2016 Preliminary Levy

As we move towards 2016 the city has been working on its budget.  With the economy seeing some changes for good and bad it is difficult to address all the needs that exist.  That being said the city has maintained a relatively flat levy for a good number of years, finding economies where we can.  The levy in 2010 was $1,779,090.  All levies from 2011 to 2015 have been less than the levy of 2010. 

With the preliminary levy for 2016 the total levy is $1,798,063.  This levy is an increase of 2.22% or a total increase of $39,983 from that of 2015.  As the levy is preliminary it can be reduced but can’t be exceeded.  We’re hoping to find some economies to reduce the levy but it could also go the other way.  The most that could be levied is that of the preliminary levy amount.  The final levy is accomplished in December.

The finances of the city have been something that we have worked hard to manage.  Debt service has been reduced substantially.  This allowed us to work on road improvements and to address some costs that would have been accomplished with debt by using cash.  The obvious advantage to this is the cost.  The process of getting there allows for some financial planning and minor interest earnings.  Having accomplished these steps it also provides for some flexibility in how we are able to operate. 

The city council has been respectful of taxpayers in setting levies in the past and continues to do so however an increase is warranted.  Doing more with less is obtainable for a period of time but at some point the levy has to increase.  The levy for 2016 is more than the 2010 levy but five years of levies between those years saw levies less than the 2010 levy.  It has finally come to the point for a levy that exceeded 2010. 

Paving Process for Winter Trail and Scenic Overlook

The process of paving a couple of roadways is underway for construction in 2016.  The roadways that are being considered for paving are Winter Trail from Logging Lane to Shady Trail and Scenic Overlook between White Overlook and Shady Trail.  Both of these roadways are partially paved.  Starting the process early allows for bidding to occur in the winter with construction to commence as soon as possible in the spring.  It also means that the project will get completed during the summer months.  

The process of paving streets and assessing the cost takes more time than one would think.  Under Minnesota Statutes Chapter 429 the process is dictated and involves a good number of steps.  Each of them can take a month or two to complete, depending on the complexity of the step involved. 

The process starts with a petition of a majority of property owners or council direction as to what is wanted to be accomplished.  With these directions a feasibility report is requested from the engineer.  The original request may involve paving but drainage facilities also need to be considered.  The report details the scope of the project and also identifies an estimate of costs.  With that estimate the amount of proposed assessment is generated for each property that would be assessed.

Upon receiving the report, the council takes the next step which is to call a public hearing to consider the improvements. Notice is mailed and published notice is also accomplished.  The property owners are given information on a proposed assessment.  At the hearing, those who wish to speak to the issue of the improvements are given that opportunity. 

After the public hearing is held the council considers whether or not to move the process on.  The next step is to order plans and specifications for the project.  These documents outline the extent of the work and are used by contractors who bid on the project.  Before moving to bidding the council needs to approve the plans and specifications and request the advertisement of bids.  Contractors are generally given 3 to 4 weeks to prepare their bids before a public bid opening. 

With the low bid in hand, the final assessment amount is calculated and considered by the council.  An assessment hearing is then called after published and mailed notice to property owners.  At the hearing those involved are again given the opportunity to be heard on the assessments.  If the council feels comfortable with moving forward they will adopt the assessment roll. 

After this step the council orders the project construction, awards the bid, and the improvements will commence towards construction. The project of Scenic Overlook and Winter Trail, if the process is completed, should see construction as soon as road restrictions are removed in the spring of 2016.