Fire Service Savings

Last month I wrote about the Fire Service Contracts we have with Ideal Township Fire Service and also Pequot Lakes Fire Service.  Both departments provide service to the city on a contract basis.  The contract with Ideal Fire Department was renewed for 2013 but notice was given to us that increases in costs would be coming.  These increases would result in a doubling of the fire service contract in a couple of years. 

The city requested a review of the fire service contract situation from Pequot Lakes Fire Department.  Currently the city houses a fire pumper truck at the Breezy Point Public Safety Building.  This truck is dispatched on fire calls from the Pequot Lakes Fire Department.  We currently have 5-7 individuals who respond to this station.  Considering this, the option to have Pequot Lakes Fire Department provide fire service to the entire city was factored.  Assuming 2013 figures for the formula the cost to the city would be an increase of about $2600.  The fire service contract with Ideal Township is currently $7900.  The city could see a significant savings with the change in service.  

The other issue of concern was that of response time.  Distances were calculated and with response out of the Breezy Point station the majority of the area served is closer than the Ideal Fire Station; however there are some areas that would be a mile distant.  With the location and type of roadways it was felt that these areas would likely see the same or better response time.  With that consideration it was felt response time was not an issue.  

Ideal Township Fire Department has served the city well for a great number of years and we are grateful for their past and current service.  Breezy Point made an investment in a public safety building which has the ability to house a fire station.  This station is served by a small portion of the Pequot Lakes Fire Department and a fire pumper truck.  Recognizing that value the city is able to work with Pequot Lakes Fire Department to provide service to residents of the city while also saving costs of service.  Starting with the 2014 fire service contract the city will be completely served by the Pequot Lakes Fire Department. 

Undesignated Reserves

The words “Fund Transfers” don’t generally conjure up enthusiasm or excitement as many would consider this to be the opposite.  A fund transfer is needed to shore up an account that is near or in a deficit.  Contrary to that thought, fund transfers can be a good thing, believe it or not!

Each year after the audit the city looks at its fund balances.  The city manages its finances with a few funds.  If you are not familiar with fund accounting it is similar to the bank keeping an account for each individual.  The city has an account for the various functions it accomplishes.  So the city has a general fund for most activities.  There is a cemetery fund to manage the activities in cemetery operations.  A debt service fund collects payments and taxes for bond payments.  An EDA account for Economic Development activity (very limited funds here) is available.  We have a Sewer Operating and Capital Improvement Fund.  We also established a Revolving Capital Fund.   This last fund is used to manage cash flow for expenditures over time to minimize budgetary swings and to address long term needs and their expenses. 

This past year the city saw some improvement in collection of taxes with a number of delinquent and past due accounts being paid.  We assume that a number of properties changed hands and as such taxes are required to be current for transfer in ownership to occur. That and a concerted effort to manage our finances under budget resulted in a good deal of undesignated reserves.  

The level of undesignated reserves is important in that the majority of the funds received by the city are received in the second half of the year.  This means at year end the city needs to manage finances for about 6 months before getting property taxes for the current year.  The city established a fund balance policy to manage the amount of undesignated reserves.  This policy provides that the city maintain 45% of the current year’s budget in undesignated reserves and after the audit is completed funds are considered for transfer.  In most years, with prudent fiscal management, that means funds can be transferred to the “Future Improvement” designation in the Revolving Capital Fund.  This means the funds are no longer part of general cash flow requirements of the city and are designated for a future use. 

The sewer operating fund doesn’t have a policy concerning undesignated funds as all funds are designated for sewer in some form.  In establishing a Sewer Capital Fund the city wanted to create a designation for improvements to be made to the sewer system, keeping them separate from operating funds.  With no specific policy regarding the operating funds, funds have been transferred periodically to the capital fund as wanted.  This year consideration was made to reduce the operating funds to 45% of the budget as well.  This level of cash flow will need to be monitored as sewer funds are received quarterly. 

At the May City Council meeting a fund transfer was recommended and approved to move funds to the Future Improvement Fund in the amount of $232,301.  Funds were also recommended to move from the sewer operating fund to the Sewer Capital Improvement Fund in the amount of $834,961.  Making these changes moves funds from operating cash flow accounts to designated accounts to be used by the city when the time comes for improvements, thereby limiting the amount of budgetary swings or need for debt service.  

