Montevideo council OKs contracts to include pay hike for staff

MONTEVIDEO -- The City Council has approved wage and salary increases in the coming year for most Montevideo city employees.

At the regular meeting Monday, council members approved a contract with union employees represented by the American Federation of State, County and Municipal Employees that provides a 1 percent increase on July 1, 2011, and 1 percent increases on Jan. 1, 2012, and July 1, 2012.

Council members separately approved a 1 percent increase effective July 1, 2011, for non-union employees and department heads, according to City Manager Steve Jones.

The city is continuing to negotiate a contract for law enforcement employees represented by the Minnesota Law Enforcement Association.

Council members also held a discussion and review of the 2011 budget, which they are expected to approve at their next meeting.

It calls for general fund expenditures of $3,724,400 in 2001 and revenues of $3,725,615.

The levy for 2011 will total $1,726,000, a 5 percent increase over the 2010 levy of $1,643,740. The 2011 total includes $552,500 for debt service; $852,000 for general fund activities; $85,100 for the library; and $9,400 for the economic development authority.

In other business, council members held a closed session to discuss an offer to sell the property housing the city-owned Fiesta City Liquors to the city. Council members are negotiating a new rental agreement, but the property owner has also offered to sell the property.

The city currently leases the property for $2,434.77 a month and pays 25 percent of the utilities.

The city has received a new lease proposal asking for $2,800 a month and 29.8 percent of utilities.

The owner also offered to sell the property to the city and set the initial asking price at $500,000, according to correspondence to the city.

The city has identified an estimated $150,000 in improvements desired to the parking lot, roof and heating and air conditioning systems.