Town of White Annual Town Meeting March 10

Town of White Annual Town Meeting March 10, 2015 Prepared by: Jodi Knaus 6: 00 P. M. Loon Lake Community Center

Review of Town’s 2014 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. ) Aurora Shop (Green Monster) has been rented to a buyer on a monthly basis until the purchase is finalized. Several improvements were made to the building to allow the sale (removal of mold, asbestos, overhead doors fixed). The plan is to build a new storage building at the Palo Garage site. Sale should take place very soon. Rent received was a total of $2, 400. Rent increased to $500 per month in Feb. 2015.

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 needs to continue for use & upgrading the building as things age; Gym Floor will need sealing and floor tiles in the classrooms need to be replaced; Roof and furnace will need to be replaced; Technology could be enhanced to get more usage of the classrooms (proxima, screens, etc. ); v The Palo-Markham School Group agreement needs to be created as the old lease expired in 1985; The group has requested assistance in updating their by-laws; v Many ideas have come forward for use of the building and we will continue to host events as the budget allows; v Health & Wellness Fair was held on October 3, 2014 and was very successful; We will offer it again this year. v Blacktopped front entrance but this needs to be fixed; v PMSG installed security cameras; v Total rent received for the Community Center in 2014 $4, 310. 00; Total Spent in 2014 was $92, 142; Of this $32, 408 was personnel which ended in 2014; Actual Operating Costs: $59, 734.

Category 1 - Facilities Management Strategy Continued: 3. ) Public Works Garage & Fire Hall v. Fire Hall & Old Shop roof will need repairs in the future v. New dry hydrant installed 4. ) Twin Lakes Pavilion & Grounds v Parking lot will need to be repaired soon as well as the entrance to the property v Dock was replaced v Storm shelter roofs need to be replaced; Kitchen appliances need replacement, power needs to be upgraded as renters experienced problems last summer v New toilet installed v 2014 Rent received was $1, 650. 00 v Grant application for Outdoor Recreation will be submitted by 03/31/15 – Board hopes to increase recreation in the township; Ideas: baseball, swimming lessons, disc golf, skate park etc.

Category 1 - Facilities Management Strategy Continued: 5. ) Embarrass & Pineville Parks v Discussions continue about creating a Joint Water/Wastewater Plant between Hoyt Lakes, Aurora, Biwabik, and the Town Projected placement of the new plant is in Pineville v No activity in 2014 for either of the Parks 6. ) Cemetery v Concrete work should be completed around the columbarium v Cemetery software could be purchased to get burial records & cemetery maps online v Niches are available in the columbarium for purchase v The cemetery has 333 vacant lots (for sale) v In 2014 there were 14 burials 7. ) Shooting Range v The Rinehart 100 Archery Event will be held again in June v A $4, 906 DNR grant was received to purchase a new trap which cost $11, 816. 00 (Town contributed $2, 000 towards purchase) v Grant options are being pursued for adding infrastructure

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; two retirements in 2014 ◦ Three (3) of the employees are eligible for retirement (age 55 or older) ◦ Board plans to hire two summer laborers, lifeguards, and a caretaker for the Pavilion again this summer ◦ Bargaining Agreement with Local 49 was renewed through 12/31/2017; Employees received a. 75 per hour increase each year; Benefits remain the same with a $1, 000 per employee reduction in the annual Health Care Savings Plan ◦ The Board received a $25 per month increase in wage ◦ Training & Development of the staff is supported – public works certifications include licensed boiler operator(s), water/wastewater technician(s), MNDOT vehicle inspector, all employees meet MSHA/OSHA safety training standards; Clerk will be a Certified (MMCC) Clerk Spring 2015 (three-year program)

Category 2 – Organizational Development � Other Organizational Strategies: ◦ The Town needs to continue to invest in property �Would like to purchase gravel pit owned by Potlatch ◦ The Town needs to complete a Comprehensive Plan �Must include Issues & Opportunities, Housing, Transportation, Utilities, Community Facilities, Mining, Timber, Tourism, Natural & Cultural Resources, Recreation, Open Space, Cultural Arts, Economic Development, Intergovernmental Cooperation, Land Use, and Implementation of each of these areas; The East Range Joint Powers Board will submit a combined Comprehensive Plan for all four entities ◦ An Emergency Management Plan needs to be created for the Town; Clerk Knaus and Foreman Hinsz will work on this ◦ Our logo should be re-designed to replace the golf flag and skier

