City pay plan, budget get first round approval

McCOOK, Nebraska -- The first required reading of the 2011-12 city employee pay plan was approved by the McCook City Council, Monday evening at council chambers. The pay plan features a two percent cost of living increase for all city employees, in addition to merit and longevity increases. Police and fire personnel are negotiated separately through their respective unions.

Councilman Aaron Kircher casually commented that if the cost of living increase was brought down to match the national consumer price index cost of living increase of 1.4 percent, which city staff has historically referenced as its gauge for increases in that category, the roughly $5,000 in savings could be utilized to fund the additional budgeted dollars the McCook Humane Society has recently requested.

The comment brought support for the proposed pay plan from council members Mike Gonzales, Jerry Calvin and Mayor Dennis Berry. "I would rather use it to reward our employees and keep them happy," said Gonzales.

"I am aware it is a cost of living plus, but I am sure we are not in the top of pay for paying folks," added Berry.

Kircher then said he was only looking at it and subsequently voted to approve the pay plan unanimously with the other council members, upon its first of three required readings for final approval.

After hosting a public hearing which yielded no public comments, council members approved setting the final tax request at $990,000. The amount is up $1,135 from the prior years amount, but as City Clerk Lea Ann Doak explained, the property tax rate of .319044 has not changed since 2002 but the amount requested fluctuates with annual assessed valuations.

Council also approved the request from city staff to increase the restricted funds limit, which includes property tax and local option sales tax, an additional one percent. The increased amount is in addition to the base increase of 2.5 percent already allowed for unused restricted funds authority, and would be a necessary first step for future increases in those funds.

Other funds included in the restricted funds limit are payments in lieu of property tax, local option sales tax, motor vehicle tax, certain state aid, surplus fees and unspent prior years budgeted capital improvements.

According to background information provided to councilors from city staff, a vote for the increase has no effect on tax dollars, however it would allow for future growth in restricted funds. "If it would become necessary to increase our levy to the maximum of $.45 to maintain services, we may not be able to do so if we did not have any unused restricted funds authority available," explained city staff in the report.

Berry referred to the increase as merely a housekeeping item, prior to councilors voting to unanimously approve the increase.

No comments or discussion was heard pertaining to the public hearing hosted by councilors with the purpose of hearing opposition, criticism, suggestions or obervations of taxpayers relating to the proposed 2011-12 annual city budget.

Following the hearing council members unanimously approved the budget for its first of three required readings, with one amendment. The approved amendment came from Mayor Dennis Berry, who motioned to take $120,755 from uncommitted sales tax funds and pay off the water bond for land.

Councilman Mike Gonzales gave a brief update of the municipal facilities project. He primarily focused on meetings that have taken place, or are scheduled with the architect and construction manager, but did confirm that the project was now looking at a completion date closer to the end of 2012. The project schedule released in January indicated October 2012 was the targeted substantial completion date.

Council members went into closed session to discuss negotiations with the police department's labor union, as well as to develop the city manager applicant evaluation process and direct staff accordingly.

Other items on the consent and regular agenda;

-A resolution was approved authorizes the Federal Funds Purchase Program Agreement between the Nebraska Department of Roads and the City of McCook. The agreement focuses on eliminating federal aid requirements for completing road, bridge and trail projects which utilize federal dollars and is anticipated to add felixibility to the types of projects which qualify, as well as decrease the time required to complete those projects.

-Mayor Berry signed a proclamation designating the month of August, 2011, as "Random Acts of Kindness Month." The proclamation was initiated at the request of the McCook Community Foundation Fund and will help kickoff their grant ceremony, Sept. 23, at Norris Park.

- St. Patrick Catholic Church was approved to close East Fourth Street from F Street to G Street, as well as East G Street from East Third Street to East Fourth Street. The closure will be from 10 a.m. to 6 p.m., Sept. 18, 2011, for their annual fall festival.

-Sehnert's Bakery and Bieroc Cafe was approved for a special liquor license for a Sept. 9, 2011, event at the Fox Theater, as well as a Sept. 10, 2011, event at the Keystone Business Center.

- A resolution was approved that designates City Clerk Lea Ann Doak and Public Works Director Kyle Potthoff as trustees of the City of McCook Employee Retirement Plan, replacing Kim McConville and Kurt Fritsch.