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City Council reviews draft of 2002 budget

By Jolene Farley
The Hills City Council meeting went late Tuesday night as the council reviewed a rough draft of the proposed budget for 2002.

Council members worked their way through each accounting area trying to estimate what expenses would total for the next accounting year.

Wage and benefit increases for city employee, Wayne Ward, caused lengthy discussion. Insurance premiums have drastically increased because of age and health concerns for people covered under the plan. Ward received no wage increase last year because of increased insurance costs.

Insurance premiums for Ward will increase from the current rate of $683 per month to $944 on Oct. 1, with another increase to $1,074 per month in January.

Ward came armed with wage and benefit information for his position from cities of comparable size.
"I do think he should get some kind of a wage increase," said Councilman Dana Dahlquist.

All parties involved settled for a 5-percent wage increase to $12.24 per hour and a 70-percent city, 30-percent employee co-pay on insurance premiums.

This led to discussion on how to compensate other city employees.

"Do you want to give out wage increases equal to health insurance?" asked Leenderts, arguing to keep wages and benefits separate. "Health insurance is a benefit."

"We are not the reason Wayne is using the insurance," said Mayor George Langford. "How are we going to compensate the rest of the employees, the council, the garbage haulers?"

It was decided City Clerk Connie Wiertzema would received a 5.3-percent wage increase to $14 per hour. Wiertzema is the only other city employee eligible for health insurance coverage.

All other city employees received a 4-percent increase across the board.

Moving on, the council budgeted $2,000 for expenses associated with moving the post office into the city office building. Because of post office budget constraints, the decision to move into the city office is on hold until the end of the post office's fiscal year in September.

The council allocated $5,000 toward a new pickup for the street department. This amount was added to $5,000 allocated last year.

Seal coating streets in Hills is expected to cost $25,000 to $30,000. The council anticipates replacing the city's dump truck at $10,000 to $15,000.

Discussion about the Community Hall or American Legion building was lengthy. The list of repairs needed on the building is extensive.

Councilman Arlen Leenderts suggested looking into new construction instead of spending so much to repair an old building. Leenderts suggested a survey be sent out to determine the public's opinion.

The council decided to budget $10,000 for new wiring in the building, because of safety concerns.

After discussion, a motion passed to increase water rates by 50 cents per 1,000 gallons.

"It would be something to see the water fund in the black," said Mayor George Langford.

Although the sewer fund showed a profit of $1,210 last year, the council voted to increase sewer rates by $1 per hookup. The large-user rate will increase by $10.

In other business...
Extending North Water Avenue was tabled until legal descriptions are finished for the area. "If we do the street, are we going to have it in the right place for the legal description?" asked Langford. "I would hate to start grading the road, then have to move it."

The council voted to donate $150 toward Old Fashioned Saturday Night.

The date for fall junk pickup was set for Sept. 22.

The council reviewed a bid from Wally's Nursery for landscape work by the fire hall. Council members want to reduce the $1,500 bid to the $500 to $700 range. Wally's Nursery will be asked for a new bid.

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