Thursday, April 19, 2012

Fire Contract

Fire service is provided in Breezy Point primarily through the Pequot Lakes Fire Department. We also get some service from Ideal Township. Pequot Lakes Fire Department services a number of townships as well as the city. Their fire service is set up as a fire district providing a shared cost to all that participate in the district.

The contracts for fire service are renewed on an annual basis and with Pequot Lakes the contract amount is determined by three factors. One of these factors include the annual budget of the Fire Department. The value of the buildings within the area served is another factor. The third is a use factor, which is a percentage of use over a ten year period.

The past few years with this contract we have seen large increases in use and value but with this last contract we saw a reduction in our contract price based on two of the factors. The budget for the fire department stayed the same for 2011 to 2012 so no changes there. The valuation portion of the formula went from $226,147, 200 to $218,790.800. Keep in mind this represents only building values. The use factor saw the largest change going from 32% to 27%.

When all of these are factored our cost for the past contract period was $79,427.81. The new contract period has our cost at $68,686.17. This represents a savings of $10,741.64. This is a rather significant savings, about 15%, to the tax payer in Breezy Point. When we look at ways to save money this is great. We expected to see some savings this year but this beats expectations.

I hope the trend continues with low usage as this really helped. Keep in mind this is a ten year average so one year does not make or break us in terms of costs but we have seen a tremendous benefit from that factor.

Stay safe and do what you can to prevent fires!

Tuesday, April 10, 2012

We're ready for Co. Rd. 11

As many of you know Crow Wing County is preparing to undertake some improvements along County Road 11 between Pequot Lakes and Breezy Point. The proposed improvements started with a mill and overlay of the driving lanes of the highway. The county, wanting to be proactive, also looked at the future with a concern for safety. A task force was assembled of local participants to look at the needs within this corridor.

With this review and concern for safety they are proposing to expand the project beyond just driving lanes. Right and left turn lanes will be established at Eagle View School and also at Ranchette Drive in Breezy Point. Some bypass and right turn lanes may be established. Improvements will also be made in Pequot Lakes.

Not completely explained in the past was some improvements of lesser significance but still important. These include drainage and storm sewer, some curb and gutter, ADA pedestrian ramps and some limited sidewalks near the intersection of CSAH 11 and CSAH 4. Guardrails will be replaced in the area near the Commander.

There is a cost share to the city for these improvements. The cost share amount has been estimated at $30,084. Actual costs will be determined following bidding and construction. The county has agreed to allow payment of this amount over a two year period. Doing this helps with cash flow but also allows the county to receive some payment before closing out the project, adjustments can then be made in the final payment.

Any time a highway project is accomplished in the city it requires municipal consent. This consent was given at the April 2nd meeting. Final plans will be bid in the near future and once that is accomplished a schedule will be developed. It is not anticipated that this project will take a great deal of time but some disruption will occur this summer. The end product will be worth the disruption.

Thursday, March 22, 2012

Whats AIS?

Many of you know that there is a problem with Aquatic Invasive Species. The threats have been from plant life to fish to Zebra Mussels. The Zebra Mussels seem to bring the highest threat in most people eyes. The local concern is the introduction of these into Pelican Lake.

Zebra Mussels have been found locally in Lake Ossawinnamakee. More recently they have been found in Gull Lake. Mille Lacs has had them for a number of years. The same holds true for the Mississippi River. One Zebra Mussel was found in Pelican Lake this past fall. There is the thought that if they are present, more than one would be found. They are very prolific. Time will tell if they are there but regardless, keeping them at bay is the goal.

A concern was raised with the Breezy Point Public Landing. There was some thought that by closing the landing we limit the possibilities of introduction. The City and the State of Minnesota (DNR) established this landing in 1985. The agreement requires that the landing remain open and free to the public. Closure or limiting hours is really not an option. The landing could be closed between midnight and 4 AM as the only possibility. A number of other landings are available to users of the lake so limiting one access doesn’t really solve the problem in that regard.

