City Administrator Joe Hoffman summarized the proposed adjustments to the 2017 budget at the city council’s September 20 meeting.
As discussed at the September 6 meeting, there is a $129,282 Twenty-14 Project surplus. Using just a portion of the surplus each year to reduce the amount levied for the bond payment for a period of years will help keep the payments level. The bond payment for 2017 derived from levy dollars will therefore be reduced by about $41,000 through the use of the surplus and the reallocation of assessed bond proceeds. However, reducing the levy in this way will forfeit the chance of paying off the bond early.
The storm water account is in deficit. One way to fix that deficit is to levy dollars for that account. A total of $22,028 is to be levied for the storm water account in 2017 to get that account back on track.
An early draft projected a levy increase of 6.77%. With these adjustments, the preliminary levy for 2017 has been reduced to an increase of 4.32%, or $34,450. A resolution to adopt the 2017 preliminary levy to be set at $831,494 (a 4.32% increase) was approved unanimously.
City hall exterior
improvements
All quotes were rejected that had been submitted for roofing, insulated stucco finish (EIFS) on the north wall, and a steel framed rubber roof canopy. Hoffman said they sought and received quotes for all three phases of the exterior improvements. Architect Terry Grubbs has recommended rejecting all quotes, as some contractors have said they missed some of the requirements spelled out in the specifications.
Hoffman suggested that they also look into an off-the-shelf canopy because of the rather steep cost of the canopy quoted (only one quote).
Hoffman was clearly frustrated, insisting our specifications were clear. The city also held an inspection meeting which was not attended by the contractors. Hoffman was concerned about the integrity of the quoting process.
Councilman Robert Maust maintained they should have a 5% bond requirement. Hoffman said he felt a bond requirement would raise the quotes.
It was noted that funds for the city hall improvements will come out of reserves.
The timetable was discussed. It is more likely the improvements will now be done in the spring. The council has made an effort to have the work done by late April, so the mural can be put up and displayed for Trout Days in May. It is possible that the work may not be completed in time.
Other business in brief
Jim Bakken, Public Works, said storms have made this a bad year for trees, including many boulevard trees. The tree board has a total operating budget of $5,600. Up until July 5, only $1,000 had been spent. Since the storms, 26 trees have been removed, 15 by city crews. Eighteen stumps are to be ground. Thirty-one trees need to be replaced (mostly with maples, lindens, and disease resistant elms).
Today the tree board is $2,700 over budget and it is estimated around $5,000 more will be spent on tree replacements and stump grinding. They expect to run about $7,800 over budget. The council approved a motion to cover the shortfall out of the general fund.
A motion to approve the retrofitting of the lighting in city hall (lower level) was approved. A total of 220 T8 florescent tubes will be replaced with LED retrofit tubes. Southern Minnesota Municipal Power Agency (SMMPA) will provide a rebate for 50% of the total cost. Half the cost will be $833.80, with the city’s share being $625. Hoffman estimated the city’s cost will be recovered with energy savings over the first 17 months.