Category 2 – Organizational Development - Fire Department Update � Currently 16 members serve on the volunteer department – one retirement in 2014; 3 EMT’s; 6 First Responders; Chief Kippley will retire in June � The department is always seeking new volunteers � 2013 Statistics: 59 total calls; � 2014 Statistics: 42 medical calls; 13 personal injury accident calls; 11 structure fires; 2 vehicle fires; 1 debris fire; 2 power line calls; 15 cancelled in route; Total 86 total calls; � FEMA grants – have not received funding in many years; We need to purchase a new fire truck � Annual Pancake Feed/Silent Auction was held October 18, 2014

Category 2 – Organizational Development – Fire Projects Update � New Water Source – Dry Hydrant Project – Total cost of project to date $20, 775 � ATV Replacement – replaced stolen one � “I Am Responding” Software � Box Alarms � Tanker Chassis Replacement

Category 2 - Organizational Development continued: � Technology Strategy – The township recognizes that it needs to stay current with technology to ensure operations are efficient. ◦ Technology updates for the office: direct deposit of payroll, credit card acceptance for payments, IPADS/electronic meeting packets are hoped for in the future ◦ A new phone system will need to be purchased in the future as the technology is becoming obsolete ◦ Website enhancements/updates for Loon Lake Community Center, Cemetery, Fire Department, & Pavilion at www. townofwhite@yahoo. 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 2014 are: ◦ Sharing equipment and personnel for emergency response ◦ Purchasing office supplies in bulk ◦ Purchasing equipment such as a sewer camera and water/wastewater supplies ◦ The Town of White administers the City of Aurora Elections and the City of the Aurora does the billing for the Town of White’s water and sewer customers ◦ St. Louis County is going to take over the administration of the fuel system. Instead of the Town billing the County for their fuel usage at our cost, the County will bill the Town for our use and both entities will save money because the County gets fuel at a cost below rack rate (cheaper than the Town pays)

Category 3 – Operations/Infrastructure Strategy: Category 3 Goals: Develop a roadway improvement schedule, continue to invest in water/wastewater infrastructure & services, purchase new equipment 1. ) Roadway Improvement & Maintenance v The Board recognizes many of our roads need to be fixed (patched, blacktopped, etc. ); As part of our Comprehensive Plan required by IRRRB to receive funding, a complete road maintenance & resurfacing program will be implemented; Roads recognized by the Board from citizen concern is the Twin Lakes Loop Road, Twin Lakes Parking Lot, & Stepetz Road v Total Road & Bridge Budget goes towards roadside mowing & sweeping, bike trail, sand/salt application, snowplowing, ditching, grading, fuel, parts, culverts, and refuse collection v Fuel costs have decreased– paid $72, 488 in 2014

Category 3 – Operations/Infrastructure Strategy Continued: 2. ) Water/Wastewater Maintenance & Improvements v Gardendale Project phase 3 was postponed to this year due to lack of funding; We have $300, 000 in grant funding from the IRRRB to complete Phase 3 & 4; The grants need to be matched; We need to get easements from two properties in this area; v Discussions continue with Aurora, Biwabik, and Hoyt Lakes to build a new water treatment plant and have a joint water district to provide water to Biwabik, Scenic Acres, Pineville (sewer), Giants Ridge area, Wynne Lake Road residents, Aurora, Gardendale area, Forestry Road, Loop 50 A, and down Highway 110 to Hoyt Lakes v Water/Wastewater fees collected monthly from residents YTD $9, 721. 03. These funds are designated for water/wastewater upgrades and maintenance/repairs only.

Category 3 - Operations/Infrastructure continued: 3. ) Equipment Maintenance & Replacement v. A new John Deere grader was purchased on a four year annual payment plan at a total cost with interest of $198, 255. 08 v. Parts and equipment repairs continue to rise. The Board approved the purchase of a new lift truck for $30, 000 in February 2015. A miniexcavator and a new plow truck will be needed in the near future. YTD equipment repair costs $42, 614. Our equipment is showing wear & tear due to age – see following list of inventory for road and bridge equipment