Efforts have been made to ward off the threat. The Pelican Lake Association has been working with the DNR on a volunteer basis to inspect boats as they use the landing. The city police officers have been trained in Aquatic Invasive Species so they can enforce laws applicable to this issue. The City Public Works personnel have also been trained in this issue as they do maintenance at the landing and beach. They too can address the issue. The city will install a sign to let boaters know that laws associated with Aquatic Invasive Species will be enforced by the Breezy Point Police, as a reminder.

This year the DNR will again be working with local volunteers to monitor the access. They had also asked for a Right of Entry Authorization. In addressing this with the DNR they intend on having decontamination service available at the boat landing to further address the threat. It is everyone’s hope that Zebra Mussels have not been introduced.

Boaters and the public in general need to recognize that the responsibility for introduction really lies with the individual. There are far too many public and private landings in the states waters to guard against the introduction.

Be a good steward of our public water resources, doing what you can to ward off the introduction of Aquatic Invasive Species. Maintaining the lake as invasive free ultimately lies with your actions.

Thursday, March 15, 2012

To Buy or Not

In Crow Wing County there is a rather high incidence of property reverting to the county under tax forfeit laws. If taxes aren’t paid for a period of time state law provides that the owner, in essence, has abandoned his ownership. The county then takes jurisdiction and ownership of the property.

Once this occurs the county designates the property as “Conservation” meaning it is conserved for a period of time. The jurisdiction where the property is located is given the opportunity to review the properties prior to a change in status to “Non-Conservation” which means they can then sell the property. The city, with their review, can maintain the property as Conservation. The governing body would need to say they are interested in the property. The county has the option to deed the property to the local jurisdiction if there is a public purpose at no cost. This is done with a deed restriction limiting the use of the property. The county also has the option to sell the property outright.

For number of years Crow Wing County had allowed cities to acquire properties for public purposes at no cost. This became a problem with the amount of property that had to be accounted for and the various designated public purposes. Trying to manage these with enforcement became overwhelming. Cities started with good intentions and generally fulfilled those obligations but there were some of these properties that, over time, had shifted in use. Doing so negates the agreement for the property. When this happens the property can revert back to the county for disposition. The resources needed to manage enforcement became a problem.

Crow Wing County determined that, regardless of buyer, the property would be sold at a fair market price. The city could reserve the property for a period of time but would have to eventually purchase it. Funds for purchase of tax forfeited property go to the county. A portion of the sale price is paid to the local jurisdiction.

The properties the county is changing to Non-Conservation are reviewed by the city on an annual basis. One property that was felt desirable this year was considered for drainage. The City Council considered the purchase and determined the need wasn’t strong enough to justify the expense. So for this go around, the city won’t be acquiring any tax forfeited properties and hope the land returns to the tax roles for development.

Tuesday, March 6, 2012

Wildwood Access Closing?

I have written in the past about the process and progress that was being made with the improvements proposed for Co. Rd. 11 between Pequot Lakes and Breezy Point. Crow Wing County had undertaken a study of this corridor to develop a greater understanding of the needs that exist from a traffic safety standpoint. They also wanted to take a futuristic look at what might happen when the 371 Bypass is built in Pequot Lakes. This is anticipated for 2018 and when built, traffic patterns will change. Anticipating how things might change helps to anticipate how best to manage the future.

Through this study process a Task Force was established to help the county better understand local needs and perspectives. The Task Force was composed of local public officials. The Task Force worked with a consultant Traffic Engineer on a plan that would enhance traffic movements while also providing for safety improvements. With these things in mind those areas of concern were identified and possible solutions were posed.

One of these situations was the possibility of closing the access to Wildwood Lane from Co. Road 11. This would require the diversion of traffic down Ski Chalet to Ranchette Drive to access Co. Rd. 11 at that location. As the process occurred two Public Open Houses were held to let the public know what was occurring and what was being considered. The second Open House was held on February 23rd and residents who held property which gained access off of Wildwood Lane were specifically invited to attend. At the meeting the issues were explained and comments were heard from the residents. The comments received showed little support for the closing of this access point. The primary concerns included extended driving access times and distances, additional emergency response times and the need to provide other improvements to support the closure.

