Town of White Annual Meeting March 14 2017

Town of White Annual Meeting March 14, 2017 Clerk & Treasurer’s Report Prepared by: Jodi Knaus, Clerk & Emma Shuck, Treasurer 6: 00 P. M. Loon Lake Community Center

Review of Town’s 2017 Outcomes for Each Focus Area in the Strategic Plan Category 1 – Facilities Management Strategy (maintenance, upgrades, long-range use of all assets and identify liabilities at each entity). Category 1 Goals: To increase revenue, to reduce operating expenses, to improve the footprint of the township, and to improve/upgrade facilities. 1. ) Public Works � The cold storage building is almost completed. The concrete will be sealed and the outside of the perimeter will be insulated as soon as weather permits. Total cost of the building to Ameribuilt Inc. was $97, 657. 60 plus engineering costs of $4, 800. 00 to date. � Overhead door repairs have been necessary on the main building.

Category 1 – Facilities Management Strategy Continued: 2. ) Loon Lake Community Center v Jim Jones - Caretaker has done a fantastic job maintaining the property! v Long-range planning will continue for use & upgrading the building as things age; Gym floor, roof repairs, floor tiles, and technology upgrades are future projects. v 3 rd Annual Health & Wellness Fair was held in October with Essentia Health and was a huge success! v Major expenditures in 2016: § All Service Heating for new fans - $8, 450. 00 § Signage & Posts - $2, 378. 00 (PMSG paid for half) (portion paid in 2017) § Maintenance/Cleaning Supplies - $4, 760. 00 § Building Repair & Maintenance - $1, 069. 00 § Insurance - $6, 116. 00 § Electric Utilities - $10, 114. 00 § Gas/Propane - $20, 630. 00 TOTAL RECEIPTS: $3, 931. 00 (rent) § Licenses & Permits - $719. 00 $52, 564. 00 TOTAL 2016 PAYMENTS:

Category 1 - Facilities Management Strategy Continued: 3. ) Fire Hall v Fire Hall roof will need repairs/replacement soon. v Internal safety inspections will be done this spring at both the Fire Hall and Public Works buildings to identify hazard areas. An OSHA grant can then be applied for to improve safety related items such as lighting, signage etc. v Shelving was purchased for organization of supplies & inventory. v Two AFG Grants were applied for this year. 4. ) Twin Lakes Pavilion & Grounds v Parking lot & walkway were resurfaced in 2016. v The main hall was repainted and the kitchen was stocked with amenities for renters. v The Board is working with the Eagle Scouts to build a shed near the beach for storage of lifeguard supplies. v The kitchen facilities, appliances, power, and floor need updating. Architectural Resources provided a rough estimate at a cost of $30, 000. 00 to replace island, cabinets, upgrade power, and seal the concrete floors. v Total 2016 Rent Receipts: $1, 900. 00 v Total 2016 Payments: Lifeguards = $14, 850. 00; Cleaning = $2, 358. 00 Insurance & Operating Costs = $8, 064. 00

Category 1 - Facilities Management Strategy Continued: 5. ) Embarrass & Pineville Parks v No activity in 2016 for either of the Parks. 6. ) Cemetery v Concrete work needs to be completed around the columbarium. v The Center section of the cemetery has been expanded. The Township will perform all landscaping and movement of the road as necessary this Spring. v Niches are available in the columbarium for purchase. v The cemetery has graves for sale in the South Section. v In 2016 there were 19 burials. 7. ) Shooting Range v The Town contributed $4, 500. 00 in 2016 to the Club for a new classroom facility.

Category 2 -Outcomes – Organizational Development Category 2 Goals: Determine adequate personnel needs, develop attrition strategy, expand shared services, invest in training, invest in technology, seek out grant opportunities. Personnel Update – Nine (9) employees; � Ads are out for summer lifeguards and laborers. � The Board supports continuing education of the employees and they all participate in job related conferences/training throughout the year. � The employee’s labor agreement with the 49’ers expires 12/31/2017. � Ed Alto is retiring from his cleaning position effective 3/31/17.

