Thursday, August 23, 2012

New Park Shelter

Through a great deal of insight and forethought the City of Breezy Point had worked with many interested citizens to develop the city park. This park gets tremendous use and is busy most days with all sorts of activities. The park includes a ball field, playground area, basketball and volleyball courts. It also has a large picnic shelter that is used by many groups and is routinely busy with activity.

The Park and Recreation Committee has considered the park use and felt an additional park shelter was warranted and planned for its construction in 2012. Funds were set aside for this use. Construction will occur in the next few weeks with it being built on the north side of city hall. The structure will be a smaller shelter than the existing one being 16 by 24 feet.

The city received quotes from several contractors to do the work. The contractors were generous with their time giving the city reduced or free labor. They recognized the public good in having additional services available for the community. Public Works has also participated in the construction with ground preparation. Preliminary excavation, tree removal and fill were needed to prepare the site. The total price for the shelter came in under budget with the quotes received. The budget was $11,500 and the final cost is $9,609.98.

Many thanks go out to the contractors who will be doing the work. Trana Masonry of Breezy Point will be doing the concrete work. Gibbons Construction of Pequot Lakes will be doing the framing and wood work. Fiks-Con of Crosslake will be doing the shingling.

With the addition of a new shelter additional users will be able to enjoy the park.

Wednesday, August 15, 2012

Labor Day Weekend Entertainment

The Northern Lakes Youth Hockey Association has been working on a fund raising event for the Labor Day weekend. They will be hosting an outside concert with the headliner of Hairball. In proposing the event they worked with the city to address concerns of managing a large event. The event will be held at the Ice Arena parking lot on September 1st. The gates open at 5:00 pm. Music will end at 10:00 pm.

The association has requested and received a Temporary Liquor License allowing them to sell beer. The aspect of checking identifications and dealing with beer serving was a major concern. Servers will be trained to deal with their obligations under Minnesota Statutes. Measures will be taken to prevent underage sales and drinking.

Security will be provided both on and off site through various means. A police officer will be on site. Some off duty police officers as well as private security will be assisting at the event. Parking attendants will direct parking on site and overflow parking has been planned for in the event it is needed. Crow Wing County Sheriff’s office will also assist as the need dictates.

Portable toilets and garbage service has been arranged to meet the needs of the event. Cleanup of the grounds will be required to be completed by 10 AM on the following morning.

The concern is for both a successful event and one that addresses public safety. Having an event such as this will be a nice addition to the activities surrounding Labor Day. We hope all goes well and those that attend have a great time. We also hope the event for Northern Lakes Youth Hockey Association is all they want it to be.

Thursday, August 9, 2012

Storage by the Lake

Crow Wing County has spent a good deal of time reworking their zoning ordinance. Many of the changes reflect a more common sense approach. One of these changes provided for a lake shore accessory building. This is a small accessory building such as a shed that is used for storage of water related items such as life vests, sand toys, fishing rods, floaty toys or lawn chairs. This provision allows up to 120 square foot building no closer to 20 feet of the ordinary high water line as a permitted structure.

The city was approached about a similar provision to our code as it was available for the majority of the lake front properties, but not available to Breezy Point residents. The Planning Commission felt the idea of having it available to residents brings us in parity to others who reside in the townships. It also makes it easier for lakeshore property owners to maintain an orderly shoreline by allowing storage of those items commonly used in this area.

The Planning Commission held a public hearing for this change and after consideration of the county ordinance made a couple of minor changes. The ordinance forbids this accessory structure to be used as a kennel and also wanted the setback to be 10 feet from the side property line. The other provisions included in the county ordinance were included. They recommended approval to the city council.

The City Council reviewed the change and also determined it to be in the best interest of the community to allow this type of use, adopting the change. A property owner can now have an accessory structure within 20 feet of the lakeshore. This structure can not exceed 120 square feet and only requires a zoning permit from the city to install.

Wednesday, August 8, 2012

Subdivisions

The city adopted a comprehensive plan almost two years ago and one of the goals of the plan was to provide for public improvements at the expense of those that benefited from them rather than the city footing the bill through property taxes. Doing this requires property owners to pay for improvements through assessments or if a developer establishes a subdivision the improvements become their responsibility.

When the city provides for a subdivision the process is defined by the subdivision ordinance. The ordinance the city had been using was adequate in a number of ways but also inadequate in others. More particularly in those areas where improvements were required to get a surety they would be installed on a timely basis. In addition the city has many lots that are unable to be built on due to size, served by adequate roadways and meeting other standards of zoning.

Having issues with the past has surfaced with a change in philosophy towards the subdivision of land. A subdivision ordinance that was more in keeping with the times and the responsibility of the developer was needed. Accomplishing that goal was the job of the Planning Commission in working through a new subdivision ordinance.