At the March 5th City Council meeting the City Council conserved the question of closure of Wildwood Lane to Co. Rd. 11 and rejected the idea. They also made suggestions for improvements for the county to consider. One such improvement, a bypass lane, will be considered by the county for implementation however the project is driven by the budget available and if the additional work can be accommodated it will be done. The entire project includes, in addition to a mill and overlay, improvements at Ranchette and at Eagle View Elementary School. It is hoped there are sufficient funds to do the additional work but we will not know until the bids are received.

Wednesday, February 22, 2012

Refinancing

In looking at finances for the city we always look at expenditures and working within the budget. We also look at revenues outside of taxes. Both of these to minimize the impact of the tax levy. And then there is managing obligations you have already committed to. By this I mean debt service.

So what is debt service? For most people this is the monthly mortgage or car payment. In the realm of governments it’s the payment on debt incurred on bonds. Cities incur debt to accomplish public improvements. Typically these are road, utility and building projects. Almost without exception all cities incur debt to better their communities.

Incurring debt means there is a repayment, otherwise known as debt service. The repayment on bonds is accomplished over the life of the bond which can range up to thirty years but typically most bonds are 10 to 20 years. With a mortgage you can generally pay off the debt at any time. With a bond you have a “call”. A call is the opportunity to pay off the bond at a point in the future. You call the bonds so you can pay them off. When a bond is structured the call is usually set about half way through the life of the bond. After that point you can pay off the bond. Prior to that, you are bound to the terms of the bond (loan) at the interest rates and payment schedule that was set.

With the recent historic low interest rates in the market, the opportunity to refinance debt has been on everyone’s minds. With bonds, if you have reached the call date it is a relatively easy process to do a refunding (refinancing) of the bonds. What happens however if you haven’t met your call date? You still have the opportunity to do something but the process gets a bit more complicated.

What is done is called a Cross-Over Refunding, sometimes called an advanced refunding. What is done is we sell bonds ahead of the call date to refinance the bond after the call date but in the process you also assume enough debt to cover the payments on the bond you’re refinancing. An escrow fund is established to manage that period of time while you have both bonds outstanding. In doing so you have a short term impact of higher debt but at the call date one bond is paid and the new bond takes over. The point of all this is to reduce your overall long term costs with lower interest rates, and smaller debt service requirements.

Recently the City of Breezy Point accomplished a Cross-Over Refunding taking two bonds and rolling them into one, taking the opportunity to save money in debt service. Before a bond can be refinanced it needs to meet certain criteria in terms of savings. The preliminary analysis showed the criteria were met. At the outset the savings were estimated, over the life of the bonds, to be $255,000. At the time of the sale the savings increased to $290,226.53.

Accomplishing the task was well worth it. The savings won’t be materialized until after the call date but at that point the city is in a position to see reductions in annual debt service requirements.

Friday, February 10, 2012

Thanks to Wiebolt and Narveson

This summer Crow Wing County will be undertaking improvements to Co. Rd. 11 between Pequot Lakes and Breezy Point. The primary focus of the improvements was to be a mill and overlay of the two driving lanes. They also however decided this was a good opportunity to look at short term and long term needs for this corridor. A Task Force was established that included representatives from Breezy Point, Pequot Lakes, Pequot Lakes School District, Ideal and Jenkins Townships.

The Task Force has looked at the areas along this strength of highway and identified those areas that are problematic from a traffic flow and safety concern. A traffic engineer from Bolton and Menk has worked with the Task Force to develop concepts that could and will improve the corridor. Improvements that are considered to be built include a new intersection layout at Ranchette with left and right turn lanes, turning lanes at the school entrance/Edgewater Farm Drive, a bypass lane at the ice arena and the potential for other improvements as funding provides.

