Jason Boynton, Smith-Schafer & Associates, LTD., reviewed Chatfield’s financial summary for 2020 at the city council’s March 22 meeting. Councilor Paul Novotny was absent.
The city received an unmodified “clean” opinion for 2020. The city’s tax capacity increased from 2019 to over $2 million. The general tax levy revenues represented 49% of the total governmental revenues. Local Government Aid (LGA) represented 19% of the city’s governmental revenues.
The city had an unrestricted general fund balance (reserve) in the amount of $1,280,133 which equals 56.4% of next year’s general fund property tax levy and LGA. It is policy to keep this balance between 40% and 60%.
Capital Goods fund balance is $892,160; these funds are available to fund items identified in the capital replacement plan.
Payments are being made in a timely manner on all debt. Water and sewer fund rates are based on an established schedule.
City Clerk Joel Young noted the city is in a better financial position than it was a year ago. This is a very positive audit report. Mayor Russ Smith said it is good to see the fund balance near the top of the 40-60% range. It is an indication that things are going well. The audit report was accepted as submitted.
A resolution was approved to close eight accounting funds that have outrun their usefulness. The funds closed include the Sales Tax Development Fund, Schmidt Foundation Fund, two debt service funds, Pope & Young TIF Fund, CARES Act Fund, Industrial Drive Construction Fund, Tax Abatement Construction Fund, and 2019 Flood Damage Fund.
Other business in brief
•Authorization was given to submit an application to the League of Minnesota Cities for a city of excellence award. The nomination is to recognize the successful effort to reduce operating expenses at the city’s Wastewater Treatment facility. The cost of operations in 2019 were reduced roughly $25,000 over 2018. The premise was that with certain modifications the plant could operate more efficiently. The modifications were successful and resulted in a 62% reduction in water costs and a 29% reduction in electrical costs. The plant operators (Steven Schlichter and Mitch Irish) are credited with the efficiency improvements and resulting savings.
•The second consideration of Ordinance 452 (polling place) was approved, as was its publication.
•Brian Burkholder requested and received approval of a bid in the amount of $20,800.43 from Core and Main to replace four water hydrants. Griffin Construction plans to install the new hydrants in July.
•Steven Schlichter requested approval of an expenditure in the amount of $3,250 from Kingdom Technology for maintenance/repair of UV system at the Wastewater Treatment Plant. The proposal is to inspect the UV system/repair and retrain staff for operation and maintenance of the system. The request was approved as presented.
•Katie Goldsmith was hired as the swimming pool manager.
•Citywide clean-up will be on May 3. The city wide rummage sale will be on May1.
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