Town of White Continuation of Annual Town Meeting

Town of White Continuation of Annual Town Meeting September 13, 2016 Clerk’s Report Prepared by: Jodi Knaus, Office Manager & Clerk 6: 00 P. M. Loon Lake Community Center

Review of Town’s 2016 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. ) Quote for building a new cold storage facility on a concrete slab out at the Public Works location has been approved in the amount of $97, 895 to Ameribuilt Building, Inc. This is to replace the old shop in Aurora which was sold last fall.

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; The Board approved in August a quote to All Service Heating in the amount of $8, 450 to upgrade the six fan units in the roof to improve the air circulation in the building. Gym floor, roof repairs, floor tiles, and technology upgrades are potential future projects; v 3 rd Annual Health & Wellness Fair will be held Friday, October 7, 2016 from 9: 00 a. m. to Noon at the Loon Lake Community Center. The Town is partnering with Essentia Health this year. Come check out the walk-through colon display!!

Category 1 - Facilities Management Strategy Continued: 3. ) Public Works Garage & Fire Hall v Fire Hall roof will need repairs/replacement soon. It has been requested a cement skirt be put on the front of the fire hall. v An air conditioning unit was installed in the office at the Public Works building v Overall, both buildings are in good condition 4. ) Twin Lakes Pavilion & Grounds v Parking lot & walkway has been approved to be resurfaced – should happen this week (weather permitting) v The Board approved to get quotes for remodeling the kitchen area, upgrading electrical, and fixing the cracked floor in the Pavilion. Work can take place next spring before the rental season begins. The main hall was repainted this summer and the kitchen was stocked with amenities for renters.

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 should be completed around the columbarium v The Center section of the cemetery will be expanded due to a settlement with a private party for grave space. The Township will perform all landscaping and movement of the road as necessary. v Niches are available in the columbarium for purchase v The cemetery has graves for sale in the South Section v In 2016 there have been 15 burials to date 7. ) Shooting Range v The Town contributed $3, 000 to the Club recently for the addition of a classroom for a total of $4, 500 in 2016 towards upgrades.

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; � Three summer laborers and six lifeguards were hired this past summer. � The beach hours with lifeguards on duty were expanded this summer. The average number of visitors to the Beach was 108 per week. � 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.

Category 2 – Organizational Development � Other Organizational Strategies: � The Town continually reviews policies and procedures. New ordinances and policies are created or updates to those already in place are made as necessary to ensure efficient operations. Some we updated or adopted this year are: � A Workplace Accident & Injury Reduction Program � Investment Policy (reviewed annually) � Fund Balance Policy � Dust Control Policy � Culvert Policy � Snow Removal � 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 $1000. Needs to be by motion. Moderator ask for motion.

Category 2 - Organizational Development continued: � With the closure of the Range Times (local newspaper) the Town designated the Mesabi Daily News as it’s official legal newspaper. There is no longer a reporter present at the meetings. Citizens may refer to the Town’s website where minutes are posted once they are approved. Also, the office staff can mail minutes to residents by request. � Technology Strategy – The township recognizes that it needs to stay current with technology to ensure operations are efficient. � The Board approved the purchase of new telephones for the office. The current ones are 20+ years old. These new phones have a lot of beneficial features currently not available. � 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@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 2016 are: � Sharing equipment and personnel for emergency response � The Skybo fire was a great example of pairing/sharing/working together � Purchasing office supplies in bulk � Purchasing tools and equipment such as an air compressor 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 � The U. S. Army Corps of Engineers Planning Assistance to States (PAS) Program engineers will be in Town the week of September 19 th to conduct a culvert inventory and ditching plan for the Town. This is a joint project between the City & Town. The information will allow us to create a mitigation plan for flooding and make improvements based on their recommendations.

