President Carlsrud called the meeting to order at 7:00 AM.
Members present: Commissioner Bishop, Commissioner Erickson, Commissioner Gulmon
Members absent: Commissioner Magnuson
Others Present: City Administrator Crawford, Finance Director Richter, Deputy Auditor Klein, City Attorney Martineck, Police Chief Hatcher, Fire Chief Magnuson
Discuss first draft of 2022 Budget
Auditor Richter reported that the value of a mill increased by an estimated $560 from last year to an estimated value of $20,000. The County Auditor will determine the actual value of a mill later in Dec 2021. For the 2021 Budget the City provided property tax relief using Covid Cares dollars which made up for the 4.51 mill shortage due to the change on how the county calculated the value of a mill in regards to Homestead Credits. Using the Cares dollars in the 2021 Budget prevented the City from having to capture last year’s shortage in the 2022 Budget. The first draft of the budget came in with a need for a 16.79 mill increase, which is equivalent to $376,400. After capturing the 4.51 mills that was provided with Cares dollars in the 2021 Budget, this left us with a 12.28 mill increase remaining. Between department heads making concessions, using Cares money to cover onetime budget requests, and increasing the utility transfer, we arrived at the 4.51 mill increase needed.
Cash reserves remain at 30% of expenditures, which is $1,030,000. This is within the guidelines set in the City’s Fund Balance policy (30% to no lower than 21%, with 20% needing corrective action by the Commission). The General fund revenues increased by $55,813 and expenditures increased by $70,803 from the 2021 Budget.
The proposed salaries in the 2022 budget includes a 4% cost of living allowance (COLA) increase and a step increase in the 25-year salary schedule. Cost of Living Adjustment (COLA) is calculated using the Consumer Price Index, in the U.S. Department of Labor, Bureau of Labor Statistics report for the Midwest Region from May 2020 to May 2021. The CPI’s COLA was listed at a 5.6% increase. The City did give a 2.5% increase in 2021 when CPI was suggested a 0% increase. The City is looking to do a salary study in 2022.
NDPHIT is suggesting that the City budgets a 3% increase in health insurance premiums. The City will pick up 50% of the cost of the increase and employees will pick up the other 50%. If the premium increase is more than the estimated 3%, the Commission will re-evaluate. The City’s contribution to the employee’s HSA accounts would remain the same, with the employees matching a portion of the contribution in order to receive the full amount.
Commissioners reviewed the list of items that were pulled from the 2022 Budget and will be purchased with Cares money: Security Cameras at the Police Station $5,000, Law Enforcement Center Exterior Building Updates $10,000, Window Blinds for City Hall Offices $1,400, 7 Ceiling Fans at the Fire Hall $2,100, Carpet in Hallway & Office at Fire Hall $2,000, 4 Computer Replacements $10,000, Computer Monitors $1,600. Also looking to use Cares money for the local share of the Ergonomic Grant in 2021.
At 8:12 AM Meeting Adjourned until 7:00 AM Wednesday, July 21, 2021.