As it is September, municipalities in the county are all tightening down their proposed budgets and setting their maximum levies. At the Rushford Council meeting, Monday, September 11, the case was no different, as the council reviewed the proposed changes.
Prior to budget and levy talk, the council voted to approve labor contract agreements. The agreements were recently negotiated with both the American Federation of State, County, and Municipal Employees (AFSCME) Local 1944 and International Brotherhood of Electrical Workers Local 160 for a three-year term beginning January 1. Highlights of the agreement include an increase in wage grid of 3% annually and a $50 per month increase in Cafeteria Plan benefits. Additionally, it adjusts on-call rate of pay for Public Works and the Police Department, as well as revising termination language in Supervisory Units. The council also approved terms, cafeteria, and general wage increases for all non-union full-time employees to be at the same rate of pay as full-time bargaining unit employees.
Councilor Vern Bunke was the lone dissenting vote in the motions to approve the changes. Bunke provided to the council and city staff a spreadsheet highlighting his estimations of city labor costs for the next three years. He indicated he’d gone through the most recent city audit after collecting financial information and figures from City Clerk/Treasurer Kathy Zacher, but acknowledged that there were some incidental figures he could not account for.
“What I was attempting to do here, was to figure out the total cost of labor for the city based on expenses,” began Bunke. “I’m trying to get a grasp or handle on total labor expense for the city. I wanted to share it with the council so you understood why I was speaking as I was at the last meeting and why I voted against it.” At the August 28, nearly hour and a half, closed meeting, Bunke voted against the tentative labor agreement.
“It won’t take long and our labor is going to force levy increases every year,” Bunke cautioned. “I’m not saying that staff isn’t doing a good job; they are. Still, it doesn’t explain how in the world we’re going to handle it. We have to be making as smart management decisions as we can and not let it get out of control.” Bunke has long been a vocal advocate for “belt tightening” of budgets.
City Administrator Tony Chladek acknowledged that personnel costs go up, but tried to focus the council on the information discusses at the August 28 meeting, including costs and value-added savings. “The important thing is to compare what we had talked about and what we’re proposing here. It’s all there and I’ll stand behind it,” he stated.
Councilor Terri Benson questioned whether or not there was a percentage of wages to budgets hat a municipality looks for. “We’re not making a product; we’re servicing a community,” she noted.
The city is currently looking at a $938,000 proposed 2018 budget. This would represent a 8.19% increase, $71,000 in value, over the 2017 figure. “The jump is really in bond levy,” explained Zacher. Last year, the city was working to rebuild general reserve fund, per a Standard & Poor’s rating recommendation. With that goal accomplished, the city will now focus more intently on debt service. Per projections, debt service would see a 29% budget increase over 2017 numbers. However, operating expenses look to be reduced 20.81% for a net of 8.19%. The small increase in Local Government Aid provided to the city by the state will be directed to the Capital Projects Fund.
Zacher noted that the increase is not necessarily the same percentage change on individual taxes. Those figures will come out with proposed tax statements from the county later this year. Additional revenues have been added to the city tax rolls in 2017 which will counter the impact on individual taxes. It was also noted by Councilors Terri Benson and Jim O’Donnell that rising market value may throw tax adjustments and skew numbers.
This increase would be the third for the city in the last three years. All three years have seen a change of less than 10%. Prior to that, the levy was held flat for five years. The council will certify maximum levy at the September 25 council meeting.
In other news, the city received an update from Fire Chief Paul Corcoran regarding fire contract renewals for area townships and for two cities, Rushford Village and Peterson, contracting for fire services. The new .0165 mill rate changes will take effect with the two-year contract for 2018 and 2019.
The department will be hosting a number of community activities September 23 as part of the Taste of the Trail events scheduled for Rushford, Rushford Village, and Houston. The department, along with the ambulance service, will be holding an open house from 10 a.m. until 3 p.m. at the fire hall; 401 South Elm Street. Later in the day, a free car seat clinic will also be held. The day’s events are highlighted at rootrivertrail.org.
The Bluff Land Triathlon was also discussed by the council and is slated to be Saturday, October 14, starting at Creekside Park. The 3.1-mile run, 13.4-mile bike, and 1.8-mile hike on the city’s Magelssen Bluff can be done separately or as one triathlon event by individuals or families (up to six participants). The event is organized by the Foundation for Rushford-Peterson Schools.
The next regularly scheduled council meeting is Monday, September 25, at 6:30 p.m., at city hall. The public is encouraged to attend.
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