Category 2 – Organizational Development Organizational Strategies: � Policies & Procedures - The Town continually reviews policies and procedures to ensure efficient operations. Some we updated or adopted this year are: � A Workplace Accident & Injury Reduction Program � Investment Policy (reviewed annually) � Fund Balance Resolution (annually) � Dust Control Policy � Culvert Policy � Financial Procedures & Controls Policy � Equal Employment Opportunity & Affirmative Action Policy � Sexual Harassment Prevention Policy � Employee Recognition Policy – MN Statute 15. 46 gives towns authority for a wellness and employee recognition program. The statute specifically requires the electors to set the amount of money at their annual town meeting. The Town is asking for $1, 000. Needs to be by motion. Moderator ask for motion.

Category 2 - Organizational Development continued: � Marketing & Advertising – The Town advertises legal notices in the Mesabi Daily News and East Range Shopper. The Town’s website is updated frequently with information. � Technology Strategy – The township recognizes that it needs to stay current with technology to ensure operations are efficient. � New telephones for the office were purchased. � A new computer purchase was approved for Public Works. � Cemetery records (paper) continue to be scanned and entered into the Pontem software system. When all archived records are entered, we hope to launch an online viewing portal for citizens. � Website enhancements/updates for Loon Lake Community Center, Cemetery, Fire Department, & Pavilion will continue at www. townofwhite. com � E-mail for Palo Garage: white. township@yahoo. com � E-mail for Office: townofwhite@yahoo. com

Category 2 - Organizational Development continued: � The township continues to explore all avenues for cost-savings by working with Aurora, Biwabik, and Hoyt Lakes whenever possible. Examples from 2016 are: � Sharing equipment and personnel for emergency response. � Purchasing tools and equipment such as an air compressor and water/wastewater supplies. � The U. S. Army Corps of Engineers Planning Assistance to States (PAS) Program conducted a culvert inventory and ditching plan for the Town. This was a joint project between the City & Town. The results of the study have been received and are being used to create a mitigation plan for flooding and make improvements based on their recommendations. � Recently we met with St. Louis County Personnel to review the St. Louis County road & bridge projects through 2019. Copies of the maps are on the table by the entrance. The Town plans to partner with the County to get the Town’s roads fixed at the same time for a cost savings.

Category 3 – Operations/Infrastructure Strategy: Category 3 Goals: Develop a roadway improvement schedule, continue to invest in water/wastewater infrastructure & services, and purchase new equipment. 1. ) Roadway Improvement & Maintenance v The Board recognizes many of our roads need to be fixed (patched, blacktopped, etc. ); A complete road maintenance & resurfacing program has been implemented as part of the Comprehensive Plan. Each road has been rated. In 2016, we resurfaced Twin Lakes Loop Road/Twin Lakes Parking Lot and completed Phase 4 of the Gardendale Project which cost $371, 813. 00 in contractor fees plus $40, 871. 00 on engineering these projects. v Road Striping on Lane 58, Road 45, Trigstad Road, Palo Road 41, and Road 37 was completed in September 2016. In 2017, we will complete Lake Mine Road and Scenic Acres Road. v Dust control was applied costing $14, 000 in 2016. v Total Road & Bridge Budget goes towards roadside mowing & sweeping, bike trail, sand/salt application, dust control, snowplowing, ditching, grading, fuel, parts, culverts, and refuse collection. v Discussions are being held with MN DOT regarding the Hwy 135 project. Brian Larson will be at April’s monthly meeting to discuss the State’s plans for this project in the Township.

