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  • Mesabi Tribune

    Virginia debates $64,000 purchase, impact on budget

    By By JIM ROMSAAS MESABI TRIBUNE,

    2024-05-16

    VIRGINIA—The purchase of a new 2024 Ford Transit van might seem like a normal acquisition for many cities.

    However, the Virginia City Council tabled action on the $64,277 expenditure after a citizen questioned the immediate need for it in light of the city’s tight budget.

    “The van is a luxury item for the Park and Rec Department,’’ Virginia homeowner Greg Lenci said during the public forum. He knows the purchase is already on the city’s bonding list but said he believes it’s a non-essential item that could be looked at in a year from now.

    Councilor Steven B. Johnson said efficiencies created with a new van are most important to him. Having a city employee use a pickup truck and have to go back and forth from a work site if a tool is forgotten is not a good use of time, he said.

    “It’s not a luxury by any means,’’ Johnson said, considering different projects are often being worked on at the same time. “Having the tools when you need them is very important’’ and more efficient.

    Lenci said he also has a problem with the optics of the purchase. “It is the money,’’ not the van itself. The city would be green lighting spending that $64,000, while asking employees to take concessions (in recent negotiations) and home owners to pay increased property taxes, he added.

    Since the City Council asked citizens to come forward with cost-saving ideas or ways to increase revenues, Lenci stated he had two saving measures.

    That includes saving around $200,000 for two city positions (wages and benefits) that are currently vacant, he estimated. One is for an accounting clerk in the finance office and the other is a mechanic.

    The accounting clerk should come from an accounting firm and be used at the finance director’s discretion, instead of hiring someone full-time, he explained.

    Lenci also said he has full confidence the current mechanics can can fix an essential item in a timely manner if the hiring isn’t done immediately. He recommended looking at the position again in a year.

    Combining the $200,000 for two employees and $64,000 for the van would save $264,000 and not layoff anyone, Lenci told the council.

    The homeowner also asked for 15 more minutes to discuss how to generate $30,000, but was told no by Mayor Larry Cuffe Jr. The mayor later invited him to Tuesday’s Committee of the Whole meeting to explain his idea. Comments during the public forum are limited to five minutes per person as per council protocol.

    The van purchase was ultimately tabled on a 6-1 vote. Johnson was the only vote against.

    In other business, the council:

    • Formally approved entering into a lease agreement with Kruchowski Inc. for the golf course clubhouse restaurant, which is now known as The Copper Nickel on the Course. The vote was contingent on inserting a damage deposit into the agreement, which was requested by Councilor Liz Motley.

    • Unanimously approved the Minnesota Association of Professional Employees contract for Jan. 1, 2024, through Dec. 31, 2026.

    The new contract calls for 1% base wage increases each year.

    In addition, upon ratification of the contract, the city will pay a 1% back pay adjustment for the time period of October 1, 2023—December 2023. The stipend allocated for 2024 will also be backdated to start October 1, 2023, and paid upon ratification of the contract.

    MAPE members will also receive a 4% cost of living stipend in 2024. The percent goes up to 5% in 2025 and 6% in 2026.

    The stipends will be based on that year’s salary and paid bi-weekly in the regular payroll cycle.

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