ORTONVILLE CITY COUNCIL
MEETING MINUTES
WORKSHOP MEETING
DIALYSIS BUILDING
435 Eastvold Avenue, Ortonville, MN
Monday, April 7, 2008
6:00 P.M.
CALL TO
ORDER AND ROLL CALL:
Mayor Blair
Johnson called the Workshop Meeting of the Ortonville City Council to
order at 6:05 P.M. Roll Call was taken with the following Present: Mayor
Johnson, Nick Anderson, Craig Randleman, Steve Berkner, Bob Meyer, John
Cunningham, and Mike Dorry. Staff Present: City Administrator David Lang,
Administrative Assistant Susan Lundell. Media Present: Mike Swenson
(Ortonville Independent). Others Present: EDA Board Members Scott
Maas, Burt Nypen, EDA Secretary Vicki Oakes, Elsie Perrine, Marcy
Stotesbery, Lenore Sellin, Wayne Frette, Marylin Jurgens, Alice
Radermacher, David Dinnel, OAHS Financial Officer Jim Foster and other
interested citizens.
DISCUSSION: COST SHARING AND ALLOCATION OF FINANCIAL ADMINISTRATION COSTS
AMONG ENTERPRISE & OTHER SPECIAL PURPOSE FUNDS
The issue
of allocating city financial administration costs to various city funds
was discussed. One suggestion to offset the cost of salaries was to use
Fairway View profits. Jim Foster, OAHS Financial Officer and EDA Board
Member Scott Maas expressed concern regarding the suggestion Fairway View
profits be used for said purpose. Foster reported the 2007 bottom line
profit for 2007 was $140,000 with an ending cash balance of $300,000. He
projected for the 2008 budget a $7,200 profit per month but stated any
vacancy can markedly reduce revenues.
He also
reported the units are now 4 years old and will soon need new carpeting,
repainting and other updates to maintain a good appearance. Depreciation
money needs to be set aside for updates. Foster stated assisted living
rate increases are determined by the State of Minnesota and have not kept
up with inflation. EDA member Scott Maas stated we have a large debt for
Fairway View and did not want to start chipping away at needed reserves.
He asked if Fairway View runs out of cash can they come back to the City
for money.
Council
Member Dorry stated his original motion regarding this issue was to find
out how much money can be taken from other departments to go toward
Clerk-Administrator David Lang’s salary. Council Member Berkner suggested
a $50,000 draw on Fairway View for city salaries with a plan to build that
figure into the 2009 budget. He stated the initial plan was to put some of
the Fairway View profit to work for the EDA. Cunningham stated the initial
plan was to pay the EDA back for the Fairway View Project so the EDA would
have money for new projects. Mayor Johnson asked to delay any draw on
Fairway View until August so that a clearer picture of what the facility’s
profits will be.
Ortonville City Council Workshop
Meeting Minutes April 7, 2008 Page 2 of 2
EDA Board member Burt Nypen stated
the EDA needs money to promote economic development projects. He suggested
the EDA look at levying a tax against taxpayers to fund EDA projects. He
stated, “we need to reinvest in the Community.” Mayor Johnson suggested
the water and electric funds also be looked at to tap for city salaries.
The City Clerk-Administrator asked for time to receive feedback from city
staff regarding the division of duties amongst the various departments so
that a percentage of salaries can be allocated to the appropriate fund.
Dorry asked “how much time can we afford to have David work on EDA?” He
stated David Lang was hired as Clerk-Administrator and thought those tasks
should take precedence over EDA work. No action was taken. The entire
issue of staff funding allocations and EDA funding will be taken up by the
City Council Budget Committee.
ADJOURNMENT:
Mayor
Johnson adjourned the meeting by consensus.
APPROVED:
ATTEST:
__________________
______________________
Blair
Johnson
David A. Lang
Mayor
Clerk-Administrator
