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.

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.