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<br />City Council Special Meeting - 12/27/04 <br />Minutes - Page 7 <br /> <br />budget for 2005 and specific proposals from Councilmembers. <br /> <br />Councilmember Kough requested that specific budget line items <br />be voted on to further reduce the budget. <br /> <br />Kough moved, Ihlan seconded, reducing the cost of living <br />adjustment (COLA) for employee wages from the proposed three <br />percent to two-and one-half percent for 2005; in an effort to <br />spread the impact over all employees and not eliminate positions. <br /> <br />Councilmember Schroeder spoke in support of the motion, but <br />encouraged a smaller COLA or wage freeze to make sufficient <br />impacts. <br /> <br />Finance Director Miller provided several calculations, noting the <br />union agreements in place, with arbitration clauses, and impacts <br />of marketplace factors. <br /> <br />Discussion ensued regarding union negotiations and possible <br />arbitration; sustainable budget cut solutions; internal equity <br />among employees to avoid disparity; possible levels of pay for <br />management or non-management employees or varying levels of <br />wage earners; and the need to take any additional COLA costs <br />from reserve funds. <br /> <br />Mayor Klausing spoke against the motion; recognizing the City <br />Manager's recommendations and responsibilities in keeping the <br />City in line with the market place competition for employees; <br />and realizing the need to retain quality employees to provide a <br />high level of service. <br /> <br />Councilmember Maschka spoke against the motion. <br /> <br />Schroeder amended, Kough seconded, the motion to further <br />reduce the COLA from two-and one-half percent to two percent. <br /> <br />Councilmember Kough, hesitantly spoke in support of the <br />amendment. <br /> <br />Mayor Klausing spoke against the motion. <br />