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. ); A complete road maintenance & resurfacing program will be implemented as part of the Comprehensive Plan; We made some progress this year. Twin Lakes Loop Road will be blacktopped this Fall. v Road Striping on Lane 58, Road 45, Trigstad Road, Palo Road 41, and Road 37 was completed on September 7, 2016 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 the MN DOT regarding Hwy 135 route between Aurora and Biwabik, specifically Scenic Acres entrance

Category 3 – Operations/Infrastructure Strategy Continued: 2. ) Water/Wastewater Maintenance & Improvements v Due to not receiving grant funding, the 3 rd Street West infrastructure was cancelled. However the Board approved South Avenue, Spruce Street, Poplar Street, First Street West, and Second Street West to be blacktopped. This should take place this week (weather permitting). This was a difficult decision but with the price of blacktop being $80 per ton, the Board felt it was important to do this with the cost being so low. This is why the Twin Lakes Loop Road and parking lot were added to the schedule. This will reduce our maintenance costs and wear & tear on equipment long-term (no grading, etc. ) Bid was awarded to Mesabi Bituminous. Total cost including engineering and project management is $367, 620. 00

Category 3 - Operations/Infrastructure continued: v The Town has been meeting with the City of Biwabik, City of Aurora, and City of Hoyt Lakes to create an East Mesabi Joint Water System �A $4. 0 million request for State funding was not received this legislative session. �Future requests will be made. If successful, this request will allow the entities to purchase the property, prepare concept plans and design a new water treatment and distribution system for all four communities 3. ) Equipment Maintenance & Replacement v A Tandem Truck purchase has been approved for arrival Spring 2017. Town is currently looking at options. v Reality is our trucks are 27 years old and we need to have them replaced v Parts and labor are very costly as equipment ages

Road & Bridge List of Equipment: � 2015 CAT Hydraulic 308 E 2 Excavator � 2015 Ford F-250 Lift Truck � 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 9030 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 2015 Levy (Collected in 2016) - $1, 175, 220 $114, 748 General $487, 458 Road & Bridge Debt $573, 014

Where does our money come from? Property Taxes Credit & Aid Property Taxes 32% Annexation Contracts Grants & Mining Effects Annexation 20% Rents, Fees, Sales, etc. Credit & Aid 24% Refunds & Reimb. Sale of Fixed Assets W/WW Capital Fees

Where do we spend our money? GEN Fund W/WW 0% GEN Fund 18% R & B Fund CAPITAL 30% DEBT 10% R & B Fund 42% CAPITAL W/WW

Category 4 -Fiscal Sustainability 2016 YTD – 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 $169, 899. 90 $149, 478. 42 $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 $579, 621. 60 $116, 362. 64 $1, 498, 214. 05 AUGUST $1, 498, 214. 05 $851, 358. 42 $188, 011. 88 $2, 161, 560. 59 SEPTEMBER OCTOBER NOVEMBER DECEMBER

Category 4 -Fiscal Sustainability 2016 Cash & Investment Balances YTD January 2016 Beginning CASH BALANCE $1, 338, 019. 18 August 2016 Ending CASH Balance $2, 161, 650. 59 August 2015 Ending CASH Balance for Comparison Reasons for Increase in CASH Balance: Average Monthly Disbursed YTD: Projected YTD Ending Cash Balance: (+776, 222. 18 difference from 08/2015) Continue to reduce spending on average 15% compared to prior years; Annexation mediated settlement payments are finished – Town will continue to receive annual calculated payment each Spring for the previous year’s collected tax payments; $140, 000 per month (compared to $155, 000 in 2015) $1, 500, 000

Investments Breakdown: � Investments Total 2016 YTD: � Severance Savings $122, 102. 67 (This account is reserved for employee severance) � Gilbert Bank CD #1 $100, 826. 27 � Gilbert Bank CD #2 $270, 506. 89 �Gilbert Bank Savings $228, 908. 57 �Total YTD 2016: $722, 344. 40 �Total Cash & Investments YTD: $2, 883, 904. 99