Category 3 – Operations/Infrastructure Strategy Continued: 2. ) Water/Wastewater Maintenance & Improvements v Grant funding for infrastructure has not been available from IRRRB. The remaining phase of Gardendale (3 rd Street West) has been put on hold. v Discussions continue with the City of Hoyt Lakes, City of Aurora, City of Biwabik, and Town for a Joint Water District with either a new water plant in Pineville or expanding the Biwabik Plant to serve the communities. A bonding bill was submitted but it is unlikely it will go through for funding. v A back-up generator will be purchased for the lift stations and some of the lines will need to be cleaned this spring. v Total Expenditures 2016 water/sewer: $18, 950. 00 v Total Receipts 2016 for water/sewer: $27, 755. 00

Category 3 - Operations/Infrastructure continued: 3. ) Equipment Maintenance & Replacement v A 2018 Mack Tandem Truck has been purchased at a cost of $204, 519. 00 to be spread over three annual payments. v Reality is our trucks are over 20 years old and we need to have them replaced. v Parts and labor are very costly as equipment ages. v A new pre-mix heater will be purchased because the 20 year old one we have is rusted out. Repairs have been made to get through this Spring.

Road & Bridge List of Equipment: � Stepp SPH-2. 0 Pre-Mix Heater W/tandem axle � 2009 Ford F-350 1 Ton Pickup � 2006 Ford F-250 Regular Cab 4 x 4 w/plow 2010 Mack Truck-Tractor � 1999 Ford F-250 Pickup � 1999 International Tandem 6 x 4 � 2 – Single Axle Trailers � 1997 International Tandem � 1 – 18’ Equipment Trailer � 1993 International Tandem - LOWBOY � 2002 John Deere Tractor Mower � 1982 International Diesel Tandem � 1994 Case 9030 Excavator � 2001 Dynaweld 35 Lowboy Trailer � 1989 Case 580 K Backhoe � 1999 Ranco Tri-Axle Belly Dump Trailer � 1986 John Deere Grader � 2015 CAT Hydraulic 308 E 2 Excavator � 2015 Ford F-250 Lift Truck � 2014 John Deere 670 G Motor Grader � 2012 Volvo Wheel Loader �

Category 4 -Fiscal Sustainability Strategy Category 4 Goals: Maintain the unreserved portion of the fund balance at 50%, increase investments, and ensure adequate reserve is maintained for unforeseen rise in operating expenses & attrition of employees. General Fund includes: City/Town Government Center, Elections, Loon Lake Community Center, Recreation; Road & Bridge Fund includes Cemetery, Buildings & Grounds, Highways & Roads, Refuse Collection; Debt Fund includes Equipment Purchases and General Obligation Bond Payments for Projects; Fire Department has their own fund which is generated from the General Fund but ensures allocated dollars stay with the Fire Department. 2016 & 2017 Levy Collected Comparison $ 700 000, 00 $- General Road & Bridge $ 117 043, 00 $ 114 748, 00 Debt $ 95 000, 00 $ 100 000, 00 $ 584 474, 00 $ 200 000, 00 $ 573 014, 00 $ 300 000, 00 $ 397 458, 00 $ 400 000, 00 $ 402 207, 00 $ 500 000, 00 $ 90 000, 00 $ 600 000, 00 Fire Dept 2016 Levy (0% Increase approved in 2015) $1, 175, 220 2017 Levy (2% increase approved in 2016) $1, 198, 724

Where did our money come from in 2016 (not including Annexation payments)? Miscellaneous 3% W/WW Revenue 1% Fire Services 3% Property Taxes IGR Grants & Mining Effects 11% Charges for Services [CATEGORY NAME] [PERCENTAGE] Property Taxes 42% Grants & Mining Effects Miscellaneous Fire Services IGR 33% W/WW Revenue

Where do we spend our money? GEN Fund W/WW 1% FIRE 3% GEN Fund 18% CAPITAL 23% R & B Fund DEBT 10% CAPITAL R & B Fund 46% W/WW FIRE

