Thursday, December 13, 2012

Darner Lane

It doesn’t happen often but periodically there is a need to change the name of a roadway. This used to happen quite a bit when the 911 emergency systems was being implemented. To be assured that an emergency response was going to the right place similar names in the county needed to be sorted so there was no confusion about where help was needed. At times this meant a name change to a roadway.


Our code provides for street names changes by petition. A petition of 75% of the abutting property owners must sign the petition to have the council consider the change in the name. To make the name change, an ordinance would be adopted changing the street name from the current one to the new name.

Wartman Road is the road under consideration. This roadway was the original Northwoods Lane and the majority of the original roadway was vacated when a new right-of-way for Northwoods was established. What remained after the vacation was a road of approximately 200 feet. The property owners at the time were the Wartman’s so it made sense to go with that name.

We now have new owners of the property and they felt a different name was appropriate. They requested the name Darner Lane. No that is not their last name, but rather it is a type of dragonfly. With the up north feel and prevalence of dragonflies it is a rather nice name for a street. It’s interesting Breezy Point has all sorts of theme named roadways but bugs are not one of them.

In any event the roadway was renamed to Darner Lane and with that change comes a new sign and changes to the map.

Wednesday, December 5, 2012

Surplus Property

Do you have property you no longer use or need? I think we all have a surplus problem in some form and we go about getting rid of it periodically by donation to a charity or a garage sale or other such means. Cities are no different in that we accumulate goods that no longer meet our needs. We also receive lost property or property due to forfeiture.


As a public body it is difficult to donate to a charity as we have a responsibility to the tax payer. Disposal of property is somewhat dictated by state law requiring the city to seek revenue out of these situations. State law requires that a city establish ordinances giving direction for disposal and sale.

Recently our code was reviewed and found to be very dated. Both the threshold and the process were difficult to deal with. Items over a $100 and under $500 had to be disposed of by auction. Items over $500 were to be disposed of by sealed bids. The process needed to be more flexible. The dollar amounts also needed to be more flexible.

A change in the code was proposed to provide for a negotiated sale of up to $1000 in proposed value. Over that threshold goods could be sold by auction in either a live or online format or by sealed bids.

Disposing of excess property is now streamlined and hopefully we’ll be able to lighten the baggage of surplus and improve the bottom line in the process.

Monday, November 26, 2012

Timber Harvest

The city has a good deal of acreage used for wastewater treatment facilities. The obvious use is the immediate plant and ponds. The ponds provide treatment of wastewater and also storage of the effluent that comes from the plant operations. Storage is required as the city doesn’t have a discharge point into a waterway, which is more typical of a wastewater plant. The city discharges its effluent with spray irrigation into the surrounding forest of lands we own. This can only be done in the summer months. Having adequate acreage to discharge is important as only so much can be applied to land under the permit granted by the Minnesota Pollution Control Agency.


In considering the future, the city had acquired property to provide for additional irrigation fields. Currently the city has approximately 90 acres of unused irrigation lands available for future use. This land has been idle forest land with tree growth of Birch, Aspen, Maple and Oak. Upon review of the forest trees, the Aspen and Birch are in decline and it was felt harvesting of the area makes some sense. It would be good for the forest to rejuvenate and for the city in reaping some revenues.

Crow Wing County was contacted and they were willing to assist the city with harvest operations. There services come at a price but include an inventory, notice, bid specifications and contract administration. An advertisement for bids was recently held and a bid was received. Lately the market for timber is depressed with a couple of paper mills closing and construction being down. The bid provided for summer access to the timber which is a more desirable situation as many timber plots are only assessable in the winter due to wetlands.

We were pleased with the bid from Sawyer Timber Company of Backus, MN. The bid was awarded to them and harvesting could occur at any time but likely will commence next spring as weather conditions warrant. The area will generally be clear cut but a buffer will remain along the east and north boundaries. It is expected this activity will be completed in 2013.



Monday, November 19, 2012

Election 2012

In 2012 we had a presidential election and as is generally the case we see a large turnout. The turnout was perhaps, more than expected. Breezy Point is now the third largest city in the county and we believe were growing. We started the day with 1441 registered voters. On Election Day we had 226 new registrations for voters.


Votes cast at the polls were 1240. Absentee votes cast numbered 180 making the total votes cast in Breezy Point 1420. In 2010, not a presidential election, we had 907 at the polls and 90 absentee voters for a total of 997. This represents about a 43% increase in voters.

When you think about our estimated pollution of 2388 and all the residents who can’t vote we either had a very high percent of voters turn out for the election or more population than we think, or both. I would tend to think we had both.

I want to express my sincere thank you to the election judges who worked that day. It is always a long day starting, at 5:00 am for some and going to several hours after the polls close. Not all judges’ work all day but a few do. They did an exceptional job. They were professional in their actions and voters moved through the polls with limited delay. I was very pleased with the way in which it worked out.

I can only assume we’ll see more voters in the years to follow as Breezy Point continues to grow in year round residents.

City Council Salaries

I don’t know if any of you have considered what City Council members do and what they get paid to do it. There is the obvious, attend a monthly meeting and the occasional special one to deal with governmental decisions. Some of these fall into the routine and others definitely fall into the “policy” area. The policy area are those questions that can’t be addressed by staff or anyone person. Sometimes these are those where there is no right or wrong answer. It comes down to what is the best decision for the majority of the people. Just saying that brings to mind that all decisions have those that approve and oppose the outcome.


Typically the salaries that are paid to council members don’t amount to much more than enough to cover expenses incurred in their actions as a council member. Many look at the salary as a token amount in appreciation for the work they do. But even in the realm of a low paying job the compensation for council members can amount to pennies an hour.

In Breezy Point the City Council has been paid $150 per month and mayor at $200 per month since 1995. It was recently discussed that the council is the lowest paid council in the area and perhaps an increase in pay was warranted. Councils set there own salaries but can only increase salary for an upcoming council. So a decision made today will not take effect until after the next election with a new council coming on board.

The city council discussed the possibility of an increase in salary of a $100 per month per member. Doing this would still continue Breezy Point City Council as the lowest paid council in the area. This increase amounted to $6000 overall for the year. The budget could be adjusted to accommodate the increase and a draft ordinance was written.

