $10 million budget. Mayor Ramsey confirmed that the only issue for 2009 that needs to be dealt with is the $400,000 from the market value homestead credit. Councilmember McGlone stated that he brought up possible savings for a different way to create the City newsletter. He stated that he thinks that would be about a $40,000 budget reduction. He stated that he is not a big fan of sharing jobs and responsibilities throughout the building because it makes it difficult to identify where you can and should cut. He stated that he sees the building department as being "fat". He stated that he feels the Council needs to go beyond talking about it and do something. He stated that the Council should identify, in short order, where the biggest cuts can be made. He stated that he thinks a little bit of the "think like a business" mentality needs to apply and noted examples of companies like Horne Depot that have had to make cuts in their labor force. Finance Officer Lund noted that personnel costs are about 70% of the budget. Councilmember Jeffrey stated that he doesn't think the Council needs to make the personnel decisions but should tell staff to reduce costs by a certain percentage and then they can corne to us with recommendations. He stated that he thinks it is a mistake to point fingers at departments without looking to staff to give us that feedback. City Council Work Session I February 3, 2009 Page 3 of 15