Budget Worksession and City Council Meeting

Mayor Hakes, Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's Budget Worksession and City Council Meeting. Also in attendance were Finance Director Kim Dunsmoor and Attorney Chris Hood (via telephone). City Administrator Mike Roth was absent.

Budget Worksession

Kim Dunsmoor provided the Council with an overview of Governor Pawlenty's supplemental budget bill which was signed into law on April 1, 2010. The State of MN has an immediate $1 Billion deficit which the State Legislature plans to address with $700 Million in cuts to Health & Human Services and K-12 Education. The Legislature also anticipates $400 Million increase in Federal funding for Medicaid. If these plans do not materialize as anticipated, further cuts to local governments could be made.

The impact of the State's Budget problems have already resulted in a $73,647 cut to the City of Grand Marais' Local Government Aid (LGA) funding for 2010. This month, the City learned that an additional unallotment has been made in the amount of $33,352, this time from the Market Value Homestead Credit (MVHC). The State Legislature has not finalized the entire $1 Billion Supplemental Budget Plan, so the exact amount of the City's unallotment won't be known until June 2010, but the situation certainly isn't likely to improve.

Council, led by Dunsmoor, reviewed the 2010 planned projects, equipment needs, expenditures, and fixed assets depreciation. It became clear very quickly that Council is not in position to approve new spending without a clear understanding of what will be given up to do it.

City Council Meeting

Open Forum
No member of the Public opted to speak at the Open Forum.

Consent Agenda
The Consent Agenda was approved with no changes.

Sheriff's Fire Order
Council voted unanimously to approve Resolution Approving Fire Ban (Resolution 2010-02) as recommended by City Attorney Chris Hood and Cook County Sheriff Mark Falk. On April 22, 2010 Falk issued an Order prohibiting all campfires and recreational fires within Cook County, MN. Because Sheriff Falk's Order was more restrictive than the DNR Commissioner's and Superior National Forest Supervisor's Order, Hood recommended that the Council adopt this Resolution to be 100% consistent with the County. Hood said he believes the Sheriff has the authority to issue fire permits for businesses and organizations on a case by case basis.

North House Folks School Building Permit
Council approved a building permit for North House Folk School to move and expand their Blacksmith Shop. The proposed building complies with City zoning requirements. Council approval is required to approve this permit as a condition of the lease between NHFS and the City of Grand Marais. Greg Wright has met with the Park Board about the project. Council approved this building permit by a vote of 4 - 0. Councilor Kay Costello recused herself from this vote as she is employed by North House.

Personnel
Council unanimously approved hiring Lee Hall as a part time liquor store clerk to replace Buffy Butz who has resigned her position.

Council & Staff Reports
Jan Sivertson reported that several downtown business owners have expressed safety concerns about the old Theatre Building on Wisconsin Avenue. Council will review current Ordinances regarding dilapidated buildings and consider options for this building and others.

Sue Hakes publicly thanked Grand Marais resident and business owner Jim Shinners for coordinating the downtown clean up in celebration of the 40th Annual Earth Day. Shinners reported that over 75 people participated in the clean-up activities (see photo above). Supporting the project were the Cook County News Herald and WTIP Community Radio, US Border Patrol, Forest Service, Church Groups, Girl Scouts, Chamber of Commerce, North House Folk School, Harbor Friends, the Grand Marais Business Council and motivated individuals!

Hakes reported that Commissioner Bob Fenwick asked her to confirm with the Council that they still support including the Pool and Softball Field in the proposed Community/Rec Center. Council confirmed.

Mark Your Calendars
Wednesday, May 12 at 4:30 pm, City Council Meeting
Wednesday, May 26 at 3:30 pm, Budget Meeting
Wednesday, May 26 at 4:30 pm, City Council Meeting
Thursday, May 27 at 4:00 pm, Joint City/County/School/Tribal Council Meeting at Location TBD

County-wide Fire Restrictions

Effective: April 23, 12:01 am

Cook County Sheriff Mark Falk has issued the following order:

All CAMPFIRES and RECREATIONAL FIRES are PROHIBITED within Cook County, Minnesota.

Grand Marais Business Wins Award

Dockside Fish Market Wins Joel Labovitz Award

Congratulations to Grand Marais entrepreneurs Shele and Harley Toftey for winning the prestigious Joel Labovitz Entreprenurial Success Award during a lavish ceremony at the Duluth Events and Convention Center (DECC). Award recipients are chosen by a panel selected by the UMD Center for Economic Development. Criteria used to evaluate each nominee included--competition in the industry, personal and financial risks taken, impact to the local and regional economy, and ability of the business to adapt to change.

Laurie Spry, Dick Powell and I all had the pleasure of watching Shele accept this award before a crowd of approximately 350 that included Arrowhead Region business leaders, fellow entrepreneurs, IRRB and SBA representatives, the Duluth News Tribune, and Duluth Mayor Don Ness. The Northland News Center's News Manager Barbara Reyelts was the Master of Ceremonies.

Thank you, Shele and Harley, for all that you do for the City of Grand Marais and Cook County!