The council discussed the possibility and felt that an increase is probably warranted but it really should be brought up in budget discussions early on. Accomplishing this change at this point in the budget cycle isn’t appropriate and making a change at a later date would be in the best interest of the city. The council voted down the ordinance providing for a change in their salary. The next option for a salary change would be after the 2014 elections to take effect in 2015.

Monday, October 29, 2012

Brine a Win-Win

Last year the city started using brine on roadways to assist with winter maintenance activities. The brine was used instead of granular salt in some situations. This was used as a pretreatment prior to a storm event in intersections and other key areas. It was also used at other times to increase melt replacing granular salt that has been used in the past.


Using a brine mixture has a number of advantages but also is one tool in the tool box of winter road maintenance. Using it to pretreat roadways is helpful in preventing a bond of ice forming on the road itself. Using it after an event is helpful in that the same benefit derived from granular salt is obtained at a fraction of the expense and with better results. The application is more consistent. This practice is also more environmentally friendly as the use is kept to a minimum keeping excess salt from surrounding properties.

Salt or brine isn’t recommended for all roadway situations. Salt looses it effectiveness when it gets very cold. At that point the use of sand is recommended. Roadway temperatures are checked to manage the use of brine when conditions are right. Having brine at the right concentration is also important. Too weak of solution will freeze and is a waste of resources in application.

With the experience gained this past year using a system that was built by the public works crew we have been working at fine tuning our efforts. This system was problematic in that the mixing of the salt and water was slow, salt additions were done by hand being somewhat unsafe in practice, and our product was not adequately filtered to remove fine particles that affected application. Commercial systems are designed for a more mechanized and safer approach to brine making and were considered for purchase in 2013.

The city worked with a vendor in getting prices available for the 2013 budget. This vendor understood that the city was interested in acquisition of a commercial brine unit. He had a demonstration unit available that could be had at a significant discount. After discussing this with them they would make the unit available to us prior to the end of the year with payment occurring in 2013. Essentially the city would recognize a 20% discount in the equipment and get a 90 day no cost loan.

The City Council at the October meeting considered the request and agreed the purchase was in the best interest of the city in a number of ways. The obvious is the saving of money with the purchase itself. The city also benefits from a better and safer system of brine production. The residents benefit from a continued effort to keep our roadways safer in the winter months as well as keeping maintenance costs in check. It’s a win-win situation for all.

Tuesday, October 16, 2012

Auditing firm

I spoke of doing Requests for Proposals in seeking auditing firms in a previous blog. The city is obligated to conduct an audit on an annual basis. The city received 3 proposals from governmental accounting firms. The auditing firm the city selected was Schlenner Wenner. They have offices in St. Cloud, Little Falls, Albany, Maple Lake and Monticello. The office the city will be working with is in St. Cloud.

In doing the Request for Proposals we solicited proposals which included a price for the annual audit for a three year period. They will conduct the audit for 2012, 2013, and 2014. This firm gave us a price that was $5000 per year less than the current audit quote.

You may ask how they can do this. They have found some economy in the way they conduct audits. They provide a detailed list of those documents they require prior to the audit. These are things that we typically provide but having them available prior to the audit gives us time to deal with them and minimizes their time during the physical audit. They also download materials directly from our accounting system. Having the information readily available only makes their job easier. Our books are not complicated or extensive. We have minimal number of transactions and limited personnel. They still spend time at city hall going though our data but the operations are far more efficient.

You also may ask what quality they may provide. Are they doing what’s required? The state requires that all governmental audits meet required standards. The firm has certified public accountants. They maintain a positive peer review. Their references were checked. The people we spoke with were very pleased with the auditing experience and outcome. They indicated they were easy to work with, have a large client base, and do a good job.

We look forward to working with them.



Compensation Plan

People work at jobs for many reasons. Some of the reasons include the rewards of the job itself. Some involve the reward of helping others. Some are rewarded in the personal pride of doing a job well. All of us work to receive a paycheck. That paycheck provides for our subsistence but also our quality of life.


Recently the city was involved in the negotiations with a labor union. Union goals, among other things, are to help maintain and grow the quality of life for their members. The quality of life that remains of a primary focus is that of compensation. A labor contract provides for a set amount of wages for the type of job being accomplished and the growth in rates that can be expected over time. In simple language how much do I make this year and what can I expect for a raise next year? A contract may only last 2-3 years but expectations in wage rate growth are defined so employees know what to expect. A contract was agreed to and those in the union have a clear expectation as to what will happen concerning wage rates.

Other employees of the city have the same concerns as those of union members. They want some assurance of how they will move through the salary range. They understand that you don’t start at the top of the range but want to know that if they work hard and do a great job, they will receive some rewards in an increase in salary.

The city has been working on a pay plan to do just that. The plan provides for an approach to periodic increases in salary that are given employees that do quality work. Increases are not automatic as positive performance reviews are required. Increases are not guaranteed at times of extreme fiscal stress. The policy does however give an expectation that good employees have the ability to move through the salary range.

Recently the city council recognized the need to give non-union employees some assurance in how they would be compensated over a period of time. They adopted a pay plan for these employees starting in 2013. The plan is somewhat in keeping with the pay arrangements made for the union employees, trying to maintain some parity among all employees of the city. With parity in mind, fairness to all employees is important in managing an organization and its personnel.







Wednesday, October 3, 2012

2007 Crown Victoria

The Breezy Point Police Department generally replaces a vehicle on an annual basis. This year the city will be selling on sealed bids a 2007 Crown Victoria. The vehicle has slightly over 102,000 miles on it.


Sealed bids will be accepted until October 30th at 3:00 pm. A bid form can be found on the city website at www.cityofbreezypointmn.us under the section entitled Surplus Property. Forms can also be received at City Hall or the Public Safety Building. The vehicle can be viewed at the Public Safety Building at 8361 Co. Rd. 11.

Bids may be delivered or mailed to:

Sealed Bid

Breezy Point City Hall

8319 County Road 11

Breezy Point, MN 56472.

