Photo by Kirsten Zoellner
At the March 6 meeting, the Fountain Council welcomed AndreW Forliti, principal for Smith Schafer, to discuss the 2023 audit findings.
Local Government Aid (LGA) provided to the city remained flat for the last four years, but it will increase slightly to $92,011 in 2024. The state funding currently provides 20% of the total city revenues. The city has needed to increase the levy annually to compensate for increased costs as the gap grows between the levy and LGA. Local property tax collections in 2023 were $232,909.
The city expended $94,938 in 2023, including increases due to insurance/worker’s compensation. Public Works expenditures were $70,346 in 2023, up from $63,079 in the previous year. Culture and Recreation expenditures rose significantly due to $13,389 in repairs to the community center. Overall, looking at the budget to actual costs, the city was under budget by $15,566.
The city retains a healthy unassigned reserve balance. As a percentage of general fund expenditures, reserves are at 102%. Forliti explained this would allow the city to operate, if needed, for roughly one year utilizing reserve funds. The General Fund decreased reserves by $3,616 in 2023. Capital Improvement Fund, used for future projects, maintains a balance of $182,937.
There is one bond outstanding, due to be paid off in 2029. The Minnesota Public Facilities Authority issued the loan in 2009 for sewer improvements. The city owes less than half of the original loan – $304,641.
At present, ratepayers support both the sewer and water service. Water is operating on a cash break even. However, it has been noted previously by the council that there are needs within the wastewater system.
Last month, the council received a recommendation from consultant Mike Morris from MMS Environmental, with whom the city contracts for reporting and maintenance at the wastewater plant, to purchase a new KSB submersible pump for the plant lift station. The current pump issues are well-known, and there is no backup should it fail. At that time, the council approved hiring W.W. Goetsch to repair the motor for $7,293 plus freight. The city could not approve a new pump, legally requiring two quotes due to the cost.
City Clerk Mary Tjepkes presented two quotes at the March meeting, including the previous one from W.W. Geotesch. That original quote, including labor, was $13,645 plus freight, with an 18-month warranty. The second quote is from Ford Construction Co. for $15,684. The quote included start-up and training but excluded freight, sales or other taxes, and installation. The council opted to approve the quote from W.W. Goetsch.
The council also discussed the city sewer rates. The previous council set the current base rate of $50 plus $4.78 per 1,000 gallons used in 2020. The council unanimously approved raising the second portion of the rate to $5 per 1,000 gallons. The increase equates to roughly a $0.44 to $1.10 change per month, depending on usage.
The council unanimously approved a request from AT&T for an adjustment to the existing rent contract, pending legal review by City Attorney Frederick Suhler. The current rent is $2,178 per month. The company will begin paying just $2,000 on January 1, 2026. The new five-year contract includes a 10% annual increase.
Mayor Tammy Danielson and Tjepkes briefly discussed the water tower. While the city is aware of several repair and maintenance items from the last inspections, the city has not had the funding to make the corrections.
“Nothing was done. We’re at the point now that if we don’t repair it, we’ll need a whole new tower,” cautioned Tjepkes. “We didn’t have the money for the repairs. Now that we have the money, we need to get it done ASAP.”
KLM Engineering is gathering three bids for the work for the April meeting.
In other news, Mayor Danielson is looking for citizen volunteers to help beautify Fountain. She’s suggesting a group come together to generate ideas, using either budgeted funds or small grants, so it doesn’t fall to the businesses or city staff. Those interested can contact Danielson or city hall directly at (507) 268-4923 or fountaincityoffice@mediacombb.net.
The city is moving forward with one beautification project. The concept is for American flags to be placed four to five times annually on poles mounted to an underground unit. Residents participating pay a fee to cover the materials and installation. Several other area cities utilize the same program. Fountain would use existing Small Cities Grant funds of $1,620 to start the project. All funds generated by flag participation would go into future flag needs or other city needs like parks or another approved designation. The goal is to get the flags up before Memorial Day.
The next regularly scheduled council meeting is Wednesday, April 3, at 7 p.m. at city hall. The public is encouraged to attend.
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