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City council begins chore of crafting 2009 budget
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By Charlie Warner
Argus News Editor
The U.S. government has already committed nearly one trillion dollars for various bailouts, with more help or stimulus packages on the horizon. State economic experts are predicting a $4.5 billion budget shortfall for Minnesota next year. Most predict this economic rollercoaster ride won’t hit bottom for at least another year.
What a time to be working on a city budget.
But that’s exactly what the Caledonia City Council and staff will be doing during the next few weeks. The council broached the issue during the Nov. 24 city council meeting.
City Accountant Stephanie Mann went over city cash and investment balances, as well as budget and indebtedness worksheets for council members to review. Although the city did make some major expenditures during the past year, Mann feels the city will be moving into 2009 in better shape than it moved into 2007 two years ago.
“We’ve made some progress getting a handle on our bottom line. But there is more progress to be made,” Mann said.
Mayor Mike Morey asked Mann if that meant another sewer and water increase. The city had gone five years without making any significant increases in the sewer and water rates. But during the past two years, three rate increases have helped improve those department’s ledgers.
“I really don’t know if we can make another rate increase right now,” Morey said. “People are really strapped. We have a lot of folks living on fixed incomes.”
Mann replied she would have a better idea once the 2009 budget is approved. She pointed out that the city has been notified it will receive a $78,000 increase in local government aid (LGA) funds from the state. The city received $830,000 in LGA funds this year. With the projected $4.5 billion state deficit, some are questioning if cities like Caledonia might instead be seeing a decrease in LGA funds in 2009. That coupled with the 3.9 percent levy limit the State Legislature imposed this year, most local governments will probably be forced to thin the soup a little.
It appears as if the current city council will be sharpening their pencils in the next two weeks, in an effort to keep the 2009 budget as bare bones as possible. The council held a lengthy budget workshop meeting Dec. 1 after this issue of the Argus went to press.
In other council action:
City applies for grant
City EDA Director Jane Schiltz brought a Small Cities Block Grant application to the council. She explained the city spent $2,500 last year applying for a similar grant, but did not receive it. This year, Schiltz pointed out, there is no cost for the grant application.
A motion made by Councilman Gary Klug and seconded by Councilman Bob Standish was unanimously approved.
Schiltz also recommended that the city not sponsor the annual business appreciation event that is usually held in March.
“With the way the economy is, trying to save money, and the business training program scheduled for March, I really think we should forego the business appreciation event,” Schiltz said.
Morey agreed with Schiltz and added the business mixers the Caledonia Area Chamber of Commerce has been hosting on a quarterly basis will probably fill that gap. The city spends about $1,000 each year on the business appreciation event.
Clothing issue clarified
By a 3-2 vote, the council approved a motion to designate the administrative coordinator and auditorium custodian positions as outside employees. Outside employees receive a $120 annual allowance for work clothing, while inside employees receive $60. Morey, Standish and Councilwoman Peggy Perry voted for the motion, while Klug and Councilwoman Randi Vick opposed it.
Music in the Park
The council unanimously approved a motion to budget $1,500 for the Music in the Park summer music series.
“This is a great community project, and Randi (Councilwoman Randi Vick) does a great job organizing it,” Klug noted.
“I agree with Gary,” Standish added. “Randi does a great job, and the people of Caledonia really enjoy this.”
You can contact Charlie Warner at
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