Grand Marais city councilors made a number of adjustments to the city’s 2009 budget during their June 10 work session, with the majority of the changes occurring in the Recreation and Property Maintenance departments.
City Administrator Mike Roth has put council on alert that about $50,000 must be cut in the current budget, and twice that much next year. The cuts are necessary due to an expected loss of Local Government Aid (LGA) the city has traditionally received from the state. Council directed Roth previously that any cuts should create only a modest tax increase (2 or 3 percent); result in no significant reduction in city services; and that there be no layoffs of city employees.
The suggestions Roth offered Wednesday met those conditions, and total at least $40,000 worth of cuts. Some of the changes can be implemented immediately.
The first discussion was with Rec. Park. Manager Dave Tersteeg who said one of the seasonal workers would not return this summer, meaning the parttime staff can be reduced from five to four. Themanager said he would try to make do with a smaller staff, at a savings of $5,548.
Tersteeg said the park board had discussed reducing the hours at the municipal swimming pool and agreed to close the facility during the least busy times, September through December. By reducing the pool’s hours 7.5 hours per week, about $1,900 will be saved.
The park should also realize additional revenue this year due to a 20 percent fee increase in storage rates; new slips at the marina which translates into more boats and more fuel sales (boats docked at the marina are required to purchase fuel from the city’s pumps); and a decision to sell retail convenience items such as ice cream treats in the park office. Tersteeg said those changes should result in between $15,000 and $20,000 worth of new income.
Library Director Linda Chappell submitted a memo to council based on decisions made recently by the library board. Chappell said the library would forgo hiring a seasonal page this summer, for a savings to the city of $900. Additionally, the Arrowhead Library System has decided to pay the assessment for automation fees, rather than billing its member libraries. Because the local library had already included the fee in its 2009 budget, the money can now be returned to the city and county.
In all, $4,650 will be returned to the city from the library, with the county receiving an equal amount. “The library board is returning these funds to help offset the $50,000 budget shortfall caused by cuts in state aid,” Chappell told council.
Roth next said he expects to save about $18,000 with reduced levels in the street and property maintenance departments. The reductions are the result of a decision by the department head to return to his former position as full-time maintenance worker. The personnel committee recommended that a new full-time supervisor be hired and two part-time workers be laid off.
Roth said neither of the two parttime workers has made it through the probation period yet, and the plan is to keep them on staff until a supervisor is hired. He said it is still too early to make an accurate evaluation of the department’s performance and to know the amount of savings for sure. The city is also hoping to eliminate overtime within the department, but sometimes it is unavoidable because of problems that occur after normal working hours,or on weekends.
Finally, Roth presented an analysis of city hall rents, and asked council to determine what is appropriate. The analysis shows that the building totals about 11,000 square feet and costs the city about $66,000, or $6.01 per square foot, to maintain annually. Total rent collected by the city, however, is just $35,988.
The building is shared by City Hall offices, the liquor store, the Visitor Center, public restrooms, attorney’s office and the Cook County Economic Development Authority (EDA). About 2,300 square feet is vacant or unusable due to the facility’s layout and design; for instance, there are still jail cells in the building.
Council voted to begin billing the Public Utilities Commission $18,000 annual rent (up from the current $2,400) because that agency accounts for most of the foot traffic into the officeand about half of the phone calls.
The visitor center, which is rented to the Grand Marais Area Tourism Association (GMATA), pays only $1 per month in rent for use of its 700 square feet. Although at market value the city would collect $8,400 for the space, council said the financially strapped agency provides an invaluable service to both local businesses and the city, and the council doesn’t want to create an undue burden by increasing the rent. It was agreed that the rent will remain the same, but the tourism agency will help offset the maintenance cost by providing janitorial and other services.
No other changes were made to the rental fees, but Mayor Sue Hakes said the topic will likely be revisited. “We should at least get our costs,” she said.
In other business: » Jan Nosker spoke during the public forum, and advised council that
a little bit of common sense at abatement in the form of noise baffles could be used to control sound levels, and said the best way of enforcement is through the use of a decibel meter. “There’s no
reason people should have to listen to that,” he said of the outdoor
music, which he described as “deafening.”
» Council approved a vendor’s permit application submitted by Jack
Stone of Fall River Trading, allowing him to demonstrate Langford canoes in the harbor. Stone is the exclusive distributor of the canoes
in the U.S., and said he hopes to open a retail store in Grand Marais
next year.
» Mark Sandbo said there is progress being made on a merger of the
Chamber of Commerce, Grand Marais Area Tourism Association, the Grand Marais Business Council and possibly the Cook County Events and Visitors Bureau. Sandbo said a committee has been working to create one entity to promote the entire county, and it looks like it could work out well for all concerned. However, he said, there is “a long way to go before any of that happens.”
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