There are a number of issues that have been encountered along the way. Some of these are yet to be resolved and a few have seen resolution. One of these was the right-of-way on Edgewater Farm Drive. When the school was established the entrance at the school was off set from that of Edgewater Farm Drive. By this I mean the roadways in the intersection did not align directly across from each other. With a configuration such as this there are numerous points of conflict with traffic flow. At the time of establishment it was not felt that this would be a problem by some. As development occurred however, more and more traffic was generated causing a good deal of problems with this non-alignment.

Recognizing the problem the city worked with the land owners, Pelican Development of Breezy Point, LLC to gain an easement and the roadway was moved to provide for the proper alignment. This easement was temporary in nature and was due to expire in September of 2013. With the proposed roadway improvements the county was anticipating, a more permanent solution was needed.

Pelican Development of Breezy Point, LLC has given the city the necessary easement to continue with the alignment at the Eagle View Elementary School. Neal Narveson and Mike Wiebolt are the owners of this property. These local businessmen saw the need in the community and fulfilled that need. On behalf of the City of Breezy Point I want to thank them for their community service in fulfilling that need.

Tuesday, January 10, 2012

Pelican Woods Cemetery

As the city continues to make improvements to the cemetery the needs there continue to come to the forefront. We have a very dedicated bunch of local volunteer citizens who spend countless hours working in the cemetery on a regular basis. I call them the “Friends of the Cemetery”. Their numbers include not only Cemetery Commission members but also those who enjoy seeing the beauty of the grounds and the comradely in their weekly pursuits. The chair of the commission requested they be recognized for their dedication at a recent council meeting.

Others have noted the hard work and efforts that are being made in the cemetery. Last year a donation was made for improvements which were utilized to create a Veterans memorial. The first phase is hoped to be completed early next year. The City of Breezy Point was recently blessed with a second donation of $10,000 from the Fletcher Foundation for improvements in the Cemetery.

The donation was noted for landscaping which continues to be an issue for the cemetery. With the underground burying of the power lines along Ski Chalet the glide path for airplanes has changed. That being said there are trees in the cemetery that pose risks for pilots in air traffic. With the removal of trees, replacements will be required in some areas.

If you haven’t had a chance to drive through the Pelican Woods Cemetery in the summer when flowers are in bloom you are missing something. The efforts of the “Friends” to maintain the grounds provides for a beautiful place. Another great time to visit is the annual Butterfly event. This event has been moved up to be July 21 this coming summer. There were many factors in the change of dates but one of them included greater flower blooms at that time of the year. Make it a point to visit Pelican Woods Cemetery.

Friday, December 30, 2011

Final Chapters

Some things just take time. There is complexity. There is size. There is financing. There are parties that need to be involved. There are sales that have to occur. There are a host of miscellaneous tasks associated with anything to get it done right.

Whitebirch, Inc developed a project known as Whitebirch Estates. Approval was given by the city on February 7, 2000. This is a planned community of 75 timeshare units adjacent to the Whitebirch Golf Course and Antler’s Restaurant. The complex contains a pool and meeting room facility which has been a wonderful complement to the community.

With construction that has been finished this year the final units were built. This development has seen continued progress over the course of many years with 5 supplemental plats being accomplished along the way. The 5th Supplemental Plat of Whitebirch Estates was approved by the Breezy Point City Council at their December 5th, 2011 meeting bringing to a close the final actions, from the city perspective, for this development.

Whitebirch should be congratulated for bringing to a close this development. I wish them continued success with this development.

Wednesday, December 21, 2011

Master Park and Trail Plan

After about two years work the Park and Recreation Committee have completed the Master Park and Trail Plan for the city. The plan takes a look at the park facilities we have, classifies them as to the type of park and does an inventory of what amenities and equipment are available in each. Trails have also been identified within the plan.