Memorial Day 2013

The All Veterans Memorial at the Pelican Woods Cemetery will be taking one more step towards completion. The immediate project has been completed with the construction of the site, installation of the sculpture and benches. These improvements were paid for using donated dollars.

The next phase of construction will include a bronze plaque naming the memorial “All Veterans Memorial” and installing a flag pole to fly the United States Flag. The Cemetery Commission wants to ensure these are installed yet this fall to provide for a dedication ceremony to be held on Memorial Day in 2013.

The City Council approved this phase of construction again using donated funds for the improvements. The final details for these improvements have been worked out budget of $1600 designated for the construction. We will have a 16 by 20 inch plaque and a 20 foot flag pole. The Cemetery Commission, being frugal by nature, hopes to limit the expense for these improvements but now has a budget to work with. A rock for the plaque has been moved in. The plaque has been ordered and the flag pole has arrived. Installation of these will be accomplished as soon as possible.

The commission would like to install two other flag poles for the memorial in the future. These would include a POW-MIA flag and also a State of Minnesota flag at the site. They are seeking donations for these. If this is something you have an interest in please contact city hall.



Thursday, September 13, 2012

Preliminary Levy

Each year the city develops a budget for the following year. The process starts along about June and continues through the summer. The budget process involves a look at current finances, service levels and needs of the city. There is also consideration given to the revenue side of things. We all have to work within our means.

The council has concerns with the level of taxation as the city has experienced a reduction in the overall market value of the city. Property values have sided lower with changes in the market. Tax appeals have occurred reducing values and some property formally part of the city is no longer within the city. The State of Minnesota has also changed tax policy in reducing overall values. There have been lots of factors that come into play in reducing overall values of property.

Keeping this in mind the council had established goals for the 2013 budget and levy. They wanted to maintain or possibly reduce the overall levy. They also wanted to maintain current service levels and have departments live with the current expenditure limits that exist for 2012. With that in mind each department looked at priorities for spending, working their budgets to meet these needs.

A balanced draft budget was accomplished working around the same levy request as that for the 2012 budget year. The preliminary levy saw increases in the debt service levy with some reductions in the general fund levy. In the end, the preliminary levy certified for 2013 is the same levy as that requested for 2012. We continue to work on the budget and hope to find additional economies to further reduce the final levy. The final levy will be accomplished at the December meeting with an overview to our budget.

Monday, September 10, 2012

Walkways at City Hall

The city hall will soon sport new sidewalks.

If you have been to city hall you may have noticed the sidewalks have seen some deterioration. They were installed when the building was built in 1995. Exposed aggregate was used presumably to retard slipping in winter months. This may have been the thing to do at the time but with application of salt over the years the sidewalks have really taken a beating. The main walkway into the building has a large crack and hole creating a tripping hazard. They need to be replaced.

It was also felt that an additional sidewalk for handicap accessibility could be created on the east side of the building adjacent to the ramp to the council chambers. Recently we added door openers for accessibility on both entrances to the building, thus further improving access.

Quotes were received for this replacement. Quotes ranged from $1,200 to $1,625. The low quote was awarded and sidewalk replacements should be accomplished in the next week or so. Along with that installation we’ll take the time to do some minor repairs and staining of the wood boardwalks and railings. During the construction there will be some shifting of accesses as the main entryway will be closed. With any luck the disruption will only last a few days.

In the end, the sidewalks will be installed with a smooth broomed finish. A sealer will be applied to the concrete to aid in its durability. The concrete strength will be improved to stand up to salt applications that winter brings. And besides looking better, we’ll also have improved access with safer conditions.

Friday, September 7, 2012

Charter Improvements

Perhaps you have seen some construction near the ball fields at City Park. The area in question is just off North Drive on the west end of the ball field. There has been survey stakes at this location for about a month. What’s this all about?

Charter Cable has been operating their cable system from a small metal box at the intersection of Co. Rd. 11 and North Drive. You may have seen a Charter Cable truck there from time to time. This metal box has become too small to house all the equipment that serves the city with Cable TV. It is also subject to problems such as high temperatures. Charter had requested to build a larger box at this location but doing that would create safety issues with sight lines at the intersection. In working with them it was discussed that what they really wanted was a building that could house their equipment. Then it could be air conditioned to maintain proper operations and better quality with all the room they needed.

Locating at the present location was not an option. Trying to locate immediately south of the public works building was also not an option. Proper setbacks couldn’t be met. In continuing to look at property the city owns a location was found that would meet their needs. They wanted a 40 by 40 foot footprint for a concrete slab to house a 20 by 20 foot building. The slab would be enclosed by a chain link fence. The building would house the equipment needed for cable TV. The building would be outfitted with air conditioning and a backup generator to deal with power outages. As luck would have it the site was “shoehorned” into a location between the paved trail and a sanitary sewer easement. This location had little use except for green space.

The city agreed to lease this property to Charter for the purpose of improving their ability to serve the community. The process of construction has stated. We now have a small structure in this location. And with a good deal of work there will be new equipment serving Breezy Point with Cable TV.

Thursday, August 30, 2012

StormReady

The City of Breezy Point has recently been designated a “StormReady” city. This is a program that was established by the National Weather Service. Breezy Point is one of only 10 cities in the state with this designation. There are only 761 communities recognized nationwide.

To accomplish this goal an application must be made that shows we have the capability to deal with weather events in an efficient and expedient manner. The National Weather Service states:

“StormReady communities are better prepared to save lives from the onslaught of severe weather through advanced planning, education, and awareness. No community is storm proof, but StormReady can help communities save lives.”

StormReady has established a program where a community can measure just how prepared you are in the case of an emergency. It gives us some tools to look at concerning what has been accomplished and what areas need to be worked on. It helps to develop a structure or plan to deal with emergencies with expanded alert and notification capabilities, and a better understanding of threat areas and response/recovery responsibilities.

With the designation of StormReady the city will be installing signs at entrances to our community indicating our designation. We’re also allowed to use the logo as we see the need for its use.

Accomplishing this goal was an initiative of Police Officer Jason Rieber. Jason is also one of our Paramedics and has a great concern for public safety and welfare. Our thanks go out to him for this effort and with his help we have become a safer city.