Category 4 -Fiscal Sustainability 2016 – Monthly Beginning Balance to Ending Balance ALL FUNDS JANUARY BEGINNING BALANCE $1, 338, 019. 18 TOTAL RECEIVED $41, 770. 31 TOTAL SPENT $124, 842. 24 ENDING BALANCE $1, 254, 947. 25 FEBRUARY $1, 254, 947. 25 $163, 767. 91 $113, 768. 27 $1, 304, 946. 89 MARCH $1, 304, 946. 89 $201, 880. 56 $181, 459. 08 $1, 325, 368. 37 APRIL $1, 325, 368. 37 $7, 119. 05 $165, 016. 96 $1, 167, 470. 46 MAY $1, 167, 470. 46 $90, 903. 61 $104, 931. 58 $1, 153, 442. 49 JUNE $1, 153, 442. 49 $42, 402. 34 $157, 889. 74 $1, 037, 955. 09 JULY $1, 037, 955. 09 $576, 621. 60 $116, 362. 64 $1, 498, 214. 05 AUGUST $1, 498, 214. 05 $851, 358. 42 $201, 834. 35 $2, 147, 738. 12 SEPTEMBER $2, 147, 738. 12 $402, 992. 89 $136, 234. 80 $2, 414, 496. 21 OCTOBER $2, 414, 496. 21 $17, 799. 64 $407, 258. 67 $2, 025, 037. 18 NOVEMBER $2, 025, 037. 18 $24, 665. 39 $358, 777. 84 $1, 690, 924. 73 DECEMBER $1, 690, 924. 73 $414, 177. 99 $120, 044. 62 $1, 985, 058. 10

Category 4 -Fiscal Sustainability 2016 Cash & Investment Balances January 2016 Beginning CASH BALANCE $1, 338, 019. 18 December 2016 Ending CASH Balance $1, 985, 058. 10 Comparison to Ending Balance in 2015 Reasons for Increase in CASH Balance: Average Monthly Disbursed YTD: +647, 038. 92 increase Continue to reduce spending where we can and invest in roads to reduce maintenance costs; Investing in new equipment to reduce spending on parts and labor; $182, 368 per month (compared to $155, 000 in 2015)

Investments Breakdown: Investments Total 2016: � Severance Savings $122, 102. 67 (This account is reserved for employee severance) � Gilbert Bank CD #1 $100, 965. 66 � Gilbert Bank CD #2 $271, 253. 34 � Gilbert Bank Savings $229, 194. 01 �Total 2016: $723, 679. 01 �Total Cash & Investments: $2, 708, 737. 11

Category 4 Fiscal Sustainability continued: 2016 Notable Receipts ALL FUNDS (rounded): Fire Contracts Tax Apportionment Town Road Aid Taconite Production Tax Annexation Payments Taconite Homestead Credit Taconite Local Aid Road Maintenance (SLC) Mining Effects PERA Aid Open Gym Fees Disparity Reduction Aid Snowplowing Fees Refunds/Reimbursements Sale of Garbage Bags Pavilion Rent W/WW Fees, Permits, Connection Fees LLCC Rent Cemetery Revenues, Lot Sales, Columbarium Sales Propane Reimbursement (SLC) Recreation Fees (Painting, Pallets etc. ) $36, 000. 00 $844, 054. 00 $26, 712. 00 $152, 408. 00 $690, 782. 00 $100, 297. 00 $50, 000. 00 $85, 000. 00 $69, 320. 00 $2, 739. 00 $150. 00 $228, 882. 00 $21, 400. 00 $31, 691. 00 $24, 114. 00 $1, 900. 00 $18, 034. 00 $3, 931. 00 $9, 800. 00 $7, 797. 00 $535. 00