Various aspects of maintenance, operations, fiscal resources as well as the strategic, public relations and marketing plans were also identified. An appendix includes resources of maps, and figures identifying the parks and their location. Finally a Capital Improvement Plan is included.

The plan is visionary in nature. It identifies those improvements which are proposed both on a long and short term basis for each park. It also identifies trail linkages that would improve pedestrian circulation and safety. The Capital Improvement Plan provides for scheduled improvements over the next five years. The plan is however budget and resource driven. If the funds are not available proposed improvements will not be accomplished. The plan is reviewed on an annual basis to update and adjust as needs and funding provide.

The Park and Recreation Committee did a very complete and meticulous job. The Planning Commission was pleased with the plan and recommended approval. The City Council adopted the plan on December 20th. The Chair, Wini Kristufek, did the great majority of the work in compiling the plan and the process towards completion. I, along with the City Council, want to extend “Thank You’s” to her and the Park and Recreation Committee for a job well done. The outcome was great!

Tuesday, December 20, 2011

Final Tax Levy

The final levy was adopted by the Breezy Point City Council at their December 5th meeting. The levy is the same amount as that of last year, a zero percent increase. However with that being said the majority of taxpayers are seeing an increase in their taxes for several reasons. Some of these are more obvious than others so let me explain.

The city levy remians the same as last year but other jurisdictions also raise revenue with taxes. The county and the school district are the major ones. There is also a small levy associated with the Regional Development Commission and some properties within the 50 Lakes Watershed District.

Another factor in raising taxes is that of referendums. Pequot Lakes Schools added a levy for a school building project that will taxes that start in 2012. There are also excess levy referendums that show up on the tax bill.

With changes in the market value of your property, changes occur to your tax bill. Properties can increase and decrease in value affecting taxes. A change in the market value this year which was new was the Market Value Homestead Exclusion. This program reduced “taxable market value” of homesteaded properties on a sliding scale with the most benefit going to homestead properties with a market value of $76,000 and no benefit to properties with a market value in excess of $413,800. The effects of this are lower valued homestead properties see a reduction in value for tax purposes and higher valued homestead properties get smaller or no reduction in taxable market value. Overall this change leads to a reduction in the total tax capacity for a jurisdiction. It also leads to a shifting of tax burden from lower value homestead properties to all other taxpayers.

Changes in the taxing jurisdictions total value can have an effect on your tax. In Breezy Point we saw a reduction in total taxable value of 14.7%. These reductions came from general declines in property valuation, the market value homestead exclusion, tax appeals and other downward adjustments.

Each property sees different changes based on the whole as well as individual characteristics. Each city has a different shift in tax burden as a result of these types of dynamics. If your homestead property has a value of $150,000 or less you probably saw a reduction in city taxes. If your homestead property exceeds that amount your city taxes likely increased. All other taxable property saw increases in taxes as a result of these changes.

Thursday, December 15, 2011

Automatic CPR?

Have you ever heard of an automated CPR machine? Until recently I didn’t know they existed but leave it to those with a need and someone will develop it. An automated machine that does CPR heart compressions does in fact exist! It is known as the Lucas Chest Compression System. This is an interesting device. It runs pneumatically under a compressed air using a cylinder or wall outlet so an electrical source isn’t needed. This makes it portable and can be used at first response, in an ambulance, any transport vehicle and the hospital.

Through the efforts of our Paramedic Jason Rieber a grant was written to pay for the purchase of one of these units. The grant request was for $10,000 and was awarded to Breezy Point to be used in our Paramedic Program. We do have good staff, thank you Jason!

The grant was awarded from the MN Resuscitation Consortium which was founded by the University of Minnesota, School of Medicine. The consortium is part of a program through Medtronic Foundation Heart Rescue grant to improve outcomes from Sudden Cardiac Arrests. The paramedics using this system will also collect data on successes with this program for duplication in other regions.

We will very soon being using a new form of life saving equipment in our paramedic program and assisting research in saving lives due to Sudden Cardiac Arrest.