The commission spent about one and a half years going through the ordinance, a section at a time. This process involved policy questions and final outcomes being considered. Standards were established. Timelines were reconsidered. The commission also changed the review process to provide that the final decision for preliminary plats became a council decision. They also established the parameters of a development agreement, giving those who want to develop a better understanding of what is expected.

After this work the ordinance was fine tuned with grammar and formatting. It was then recommended to council after calling a public hearing to address any concerns of the public.

The council approved and adopted this ordinance at the July 2nd meeting. Any new subdivisions within the City of Breezy Point will need to comply with the revised subdivision ordinance requirements for development as well as have the developer responsible under a strengthen development agreement.

Monday, July 16, 2012

Request for Proposals - Auditing

Under Minnesota Statues the city is obligated to do an annual audit of its books, making sure all accounting has been done appropriately with balances that balance. With this last audit cycle we completed the three year arrangement we had with the current auditor.

Looking forward, a Request for Proposal was developed and reviewed by the finance committee. The Request for Proposal is to receive proposals from accounting firms that do governmental accounting. The proposal gives them a better understanding of us while allowing them the opportunity to explaain what they can offer us. The proposal requests we receive quotes for the next three year cycle of audits.

The City of Breezy Point has a current population of about 2400. When the city population exceeds 2500, the form of accounting changes from a cash basis to modified accrual. Making that transition requires a somewhat higher level of accounting which includes additional standards that need to be met. The reporting also gives us a slightly better picture of the financial position of the city. The proposal requests that we find a way to transition slowly to this new standard. That being said the transition can occur as quickly as we want it to.

The council approved the seeking of proposals which will be received in mid August with proposals going to the City Council at the September meeting.

Monday, July 9, 2012

Salary Adjustments

Salary adjustments are made on an occasional basis in all organizations. They can also be done at any time of the year. There are three basic types of salary adjustments. They include adjustments for promotion, adjustments needed for internal equity and a cost of living adjustment. A city is generally prohibited from giving bonuses.

The cost of living adjustment is one that is accomplished across the board, given to all employees, at the same rate. It generally addresses the concept that things are more expensive now then in the past. There is no one standard that is used to set the rate of adjustment but rather some form of an inflation factor is considered.

A promotional raise is just that. The raise is give to an individual that takes on more responsibility by being promoted into a new or expanded position. Promotional raises can be of any amount based on job requirements.

The last form of salary adjustment is used to deal with other issues. For instance it can be used to address long term percentage increases where an inequity exists with lower paid over higher paid employees. Over time the range becomes skewed making an adjustment desirable for lower paid positions. This is a form of internal equity.

In Minnesota we have a law regarding pay equity where female employees must be paid on the same scale as male employees for the same job worth. Pay equity adjustments are made periodically to address these concerns. The State of Minnesota requires reporting for Pay Equity every three years. With that reporting, if a position is out of compliance the employer must make an adjustment to bring the wage scale into compliance.

Recently the City Council made adjustments to wage rates for four employees. Two were considered promotions as greater responsibility was given to them. Two other salary adjustments were considered pay equity adjustments.

The council has been concerned about personnel costs and has been very frugal in that regard. There is some thought that internal equity among employees needs to be further considered. The ability to raise revenues and maintain services has to be considered while addressing these issues. Compensation needs to be fair and in parity with others within the organization. The challenge is finding that balance.

Thursday, June 28, 2012

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.

Tuesday, June 5, 2012

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.

Thursday, May 24, 2012

Life Saver Award

The City of Breezy Point Police Department has run a Paramedic Program for a good number of years. This service is offered to the surrounding area. It is staffed by two police officers that are also paramedics. The department has been very fortunate to also link with North Memorial to provide the required oversight to provide for the program.

Generally speaking if a call for help occurs our paramedic will go to the site and hopefully be there prior to the ambulance arrival. The patient is stabilized and life supporting efforts are accomplished. Some of these life supporting efforts would not be possible were it not for equipment that has been purchased through donations from many governmental units, grants and other donors. Of particular importance have been a 12 lead heart monitor and recently an automatic CPR machine.

Fairly recently Paramedic Officer Jason Rieber, Sergeant Brian Sandell and Chief Kevin Merschman responded to the report of difficulty breathing on January 3, 2012. A third degree heart block was detected utilizing a 12 lead heart monitor. An IV was established and the patient was sedated. The monitor was then utilized as a pacemaker which allowed the patient to survive transport to a facility capable of treating the life threatening heart condition.

As a result of this action the city awarded these officers Life Saver Awards at the May 7, 2012 meeting. Mayor Weaver presented the award and congratulated them for their actions. The city has a lot to be proud of when it comes the Paramedic program. The city is also extremely grateful for the assistance we have received in acquiring the tools to make a difference in emergency responses.

