Minutes - Council Work Session - 02/28/2012

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Councilmember Wise stated some budget considerations have nothing to do with staffing but asked if the Council would be free to realign the Deputy City Administrator's duties, possibly spreading some duties amongst current staff. Human Resources Representative Laser reported that she spoke with each of the 15 employees eligible for the early retirement program based on the criteria discussed at the last Work Session. Two eligible employees are interested in participating; however, one wanted separation by May 1 and the other not until November 30, 2012. Human Resources Representative Lasher indicated if these two positions were not replaced there would be annual savings of about $105,000. The time to recoup would be three to four months. Mayor Ramsey asked whether these two positions were expected to retire and will need to be filled. City Administrator Ulrich stated one is a police officer and the other is not on the list of positions to be reduced so it may have to be backfilled. He noted if the early retirement package is not attractive enough it will only attract employees who would retire anyway and the feedback may show the package is not enough incentive for employees to take that step. It was noted the County's program was more attractive because of a health insurance contribution. City Administrator Ulrich described options to accelerate retirements by a few months or enrich the program to encourage accelerated retirements. He reviewed the staff report, detailing the budget objectives, possible reductions /revenues totaling $1,853,738. Councilmember Backous asked about reduction in the EDA levy. Finance Officer Lund stated the EDA levy is $169,000. Councilmember Backous noted there is currently over $1 million in the EDA's reserve balance. City Administrator Ulrich stated that is correct but it is not a good practice to use reserve balances for operations. Staff will be recommending to use EDA funds, in part, for the Sunwood Drive relocation. Councilmember Tossey asked how many staff are paid by the EDA and indicated support to reduce the EDA levy until it only covers staff costs. City Administrator Ulrich stated the base amount was $110,000 so that would leave about $50,000 to $60,000 for other projects and operations, not personnel. Councilmember Wise noted the recommendation to use park funds for maintenance; however, that is one -time money and set aside for park dedication. He did not support fixing the budget issues with the use of one -time money. City Administrator Ulrich clarified these are not park dedication funds, but funds resulting from excess revenues over expenditures. City Council Work Session / February 28, 2012 Page 2 of 6