Thursday, August 23, 2012

New Park Shelter

Through a great deal of insight and forethought the City of Breezy Point had worked with many interested citizens to develop the city park. This park gets tremendous use and is busy most days with all sorts of activities. The park includes a ball field, playground area, basketball and volleyball courts. It also has a large picnic shelter that is used by many groups and is routinely busy with activity.

The Park and Recreation Committee has considered the park use and felt an additional park shelter was warranted and planned for its construction in 2012. Funds were set aside for this use. Construction will occur in the next few weeks with it being built on the north side of city hall. The structure will be a smaller shelter than the existing one being 16 by 24 feet.

The city received quotes from several contractors to do the work. The contractors were generous with their time giving the city reduced or free labor. They recognized the public good in having additional services available for the community. Public Works has also participated in the construction with ground preparation. Preliminary excavation, tree removal and fill were needed to prepare the site. The total price for the shelter came in under budget with the quotes received. The budget was $11,500 and the final cost is $9,609.98.

Many thanks go out to the contractors who will be doing the work. Trana Masonry of Breezy Point will be doing the concrete work. Gibbons Construction of Pequot Lakes will be doing the framing and wood work. Fiks-Con of Crosslake will be doing the shingling.

With the addition of a new shelter additional users will be able to enjoy the park.

Wednesday, August 15, 2012

Labor Day Weekend Entertainment

The Northern Lakes Youth Hockey Association has been working on a fund raising event for the Labor Day weekend. They will be hosting an outside concert with the headliner of Hairball. In proposing the event they worked with the city to address concerns of managing a large event. The event will be held at the Ice Arena parking lot on September 1st. The gates open at 5:00 pm. Music will end at 10:00 pm.

The association has requested and received a Temporary Liquor License allowing them to sell beer. The aspect of checking identifications and dealing with beer serving was a major concern. Servers will be trained to deal with their obligations under Minnesota Statutes. Measures will be taken to prevent underage sales and drinking.

Security will be provided both on and off site through various means. A police officer will be on site. Some off duty police officers as well as private security will be assisting at the event. Parking attendants will direct parking on site and overflow parking has been planned for in the event it is needed. Crow Wing County Sheriff’s office will also assist as the need dictates.

Portable toilets and garbage service has been arranged to meet the needs of the event. Cleanup of the grounds will be required to be completed by 10 AM on the following morning.

The concern is for both a successful event and one that addresses public safety. Having an event such as this will be a nice addition to the activities surrounding Labor Day. We hope all goes well and those that attend have a great time. We also hope the event for Northern Lakes Youth Hockey Association is all they want it to be.

Thursday, August 9, 2012

Storage by the Lake

Crow Wing County has spent a good deal of time reworking their zoning ordinance. Many of the changes reflect a more common sense approach. One of these changes provided for a lake shore accessory building. This is a small accessory building such as a shed that is used for storage of water related items such as life vests, sand toys, fishing rods, floaty toys or lawn chairs. This provision allows up to 120 square foot building no closer to 20 feet of the ordinary high water line as a permitted structure.

The city was approached about a similar provision to our code as it was available for the majority of the lake front properties, but not available to Breezy Point residents. The Planning Commission felt the idea of having it available to residents brings us in parity to others who reside in the townships. It also makes it easier for lakeshore property owners to maintain an orderly shoreline by allowing storage of those items commonly used in this area.

The Planning Commission held a public hearing for this change and after consideration of the county ordinance made a couple of minor changes. The ordinance forbids this accessory structure to be used as a kennel and also wanted the setback to be 10 feet from the side property line. The other provisions included in the county ordinance were included. They recommended approval to the city council.

The City Council reviewed the change and also determined it to be in the best interest of the community to allow this type of use, adopting the change. A property owner can now have an accessory structure within 20 feet of the lakeshore. This structure can not exceed 120 square feet and only requires a zoning permit from the city to install.

Wednesday, August 8, 2012

Subdivisions

The city adopted a comprehensive plan almost two years ago and one of the goals of the plan was to provide for public improvements at the expense of those that benefited from them rather than the city footing the bill through property taxes. Doing this requires property owners to pay for improvements through assessments or if a developer establishes a subdivision the improvements become their responsibility.

When the city provides for a subdivision the process is defined by the subdivision ordinance. The ordinance the city had been using was adequate in a number of ways but also inadequate in others. More particularly in those areas where improvements were required to get a surety they would be installed on a timely basis. In addition the city has many lots that are unable to be built on due to size, served by adequate roadways and meeting other standards of zoning.

Having issues with the past has surfaced with a change in philosophy towards the subdivision of land. A subdivision ordinance that was more in keeping with the times and the responsibility of the developer was needed. Accomplishing that goal was the job of the Planning Commission in working through a new subdivision ordinance.

The commission spent about one and a half years going through the ordinance, a section at a time. This process involved policy questions and final outcomes being considered. Standards were established. Timelines were reconsidered. The commission also changed the review process to provide that the final decision for preliminary plats became a council decision. They also established the parameters of a development agreement, giving those who want to develop a better understanding of what is expected.

After this work the ordinance was fine tuned with grammar and formatting. It was then recommended to council after calling a public hearing to address any concerns of the public.

The council approved and adopted this ordinance at the July 2nd meeting. Any new subdivisions within the City of Breezy Point will need to comply with the revised subdivision ordinance requirements for development as well as have the developer responsible under a strengthen development agreement.

Monday, July 16, 2012

Request for Proposals - Auditing

Under Minnesota Statues the city is obligated to do an annual audit of its books, making sure all accounting has been done appropriately with balances that balance. With this last audit cycle we completed the three year arrangement we had with the current auditor.

Looking forward, a Request for Proposal was developed and reviewed by the finance committee. The Request for Proposal is to receive proposals from accounting firms that do governmental accounting. The proposal gives them a better understanding of us while allowing them the opportunity to explaain what they can offer us. The proposal requests we receive quotes for the next three year cycle of audits.

The City of Breezy Point has a current population of about 2400. When the city population exceeds 2500, the form of accounting changes from a cash basis to modified accrual. Making that transition requires a somewhat higher level of accounting which includes additional standards that need to be met. The reporting also gives us a slightly better picture of the financial position of the city. The proposal requests that we find a way to transition slowly to this new standard. That being said the transition can occur as quickly as we want it to.

