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Minnetonka axes 7 city workers, plans to share services
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In the face of a $1.2 million budget shortfall projected for 2010, Minnetonka laid off seven employees on Tuesday from its community development, public works, recreation and fire departments, effective May 31. City Manager John Gunyou said the city, which currently employs 222 full-time workers, is repositioning its staff to achieve greater efficiency and avoid disruption of city services to residents.
The layoffs include three inspectors, and when the economy rebounds the city will work with neighboring communities to share inspectors, Gunyou said. Minnetonka estimates that it will bring in $250,000 less in building permit revenue next year.
The layoffs also included some in management positions, Gunyou said.
The city also expects to receive $400,000 less in investment income next year. And it expects to lose $500,000 in Market Value Homestead Credit tax relief from the state at the same time it has been mandated by the state to increase pension contributions by $575,000 next year, Gunyou said.
"We will never rely on the state for anything again," he said. "If we get anything, that would be great, but we are not going to count on it.''
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