City Commission

MEETING MINUTES OF THE CITY COMMISSION OF THE CITY OF DEVILS LAKE, ND SPECIAL MEETING JULY 18, 2024 The special meeting of the Devils Lake City Commission was held on July 18, 2024 with the following members present: President Moe and Commissioners Hach, Knowski, Pierce, and Uhlenkamp. SALARY PLAN REVIEW AND DISCUSSION 1) Cost of Living The City Administrator said the CPI is near 3% and the first preliminary budget number reflects a 3% cost of living adjustment for City employees in 2025. 2) Human Resources Advisor PD & City Hall Review Chief Toso gave an overview of a proposed restructuring for the Police Department, with the creation of five corporal positions at a Grade 11 between the patrol officer and sergeant positions. As part of the proposed restructuring, the elimination of the part-time clerk/typist position would also occur. Chief Toso briefed the Commission on his vision for a Lieutenant Detective position within the department. Commissioner Pierce asked if there would ever be a need for more than one Lieutenant Detective Position. Chief Toso said he did not foresee the need in the near future. Tanya Weiler, City HR Advisor with Dakota Dynamics, spoke about her review of the details in the Police Department’s proposal. She said through her experience, the organizations and departments that are usually most successful are those where there is a clear hierarchy of authority. She says she feels the restructuring plan does a good job or more clearly defines the roles and responsibilities for employees in the Police Department. Ms. Weiler said that one of the perks of this restructuring is its decrease in estimated overtime hours and the cost savings associated with that. Chief Toso gave an overview on the numbers supporting the reduced estimated overtime hours. Ms. Weiler said she feels this is a good plan and was in support of the restructuring. Ms. Weiler and Chief Toso both promoted their view that this will also act as a retention and recruiting tool by giving employees a defined path upwards in the organization. Commissioner Knowski asked how the budget for the Police Department would work comparatively to the current structure. The City Administrator stated it would be a budget neutral restructuring given the elimination of the part-time typist position and estimates savings in overtime. Ms. Weiler provided an update on the market study she conducted for the administrative positions at City Hall. She said the City has done a good job of keeping up with the cost of living over the years. Ms. Weiler communicated that through her market study, all the positions in City Hall are sitting within 99-101% of the market. She said the only position she did not have adequate information on was the City Administrator position, given that many peer cities have that employee on a contract, not civil service. She said she did not necessarily have a concern that the position is misclassified. President Moe asked if the City Administrator, being the most senior position in the organization, should have a higher or equal grade to the highest-ranking department head. He noted that the City Administrator is currently a grade 21 and the City Engineer/Public Works Director is a grade 22. President Moe suggested the City Administrator and City Engineer/Public Works Director position should be equal in rank at a minimum. Ms. Weiler said she felt that was a valid point. She said she finds it interesting that other organizations are taking the City Administrator and other department heads off the pay scale entirely and moving more to contracted arrangements. She said moving the City Administrator position to the same grade or one higher than the highest department head was a logical and fair question. The City Administrator explained the difference between being a civil service employee vs. a contracted position. He said that if a contract is structured effectively, it can be a win-win for both the employee and organization. He said he did not have a strong perspective one way or the other. President Moe stated this budget cycle would be the time to address such a subject. The Commission determined to have President Moe, Vice President Hach, the City Administrator, and Ms. Weiler meet next week to provide a recommendation on how to proceed to the full City Commission. 3) Benefits – Health Insurance The City Administrator said there is a 4% increase to health insurance premiums expenses in the 2025 preliminary budget. He said the Self Insurance Fund has performed well the past two years but that it is trending backward a projected $90,000 this year so far. Commissioner Pierce asked why the health insurance costs in the Municipal Court fund are budgeted higher for 2025. The City Administrator said that is due to the hiring of a new employee and that employee being on a different plan than the previous. The City Administrator asked the Commission if they felt the City’s contributions to the various plans were still appropriate. He said the City currently contributes 100% of a single plan, 90% of a single with dependent plan, and 80% of a full family plan. He said some people on the single plan have health insurance through their spouse but are incentivized to get the free single plan and then have double coverage without having to contribute. He added that the full single plan is an attraction and retention tool for many single employees with no dependents, who are often on the front lines in the public safety and public works departments. The City Administrator