Road & Bridge List of Equipment: 2014 John Deere 670 G Motor Grader 2012 Volvo Wheel Loader 2010 Mack Truck-Tractor 1999 International Tandem 6 x 4 1997 International Tandem 1993 International Tandem - LOWBOY 1982 International Diesel Tandem 2001 Dynaweld 35 Lowboy Trailer 1999 Ranco Tri-Axle Belly Dump Trailer 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 1999 Ford F-250 Pickup 2 – Single Axle Trailers 1 – 18’ Equipment Trailer 2002 John Deere Tractor Mower 1994 Case 930 Excavator 1989 Case 580 K Backhoe 1986 John Deere Grader

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, Fire Department, Recreation; Road & Bridge Fund includes Cemetery, Buildings & Grounds, Highways & Roads, Refuse Collection; Debt Fund includes Equipment Purchases and General Obligation Bond Payments for Projects 2014 Levy (Collected in 2015) - $1, 175, 220 $114, 748 General $487, 458 Road & Bridge Debt $573, 014

Category 4 -Fiscal Sustainability 2014 – Monthly Beginning Balance to Ending Balance BEGINNING BALANCE TOTAL RECEIVED TOTAL SPENT JANUARY $524, 306. 05 $24, 928. 67 $190, 718. 72 $358, 516. 00 FEBRUARY $358, 516. 00 $174, 887. 56 $143, 315. 95 $390, 087. 61 MARCH $390, 087. 61 $4, 005. 97 $178, 194. 72 $215, 898. 86 APRIL $215, 898. 86 $6, 670. 76 $189, 241. 38 $33, 328. 24 MAY $33, 328. 24 $117, 962. 72 $101, 783. 13 $49, 507. 83 JUNE $49, 507. 83 $385, 736. 76 $143, 020. 96 $292, 223. 63 JULY $292, 223. 63 $197, 110. 10 $127, 751. 29 $361, 582. 44 AUGUST $361, 582. 44 $365, 375. 85 $163, 566. 11 $563, 392. 18 SEPTEMBER $563, 392. 18 $111, 835. 11 $120, 216. 59 $555, 010. 70 ALL FUNDS ENDING BALANCE OCTOBER $555, 010. 70 $51, 323. 25 $282, 956. 45 $323, 377. 50 NOVEMBER $323, 377. 50 $38, 282. 15 $125, 311. 29 $236, 348. 36 DECEMBER $236, 348. 36 $961, 935. 28 $289, 654. 20 $908, 629. 44

Category 4 -Fiscal Sustainability 2014 Ending Cash & Investment Balances – Year to Year Comparison January 2014 Beginning CASH BALANCE $524, 306. 05 December 2014 Ending CASH BALANCE $908, 629. 44 Increase in Cash Balance Year-end $384, 323. 39 Reasons for Increase in CASH Balance: 2014 ended with no negative balances across all funds at year-end $405, 000 Annexation Payment Reduced Spending by 14. 11% Township Wide 12/31/2013 Investment Balance: $615, 635. 44 12/31/2014 Investment Balance: Difference from 2013 to 2014 Cash Balance 2014 ENDING CASH & INVESTMENT BALANCE: Difference from 2013 to 2014 Cash & Investment Balance $617, 625. 77 +1, 991. 33 $1, 526, 255. 21 +386, 313. 72

Investments Breakdown: � Investments Total 2014: ◦ Severance Savings $121, 290. 61 ◦ Gilbert Bank CD $268, 283. 90 �This account is reserved for employee severance �$72, 000 is reserved for Fire Department equipment ($36, 000 per year St. Louis County Contract) ◦ Gilbert Bank Savings $228, 051. 26 Total Investments: $617, 625. 77 The Town purchased an additional $100, 000 CD at the First National Bank of Gilbert on 01/16/15 to bring investments total YTD 2015: $717, 997. 69

Category 4 Fiscal Sustainability continued: 2014 Notable Receipts ALL FUNDS (rounded): Fire Contracts Tax Apportionment Town Road Aid Taconite Production Tax Taconite Municipal Aid Transfer from Savings Taconite Local Aid FD Grant Mining Effects PERA Aid SLC Road Maintenance DNR PILT Disparity Reduction Aid Snowplowing Fees Refunds/Reimbursements Sale of Garbage Bags Insurance Claims Pavilion Rent Garage Rent W/WW Fees LLCC Rent Refunds/Reimbursements/Misc. Sale of Materials/Supplies $41, 950 $913, 082 $29, 235 $193, 331 $104, 124 $100, 000 $5, 000 $72, 459 $2, 739 $60, 000 $2, 640 $228, 382 $23, 475 $66, 315 $19, 319 $32, 004 $1, 650 $2, 400 $9, 721 $4, 310 $66, 315 $20, 324

