Friday, April 15, 2011

Every Little Bit Helps!

Managing in times of fiscal stress can be a challenge. Revenues are down. Some of our expenses have gone up considerably such as fuel. Competition is fierce which provides some relief. Reconsidering most things becomes the norm. More needs become wants as our viewpoints change.

Every chance we get we’re looking at cutting costs. We search for the best prices in purchasing products. We look towards more efficient ways of doing things. Service levels are scrutinized. Overtime is avoided. We have been selling surplus property on eBay. Contracts are being renegotiated. Spending occurs only where the need exists.

This really is paying off. The lighting at City Hall has been changed to a more efficient standard. Cell phones have been changed to reduce our costs. Programmable thermostats have been installed in city hall. In the recent remodeling we reused cabinets. No new furnishings were bought. A new score board will appear in city park with a change in vending machines at no cost.

Another recent success is that of a new copier. You may think that getting a new copier would cost more but this wasn’t the case. With the price of copy machines going down and competition improving we were able to reduce costs for a copier at the Public Safety Building last year. This saved a good deal of money. We attempted to address the copier at city hall at that time, but given the lease terms we were unable to do it then.

This year we took another look and found that we could buy out the lease and replace the machine we have with a smaller and more inexpensive machine that meets our needs at a significantly lower cost. Without getting into the specifics of brands and detailed expenses our cost was reduced from approximately $715 per month, which included maintenance and some supplies. We reduced our costs to approximately $450 per month with similar arrangements. The annual savings amounts to about $3,400.

Some may say in the grand scheme of things perhaps that isn’t significant. I’d say it is. Nickels and dimes add up. Shopping around for the best deal is important. Working competition has its advantages and recognizing our needs can save dollars.

Every little bit helps.

Thursday, April 7, 2011

Cooperation

Sometimes the big picture gets lost in the rhetoric we hear in the media pertaining to government. We hear all about the things that don’t go right. There is this pervasive attitude that government is wasteful or inefficient. I believe these are unfair in most instances however we can always find examples that fit our way of thinking.

I do however have to point out that government is looking for more and more ways to work together to solve problems or issues to save costs and improve efficiency in government. Recently Region Five Development Commission sponsored meetings entitled “City Conversations”. The purpose of the meetings was to gather local governmental representatives together to talk about what areas of need exist and how we can help each other accomplish them while saving funds, sharing expertise, equipment or manpower.

The workshop setting to gather local governments may be new but the concept of cooperation isn’t. The City of Breezy Point has been cooperating with Pequot Lakes and Ideal Township to provide fire service at a lower cost than having our own department. The city has been providing police service to Pelican Township. Recently we explored the possibility of a shared planner. There are mutual aid agreements in place for fire and police protection. We have an informal agreement concerning backup for sewer operations.

The revenue side has been tough on all of us. Local Government Aid was taken from the city two years ago. Other cities are potentially loosing it with this budget cycle. There are “unfunded mandates” that push expenses on us. We have recently had a marked decrease in market value and a tax appeal that has reduced taxable market value of property. I think most governments are on the lookout for ways to save money, time, and share expertise to deal with the changing life as we know it.

A recent success involves the need for a licensed septic system inspector. With a retirement and change in staff we lost the persons who did this for the city. Filling this void is necessary and important as we need to address the concerns with new and replacement systems. Crow Wing County suggested they have individuals who are properly licensed and agreed to help us with this at no cost to the city.

Being frugal and prudent is expected. Finding ways to accomplish our goals in that fashion is also expected. Cooperation is one means towards getting there.