Annual Fund Transfer Outcomes

The city manages finances in a way to hedge for the future with some of its expenditures by placing funds in a separate fund for designated purposes called the Revolving Capital Fund.  This fund is part of the General Fund of the city with funds being kept in earmarked categories.  These earmarks include funds set aside for roads, police, public works, and other designations.  The largest amounts are for higher cost things such as road and future improvements. 

Funds being transferred to these earmarks come from budgeting and unspent capital allocations.  Funds are also spent out of these earmarks to balance out budgeted expenditures.  Using this fund requires in addition to budgeting, a transfer resolution, accomplished after the year-end financial statements are completed.  So as an example as to how this works; $30,000 was budgeted for a piece of equipment to be purchased.  The actual expenditure was $24,560.  The difference of $5,440 is available to be placed in the appropriate earmark. 

With the financial statement and budgeted amounts to be transferred the financial statement is reviewed to see where these amounts exist.  They are listed in a transfer resolution which is reviewed by the Finance Committee and considered by the city council.  The annual transfer resolution was adopted by the council at the February meeting. 

This past budget year we ran very close to budget resulting in some questions about what should be transferred.  We stuck to past practices which results in overall expenditures being over budget but we also received move revenues than what was budgeted. The outcomes that exist:

The General Fund - revenues over budget     $ 87,852 

                          expenses under budget        $ 27,355

                                                                   $115,207

Financial Statement expense margin                $ 27,355     

          Transfer expense                                 -$63,586

Resulting expenses over budget                      -$36,231

         

Cash Flow for the General Fund                    $115,207

          Transfer expense                               -$63,586

Cash Improvement overall                             $ 51,621

With the Sewer Fund, the budgeted transfer was $69,297.  The budget had also provided for an $8,400 transfer to the general fund for a capital expenditure for equipment.  Combined this amounts to $77,697.  The difference in expenditures versus revenues in this fund, based on the year-end financial statement, is $81,607.  This results in a positive difference of $3,910 keeping us slightly under budget. 

Whats happening with the Fishing Boardwalk?

There have been some good comments and some not so good ones when it comes to the fishing boardwalk.  This dock type platform was conceived to provide fishing opportunities to people along the channel adjacent to Breezy Point Drive.  The good news is that the dock structure is of adequate size and construction.  The not so good news is that the location doesn’t allow for fishing over the edge of the structure.  Two problems were encountered with its installation.  The water off the edge of the platform was at best 6 inches deep and with lower water levels there was land next to it.  The second problem encountered was that of soil types.  The “bottom” of the channel consists of muck/peat type materials.  A firm bottom that would support any significant weight was found about 23 feet down.

These lead to an exploration about what options were available to solve the problem of getting the structure over water deep enough to provide for fishing.  Navigation in the channel was felt to be important and a desire to not impede on this was seen as a priority.  Options looked at included longer poles, a cantilever design and flotation.  The first two options were not workable or considered safe.  The floating option came with another set of problems.  Given the depth of the water at the location we didn’t feel that floats would work without moving the structure out into the channel, which would affect navigation.  The option of choice became minor excavation of the shore area under the ordinary high water mark to be assured the floats placed on the structure would actually float.  

An application was made to the DNR to see if this could be accomplished.  Ordinarily the DNR is reluctant to allow excavations but with the channel being man made this helped the cause.  The excavation is considered minimal and it also provided for recreation which also helped the cause.  A permit was granted.  This allows for a trench to be excavated along the shore where the boardwalk will be re-positioned.  

The process of improvement takes a number of steps.  The structure has to be removed from its present location.  This involves the removal of the railings and platforms to start with.  The 4 by 8 foot sections that are bolted together need to be disassembled and taken off site.  Once the entire structure is removed excavation can be accomplished.  Floats need to be acquired and fastened to the structures that will be reassembled.  These will then be returned to the site for reconstruction.  Changes in lowering the height of the railings will be made in some areas to better allow for youth and handicap fishing.  Other areas of the railing maybe strengthened and or changed.   Given the change in design this will be something of a design build project. 

With any luck we hope to get this done by spring.  It is a priority for the Public Works crew.  We would like to have the boardwalk available for the spring Crappie Bite. 

2017 Construction

Last August the city council held an Improvement Hearing to consider paving the roads in the subdivision of Whitebirch 6^th.  The roads in this subdivision include Navajo Trail, Zuni Circle, Aztec Circle, Pima Circle and Pawnee Circle.  The majority of these roads have a good gravel base and don’t require a lot of upgrading. Currently the grade on Pawnee Circle is in excess of 10% making this a maintenance and safety problem.  With this degree of slope we also have problems with drainage.  This slope is a bit too steep so this roadway will be brought down to an 8% grade.   To address the drainage concern we will be installing surmountable concrete curbing on both sides of the hill to minimize erosion.   The additional cost for the change in Pawnee will be paid by the city while assessments for paving of the roadways will be a property owner cost.  The total project cost was estimated at $444,000.

After the Improvement Hearing, plans and specifications were ordered for the improvements so that bids could be received on the project.  Accomplishing this requires a good deal of time as survey work is needed before design work can commence.  Plans and specifications were completed and reviewed by the city council at the January meeting.  In addition to approval of the plans the council also authorized the seeking of bids.  Bids were received on January 31, 2017. 

The city council reviewed bids at the February 6^th meeting.  Four bids were received; Tri-City, Anderson Brothers, DeChantel Excavating, and Pratts Affordable Excavating.  The low bidder was for the improvements came from Pratts Affordable Excavating at $199,699.00.  These were very good bids and well below the engineers estimate. 

With bids in hand we know the actual cost of the improvement and the proposed assessments.  In considering costs to be assessed, the assessment amounts to $3,744.09 per unit.   This compares to the cost at the feasibility stage of $6,029 per unit.  With favorable bids an assessment hearing was scheduled for February 27th. 

Assuming the project moves forward, construction would commence after road restrictions are lifted, typically in late May.  Construction would occur over the summer months with final completion in September.  We look forward to a successful project.