Construction of the new Cook County Community YMCA facility is progressing. A lot of contractors are working inside the building to get it done by the end of December. YMCA Branch Executive Director Emily Marshall is working hard to find bargains on furniture, fixtures, and equipment for the new facility and not to overlook anything that will be needed.
If all the 2014 budget requests department heads submitted to the county board this summer were granted and the fund balance was not touched, the county tax levy could have been set to increase by over 11 percent next year. That’s not going to happen, however. The board decided to cap any potential levy increase at 2.9 percent. On September 24, 2013, the board tried to whittle the budget down further to minimize dipping into the fund balance and increasing the levy.
One tool the board used was suggestions made by department heads when they were asked how they would reduce expenses by 5 percent if they were forced to do so. The board spent well over three hours going through specific cuts that could be made department by department, but they didn’t make it all the way through all the departments and decided to pick up the task at another budget work session at their next meeting on October 8. Board Chair Jan Hall had to leave the meeting early, and as she walked out the door, she said, “I trust you guys to cut, cut, cut!”
The board will need to find answers to some questions as they make budget decisions. One suggestion was to review the county’s policy of allowing continued insurance coverage for ex-spouses of former employees and to find out how much money is being spent on this.
Some savings have already been realized since the preliminary budget was set, such as a $73,405 reduction from 2013 in the county’s share of the Arrowhead Regional Corrections budget.
Some savings could be realized on paper by not assuming the worse-case scenario. County Auditor- Treasurer Braidy Powers said they could safely assume they are going to get $25,000 more in payment in lieu of taxes from federal land within the county than they had estimated in their preliminary budget. They could also pad the budget by anticipating the insurance refund they usually receive, even though it’s not guaranteed.
The preliminary budget called for using $513,241 from the fund balance. Commissioner Bruce Martinson said he would like to use half that amount and keep the levy increase to half of 2.9 percent. Commissioner Garry Gamble said he wanted to eliminate any use of the fund balance and have no levy increase.
“We have a very, very healthy fund balance,” said Commissioner Sue Hakes. She said it’s about 50 percent of the county’s annual expenses. She recommended reducing the levy increase first and then trying to reduce use of the fund balance.
“It’s the same thing whether I take money out of my piggy bank or my pocket,” Commissioner Gamble said.
People don’t perceive them as being the same thing, Commissioner Hakes countered.
The board discussed ways they could reduce commissioner expenses, such as by car pooling more and conducting business over the phone or via Skype instead of traveling in person to meetings.
“We are always trying to cut us down no matter how much we do for this county,” Commissioner Hall said. People won’t want to become commissioners at this rate, she said.
Cutting expenses is not the same as cutting salary, Commissioner Sue Hakes said. They can keep their salaries but cut their expenses.
The board decided to cut its travel expense budget by $6,000, reflecting the actual costs they have been submitting for reimbursement. The board also decided to contribute $25 a month per commissioner toward their health insurance premiums, a savings of $1,200 (Commissioner Heidi Doo- Kirk does not use county health insurance.).
The board moved on to the Auditor-Treasurer’s Department. “In typical auditor fashion,” Commissioner Hakes said, “I think you guys run a pretty tight ship.” Auditor- Treasurer Braidy Powers said they could reduce expenses by reducing the hours the courthouse is open.
Information Technology Director Danna MacKenzie suggested a couple of different expense-cutting options including delaying equipment purchases. The board went with one of the optionss, which will save $36,721.
The board discussed the possibility of saving $1,000 by taking out the public telephone at the end of the Gunflint Trail. After its value as a safety measure was discussed, they decided to keep that expense in the budget.
The board also discussed grants they have given other entities on an ongoing basis, such as support for the cityowned Gunflint Hills Golf Course, which they decided to reduce from $10,000 to $5,000.
The board spent considerable time discussing budget requests from the Highway Department. Highway Engineer David Betts, Assistant Engineer Sam Muntean, and Maintenance Supervisor Russell Klegstad all went to bat for the department, explaining that following their equipment replacement schedule—which they tweak on an ongoing basis to reflect what is actually going on with the equipment— would be more cost-effective than continuing to fix equipment that was not worth the cost of repairs. Muntean said that if they put off a scheduled replacement, they would spend more on the new equipment the next year and would get less on their trade-in.
Commissioner Sue Hakes said that other counties often buy Cook County’s used equipment. If they do that, she asked, why should Cook County get rid of it?
Maintenance Supervisor Klegstad said Itasca County, where he was a commissioner, used to buy everything used but ended up abandoning that practice, saving a lot of money. Cook County’s terrain is much different—and harder on equipment—than many of the other counties, he said. “You can’t compare oranges to apples,” he said.
One thing the department could do to reduce expenses would be to reduce overtime, but most overtime is paid out for snowplowing in the winter, a service the public expects.
We will end up driving on bad roads if money is not spent maintaining them, Engineer Betts said. He expressed frustration with the additional cuts the board was discussing because he had submitted a budget in line with the proposed 2.9 percent levy increase.
Highway Department spending decisions are not made “willy nilly,” Klegstad said. He praised department mechanic Steve Butz for his loyalty, expertise, and dedication to keeping county equipment running.
If they had to cut somewhere, Commissioner Gamble said, where would they cut first? Klegstad said he would start with calcium chloride, although that would not be popular because people want to minimize dust and loose gravel on the dirt roads. Besides increasing road safety, he said, calcium chloride helps stabilize the roads.
“I don’t spend money to spend money,” Engineer Betts said.
Assistant Engineer Muntean said they need to balance what level of service they want to provide with how much they want to spend.
The board moved on to the Sheriff ’s Department. Commissioner Gamble said the increase in spending on public safety since 1960 has been enormous. Commissioner Doo-Kirk said that she wants to see them move to having a longer term jail because they would save money now being spent sending prisoners out of the county.
The board agreed with Community Center Director Diane Booth’s suggestion to use some money from her department’s reserves. “She really takes a sharp pencil to the process,” Commissioner Gamble said.
Commissioner Sue Hakes concurred. “She’s good at stretching money.”
YMCA
The board approved equipment purchases for the pool, the intercom system, and fitness equipment in the new Cook County Community YMCA. “It’s been very tricky to make sure nothing gets left out,” said Branch Executive Director Emily Marshall.
While they would be spending less than projected on pool equipment, the intercom system would add to expected equipment expenses because the Y had expected to need to budget only for equipment that would theoretically fall out if the building was tipped upside down, Marshall said.
Seven local YMCA board members have been identified so far: Myron Bursheim, Hillary Freeman, Sue Hakes (representing the county), Jeanne Anderson (school), Beth Schwarz (school), Rusty Day (youth), and Matea Acero (youth). Marshall said they are trying to bring in board members representing diversity in age, sex, location in the county, skills, and organizations. When the board starts to meet, they will select several more members.
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