The council approved the seeking of proposals which will be received in mid August with proposals going to the City Council at the September meeting.

Monday, July 9, 2012

Salary Adjustments

Salary adjustments are made on an occasional basis in all organizations. They can also be done at any time of the year. There are three basic types of salary adjustments. They include adjustments for promotion, adjustments needed for internal equity and a cost of living adjustment. A city is generally prohibited from giving bonuses.

The cost of living adjustment is one that is accomplished across the board, given to all employees, at the same rate. It generally addresses the concept that things are more expensive now then in the past. There is no one standard that is used to set the rate of adjustment but rather some form of an inflation factor is considered.

A promotional raise is just that. The raise is give to an individual that takes on more responsibility by being promoted into a new or expanded position. Promotional raises can be of any amount based on job requirements.

The last form of salary adjustment is used to deal with other issues. For instance it can be used to address long term percentage increases where an inequity exists with lower paid over higher paid employees. Over time the range becomes skewed making an adjustment desirable for lower paid positions. This is a form of internal equity.

In Minnesota we have a law regarding pay equity where female employees must be paid on the same scale as male employees for the same job worth. Pay equity adjustments are made periodically to address these concerns. The State of Minnesota requires reporting for Pay Equity every three years. With that reporting, if a position is out of compliance the employer must make an adjustment to bring the wage scale into compliance.

Recently the City Council made adjustments to wage rates for four employees. Two were considered promotions as greater responsibility was given to them. Two other salary adjustments were considered pay equity adjustments.

The council has been concerned about personnel costs and has been very frugal in that regard. There is some thought that internal equity among employees needs to be further considered. The ability to raise revenues and maintain services has to be considered while addressing these issues. Compensation needs to be fair and in parity with others within the organization. The challenge is finding that balance.

Thursday, June 28, 2012

Fund Balance

The fiscal health of the City of Breezy Point has been a concern for the city council. All aspects of accounting have been scrutinized to address concerns. A good number of factors have played into these concerns.

We have seen issues with detachment. This has resulted in the loss of property and tax payers. We have seen a tax appeal that not only reduced taxable value of the community but also reduced the amount of taxes to be collected. This was further compounded with the reduction in taxes being retroactive for the year past. General taxable value of the community is in decline with the real-estate market reductions. Tax appeals and value reductions continue to plague the city.

With these factors of concern the city did what it could to reduce spending. We also did what we could to improve revenues. In the end between spending cuts and improved revenues the city was able to increase the unrestricted fund balance by a good margin.

The city also has adopted a policy concurring with Governmental Accounting Standards Board rule number 54. The policy the city adopted, among other things, provided for the maximum unrestricted fund balance as a percentage of the current operating budget. Comparing the fund balance against this policy has allowed the city to move some funds from the unrestricted fund balance to a reserve account for future improvements.

Upon finalizing the audit the city determined that funds could be transferred as discussed. Funds have been transferred and approved by the city at their June meeting. These funds improve the fiscal health of the city while also maintaining an adequate unrestricted fund balance to meet cash flow requirements. The transfer amount of $200,065 remains in the general fund but becomes assigned for future use and remains an asset of the city.

Tuesday, June 5, 2012

Rezoning

Some of you may know that the DNR has owned property south of the curve of Co. Ro. 11 where it goes from north to east near Schafer Lake. The property consisted of two parcels of approximately 39 acres and 25 acres. The city had wanted to acquire these properties when the DNR considered them surplus but the state no longer will donate properties to other governmental units. There intention was to sell the property.

Several years past they has set a minimum value and tried to auction off the parcels. The value was apparently too high for a minimum bid so the property did not sell. After a few more years hoping to sell the property, the DNR reestablished a value that was considerably lower than previously established. The auction date came and went with no one bidding on the property. After that date the minimum established price becomes the purchase price for anyone interested in buying the property. This spring the 25 acre parcel sold.

The property was zoned Public as it was DNR property but to use the property by a buyer requires the rezoning to another designation. The intended use was residential so after a public hearing the Planning Commission had recommended the property be rezoned to Wooded Residential.

After the property owner and the DNR closed on the property, the property could be rezoned as recommended. The City Council at their May meeting rezoned the property. There are no immediate plans for construction of a residence on this parcel but we will see some changes when the property owners plans become current.

Thursday, May 24, 2012

Life Saver Award

The City of Breezy Point Police Department has run a Paramedic Program for a good number of years. This service is offered to the surrounding area. It is staffed by two police officers that are also paramedics. The department has been very fortunate to also link with North Memorial to provide the required oversight to provide for the program.

Generally speaking if a call for help occurs our paramedic will go to the site and hopefully be there prior to the ambulance arrival. The patient is stabilized and life supporting efforts are accomplished. Some of these life supporting efforts would not be possible were it not for equipment that has been purchased through donations from many governmental units, grants and other donors. Of particular importance have been a 12 lead heart monitor and recently an automatic CPR machine.

Fairly recently Paramedic Officer Jason Rieber, Sergeant Brian Sandell and Chief Kevin Merschman responded to the report of difficulty breathing on January 3, 2012. A third degree heart block was detected utilizing a 12 lead heart monitor. An IV was established and the patient was sedated. The monitor was then utilized as a pacemaker which allowed the patient to survive transport to a facility capable of treating the life threatening heart condition.

As a result of this action the city awarded these officers Life Saver Awards at the May 7, 2012 meeting. Mayor Weaver presented the award and congratulated them for their actions. The city has a lot to be proud of when it comes the Paramedic program. The city is also extremely grateful for the assistance we have received in acquiring the tools to make a difference in emergency responses.

Thursday, May 17, 2012

2011 Audit

Every year the city has an auditor conduct an Audit. The auditor looks at the financial transactions of the city and accounts for revenues and expenditures for the various funds. There are inquiries into payroll, vendor transactions, bond payments, and receipts. This takes a bit of time for the city to gather up the required data as well as the auditor to put it all together into a single report.

