Town of White Annual Town Meeting March 11

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Town of White Annual Town Meeting March 11, 2014 Prepared by: Jodi Knaus 6:

Town of White Annual Town Meeting March 11, 2014 Prepared by: Jodi Knaus 6: 00 P. M. Loon Lake Community Center

Review of Town’s 2013 Outcomes for Each Focus Area in the Strategic Plan �

Review of Town’s 2013 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. ) City/Town Government Center v. Public Works Crew created new office design for Clerk & Treasurer – stop by and check it out! v Building is in good condition

Category 1 – Facilities Management Strategy Continued: 2. ) Loon Lake Community Center v

Category 1 – Facilities Management Strategy Continued: 2. ) Loon Lake Community Center v Hired Caretaker to help maintain the property at no cost – tenant provides duties in lieu of rent v Minor roof repairs have been made v Long-range planning needs to continue for use & maintenance of the building (marketing, Palo. Markham School Group Lease Update, maintenance when the Housekeeping Rental Manager retires, facilities upgrades) v Rent received for 2013 - $3, 585 v Building costs including personnel for 2013: $103, 747. 60 v Received St. Louis County Recycling Grant in 2014 – six recycling bins will be placed at facility

Category 1 Facilities Management Strategy Continued: 3. ) Public Works Garage & Fire Hall

Category 1 Facilities Management Strategy Continued: 3. ) Public Works Garage & Fire Hall v. Garage Doors had some improvements (weather-stripping) v. Water softener was purchased instead of paying monthly rental fee for a savings of $1350 year v. Fire Hall roof will need repairs in the future v. Former Garage in Aurora is being rented at $200 per month to a buyer through May 2014– sale pending v. Once this is sold, the township will need to determine storage needs. The hope is to build a new storage garage at the current Public Works location using the funds from the sale of the building

Category 1 Facilities Management Strategy Continued: 4. ) Twin Lakes Pavilion & Grounds v

Category 1 Facilities Management Strategy Continued: 4. ) Twin Lakes Pavilion & Grounds v Dead trees were removed v Pea rock was placed in the playground area v Cold Storage Building was broken into and the fire department four-wheeler was stolen along with plywood and some minor damage to the door/lock v Parking lot will need to be repaired soon as well as the entrance to the property v Campground facilities have been discussed but no plans to implement v Facilities use is holding steady – received $2000 in rent for the pavilion in 2013

Category 1 Facilities Management Strategy Continued: 5. ) Embarrass & Pineville Parks v Inquiries

Category 1 Facilities Management Strategy Continued: 5. ) Embarrass & Pineville Parks v Inquiries have been made about purchasing property from the Town in Pineville – the town owns 30 lots; An inquiry also has been made to purchase the Embarrass Park (5 acres); How does the public feel about these inquiries? 6. ) Cemetery v Concrete work should be completed around the columbarium v Niches are available in the columbarium for purchase v The cemetery is at 58. 25% capacity – roughly 334 vacant lots v In 2013, there were 12 burials 7. ) Shooting Range v The Rinehart 100 Archery Event will be held June 28 -29, 2014 v Grant options are being pursued for adding infrastructure

Category 2 Outcomes – Organizational Development Category 2 Goals: Determine adequate personnel needs, develop

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 – 10 employees; one retirement in 2014 projected (Housekeeping Manager @ LLCC) this position will not be replaced; 50% of the employees are eligible for retirement (age 55 or older)

Category 2 – Organizational Development � Personnel Update continued: v Bargaining Agreement with Local

Category 2 – Organizational Development � Personnel Update continued: v Bargaining Agreement with Local 49 expires 12/31/2014 – negotiations with staff will start in Spring 2014 v 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, and Clerk is working towards becoming a certified Clerk (three-year process);

Category 2 – Organizational Development - Fire Department Update Currently 18 members serve on

Category 2 – Organizational Development - Fire Department Update Currently 18 members serve on the volunteer department – one retirement this spring � The department is always seeking new volunteers � 2013 Statistics: 66 total calls; 28 medical calls, 4 mutual aid medical calls, 5 traffic calls, 13 cancelled in route, 4 fire calls, 9 mutual aid fire calls, 3 false alarms � Applied for two FEMA grants � ◦ Equipment & tools to provide critical services to our service area and surrounding communities through mutual aid ◦ Four-wheel drive Utility vehicle Hosted Annual Pancake Feed/Silent Auction � Future plans: put permanent water source on lake side – received $5, 000 grant � Looking for a used fire truck to replace the 1981 truck �

Category 2 Organizational Development continued: � Technology Strategy – The township recognizes it needs