Category 4 -Fiscal Sustainability continued: 2014 Notable Disbursements Notable Disbursed ALL FUNDS (rounded to nearest dollar): Personnel Costs thru 12/31/14 $643, 364 (wages, benefits, pension, (Board, Employees, Fire, Summer worker’s comp insurance etc. ) seasonal employees) 2014 Assessing Costs 2014 Refuse Costs $12, 348 $129, 770 Annexation Costs $84, 386 Fuel for Equipment $72, 488 Propane & Oil $75, 571 Electric $13, 297 Telephone/Internet $7, 297 Economic Dev (ERJPB) $15, 000 2014 Property & Casualty Insurance $40, 938 2014 Worker's Comp Insurance $22, 925 Professional Services Rental Fees $6, 978 FD Int'l Truck Purchase $1, 500 Engineering Costs $24, 169 Capital Projects(Stepetz Rd Repair, Gardendale, 2 + 2 Joint Projects) $97, 743 $12, 530 Parts/Repairs for Equip $42, 614 W/WW Enterprise Expenses Operating Supplies Advertising, Printing, & Postage Costs $56, 992 Dues, Subscriptions, Licenses Training (elections & staff) $6144 $6, 965 Road Materials (Dust, Culverts, etc. ) $8, 748 Small Tools/Minor Equipment 6, 350 $19, 124 $3, 560 Volvo Loader Payments 2014 $27, 644 2014 Audit Grader Payments 2014 Elections (includes training costs) $49, 564 Office Equipment (copier) $6, 653 $17, 327 Ambulance Service Contract $4, 200 Safety Supplies/Medical $9, 264 $12, 400

Fiscal Sustainability Cont. � Annexation was mediated & settled with the following terms: � � � No annexation for 50 years The Town will plow Voyageur’s Retreat Town & City will work together for future infrastructure; Town to pay 40% after all assessments levied Agreement protected against changes in the law City to Pay Town for years through 2013: � � $405, 000 on November 30, 2014 $300, 000 on July 31, 2015 $300, 000 on July 31, 2016 All payments required 2014 and after

Category 4 - Fiscal Sustainability Continued: Indebtedness as of 12/31/14 Paid in 2014 Outstanding Debt 12/31/14 Indebtedness Maturity Date 01/01/2014 Balance 2010 Mack Truck 12/01/2014 $25, 000 $0 GO Refunding Bond 2009 12/01/2016 $200, 000 $75, 000 $125, 000 Palo Garage Expansion 12/01/2014 $60, 000 $0 2012 Volvo Loader 12/10/2017 $116, 115. 73 $27, 644. 06 $88, 471. 67 2014 JD Grader 09/27/2017 $0 $49, 563. 77 $141, 477. 23 Total $354, 948. 90

Category 4 – Fiscal Sustainability Continued: Budget Balance Trend (not including investments) Budget Balance Trend 2008 -2015 $950 000, 00 $900 000, 00 $850 000, 00 $800 000, 00 $750 000, 00 $700 000, 00 $650 000, 00 Beginning Balance $600 000, 00 Ending Balance $550 000, 00 $500 000, 00 $450 000, 00 $400 000, 00 $350 000, 00 $300 000, 00 2008 2009 2010 2011 2012 2013 2014 2015 4. 42% Increase in Receipts & 14. 11% Reduction in Spending in 2014 compared to 2013

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

Category 4 - Fiscal Sustainability Continued: 1 200 000, 00 2014 Actual & 2015 Proposed Budget by Fund 1 000, 00 800 000, 00 600 000, 00 400 000, 00 200 000, 00 General Fund Receipts General Fund Disb. R&B Receipts R & B Disb. Debt Receipts 2014 Actual 2014 Budgeted 2015 Proposed Linear(2014 Budgeted) Debt Disb. Clerk’s Financial Report Ends Here Motion to accept Proceed to Levy Discussion

Category 4 - 2015 Levy Certification Due 9/15/15: � Current Levy Amount: $1, 175, 220 ◦ The Board is recommending a 0% increase in the levy for 2015 payable in 2016. Questions or comments? Next: Welcome Curt Anttila, Economic Development Coordinator for a short presentation Thank you!