The preparation for the audit is something we think about on an ongoing basis. Standard transactions are one thing but non-standard ones require additional detail. Having this detail readily available in the “Audit File” makes the process go a bit quicker. Having an audit file and anticipating needs also saves time as we don’t have to dig for the information. Being totally prepared isn’t possible as part of the audit process is to “test” documentation and files but having a system that allows for that retrieval is also important.

The report was given to the council at the May 2012 meeting. The audit and related information is available at the city web site. At that meeting a summary was made concerning our books. The city is in good financial condition.

On the revenue side our variance from budget saw the largest difference in the property tax area. The budget and levy had been completed for 2011 with no adjustment made for the Breezy Point Resort tax appeal. All property tax adjustments made, as the result of the appeal, happened in 2011, for both 2010 and 2011. Smaller deviations were noted in charges for services and fines, both of which didn’t meet budget projections.

On the disbursement side expenditures were kept in check with positive variances in most line items. Overall expenditures were $148,661 under budget. This improves unreserved fund balance by this amount. This is after we have transferred funds to Revolving Capital. The Revolving Capital Fund was improved by $148,962. The majority of these transfers provide for future expenditures. They also help manage ups and downs in levy requirements allowing for a planed approach to capital expenditures and improvements.

The audit was accepted by the council and they were pleased with the outcome. I was pleased with the effort made by employees to manage expenditures. We all pitched in to address the shortfall that was pending. We also benefited from some other unexpected revenues so in the end we had a great finish.

Monday, May 14, 2012

Comprehensive Fund Balance Policy

Governmental finances are slightly different then business finances. With business the focus is usually dominated by the profit and loss statement. With governmental accounting we deal more with revenues and expenses. We also deal with fund balances. There are a number of different types of funds and with these they need to have special designations.

There is an overseer of accounting standards for governmental accounting. They are known as GASB or the Governmental Accounting Standards Board. This group periodically establishes rules to provide for more definition in how governmental funds are managed from an accounting standpoint.

The most recent rule that was implemented is known as GSAB 54. This rule provides that all city funds be designated as to their assigned use. The use designations of each fund fall into the following categories:
Non-spendable
Restricted
Unrestricted – both committed and assigned
Unassigned

Using these designations on each fund explains, to a point, the funds intended purpose and how it can or should be used. As an example of a restricted fund is debt service. Debt service funds can only be used to retire debt.

The rule also made a recommendation that a policy be adopted called a Comprehensive Fund Balance Policy. The policy addresses these areas:
Minimum Fund Balance
Order of Resource use
Stabilization Arrangements
Committing Funds
Assigning Fund Balances

With this in mind the City Council at the April meeting adopted the Comprehensive Fund Balance Policy with defines funds as described and meets the requirement of GSAB 54 in addressing the recommended policy issues.

If anyone has an interest in this policy it can be found in the meeting packet information from the April 2012 meeting.

Thursday, May 3, 2012

Conflict of Interests

At the urging of Mayor Weaver the Breezy Point City Council considered the adoption of a Conflict of Interest Policy and Statement of Values and Conduct. The Conflict of Interest Policy also included some references to other ethical issues.

State Law is rather specific in what constitutes a Conflict of Interest. State Law also requires ethical behavior of elected officials on other issues. One issue is that of the open meeting law. Another issue is that of gifts to elected officials. Conflicts of interest come in a variety of circumstances that are well defined but at times somewhat difficult to grasp as the law is more far reaching than one may think. The policy incorporates situations where the laws are applied helping to better understand what constitutes a conflict and what doesn’t. It also describes conflict situations that may be exempted from law or where notice must be given.

The Statement of Values and Conduct is a policy which defines civility and responsibilities. It asks that all participants work together in a constructive and appropriate manner. Its goal is good government that expresses openness and understanding. It holds us all accountable for actions in the process and outcomes.

All commission and council members are required to uphold the Conflict of Interest Policy requiring them to declare a conflict when it occurs. They will be required to sign off on a receiving a copy of the policy and acknowledging the need to declare a conflict. The statement of Values and Conduct is for all commissions, council and staff members to uphold. Working together in an appropriate manner will only lead to better outcomes.

These documents were adopted at the April 2nd meeting. If you are interested in reviewing them go to the council meeting packet for April, 2012.

Thursday, April 19, 2012

Fire Contract

Fire service is provided in Breezy Point primarily through the Pequot Lakes Fire Department. We also get some service from Ideal Township. Pequot Lakes Fire Department services a number of townships as well as the city. Their fire service is set up as a fire district providing a shared cost to all that participate in the district.

The contracts for fire service are renewed on an annual basis and with Pequot Lakes the contract amount is determined by three factors. One of these factors include the annual budget of the Fire Department. The value of the buildings within the area served is another factor. The third is a use factor, which is a percentage of use over a ten year period.

The past few years with this contract we have seen large increases in use and value but with this last contract we saw a reduction in our contract price based on two of the factors. The budget for the fire department stayed the same for 2011 to 2012 so no changes there. The valuation portion of the formula went from $226,147, 200 to $218,790.800. Keep in mind this represents only building values. The use factor saw the largest change going from 32% to 27%.

When all of these are factored our cost for the past contract period was $79,427.81. The new contract period has our cost at $68,686.17. This represents a savings of $10,741.64. This is a rather significant savings, about 15%, to the tax payer in Breezy Point. When we look at ways to save money this is great. We expected to see some savings this year but this beats expectations.

I hope the trend continues with low usage as this really helped. Keep in mind this is a ten year average so one year does not make or break us in terms of costs but we have seen a tremendous benefit from that factor.

Stay safe and do what you can to prevent fires!

Tuesday, April 10, 2012

We're ready for Co. Rd. 11

As many of you know Crow Wing County is preparing to undertake some improvements along County Road 11 between Pequot Lakes and Breezy Point. The proposed improvements started with a mill and overlay of the driving lanes of the highway. The county, wanting to be proactive, also looked at the future with a concern for safety. A task force was assembled of local participants to look at the needs within this corridor.

With this review and concern for safety they are proposing to expand the project beyond just driving lanes. Right and left turn lanes will be established at Eagle View School and also at Ranchette Drive in Breezy Point. Some bypass and right turn lanes may be established. Improvements will also be made in Pequot Lakes.

