The East Grand Forks council continues to look for cost savings as they work on a proposed 2024 operating budget. Right now the proposed spending plan calls for an 11% levy increase next year. Mayor Steve Gander has set a goal of lowering that figure to 5%.
City Administrator Reid Huttunen says there are still a number of variables in the budget that could push the deficit to over $500,000 dollars. Funding that out strictly out of budget reserves would reduce the city’s bank account to 44% of total expenditures. The League of Minnesota Cities recommends a minimum fund balance of 35%.
Council President Mark Olstad says he’s not comfortable at that level. “I am not sure we can get down to zero without doing something…..it’s tough.”
Council member Clarence Vetter offered a suggestion for reducing the bottom line, :If we sell the Senior center the $120,000 budgeted for the HVAV system goes away. I would propose we put the center up for sale.” Vetter suggested combining senior and library services under one umbrella.
Other council suggestions include not funding open positions and resuming the SRO program which would net $83,000 dollars from the school district.
A public hearing on the budget is set for December 5th.
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