Minutes - Council Work Session - 01/10/2012

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Councilmember Strommen asked if there is more information, such as contents of the study or rationale. Mayor Ramsey stated there will be a $1.5 million budget deficit next year so the Council needs to cut costs and staffing is 72% of the budget. It is his opinion, based on what he has observed that the City can function without a Deputy City Administrator. Mayor Ramsey indicated he had more recommendations last year but got "beat up" because he didn't tell everyone before the meeting. Because of that, he decided to take it one step at a time. Mayor Ramsey stated he believed cutting that amount of salary will allow the City to hire a lower paid staff position to handle administrative tasks and help the City Administrator. Mayor Ramsey stated he believes the Public Works Director and City Engineer should be the same position. If action is taken on his recommendation tonight, he hoped the City Administrator would continue to evaluate operations and point out pitfalls. Mayor Ramsey stated the City may need more workers but not at the top with high salary and benefits. Councilmember Strommen asked the Mayor whether he has a target to reach with budget cuts. Mayor Ramsey stated he has a dollar target, not an employee number target. He would like a cut of $500,000 in salaries and noted the City Administrator salary is $128,000 plus benefits, or $170,000 to $175,000. Mayor Ramsey stated the City will realize a savings after the 6 -month severance. Councilmember Strommen asked what will be the net gain once an Assistant to the Administrator is hired. Mayor Ramsey stated he also supports cutting either the Public Works Director or City Engineer, which would save an additional $150,000. He explained that making these cuts at the beginning of the year will result in a savings for the remaining six months, which will be of great benefit since the Council never looks at budget cuts until the end of the year resulting in no benefit because the dollars have already been spent. Councilmember Strommen stated support to follow a process that is logical. She stated the Council has received no information on the Mayor's study, just a recommendation. She suggested first identifying the budget gap and determining how to solve that issue as part of the budget process. Councilmember Strommen stated the Council should look at job descriptions, overlaps, opportunities, and downsides. She explained that since the agenda packet contained no information on or about the thought process, it seems to be a piecemeal approach. Mayor Ramsey agreed it is piecemeal but there would be savings throughout the year if the Council takes action now instead of at the end of the year. Councilmember Tossey agreed with the desire to reduce $500,000 from current operating costs; however, the City Administrator sent out a proposal as well that suggests elimination of two positions and staff reassignments that would result in a savings. In addition, there will be about $100,000 in savings with the Building Official's position being open minus costs to Inspectron of $50,000. Councilmember Tossey stated his support for cuts in other levies, not just the City Council Work Session / January 10, 2012 Page 9 of 13