Improvements to the City Public Access

Last fall the city applied for a state grant that would pay for the public landing on North Drive to be paved.  The grant required some preliminary engineering in drawing up a plan and pricing the improvements.  The grant would cover all costs associated with construction but does not cover any of the engineering costs.  The estimated costs of construction are $106,000.  The grant was submitted and we were told the state would make a determination about who would be funded in April.  We were awarded the grant so the process of getting the landing paved has begun.

In developing the preliminary plans we had to find a way to deal with drainage.  The public access is on North Drive which is a hill that slopes down to Pelican Lake.  Once the roadway is paved drainage will continue at a higher velocity and that drainage needs to be contained without going directly into the lake.  Crow Wing County has tax forfeited property abutting North Drive with enough area to provide a drainage basin.  In working with them we were able to obtain an easement on this property to create this drainage basin. 

The project requires a public bidding process which means plans and specifications are required for bidding and construction.  Plans and specifications need to be reviewed and approved by the state to be assured it meets their requirements. The project needs Crow Wing County approval as they will be the fiscal agent for the grant.  Finally the City Council needs to approve the plans and specifications before bids can be received. 

The City Council ordered plans and specifications for the project at the May City Council meeting.  The cost for these efforts has been estimated at $27,200.  Funds have been earmarked for these costs.  Plans and specifications will be reviewed by the City Council at the July meeting so bids can be solicited.  With any luck we should be able to get the project completed this fall.

Fire Contract

Breezy Point receives its Fire Service from the Pequot Lakes Fire Department.  The department is a volunteer organization that is part of the city of Pequot Lakes.  There is however a Fire Board that provides guidance from the representatives of the jurisdictions that are served by the Fire Department.  The department also serves, in addition to Pequot Lakes, the city and township of Jenkins, and the townships of Loon Lake, Moose Lake, Popular and part of Pelican.  By working cooperatively with other jurisdictions, costs can be managed better and the level of service can be higher with pooled resources. 

The city recently renewed the contract with them.  The cost for service is based on a formula.  The formula uses the overall estimated market value of structures in the jurisdiction and the use of fire service averaged over a 10 year period.  That ratio is then applied against the budget for the department.  The majority of the costs are borne by Pequot Lakes and Breezy Point but with the formula all jurisdictions share in the cost of fires services.  Pequot Lakes share of the costs are slightly higher than Breezy Points share.  

The contract amount this year for Breezy Point is $83,700.30.   Last year the contract amount was $76,027.66.  This is an increase of $7,672.64.  The total budget for the Pequot Fire Department for 2016-17 is $262,551.  This compares to last year at $241,252. The amount of the charges that are paid by the contracts for services in 2015 was $222,452 and in 2016 it is $240,190.  With new equipment and the need for replacement air-packs that meet current standards the fire departments budget has increased.  

The department has also seen an improved ISO rating for insurance purposes.  The increase may result in a decrease in fire insurance premiums depending on your location.  The Pequot Lakes Fire Department does a good job with many well trained and dedicated volunteers.  Many of the firemen live in Breezy Point and report to the substation in Breezy Point to provide a quicker response.  We are pleased to have them serving the city. 

2017 Road Improvements?

Accomplishing road improvements takes some time.  There is a process that needs to be followed with public improvements.  These include the formal bidding requirements that need to be followed.  These processes are prescribed by Minnesota Law.  We’re already working on road improvements for 2017.

One step at a time! The process starts with some planning.  What projects make sense and how are we going to address the financing?  

The Road Committee recommended several streets in Breezy Point to be paved.  These streets are those in the subdivision of Whitebirch 6^th Addition and include: Navaho Trail, Pima Circle, Zuni Circle, Aztec Circle and Pawnee Circle.  The recommendation was received and accepted by the city council. 

 

Street improvements are paid for by assessments levied on benefiting properties.  Financing of the improvements is being accomplished with existing revenues.  By using resources without bonding a good deal of costs are eliminated.

In following the process prescribed by law to assess improvements the first action needed is for the city council to request a feasibility study.  This study defines what is needed to be done to install the road improvements.  Typically the roadway surface is viewed for adequacy of base and drainage.  Ditches may need to be upgraded along with culverts, outlets or other requirements.  This study has been requested by the city council.  

Accomplishing this study requires a contract with the engineer to do the study.  This was approved as well in moving the process forward.  Once the study is accomplished the city council is informed of the outcome and considers the possibility of the road improvement project.  If it seems feasible and reasonable to accomplish the improvements they will call for a public hearing.  All affected property owners are given notice of the hearing and the preliminary costs are reviewed along with related assessment amounts.  

With a favorable outcome from the improvement hearing the council would take action on the remaining steps of ordering plans and specifications, seeking bids and holding a final assessment hearing prior to ordering the project.  If the outcome at the assessment hearing seems to indicate the owners want the improvements, the council orders them and awards the contract for construction.  

