Caledonia Argus

Council makes cuts to balance cityís budget

Posted: 12/23/03

by Jane Palen
Argus Managing Editor

The Caledonia City Council has decided to transfer $38,181 from the electrical department to the general fund in an effort to balance the budget for the coming year.

The city budget for 2004 is $1,404,158. The 2003 budget was $1,649,520. The council set the 2003/payable 2004 levy at $335,665 an increase of $22,000 (7 percent) over last year. The levy includes $230,141 for the general fund and $105,000 for indebtedness. The general fund levy is the maximum amount allowed by the state. Last year, the levy limit was $180,223.

The city lost $82,500 in local government aid in 2003 and will lose an equal amount in 2004.

The council has reduced spending in many areas in an effort to balance the budget. Those cuts include:

ï A cut in the mayorís salary from $2500 per year to $2100;

ï A reduction of $10,000 in street department expenses, half of which will come out of funds normally used for crack-filling;

ï A reduction of $ 4,000 in the maintenance of athletic fields and summer recreation program, which is in addition to the $6,000 in reductions taken this year;

ï A reduction of $1,000 in the library budget;

ï Fewer improvements in the fire barn than originally planned;

ï Reductions in the Caledonia Police Department of $10,000.

Officer Dienger resigns

In a matter related to the police department, the council learned of the resignation of officer Heath Dienger, who will be attending the state patrol academy. Mayor Robert Burns said that after speaking with Police Chief Duane St. Mary, he believes that Dienger should be replaced.

The city is also considering an offer from Arnold Lundtvedt, who works full-time in maintenance at the city auditorium. He has offered to retire, but would like to be assured of a part time job after 30 days off the job, which is required to collect retirement benefits. The city would save half his salary and some health care costs totaling approximately $12,000. The city is exploring whether it can legally guarantee the part-time position, or if it has to advertise.

ìWe still may have to advertise, but Arnie would probably be the most qualified candidate,î noted City Clerk Robert Nelson.

The cityís proposed budget for donations has been cut from $15,800 to $9,800. The city will no longer donate to the Semcac transit program, which will save $4,000 in 2004. It will not donate $1,000 to the Retired Senior Volunteer Program, and has cut a $500 donation to the Scenic By-Way committee. It also eliminated a $500 donation to Southeast Minnesota Development Commission.

On the revenue side, the city will continue to assess a fee of $1 per household per month for street lights, which will result in additional revenue of $14,220. Commercial businesses are assessed $2 per month, which will result in $5,472.

The city also agreed that it would begin charging for fire calls within the city limits. The charge will depend on the amount of time, manpower and equipment used for the call. Estimated revenues are $2,000 per year.

The city will ask the county to share in the cost of the phone for Joyce Iverson, who works for both the county and the city but whose office is in the city hall.

The council cancelled its December 22 meeting. The next meeting of the city council is January 12, 2004.

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