02-02-1982 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, FEBRUARY 2, 1982
The special meeting of the City Council was called to order by Mayor James DeMeyer
at 3:45 P.M., with the following present: Alderman Ted Beatty, Alderman Kenneth Gruen-
hagen and Alderman Mike Carls, in addition to Mayor DeMeyer. Absent: Alderman John
Mlinar. Also present: City Accountant Kenneth Merrill and City Administrator Gary D.
Plotz.
Mayor DeMeyer commented that the purpose of the meeting was to review the 1982 City
budget and the City's financial conditions as a result of state and federal aid cuts.
City Accountant Merrill reported that the recently passed legislation would cut the
local government aid by 11.03%, homestead credit "pot" by 1.75-2%, and eliminate the
shade tree program funding for 1982, which will result in a total loss to the City of
$75,825.00, or 2.8% of the total budget.
Accountant Merrill went on to report other potential problems that might affect the
budget are higher snow removal costs than anticipated, possible flooding in the spring,
and the City may not have the project dollars from 1982 bonds as adopted in the budget.
In the past the State of Minnesota has made payments to municipalities on a quarterly
basis, but now it will be making payments the last six months of the year, effective
July 1982. The State Legislature has authorized the power to borrow money to meet
the commitments on the payments.
Four possible solutions were presented, namely: 1) use the fund balance (the Charter
allows up to 10% emergency appropriation of annual budget); 2) watch operations and
review over the next several months before making any adjustments; 3) use federal rev-
enue sharing for the difference (an estimated $217,500.00 will be available October
1982); and 4) cut the budget. It was pointed out no cuts would be made in regard to
LAWCON.
At this time, only Ralph Neumann and Marlow Priebe have submitted suggested budget
cuts for their departments; the other department heads have not been approached yet.
It was suggested to move the street department materials out of the general fund and
into the bond fund. It was decided, however, that this would not be appropriate since
the City would have to pay interest on it when money was available. Discussion was
also given to putting maintenance and annual street repair into improvement bonds.
It could be levied as an improvement project. Alderman Carls stated that each street
needs to have a maintenance cost report kept.
It was suggested by Alderman Carls to put a temporary freeze on hiring part-time per-
sons or replacing any full-time employee who resigned.
Alderman Beatty reported the Fire Department was willing to give up the amount budgeted
for equipment, coats, etc.
The recommendation was made by Alderman Beatty to cut the City 1982 budget by 2.8%;
COUNCIL MINUTES
FEBRUARY 2, 1982
if this was not possible, to look to the revenue sharing funds for 1982. Alderman
Carls then asked about cuts in employee salaries and suggested starting with the
City Council's salary.
Alderman Gruenhagen moved to appoint City Accountant Merrill and City Administrator
Plotz to contact each department head to submit a list of 5 percent cuts, with the
figures to be provided to the Council no later than the next Council meeting. Sec-
onded by Alderman Carls, the motion unanimously carried.
Alderman Gruenhagen moved to cut the City Council members' salaries by 5%. The
motion died for lack of a second.
It was moved by Alderman Gruenhagen, seconded by Alderman Carls, to adjourn the
meeting at 4:35 P.M. Motion carried unanimously.
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