Category 2 Organizational Development continued: � Technology Strategy – The township recognizes it needs to stay current with technology to ensure operations are efficient. Several upgrades were accomplished in 2013: ◦ New computer was purchased for the Clerk and a new monitor for the Treasurer - $2, 226. 00 ◦ Internet & telephone were bundled for a cost savings in the office, palo garage, and fire department; ◦ A computer and printer with internet was installed for the Public Works Crew – e-mail address is white. [email protected] com (used equipment from office) ◦ An upgraded fuel master system was installed for monitoring and billing the gas used – cost of $13, 144. 70

Category 2 Organizational Development continued: � Technology Upgrades continued: v. A website for the

Category 2 Organizational Development continued: � Technology Upgrades continued: v. A website for the township is current at www. [email protected] com v. Wireless is available in City/Town government center � The township continues to explore all avenues for costsavings by working with Aurora, Biwabik, and Hoyt Lakes whenever possible. Examples from 2013 are: ◦ Lifeguard Pool for public beaches ◦ Sharing equipment and personnel for emergency response ◦ Purchasing office supplies in bulk ◦ Purchasing equipment (sewer camera)

Category 3 – Operations/Infrastructure Strategy: Category 3 Goals: Develop a roadway improvement schedule, continue

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 allocated $25, 000 in 2014 to road improvements v Dust control costs for 2013 was $14, 944. 41 v Gravel crushing was completed in December 2012, paid in January 2013 for the next five years – cost $125, 572. 46 v Fuel costs continue to rise – the township paid $163, 204. 49 in 2013 and $38, 931. 68 in 2014 to date. A portion of this is reimbursed by St. Louis County for their usage v Stepetz Road Slope Repair Project to begin in Spring 2014 – Fema Grant applied for – estimated cost $85, 300

Category 3 – Operations/Infrastructure Strategy Continued: 2. ) Water/Wastewater Maintenance & Improvements v Gardendale

Category 3 – Operations/Infrastructure Strategy Continued: 2. ) Water/Wastewater Maintenance & Improvements v Gardendale Project phase 3 to begin this spring - $150, 000 grant received from IRRRB v Lift Stations – alarm system installed v Water/wastewater duties continue to rise with the town’s water/sewer infrastructure continuing to increase. The town work’s closely with the City of Aurora personnel and shares equipment & tools for maintaining the lines. 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, Aurora, Gardendale area, and down Highway 110 v Water/Wastewater fees are being collected monthly from residentscurrent fund balance is $5, 549. 06 – these funds are designated for water/wastewater upgrades and maintenance only

Category 3 -Operations/Infrastructure continued: 3. ) Equipment Maintenance & Replacement v. Quotes have been

Category 3 -Operations/Infrastructure continued: 3. ) Equipment Maintenance & Replacement v. Quotes have been collected for purchasing a new grader v. Quotes have been collected for purchasing a mini -excavator v. The Board allocated $40, 000 towards the purchase of new equipment in 2014– the remaining cost will come from a loan v. The amount of money spent in 2013 on parts and equipment maintenance was $43, 780. 95 (including tires)

Category 4: Fiscal Sustainability Strategy Category 4 Goals: Increase the unreserved portion of the

Category 4: Fiscal Sustainability Strategy Category 4 Goals: Increase the unreserved portion of the fund balance to 50%, increase investments, and ensure adequate reserve is maintained for unforeseen rise in operating expenses & attrition of employees 1. ) Maintaining Adequate Reserve v The Board elected in 2014 to maintain a reserve of 50%. What does this mean? The State Auditor recommends that the Unreserved portion of the fund balance (those funds not already dedicated to projects equal 35% - 50% of the operating budget. Let’s take a look at the Town’s Ending Cash Balance for 2013

Category 4: Fiscal Sustainability 2013 Ending Cash Balance Checking Account Balance: $524, 306. 05

Category 4: Fiscal Sustainability 2013 Ending Cash Balance Checking Account Balance: $524, 306. 05 Investments Balance: $615, 635. 44 2013 Ending Cash Balance Total: $1, 139, 941. 49 Amount of money committed in which the township is legally committed to pay: ($73, 793. 94) (Stepetz Road, Gardendale, Salaries Payable Shortage) Minus water/wastewater fund balance (5, 549. 06) Ending Cash Balance for Unreserved Allocation: $444, 963. 05

Category 4 Fiscal Sustainability Continued: Unreserved Balance needed � 50% of the $1, 139,

Category 4 Fiscal Sustainability Continued: Unreserved Balance needed � 50% of the $1, 139, 941. 49 budget balance equals $569, 970. 75. This amount needs to be deducted from the balance to determine how much money the township has to designate to other projects and/or initiatives � $1, 139, 941. 49 – $444, 963. 05 - $569, 970. 75= $125, 007. 69 to designate to projects � As stated earlier, the Board designated $40, 000 to equipment purchases and $25, 000 to road maintenance of the $125, 007. 69

