By Lori Carlson, Editor 

Eight months after agreeing to $200,000 in budget reductions to make up for a lack of anticipated building-permit revenues, Prior Lake city leaders agreed Monday to another $491,000 in budget trimming for the current year.

The most recent budget offset includes $185,000 from the city's reserve contingency, which drains that fund balance completely.

The city has been hurt by a shortfall in new residential single-family building permits, said Finance Director Ralph Teschner. Though the city anticipated about 200 permits for 2008, so far it's seen only about 50 to 75 new construction units. Teschner estimated a $450,000 to $500,000 shortfall in building-related permit charges.

Other savings approved Monday will come from a $10,000 reduction in seasonal parks personnel and a $20,000 cutback in lifeguards at local beaches. The city's finance director, Ralph Teschner, said recreation department staff members believe the city "can manage our time better and consolidate positions and still not create any significant risk at our beaches."

Another $25,000 in savings would come from the anticipated Allina takeover of responses to minor medical calls. Currently, the fire department responds to those calls, but with the opening of the second fire station next month, the city expects to have Allina serve as the primary responder on minor medical calls, with the firefighters as backup.

The city will save an additional $66,000 in the current year's budget by delaying the start of technology upgrades, including Laserfische large format drawings, computer replacements and the city's connection to Scott County's new fiber optic network.

The street department also has plans to cut $20,000 from its street overlay budget.

The reductions also include two measures already approved by the City Council as part of the city's reorganization: a $45,000 savings by opting not to replace a building facility manager, and $120,000 in reductions among the engineering, inspections and maintenance staffs.

Teschner said he's concerned about drying up the city's contingency fund with a full eight months left in 2008, but with few other options, he and council members agreed it's necessary.

"We will have to discipline ourselves over the next eight months," said Councilman Ken Hedberg.

Lori Carlson can be reached at (952) 345-6378 or editor@plamerican.com.