Not completely explained in the past was some improvements of lesser significance but still important. These include drainage and storm sewer, some curb and gutter, ADA pedestrian ramps and some limited sidewalks near the intersection of CSAH 11 and CSAH 4. Guardrails will be replaced in the area near the Commander.

There is a cost share to the city for these improvements. The cost share amount has been estimated at $30,084. Actual costs will be determined following bidding and construction. The county has agreed to allow payment of this amount over a two year period. Doing this helps with cash flow but also allows the county to receive some payment before closing out the project, adjustments can then be made in the final payment.

Any time a highway project is accomplished in the city it requires municipal consent. This consent was given at the April 2nd meeting. Final plans will be bid in the near future and once that is accomplished a schedule will be developed. It is not anticipated that this project will take a great deal of time but some disruption will occur this summer. The end product will be worth the disruption.

Thursday, March 22, 2012

Whats AIS?

Many of you know that there is a problem with Aquatic Invasive Species. The threats have been from plant life to fish to Zebra Mussels. The Zebra Mussels seem to bring the highest threat in most people eyes. The local concern is the introduction of these into Pelican Lake.

Zebra Mussels have been found locally in Lake Ossawinnamakee. More recently they have been found in Gull Lake. Mille Lacs has had them for a number of years. The same holds true for the Mississippi River. One Zebra Mussel was found in Pelican Lake this past fall. There is the thought that if they are present, more than one would be found. They are very prolific. Time will tell if they are there but regardless, keeping them at bay is the goal.

A concern was raised with the Breezy Point Public Landing. There was some thought that by closing the landing we limit the possibilities of introduction. The City and the State of Minnesota (DNR) established this landing in 1985. The agreement requires that the landing remain open and free to the public. Closure or limiting hours is really not an option. The landing could be closed between midnight and 4 AM as the only possibility. A number of other landings are available to users of the lake so limiting one access doesn’t really solve the problem in that regard.

Efforts have been made to ward off the threat. The Pelican Lake Association has been working with the DNR on a volunteer basis to inspect boats as they use the landing. The city police officers have been trained in Aquatic Invasive Species so they can enforce laws applicable to this issue. The City Public Works personnel have also been trained in this issue as they do maintenance at the landing and beach. They too can address the issue. The city will install a sign to let boaters know that laws associated with Aquatic Invasive Species will be enforced by the Breezy Point Police, as a reminder.

This year the DNR will again be working with local volunteers to monitor the access. They had also asked for a Right of Entry Authorization. In addressing this with the DNR they intend on having decontamination service available at the boat landing to further address the threat. It is everyone’s hope that Zebra Mussels have not been introduced.

Boaters and the public in general need to recognize that the responsibility for introduction really lies with the individual. There are far too many public and private landings in the states waters to guard against the introduction.

Be a good steward of our public water resources, doing what you can to ward off the introduction of Aquatic Invasive Species. Maintaining the lake as invasive free ultimately lies with your actions.

Thursday, March 15, 2012

To Buy or Not

In Crow Wing County there is a rather high incidence of property reverting to the county under tax forfeit laws. If taxes aren’t paid for a period of time state law provides that the owner, in essence, has abandoned his ownership. The county then takes jurisdiction and ownership of the property.

Once this occurs the county designates the property as “Conservation” meaning it is conserved for a period of time. The jurisdiction where the property is located is given the opportunity to review the properties prior to a change in status to “Non-Conservation” which means they can then sell the property. The city, with their review, can maintain the property as Conservation. The governing body would need to say they are interested in the property. The county has the option to deed the property to the local jurisdiction if there is a public purpose at no cost. This is done with a deed restriction limiting the use of the property. The county also has the option to sell the property outright.

For number of years Crow Wing County had allowed cities to acquire properties for public purposes at no cost. This became a problem with the amount of property that had to be accounted for and the various designated public purposes. Trying to manage these with enforcement became overwhelming. Cities started with good intentions and generally fulfilled those obligations but there were some of these properties that, over time, had shifted in use. Doing so negates the agreement for the property. When this happens the property can revert back to the county for disposition. The resources needed to manage enforcement became a problem.

Crow Wing County determined that, regardless of buyer, the property would be sold at a fair market price. The city could reserve the property for a period of time but would have to eventually purchase it. Funds for purchase of tax forfeited property go to the county. A portion of the sale price is paid to the local jurisdiction.

The properties the county is changing to Non-Conservation are reviewed by the city on an annual basis. One property that was felt desirable this year was considered for drainage. The City Council considered the purchase and determined the need wasn’t strong enough to justify the expense. So for this go around, the city won’t be acquiring any tax forfeited properties and hope the land returns to the tax roles for development.

Tuesday, March 6, 2012

Wildwood Access Closing?

I have written in the past about the process and progress that was being made with the improvements proposed for Co. Rd. 11 between Pequot Lakes and Breezy Point. Crow Wing County had undertaken a study of this corridor to develop a greater understanding of the needs that exist from a traffic safety standpoint. They also wanted to take a futuristic look at what might happen when the 371 Bypass is built in Pequot Lakes. This is anticipated for 2018 and when built, traffic patterns will change. Anticipating how things might change helps to anticipate how best to manage the future.

Through this study process a Task Force was established to help the county better understand local needs and perspectives. The Task Force was composed of local public officials. The Task Force worked with a consultant Traffic Engineer on a plan that would enhance traffic movements while also providing for safety improvements. With these things in mind those areas of concern were identified and possible solutions were posed.

One of these situations was the possibility of closing the access to Wildwood Lane from Co. Road 11. This would require the diversion of traffic down Ski Chalet to Ranchette Drive to access Co. Rd. 11 at that location. As the process occurred two Public Open Houses were held to let the public know what was occurring and what was being considered. The second Open House was held on February 23rd and residents who held property which gained access off of Wildwood Lane were specifically invited to attend. At the meeting the issues were explained and comments were heard from the residents. The comments received showed little support for the closing of this access point. The primary concerns included extended driving access times and distances, additional emergency response times and the need to provide other improvements to support the closure.

