08-14-2023 Special Budget CCMSpecial Meeting of the Elk River City Council
tT
Held at the Elk River City Hall
Monday, August 14, 2023
ver
Members Present: Mayor John Dietz, Councilmembers Cory Grupa, Mike Beyer, Matt Westgaard, and
Jennifer Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, Assistant City Administrator Joe Stremcha,
Recreation Manager Micheal Hecker, Public Works Director Justin Femrite, Finance
Manager Lori Stich, Facilities Maintenance Supervisor Gary Lore, Street and Park
Superintendent Tim Sevcik, Fire Chief Mark Dickinson, Assistant Fire Chief Joe
Libor, and City Clerk Tina Allard
Also Present: Librarian Margot Barry
I . Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order
at 4:30 p.m. by Mayor Dietz.
2. Pledge of Allegiance:
Pledge of Allegiance was recited.
3. 2024 Budget
Various staff presented their budgets. The Council noted:
■ They'd like to review pre -pandemic numbers for the number of participants in recreation
programs.
■ An Elk Riverfest event recap; notably revenue and expenses.
■ An updated metric for the number of community events held to date as part of the recreation
budget.
■ A copy of the public safety survey mentioned by public works regarding the number of
employees on staff based paved miles.
The Council held initial discussions about fire districts with many questions such as taxing, geography,
assets, service, and pensions along with the pros and cons of establishing a district. Staff is continuing
to review this topic.
Mayor Dietz stated he would like the budget to remain under 4% for the General Fund increase. He
provided a handout with his suggestions of items to cut or move. He noted an error with the dates for
the street department hiring; should be 2024 and 2025. He questioned staff on how they determined
the 4% Cost of Living increase for employees. Mr. Portner discussed the comparable numbers of
other communities. Mr. Portner further noted some of the items on the handout would not be
allowed per state law, such as pre -paying invoices.
City Council Minutes
August 14, 2023
Page 2
L.ai�e Builders National Renting Tend
The Council noted newspaper articles have been written about a national trend of builders keeping
homes they've constructed and renting them instead of selling in order to self -finance in these current
economic times. He questioned if it could be a potential issue the city should review.
Furniture and Things Communili, Center Budget
The Council discussed the following:
■ Should we consider moving maintenance of the facility to the city building maintenance
division and how it would affect current costs. Mr. Portner stated it would most likely be cost
neutral.
Utilities budget is very high and what was the final determination of the utility study. Can Elk
River Municipal Utilities find a way to give the facility, as a government building, a break
without affecting other users. Mr. Stremcha stated the recommendation in the study only had
a savings of about $10,000. Mr. Portner noted there is good data as to where the demand
charge is for this facility because it is managed by the city and possibly the demand charge
period could be reduced.
Discussed the $350,000 deficit that would typically be paid by the fund balance and concern
for it being at approximately $7,400 at the end of 2024.
Was there a study done of the staffing needs for the facility. Personnel Services expenses are
close to $1 million. Last December the Commission asked Mr. Hecker and Mr. Dalton to take
a hard look at Personnel Services and what it takes to run the facility so that in 2024 there is
not an unbalanced budget. Mr. Stremcha asked if the current levels of service meet
expectations. Councilmember Westgaard stated we should be evaluating if we are getting the
most out of our full-time positions and if the staffing is right to meet expectations. He
provided a scenario of having three Zamboni drivers who are not doing what is expected,
such as cleaning toilets, and we want building maintenance to take over, then staffing levels
are not right. He stated everyone wants to work 8:00 a.m. to 4:00 p.m. and the facility is open
from 6:00 a.m. to 10:00 p.m. The Council questioned why the study has not happened and
that this budget should be sent back to staff and the commission noting the budget needs to
balance or the Council must be shown why the staffing levels are needed. There was
discussion about other areas of the facility not covering their share of the costs, such as the
field house and rental rooms and whether the rates are high enough for these spaces.
Councilmember Wagner stated they need to set a balanced budget, so we know what we need
to bring in for revenue and to set rates and contract negotiations with actual data.
Revenue needs to be broken down better in the budget detail sheets.
4. Adjourn
The nFNting was adjourned at 7:27 p.m.
nj ,aetz,.Mayor
Tina Allard, sty Clerk
IF I� E fl E l 1 9
NATURE