12-06-1999 CC MIN - SPECIAL
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SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 6, 1999
Members Present:
Mayor Klinzing, Council members Dietz, Thompson, Farber, and Motin
Members Absent:
None
Staff Present:
Pat Klaers, City Administrator; Sandra Peine, City Clerk; Lori Johnson,
Finance Director; Jeff Beahen, Assistant Chief of Police; Tom Zerwas,
Chief of Police; Bruce West Fire Chief; Phil Hals, Street/Park
Superintendent
1. Call Meetina To Order
Pursuant to due call and notice thereof, the special meeting of the Elk River City
Council was called to order at 6 p.m. by Mayor Klinzing.
2. Consider Aaenda
COUNCILMEMBER THOMPSON MOVED TO APPROVE THE 12/6/99 CITY COUNCIL
AGENDA. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
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3.
Truth in Taxation Public Hearina
City Administrator Pat Klaers noted that the purpose of the meeting is to review the
general fund revenues and expenditures for the proposed 2000 city budget and
tax levy. He further noted that the Truth in Taxation hearing is a requirement of
state law to allow citizen input on the city's proposed 2000 budget and tax levy.
The City Administrator gave a presentation to the City Council on the proposed
2000 budget and tax levy. He reviewed the proposed general fund revenues and
expenditures. He further reviewed the breakdown of the budget by type of
services and departments.
Finance Director Lori Johnson reviewed information on the tax rate. She explained
how the property tax is divided between the city, the county, and the school
district and further gave some property tax comparisons showing how the tax rate
would affect residential homestead and commercial/industrial properties. She
noted that due to the increase in the education credit and the decrease in the tax
rate, residential homestead property owners would see a decrease in their
property tax.
Mayor Klinzing opened the publiC hearing. There being no one for or against the
matter, Mayor Klinzing closed the publiC hearing.
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Mayor Klinzing stated that the City Council would adopt the tax levy resolution and
the 2000 budget at the December 13, 1999, City Council meeting.
Elk River City Council Minutes
December 6.1999
Page 2
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4.
Discuss Contribution to Employee Health Insurance
City Administrator Pat Klaers stated that the council had requested that this issue
be brought back for discussion. He noted that the council recently approved the
bid for health insurance. He further stated that the council is aware of the large
increase in insurance premiums and the affect this has on city employees,
especially those choosing family coverage. Finance Director Lori Johnson
explained that although a cafeteria plan would help the situation, due to time
constraints, the program would be difficult to implement for the year 2000. She
further noted that the only way to help those employees who will be paying a high
increase in premiums is to increase the city's contribution.
The city administrator reviewed his 12/6/99 memo on this issue and suggested that
the council raise the contribution to $45 as opposed to the standard $15 increase.
He noted that this would put Elk River at $400 per month per employee and this
amount would be in line with what other Group 6 metropolitan cities are paying.
Because there were employees in the audience, Mayor Klinzing asked for
comments. Phil Hals, Mark Thompson, and Tom Zerwas spoke to the council about
the effects of the high increase in premiums for those who have families to insure.
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Mayor Klinzing talked about how an across the board 3 percent wage increase
affects the higher paid employees versus the lower paid employees. She noted
that those employees receiving lower wages receive a smaller increase and
continually fall behind the higher paid employees. She suggested that there may
be a way to balance the situation. Lori Johnson suggested that the personnel
committee review this issue.
The council discussed what affect an increase in city contribution toward health
insurance premiums would have on the council contingency budget. It was
suggested that in order to help employees this year, some money be used from the
insurance reseNe fund. Discussion was also held regarding paying a percentage
for all employees so that employees would know what their responsibility would be
from year to year.
COUNCILMEMBER DIETZ MOVED TO INCREASE THE CITY'S CONTRIBUTION TOWARD
THE HEALTH INSURANCE PREMIUM FOR THE YEAR 2000 BY $75 PER MONTH, EQUALING
A TOTAL OF $430 PER MONTH PER EMPLOYEE. COUNCILMEMBER THOMPSON
SECONDED THE MOTION.
Councilmember Motin noted that he would vote against this motion, as he would
like to see the increase raised to $100. Council member Farber stated his support
for the $100 increase.
THE MOTION CARRIED 4-1. Council member Motin opposed.
It was the consensus of the council to establish a cafeteria plan committee and to
have the personnel committee look at the possibility of balancing wage increases
for higher versus lower paid employees.
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Elk River City Council Minutes
December 6. 1999
Page 3
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5.
Discuss City Personnel Policy Manual
Finance Director Lori Johnson presented the council with a draft update of the
city's policy manual. She noted that the reason for updating the manual is to
incorporate policies that have been approved since the first manual was adopted
in 1991, to incorporate state and federal law changes, and also to provide a
document to employees that will serve as an easy to read resource. She noted
that many of the policies are unchanged from the original policy other than
format. Lori Johnson reviewed the major changes being proposed in the manual.
Some discussion was held regarding overtime and compensatory time for non-
exempt employees. Council member Farber noted that he did not concur with the
proposed change in that section.
COUNCILMEMBER DIETZ MOVED TO ACCEPT THE PROPOSED POLICY MANUAL AS
DRAFTED. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED
5-0.
Council member Farber discussed some concerns he had regarding hockey
problems being experienced by students and a road/street signage issue.
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6.
Adiournment
There being no further business, Mayor Klinzing adjourned the City Council meeting
at 7:43 p.m.
Sandra Peine
City Clerk
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