asked if the Commission was interested in considering a change to offering 100% of a full single plan to possibly contributing 85% to all plans, removing the unintended incentives with the free single plan, and forcing everyone to have some skin in the game regarding their health insurance coverage. Commissioner Pierce stated he thinks the current contributions to each plan are fair. Commissioner Knowski said he felt it was a good recruitment and retention tool and would like to see them stay the same. GENERAL FUND REVIEW 1) Non-Departmental Revenue The City Administrator listed the major drivers of increased costs for the 2025 budget. - $120,000 increase in wages ($40,000 per 1% in salary COLA) - Increased FTE in FD – Anywhere between additional $70,000 and $90,000 obligation. - $ 53,000 increase in health insurance contributions after 4% increase - $ 68,000 increase in LEC & 911 contributions - $ 90,000 expense for SIRN radios after purchase price and grant reimbursement - $ 36,000 in 2024, 2025 and annually for new CAD System used by the Police and Fire Department He provided a briefing on non-departmental revenue projections and changes. The were as follows: - Sales tax allocation to General Fund increased from 41.75% to 42.75% - Street Light Utility Fee recommended increase from $2.25 to $2.50 due to street light utility expenses exceeding revenue in 2024 budget. - Transfers in: o Engineering Fees – 16% of $2.9 million in projects (Capital Improvement Planning Committee and City Commission to confirm amount at later date) ▪ 20% Enterprise Transfer amount assumes a series of sanitation rate increases. Currently no expectation for a recommendation for water/sewer rate increases. Commissioner Pierce said the LEC is looking at possibly reducing the cost of living from 4% to 3%. 2) Non-Departmental Expenses He provided a briefing on non-departmental revenue projections and changes. The were as follows: - HR Manager Contract increase from $12,000 to $15,000. First increase in over 6 years.  - LEC & 911 contributions up $68,000 (9.5% increase) 3) Administrative: City Commission, Municipal Judge, Auditing, City Attorney, Assessing, Engineering, City Hall The City Administrator said these departments are heavily driven by personnel expenses and dictated by the cost-of-living adjustment. 4) Public Safety: Fire, Police Chief Toso said his 2025 budget includes a new line item for technology related leases and subscriptions. He said two squad cars are budgeted for, with an estimated cost of $72,000 once all the extra technology is purchased and installed. The City Administrator said the biggest change for the Fire Department’s budget for 2025 is the addition of a new FTE as they take over the Air Rescue Fire Fighting (ARFF) mission at the Airport. The Fire Chief said there were a few increases in the software line item and education and training line item due to the assumption of the ARFF mission. The City Administrator said public safety expenses are 45% of the General Fund’s budget and that overall employee related expenses are just shy of 70% of the General Fund’s Budget. 5) Others The City Administrator reviewed the advertising and promotion section of the General Fund. He mentioned the continued $15,000 sponsorship to the rodeo and $23,000 for the 4th of July fireworks show. Commissioner Knowski said he was not in favor of continuing a contribution of that level to the rodeo now that they have established themselves and perform well financially. He said the original contribution was designed to help get them off their feet. Commissioner Pierce said it is a good thing for the City to be attached to and support. Commissioner Knowski said he was not against contributing as a sponsor, but not at the amount of $15,000. President Moe suggested the City look at lowering the sponsorship from $15,000 to $10,000. The City Administrator said there is an increase in the payments to contractors section in the Shade Tree budget for more targeting of older, out of shape ash trees as part of the City’s Emerald Ash Borer prevention/preparation efforts. The City Administrator reviewed the general government service expenses coded to the ARPA section of the General Fund. 6) Streets, Cemetery (2000), Hwy Distribution (2000) The City Engineer/Public Works Director said there were very few significant changes to the Street and Highway Distribution Department. He said there is a Highway 2 mower and a pickup budgeted for with the line item at $70,000. He said they have plans to work on the roof of one of the shop buildings at the Cemetery. President Moe asked about future plans for roadway improvements out at the Cemetery. He said it would be nice over time to touch those up. The City Engineer spoke to the value of funding and continuing funding the temporary employee’s fund. The Public Ways Supervisor mentioned challenges he is having with part-time workers for mosquito spraying. He continued to provide an update and briefing on mosquito prevention operations for the Commissioners. 7) Overview The City Administrator said the general fund has a projected 195,000 deficit for 2025 given the preliminary budget. He said that taking a two-year look and remove discretionary transfers out of the General Fund, it would be at a $30,000 surplus to include have the large cash reserves well over 25% of yearly expenses. The meeting adjourned at 12:49pm. __________________________________ __________________________________ SPENCER HALVORSON JIM MOE CITY ADMINISTRATOR/AUDITOR PRESIDENT OF CITY COMMISSION