Channel Park Fishing Boardwalk

The Channel Park Fishing Boardwalk is a project the Breezy Point Park and Recreation Committee has been working on.   The channel is connected to Pelican Lake and is adjacent to Breezy Point Drive.  The bridge on Breezy Point Drive crosses it.  Each year many individuals fish this channel area, particularly in the spring for crappies and other pan fish.  Recognizing this activity with a structure that can provide access for all individuals was a goal.   The project is conceived as a fishing pier type of structure parallel to the channel that would allow access.  The structure is intended to be placed on shore and have handicap accessibility from Breezy Point Drive.  

It is anticipated the project’s first phase will be constructed in 2015.  This phase of the project will amount to a smaller boardwalk section adjacent to the channel and a ramp, much like a dock section, to the roadway.  The boardwalk will be slightly elevated over the ordinary high water mark.  Phase two of the project anticipates an additional lane of asphalt for street side parking and more boardwalks.  Phase three anticipates more boardwalks and will be considered if a need exists for additional structures.  Overall if all sections planned are constructed the boardwalk adjacent to the channel is anticipated to be 500 feet long.  

Although some tax dollars will be used for this project the Park and Recreation Committee would like to accommodate as much of the costs as possible with non-tax funding.  Raising money with grants, raffles and donations will be sought.  The fund raising process is just getting started.  A raffle is being coordinated with fishing related prizes.  A booth will be established for many of the community events that occur in our area.  Opportunities to work with business partners will also be strived for in participation towards the goal of establishment and expansion of the project.  

The goal may seem obvious but it is simple and direct.  Provide opportunities for all to enjoy nature, do some fishing, bird watching, and accomplish some quality time with family and friends.  The benefit is available to anyone who wishes to use it making Breezy Point a more desirable community.  

Taking the next step, the Park and Recreation Committee requested from council funds to develop an artist’s rendering of the boardwalk as it would look upon completion. They also asked the council to approve of the fund raising activities they anticipate.  The council approved these requests and also wished them well on these activities and the completion of the project.

Growlers and WIne

Do you know what a Brew Pub is?  How about a Growler?  When it comes to Liquor Licenses these options now exist in Breezy Point.  A Brew Pub is an eating establishment that seats at least 25 people at one time that brews malt liquor to be served on the premise.  A Growler is a specific bottle designed to allow for the sale of the brew pubs malt liquor to be taken off site.  The bottle holds 750 ml of beverage and gets sealed with information about its origin and the fact that it is malt liquor.  

The city recently reviewed its liquor section of the code of ordinances.  The goal from the start was to establish Wine Licenses as we had three inquiries last year for these licenses.  With review of the statutes it was felt the chapter dealing with alcohol licensing needed to be brought current.  With changes to the statutes concerning the licenses and options now available the city added Wine Licensing, Temporary Off-sale Wine Licensing, Brew Pub licensing, and Growler Off-sale licenses to the code.  

A number of other changes were made providing for consistency of statutes to our ordinances.  Things like social dice gambling is prohibited in our code but allowed under statute.  This was changed to allow this activity.  With the Clean Indoor Air Act (no indoor smoking) the use of outside spaces for consumption of beverages was provided for.  Previously consumption could only be done inside a building.  We clarified this in the code making statute and code compatible. We also made a change from beer to 3.2 percent Malt Beverages as the statues does not recognize beer anymore and classifies this beverage as either 3.2 percent Malt Liquor or Intoxicating Malt Liquor.  Other clarifications and corrections were made.  

The city council adopted these changes at their May meeting.  Subject to publication requirement the city can now issue Wine Licenses for those restaurants that seat 25 patrons and serve them food.  If they hold a 3.2% malt liquor license they also can serve intoxicating malt liquor.  We’ll also be able to host a brew pub in Breezy Point so the opportunity is there for new venues within the city.  So if anyone is interested in these possibilities please contact city hall. 

Primetime

Some of you may know that the restaurant known as Primetime has recently sold.  The new owners assumed the facility May 1st.  The name will not change but management and operations will.  We wish them the best and welcome any new ideas and approaches they may bring to the mix of this establishment.  Those involved have experience in other establishments working primarily in the Crosslake community.

The issue of liquor licenses was before the city council at the April meeting and conditional approval was given subject to a positive background check and the appropriate fees and insurances provided.  They will hold and On-sale, Sunday On-sale, and Off-sale license.  They will also be looking at operations extending late with closing at 2:00 am.

I understand they will continue to operate the sliding hill during the winter and may make some changes to the building, perhaps building a deck facing the hill.  They also have some interest in holding special events as they get more settled into their operations.  Aside from that, their plans are up to them and we’ll see what they add to the community.