Category 4 Fiscal Sustainability continued: Investments ◦ The Town currently has a savings account

Category 4 Fiscal Sustainability continued: Investments ◦ The Town currently has a savings account at Northern State Bank – Aurora for paying severance. The balance of $120, 806. 49 is short $26, 964. 86 if the township were to have to pay severance of all employees at once. The shortage amount is included in the “reserved” committed funds. ◦ The Town moved a money market account from Northland Securities to the First National Bank of Gilbert because the account stopped earning interest in March 2013. ◦ The money earned from all investments for 2013 was $1, 747. 14. The ending balance is $615, 635. 44. ◦ The Town’s goal is to continue to invest wisely

Category 4 - Fiscal Sustainability Continued: Indebtedness as of 12/31/13 Paid in 2013 Outstanding

Category 4 - Fiscal Sustainability Continued: Indebtedness as of 12/31/13 Paid in 2013 Outstanding Debt 12/31/13 Indebtedness Maturity Date 01/01/2013 Balance 2010 Mack Truck 12/01/2014 $50, 000 $25, 000 GO Refunding Bond 2009 12/01/2016 $220, 000 $45, 000 $175, 000 Palo Garage Expansion 12/01/2014 $120, 000 $60, 000 2012 Volvo Loader 12/10/2017 $142, 885 $26, 769. 27 $116, 115. 73 Total $376, 115. 73

Category 4 – Fiscal Sustainability Continued: Annexation Update � On or about April 5,

Category 4 – Fiscal Sustainability Continued: Annexation Update � On or about April 5, 2001, the City of Biwabik filed a petition to annex approximately 6, 760 acres of land from the Town of White � The parties arrived at a settlement agreement that was fully executed on September 18, 2002 � Under the terms of the agreement, Biwabik agreed to reimburse White for the tax revenue that it would lose in the future as a result of the annexation. The property was divided into four areas. The reimbursement is based on an agreed upon formula and paid annually; special legislation approved the formula/contract between the two parties

Category 4 – Fiscal Sustainability Continued: Annexation Update � In 2005, the Town of

Category 4 – Fiscal Sustainability Continued: Annexation Update � In 2005, the Town of White noted a discrepancy in the payments and began negotiations – these failed and the statute of limitations was running out so the town filed a lawsuit � The case went to trial in January 2014. The parties attorneys have until the end of March to submit their trial summaries to the judge; The judge will make a ruling by the end of June 2014 � The amount owed to White from Biwabik through 2012 for incorrect and missed payments is over $1 million – the last payment received was for 2012 � The town paid $57, 982. 05 in annexation legal fees for 2013 alone � The town’s budget for 2013 included a payment of $135, 000 which we did not receive

Category 4 – Fiscal Sustainability Continued: Budget Balance Trend 2008 -2013 $950, 000. 00

Category 4 – Fiscal Sustainability Continued: Budget Balance Trend 2008 -2013 $950, 000. 00 $900, 000. 00 $850, 000. 00 $800, 000. 00 $750, 000. 00 $700, 000. 00 Beginning Balance $650, 000. 00 Ending Balance $600, 000. 00 $550, 000. 00 $500, 000. 00 $450, 000. 00 $400, 000. 00 2008 2009 2010 2011 2012 2013

Category 4 – Fiscal Sustainability Continued: Disbursements vs. Receipts 2008 -2013 2012 2011 2010

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

Category 4 – Fiscal Sustainability Budget Overview 2014 Levy - $1, 140, 990 $111,

Category 4 – Fiscal Sustainability Budget Overview 2014 Levy - $1, 140, 990 $111, 406 $473, 260 $556, 324 General Road & Bridge Debt

Category 4 - Fiscal Sustainability Continued: 1, 400, 000 2013 Actual & 2014 Proposed

Category 4 - Fiscal Sustainability Continued: 1, 400, 000 2013 Actual & 2014 Proposed Budget by Fund 1, 200, 000 1, 000 800, 000 600, 000 400, 000 200, 000 0 General Fund Receipts General Fund Disb. R&B Receipts R & B Disb. Debt Receipts 2013 Budgeted 2013 Actual 2014 Proposed Linear(2013 Actual) Debt Disb.

Category 4 - Fiscal Sustainability Continued: � As you can see, the township spent

Category 4 - Fiscal Sustainability Continued: � As you can see, the township spent more in 2013 than we took in because we didn’t receive the annexation payment and expenses in the R & B fund exceeded the budgeted amount in some areas (fuel, heating oil) � However, the budget was balanced by transferring funds from the General Fund to Debt Service and Capital Projects and from the Road fund to Capital Projects � At year end, the Debt Service Fund and Capital Projects Fund need to be at a zero balance � Let’s review some handouts to the budget in more detail (see Treasurer’s report, Schedule 1, and 2013/2014 Budget Detail Reports)