Laserfiche WebLink
City Council Special Study Session — 09/09/04 <br />DRAFT Minutes - Page 4 <br />Finance Director Miller responded that the structural cuts had <br />been applied to an annual budget that had been eroded based on <br />inflation. Mr. Miller noted that the approximate $335,000 in <br />structural cuts applied last year were still there, but with inflation <br />of approximately $300,000, the City was faced with the same <br />$700,000 deficit. <br />Mr. Miller cited several examples, using those items identified <br />by Councilmember Schroeder (i.e., $50,000 in city-wide reduced <br />phone costs eroded by increased inflationary expenses from the <br />various phone vendors). Mr. Miller noted that the 2005 Budget, <br />as recommended, restored inflationary/structural costs back in. <br />Mr. Miller further noted that the cost-of-living adjustments to <br />salaries in itself represented an annual expense of approximately <br />$300,000. <br />Councilmember Maschka opined that the Council needed to take <br />the cost-of-living-adjustment (COLA) into effect, noting that <br />government is becoming more efficient; and further opining that <br />adoption of a zero-percent annual levy actually represented a cut <br />over the last three years due to inflation. Councilmember <br />Maschka noted that, during his 12 year tenure on the City <br />Council, the general guiding principal had been that as addressed <br />in the City Manager's budget recommendations, specifically <br />Item #2 in the Action Items, in property tax rates paralleling <br />inflationary costs. <br />Councilmember Schroeder sought specific clarification regarding <br />the $40,000 Fairview Community Center lease. <br />Parks and Recreation Director Lonnie Brokke responded to <br />Councilmember Schroeder's question regarding the Fairview <br />Community Center lease and savings of $40,000. Mr. Brokke <br />noted that those savings were absorbed by the City's <br />responsibility, as per joint contract with the School District, to <br />become responsible in 2005 for maintenance of several of the <br />area gymnasiums; and provision of supervisory personnel on the <br />City Hall campus on evenings and weekends to facilitate rental <br />use activities. Mr. Brokke further noted that the City was <br />continuing to lease two spaces at the Fairview Community <br />Center: one for storage and one for the dance studio due to the <br />