Category 4 Fiscal Sustainability continued: 2016 Notable Receipts YTD Notable Receipts ALL FUNDS YTD (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 Recreation Activity 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 $36, 000. 00 $547, 840. 54 $26, 712. 36 $152, 408. 00 $690, 781. 54 $50, 148. 64 $50, 000. 00 $85, 000. 00 $69, 320. 00 $1369. 50 $90. 00 $228, 882. 00 $600. 00 $840. 56 $16, 362. 00 $1, 800. 00 $14, 697. 16 $2, 140. 00 $8, 000. 00

Category 4 -Fiscal Sustainability continued: 2016 YTD Notable Disbursements Notable Disbursed ALL FUNDS (rounded to nearest dollar): Personnel Costs $488, 819 (wages, benefits, pension, (Board, Employees, Summer worker’s comp insurance etc. ) seasonal employees) Fire Department Personnel $17, 690 Fire Department Operating Costs $18, 830 2016 Refuse Costs $101, 915 Garbage Bag Purchase $6, 461 Legal Services $9, 290 Equipment Fuel & Lubricants $30, 331 Loon Lake Community Center $29, 919 Shooting Range $4, 532 Economic Dev (ERJPB) $16, 450 2016 Property & Casualty Insurance $19, 965 Technology Upgrades Storm Drainage $872 $7, 447 Utilities (Electric, Phone/Internet $26, 854 Engineering Costs $21, 171 Army Corps of Engineers PAS Program $9, 750 W/WW Expenses $4, 804 $6, 865 Park Areas Parts (incl. tires) & Repairs for Equip Operating, Repair & Maint. Supplies Advertising, Printing, & Postage Costs $1, 634 Dues, Subscriptions, Licenses, Permits $22, 886 2015 Audit $10, 336 Ambulance Service Contract $2, 800 2016 Elections $6, 207 Streets (Paved & Uppaid) Materials Cemetery Communication Radios $17, 149 $2, 902 $22, 982 Building Repairs & Upgrades $4, 174 Safety Supplies/Medical $1, 371 $4, 523 $14, 200

Category 4 - Fiscal Sustainability Continued: Indebtedness as of 8/31/16 Indebtedness Maturity Date 01/01/2016 Balance Paid in 2016 Outstanding Debt 12/31/16 GO Refunding Bond 2009 12/01/2016 $65, 000 $0 2012 Volvo Loader 12/10/2017 $59, 924. 21 $30, 977. 40 $28, 946. 81 2014 JD Grader 09/27/2017 $91, 913. 46 $49, 563. 77 $48, 342. 25 2015 CAT Excavator 11/09/2018 $119, 697. 00 $42, 200. 92 $84, 401. 84 $336, 534. 67 $187, 742. 09 $161, 690. 90 Total

Category 4 – Fiscal Sustainability Continued: Budget Balance Trend (not including investments) Budget Balance Trend 2008 -2016 $1 625 000, 00 $1 425 000, 00 $1 225 000, 00 Beginning Balance $1 025 000, 00 Ending Balance $825 000, 00 $625 000, 00 $425 000, 00 2008 2009 2010 2011 2012 2013 2014 2015 2016 Beginning Balance significantly higher than in previous years & Ending Balance is Estimated

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

Category 4 - 2016 Levy Certification Due 9/15/16: � Current Levy Amount: $1, 175, 220 � In 2015, the community voted for a 0% levy increase payable in 2016 � Based on this, the budget remained the same for 2016 as in 2015 – the annexation settlement payments helped carry initiatives forward but those are done now (the Town will continue to receive the annual annexation payment due from taxes collected) � Because of the mine layoffs/shutdowns the next two years and beyond if things don’t change, our Taconite Aid Funding will decrease and the potential for receiving IRRRB grants will continue to be reduced � The Town would like to continue to buy new equipment and continue to resurface our roads � The Board is requesting a minimal levy increase of 2% for 2016, payable in 2017

Category 4 - 2016 Levy & Budget Discussion continued: � According to the census, our population has stayed the same but will decline over the next 10 years according to S. E. H. � A 2% levy increase = $23, 505. 00 more in collections � Motion for 2016 Levy determination (payable in 2017) � Proceed to Other Business – this ends the powerpoint presentation/Clerk’s Report