The Taconite Capital of the World

City of Mountain Iron, Minnesota

Meeting Minutes for November 26, 2002



NOVEMBER 26, 2002

Mayor Brunfelt called the meeting to order with the following members present: Joe Prebeg, Jr., Stephen Skogman, Ed Roskoski, and Mayor Mitchell Brunfelt. Absent member included: Joe Matanich. Also present were: Craig J. Wainio, City Administrator; Don Kleinschmidt, Director of Public Works; Larry Nanti, Recreation Director; Karen Luoma, Librarian; Joe Stewart Sergeant; Tom Cvar, Fire Chief; Greg Chad, Training Officer; Gary Skalko, Mayor-Elect; Allen Nelson, Councilor-Elect; and Dale Irish, Councilor-Elect.

The purpose of the meeting was to discuss the 2003 budget, levy and capital spending projects.

The preliminary levy had been adopted with a 14.4% increase. The 2003 budget and levy must be set by the second City Council meeting in December.

The 2003 budget, as presented, shows an overall .4% increase and included in the 2003 budget is a projected shortfall of local government aid of 20%.

Discussion took place on the possible levy options from a 0% increase to a 14.4% increase. It was the consensus that any reduction in the levy would come from the capital outlay project list.

The Council discussed the water revenue bonds and how to fund them. The Council discussed paying for the water revenue bonds with a percentage from the General Fund and a percentage from the Water Fund. The justification for the entire City paying for a portion of the bonds was that the water customers do not need the storage tanks for water service. The water tanks are primarily used for fire protection. After further discussion, it was recommended that 70% of the bond payments would be funded through the General Fund and 30% would be funded through the Water Fund.

The Capital Improvement Plan was discussed and plans were made to award projects on the basis of a zero percent increase in the 2003 levy.

The following were awarded capital outlay funding for 2003:

Sheriff�s Department Squad Car $25,000.00

Park and Recreation Dept. West II Pavilion $35,000.00 

Fire Department Radios $20,000.00

Street Department Upgrades $50,000.00

Administration/Library Tech. Upgrades $15,000.00

Undesignated $15,000.00

Sergeant Stewart advised the Council that the contract for the Sheriff�s Department had not been settled yet.

The levy would be discussed at the December 2, 2002, City Council meeting.

At 7:42 p.m., the meeting was adjourned.

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