At the Wednesday, December 9, meeting, the Grand Marais City Council had an in-depth discussion of the list of priorities it adopted in 2009 and how those priorities can be addressed in light of anticipated cuts to local government aid (LGA). Concerns about the loss of LGA led to a 3% increase in the city’s levy for 2010 for a total levy of $802,657.39.
The city set its preliminary budget at $802,657, the maximum amount it is allowed to levy, in September 2009. The increase totals $23,000. At that time it was hoped that budget cuts could reduce the levy amount. However, that was not the case.
City Administrator Mike Roth told the council that after final budget adjustments had been made, the city had $46,000 of funds not earmarked for any particular project. Roth said the council could leave the money undesignated; it could lower the 2010 levy or it could allocate the money to be spent on one of the projects on the city’s priority list.
Roth said, “A levy reduction is something to consider, in light of our current economic situation, however, I’m not recommending that since you do have these priorities you want to work on.”
The projects on the city’s 2009 priority list were the one percent sales tax; the swimming pool; a joint maintenance facility; a safe harbor/marina; capital improvement planning; the Recreation Park Master Plan; and the municipal building.
Mayor Sue Hakes said, “I have thought a lot about this. I had wished that we could lower, or at least not raise taxes, but I’m very concerned about cuts to LGA. I think we should keep the levy at a 3% increase and continue to work on these priorities.”
Regarding the $46,000 of unallocated funds, Councilor Tim Kennedy said the funds should be designated for priority projects. “We need to keep that $46,000 in our budget if we are going to continue to move forward on these things. Even $46,000 is not going to go very far when we start working on these things.
Mayor Hakes reiterated that the state is facing a $1.2 billion deficit. She said although the city had received good news from the governor’s office on December 8, letting them know that expected unallotments, or cuts to LGA, would not happen in December, it was unknown what the future would bring. “The governor warned that budget cuts could be on the table in 2010,” said Hakes.
The council had to wait to make a final decision on the levy until after the scheduled 6:00 p.m. public hearing on the budget and levy, so talk turned to what to do with the $46,000 of unallocated funds.
Costs associated with some of the projects on the priority list were discussed. Mayor Hakes said it would be nice to implement some of the ideas from the Recreation Park Master Plan, such as an enhanced entrance and trail enhancements. Administrator Roth said there are park capital improvement funds that could be used for those projects.
Roth said the council could allocate some money to study the municipal building—not to make changes, but to determine what the city’s needs are and to determine if the best course of action is to stay in the building or to sell it.
The desire for a joint maintenance facility, shared with Cook County, the Minnesota Departments of Transportation and Natural Resources, Arrowhead Transit, and School District 166, was discussed and Roth said some of the money could be earmarked to help keep the planning going.
The council debated designating $10,000 to continue exploring a joint maintenance facility with other government entities; $10,000 to shortterm and long range planning for the pool; and $20,000 for safe harbor/marina planning. Mayor Hakes asked Roth for his recommendation and he suggested leaving the $46,000 as a budget line open, keeping it for contingencies. “There may be other money available from other sources for these priorities. Or it may become a matter of not moving ahead, but of just using that $46,000 just to continue to provide existing services,” answered Roth.
The council agreed and in the public meeting that followed approved the 3% levy increase.
Hakes expressed appreciation to city staff and department heads for all their work to set a responsible budget.
In other business:
The council approved an updated job description for the Librarian I position, currently held by Anne Prinsen. The position evaluation was requested by Prinsen to more accurately reflect the duties she performs. There is no change in salary, however City Administrator Roth said the new position description should be reviewed to see if it does require a change in wages.
The council approved the renewal of the Cook County Curling Club consumption and display permit. The permit allows the curling club to have alcoholic beverages, but not for sale, at their events.
The council reviewed the proposed 2010 wage scale for supervisors and department heads, which includes a 2.5% increase for 2010, the same cost of living increase given to union employees. The increase has been included in the 2010 budget. Tim Kennedy moved to approve the raise, Bill Lenz seconded and the motion carried unanimously.
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