At the March 5th City Council meeting the City Council conserved the question of closure of Wildwood Lane to Co. Rd. 11 and rejected the idea. They also made suggestions for improvements for the county to consider. One such improvement, a bypass lane, will be considered by the county for implementation however the project is driven by the budget available and if the additional work can be accommodated it will be done. The entire project includes, in addition to a mill and overlay, improvements at Ranchette and at Eagle View Elementary School. It is hoped there are sufficient funds to do the additional work but we will not know until the bids are received.

Wednesday, February 22, 2012

Refinancing

In looking at finances for the city we always look at expenditures and working within the budget. We also look at revenues outside of taxes. Both of these to minimize the impact of the tax levy. And then there is managing obligations you have already committed to. By this I mean debt service.

So what is debt service? For most people this is the monthly mortgage or car payment. In the realm of governments it’s the payment on debt incurred on bonds. Cities incur debt to accomplish public improvements. Typically these are road, utility and building projects. Almost without exception all cities incur debt to better their communities.

Incurring debt means there is a repayment, otherwise known as debt service. The repayment on bonds is accomplished over the life of the bond which can range up to thirty years but typically most bonds are 10 to 20 years. With a mortgage you can generally pay off the debt at any time. With a bond you have a “call”. A call is the opportunity to pay off the bond at a point in the future. You call the bonds so you can pay them off. When a bond is structured the call is usually set about half way through the life of the bond. After that point you can pay off the bond. Prior to that, you are bound to the terms of the bond (loan) at the interest rates and payment schedule that was set.

With the recent historic low interest rates in the market, the opportunity to refinance debt has been on everyone’s minds. With bonds, if you have reached the call date it is a relatively easy process to do a refunding (refinancing) of the bonds. What happens however if you haven’t met your call date? You still have the opportunity to do something but the process gets a bit more complicated.

What is done is called a Cross-Over Refunding, sometimes called an advanced refunding. What is done is we sell bonds ahead of the call date to refinance the bond after the call date but in the process you also assume enough debt to cover the payments on the bond you’re refinancing. An escrow fund is established to manage that period of time while you have both bonds outstanding. In doing so you have a short term impact of higher debt but at the call date one bond is paid and the new bond takes over. The point of all this is to reduce your overall long term costs with lower interest rates, and smaller debt service requirements.

Recently the City of Breezy Point accomplished a Cross-Over Refunding taking two bonds and rolling them into one, taking the opportunity to save money in debt service. Before a bond can be refinanced it needs to meet certain criteria in terms of savings. The preliminary analysis showed the criteria were met. At the outset the savings were estimated, over the life of the bonds, to be $255,000. At the time of the sale the savings increased to $290,226.53.

Accomplishing the task was well worth it. The savings won’t be materialized until after the call date but at that point the city is in a position to see reductions in annual debt service requirements.

Friday, February 10, 2012

Thanks to Wiebolt and Narveson

This summer Crow Wing County will be undertaking improvements to Co. Rd. 11 between Pequot Lakes and Breezy Point. The primary focus of the improvements was to be a mill and overlay of the two driving lanes. They also however decided this was a good opportunity to look at short term and long term needs for this corridor. A Task Force was established that included representatives from Breezy Point, Pequot Lakes, Pequot Lakes School District, Ideal and Jenkins Townships.

The Task Force has looked at the areas along this strength of highway and identified those areas that are problematic from a traffic flow and safety concern. A traffic engineer from Bolton and Menk has worked with the Task Force to develop concepts that could and will improve the corridor. Improvements that are considered to be built include a new intersection layout at Ranchette with left and right turn lanes, turning lanes at the school entrance/Edgewater Farm Drive, a bypass lane at the ice arena and the potential for other improvements as funding provides.

There are a number of issues that have been encountered along the way. Some of these are yet to be resolved and a few have seen resolution. One of these was the right-of-way on Edgewater Farm Drive. When the school was established the entrance at the school was off set from that of Edgewater Farm Drive. By this I mean the roadways in the intersection did not align directly across from each other. With a configuration such as this there are numerous points of conflict with traffic flow. At the time of establishment it was not felt that this would be a problem by some. As development occurred however, more and more traffic was generated causing a good deal of problems with this non-alignment.

Recognizing the problem the city worked with the land owners, Pelican Development of Breezy Point, LLC to gain an easement and the roadway was moved to provide for the proper alignment. This easement was temporary in nature and was due to expire in September of 2013. With the proposed roadway improvements the county was anticipating, a more permanent solution was needed.

Pelican Development of Breezy Point, LLC has given the city the necessary easement to continue with the alignment at the Eagle View Elementary School. Neal Narveson and Mike Wiebolt are the owners of this property. These local businessmen saw the need in the community and fulfilled that need. On behalf of the City of Breezy Point I want to thank them for their community service in fulfilling that need.

Tuesday, January 10, 2012

Pelican Woods Cemetery

As the city continues to make improvements to the cemetery the needs there continue to come to the forefront. We have a very dedicated bunch of local volunteer citizens who spend countless hours working in the cemetery on a regular basis. I call them the “Friends of the Cemetery”. Their numbers include not only Cemetery Commission members but also those who enjoy seeing the beauty of the grounds and the comradely in their weekly pursuits. The chair of the commission requested they be recognized for their dedication at a recent council meeting.

Others have noted the hard work and efforts that are being made in the cemetery. Last year a donation was made for improvements which were utilized to create a Veterans memorial. The first phase is hoped to be completed early next year. The City of Breezy Point was recently blessed with a second donation of $10,000 from the Fletcher Foundation for improvements in the Cemetery.

The donation was noted for landscaping which continues to be an issue for the cemetery. With the underground burying of the power lines along Ski Chalet the glide path for airplanes has changed. That being said there are trees in the cemetery that pose risks for pilots in air traffic. With the removal of trees, replacements will be required in some areas.

If you haven’t had a chance to drive through the Pelican Woods Cemetery in the summer when flowers are in bloom you are missing something. The efforts of the “Friends” to maintain the grounds provides for a beautiful place. Another great time to visit is the annual Butterfly event. This event has been moved up to be July 21 this coming summer. There were many factors in the change of dates but one of them included greater flower blooms at that time of the year. Make it a point to visit Pelican Woods Cemetery.