Negotiations continued Monday between Albert Lea city officials and the Teamsters union, which represents officers in the Albert Lea Police Department.

Albert Lea City Manager Victoria Simonsen said the two entities had “a very good discussion,” but they are at a point where they will need to have a mediator come in and work on outstanding issues.

One outstanding issue is health care costs, while another is the issue of how to handle layoffs within the department.

She and other city staff at the discussions presented other ideas, but the Teamsters union did not offer any suggestions, she said.

The department faces layoffs after the department found out it did not receive a federal or state grant that would have allowed all of its officers to continue working over the next two years. This comes on top of a more than $1 million cut to local government aid to the city in 2009 and 2010.

While many budget cuts have been proposed in other departments — including the elimination of some part-time positions — thus far no full-time positions have had to be cut.

Simonsen said she hopes city officials and Teamsters will be able to meet with the mediator in the next few weeks, as the Albert Lea City Council has its next budget workshop in early November.

The city will next start discussions with the American Federation of State, County and Municipal Employees union, she noted.