Category 4 -Fiscal Sustainability continued: 2016 Notable Disbursements Notable Disbursed ALL FUNDS (rounded to nearest dollar): Personnel Costs $641, 152 (wages, benefits, pension, (Board, Employees, Summer worker’s comp insurance etc. ) seasonal employees) Fire Department Personnel $25, 896 Fire Department Operating Costs $28, 615 2016 Refuse Costs $136, 662 Garbage Bag Purchase $6, 461 Legal Services $14, 527 Equipment Fuel & Lubricants $46, 344 Loon Lake Community Center $52, 564 Shooting Range $4, 532 Economic Dev (ERJPB) $25, 376 2016 Property & Casualty Insurance $19, 965 Technology Upgrades $4, 515 Storm Drainage $8, 699 Utilities (Electric, Phone/Internet) $46, 196 Engineering Costs $45, 616 Army Corps of Engineers PAS Program W/WW Expenses Park Areas Parts (incl. tires) & Repairs for Equip Operating, Repair & Maint. Supplies (non-LLCC & FD) Advertising, Printing, & Postage Costs $2, 298 Dues, Subscriptions, Licenses, Permits $50, 793 Audit $15, 996 Ambulance Service Contract Streets (Paved & Unpaid) Materials Cemetery Communication Radios $25, 692 $3, 016 $22, 982 2016 Elections Twin Lakes Loop/Gardendale Project 2016 New Cold Storage Building Down Payment Safety Supplies/Medical $1, 984 Gardendale Phase 3 Final Payment Engineering Costs $45, 616 $9, 322 $9, 750 $18, 950 $9, 495 $14, 200 $10, 121 $371, 813 $10, 000 $45, 667

Category 4 - Fiscal Sustainability Continued: Indebtedness as of 12/31/16 Indebtedness Maturity Date 01/01/2016 Balance Paid in 2016 Outstanding Debt 12/31/16 GO Refunding Bond 2009 12/01/2016 $65, 000. 00 $0 2012 Volvo Loader 12/10/2017 $59, 924. 21 $29, 480. 39 $30, 443. 82 2014 JD Grader 09/27/2017 $95, 491. 20 $47, 148. 95 $48, 342. 25 2015 CAT Excavator 11/09/2018 $119, 947. 00 $42, 200. 92 $77, 746. 08 $340, 362. 41 $183, 830. 26 $156, 532. 15 Total

Category 4 – Fiscal Sustainability Continued: Budget Balance Trend (not including investments) Budget Balance Trend 2008 -2016 $2 225 000, 00 $2 025 000, 00 $1 825 000, 00 $1 625 000, 00 $1 425 000, 00 Beginning Balance $1 225 000, 00 Ending Balance $1 025 000, 00 $825 000, 00 $625 000, 00 $425 000, 00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Category 4 – Fiscal Sustainability Continued: Disbursements vs. Receipts 2008 -2016 2015 2014 2013 2012 2011 2010 2009 2008 $500 000 Disbursements Receipts $1 000 $1 500 000 $2 500 000

Category 4 - 2017 Levy Certification Due 9/15/17: � Current Levy Amount: $1, 198, 724. 00 � In 2016, the community voted for a 2% levy increase payable in 2017. � With decreasing receipts in Taconite Production Tax and Mining Effects funds in 2017 (due to the mine shutdowns), the Board is thankful for the increase in last year’s levy. Without it, we would be reducing budgets. � The Town would like to continue to buy new equipment and continue to resurface our roads. � Grant opportunities are decreasing and more competitive when they open

Category 4 - 2017 Levy & Budget Discussion continued: � According to the census, our population in 2015 was 1, 522 with 649 households compared to 1, 627 with 654 households in 2000. The trends is less households with less people in each household. � Breakdown of Levy to be Collected in 2017 by Township Section: � Township 57 = 37. 40% � Township 58 = 42. 30% � Township 59 = 20. 30% � The Board is requesting the levy discussion be delayed to the Continuation of Annual Meeting to be held on September 12, 2017. � Proceed to Other Business – this ends the powerpoint presentation.