Thursday, May 17, 2012

2011 Audit

Every year the city has an auditor conduct an Audit. The auditor looks at the financial transactions of the city and accounts for revenues and expenditures for the various funds. There are inquiries into payroll, vendor transactions, bond payments, and receipts. This takes a bit of time for the city to gather up the required data as well as the auditor to put it all together into a single report.

The preparation for the audit is something we think about on an ongoing basis. Standard transactions are one thing but non-standard ones require additional detail. Having this detail readily available in the “Audit File” makes the process go a bit quicker. Having an audit file and anticipating needs also saves time as we don’t have to dig for the information. Being totally prepared isn’t possible as part of the audit process is to “test” documentation and files but having a system that allows for that retrieval is also important.

The report was given to the council at the May 2012 meeting. The audit and related information is available at the city web site. At that meeting a summary was made concerning our books. The city is in good financial condition.

On the revenue side our variance from budget saw the largest difference in the property tax area. The budget and levy had been completed for 2011 with no adjustment made for the Breezy Point Resort tax appeal. All property tax adjustments made, as the result of the appeal, happened in 2011, for both 2010 and 2011. Smaller deviations were noted in charges for services and fines, both of which didn’t meet budget projections.

On the disbursement side expenditures were kept in check with positive variances in most line items. Overall expenditures were $148,661 under budget. This improves unreserved fund balance by this amount. This is after we have transferred funds to Revolving Capital. The Revolving Capital Fund was improved by $148,962. The majority of these transfers provide for future expenditures. They also help manage ups and downs in levy requirements allowing for a planed approach to capital expenditures and improvements.

The audit was accepted by the council and they were pleased with the outcome. I was pleased with the effort made by employees to manage expenditures. We all pitched in to address the shortfall that was pending. We also benefited from some other unexpected revenues so in the end we had a great finish.

Monday, May 14, 2012

Comprehensive Fund Balance Policy

Governmental finances are slightly different then business finances. With business the focus is usually dominated by the profit and loss statement. With governmental accounting we deal more with revenues and expenses. We also deal with fund balances. There are a number of different types of funds and with these they need to have special designations.

There is an overseer of accounting standards for governmental accounting. They are known as GASB or the Governmental Accounting Standards Board. This group periodically establishes rules to provide for more definition in how governmental funds are managed from an accounting standpoint.

The most recent rule that was implemented is known as GSAB 54. This rule provides that all city funds be designated as to their assigned use. The use designations of each fund fall into the following categories:
Non-spendable
Restricted
Unrestricted – both committed and assigned
Unassigned

Using these designations on each fund explains, to a point, the funds intended purpose and how it can or should be used. As an example of a restricted fund is debt service. Debt service funds can only be used to retire debt.

The rule also made a recommendation that a policy be adopted called a Comprehensive Fund Balance Policy. The policy addresses these areas:
Minimum Fund Balance
Order of Resource use
Stabilization Arrangements
Committing Funds
Assigning Fund Balances

With this in mind the City Council at the April meeting adopted the Comprehensive Fund Balance Policy with defines funds as described and meets the requirement of GSAB 54 in addressing the recommended policy issues.

If anyone has an interest in this policy it can be found in the meeting packet information from the April 2012 meeting.

Thursday, May 3, 2012

Conflict of Interests

At the urging of Mayor Weaver the Breezy Point City Council considered the adoption of a Conflict of Interest Policy and Statement of Values and Conduct. The Conflict of Interest Policy also included some references to other ethical issues.

State Law is rather specific in what constitutes a Conflict of Interest. State Law also requires ethical behavior of elected officials on other issues. One issue is that of the open meeting law. Another issue is that of gifts to elected officials. Conflicts of interest come in a variety of circumstances that are well defined but at times somewhat difficult to grasp as the law is more far reaching than one may think. The policy incorporates situations where the laws are applied helping to better understand what constitutes a conflict and what doesn’t. It also describes conflict situations that may be exempted from law or where notice must be given.

The Statement of Values and Conduct is a policy which defines civility and responsibilities. It asks that all participants work together in a constructive and appropriate manner. Its goal is good government that expresses openness and understanding. It holds us all accountable for actions in the process and outcomes.

All commission and council members are required to uphold the Conflict of Interest Policy requiring them to declare a conflict when it occurs. They will be required to sign off on a receiving a copy of the policy and acknowledging the need to declare a conflict. The statement of Values and Conduct is for all commissions, council and staff members to uphold. Working together in an appropriate manner will only lead to better outcomes.

These documents were adopted at the April 2nd meeting. If you are interested in reviewing them go to the council meeting packet for April, 2012.