Considering the time lines; the feasibility study will be completed in a month or two.  The improvement hearing will be held a couple of weeks after that.  If the process moves forward plans and specifications are developed for approval in late fall, early winter.  Bids are then received in February or March. The assessment hearing follows within about three weeks.  Subject to that outcome, the ordering of the project and award of the contract can take up to an additional six weeks.  Construction would occur sometime after road restrictions are lifted in the spring.  Project completion occurs in the summer of 2017 with final restoration in the fall.  

It takes a process, and time, to get road improvements accomplished.

2015 Audit

The annual audit was presented at the April City Council meeting.  The audit showed we were in good shape as we received a very favorable outcome.  On the revenue side we saw a positive variance of $76,990 in revenues.  The largest portion of the variance was in funds granted to the city by the state for road improvements.  This was not budgeted as it was appropriated after the final budget was adopted.  Other significant positive variances were property taxes and special assessment revenues.  These increases were likely due to delinquent property taxes being paid. 

On the expenditure side of the budget we had a positive variance of $114,231.  This is the result of under spending the budgeted amounts.  The largest variance here was funds that were budgeted for road improvements.  We had anticipated a larger project than what was approved for completion.  Another large variance was in public works for future equipment purchases.  

With the city having only one debt service instrument, the debt of the city has been decreased substantially.  Other good news about debt was the collection of past due amounts that were collected in taxes.  Rather than run somewhat in deficit with a historical collection rate of about 93%, we collected amounts in excess of those budgeted and certified.  This resulted in a positive variance of $8,916.  

Our ability to manage expenses rests in the annual budget and levy but also in an account created to address long term and large expenses.  This account is called the Revolving Capital Fund.  Within this fund we have assigned revenues for future use by category or department.  Each year we deposit or spend funds in this account as they are budgeted and are available.  This fund grew $339,273 this past year.  The majority of this increase were from funds made available for road improvements that went unspent this year to be used in future years.  

All said the balance for the city general fund at year end was $1,098,546.  With the policy to maintain an undesignated fund balance at 45% of the following years budget it results in a “surplus” that can be assigned to the Future Improvement line item in the Revolving Capital Fund.  With this transfer the fund balance is increased by $191,903.  

The sewer fund was also audited with good results.  Operating revenues and disbursements showed a positive fund balance of $151,729.  Non-operating revenues show an additional income of $125,590.  All told the balance of the sewer fund is $3,184,543.  This balance positions us well for the future expansion of the wastewater treatment faculties when the time comes.  This allows us to continue to keep user rates low by anticipating the future.  

The auditors were able to give the city an unqualified opinion on the regulatory basis of accounting.  That’s a good thing! It’s nice to have a great outcome but it’s also nice to get your auditors blessings. 

Capital Improvements for Parks in Breezy Point

The Park and Recreation Committee have been working on the renewal/update of their 5-year Comprehensive Improvement Plan which provides for the development of park improvements.  This plan is reviewed annually but periodically is changed to better reflect the desires of the committee in terms of what improvements will be established and when.  

The plan proposes a number of things to be accomplished this year.  The most pressing of them is the completion of the back nine of the Disc Golf Course.  Nine holes were established in 2105 and nine additional holes are proposed for 2016 making it one of the few 18 hole Disc Golf courses in the area.  Also proposed for the disc golf course is the installation of some benches.  

Other things on the list include concrete pads for under the bleachers at the ball field in City Park.  This will clean things up there but also will deal with some safety issues when mowing.  Two additional benches will be purchased for installation at the trail head of the Four-Seasons Trail.  

The most expensive project proposed is to move the Fishing Boardwalk.  The plan contemplates a worst case approach in terms of costs with the conversion of the boardwalk to a floating dock. It is hoped an alternate solution can be found to move the structure out over the water without the floats.  This has been requested as fishing cannot be accomplished directly below the structure.  Currently the edge of the structure has water depths of less than a foot.  Moving the structure out from the edge of the bank has been hampered by the peat/muck bottom requiring a different solution.  It is still hoped that longer poles, a different location along the channel, or other option can be found to limit the expense of making this change.  This additional cost of the worst case solution was not without controversy as one council member voted against the plan because of this issue.  That being said all options are on the table to see if a different, less expensive solution can’t be found. 

The plan is a five year plan that contemplates additional park improvements in the following years.  In the plan there are references to additional park instruments, extending the paved trail in the city park, and the development of a slightly smaller ballfield for Little League play. 

We look forward to finishing the Disc Golf Course and getting some of the other park improvements done this year.  The Boardwalk changes will take some time to consider our best option so may not be completed this year but action will occur to determine how we may proceed.