The Free Press, Mankato, MN

Local News

April 8, 2010

Waseca cutting costs

By Brian Ojanpa The Free Press

WASECA — For Minnesota municipalities these days, a penny saved equates to a penny withheld by the state.

In response to state-aid cuts, the city of Waseca is forgoing replacement of its community development director in favor of cost-saving subcontracting.

The city expects to save about $33,000 by using Pettipiece & Associates of Mankato to assist with planning and economic development projects.

Peter Giovannini resigned in March from his $66,000 community development director post to accept a similar position near his family’s home in Arkansas.

Waseca City Manager Crystal Prentice said the cost-saving measure partially compensates for a $212,000 reduction in Waseca’s Local Government Aid as part of a state budget bill affecting virtually all cities.

“This is a stop-gap kind of solution to us,” said Prentice, adding that the city is looking at several options, including keeping the position within the city’s realm or placing it under the auspices of the Economic Development Authority or another development arm.

Other cost-saving compensatory measures the City Council is considering are reductions in the areas of recreation, community enhancements, personnel, and in contributions to a county-wide transportation program for elderly and disabled residents.

Giovannini began his Waseca duties in late 2008. He said he accepted the newly created position in the Arkansas tourism area of Van Buren County because of the challenges and career opportunities it presents.

Meantime, Waseca city officials are working to fill the position of finance director held by Teresa Walters, who accepted a similar job in Farmington.   

  

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