Jason Boynton, Smith Schafer and Associates, presented the 2017 audit information for the city of Preston at the city council’s April 16 meeting. An unmodified, “clean” opinion was issued. Boynton said it was an overall good report.
The general tax levy totaled $831,494. Other revenue included TIF collections in the amount of $74,307 and Local Government Aid (LGA) in the amount of $496,532. The LGA in 2017 was about 20% of Preston’s governmental revenues. LGA has been basically flat over the last 8 years. Due to the fact LGA has generally not increased, more of the city’s revenue is made up through an increase in the tax levy. Charges for city services also are a source of revenue.
The greatest expense increase in 2017 was due to the capital outlay for the remodel of city hall. Expenditure increases in the amount of $33,156 were primarily due to employee costs and the river restoration project of 2017. The Small Cities Grant fund of $281,937 funded an increase in economic development expenditures in 2017.
General fund reserves equal 46% of annual fund expenditures in 2017. In 2016 reserves were at 62%. Reserves were used to pay for the city hall remodel. Boynton commented that the city still has a healthy amount of reserves.
Boynton said debt service funds are adequately funded and all outstanding bonds are being paid on a timely basis. The Capital Improvement Reserve has a fund balance of $321,124 to finance future capital needs.
Electric and water funds are getting enough revenue from operations to meet the annual debt service on outstanding debt and capital purchases. However, the sewer fund is not generating sufficient cash for operations to meet annual debt service obligations.
A motion to accept the audit as presented was approved. Deputy Clerk Sheila Marzolf was thanked for her work related to the auditing process.
Board of Appeal and Equalization
Brian Hoff, Fillmore County Assessor’s office, gave an overview of assessed property values in Preston and the county after the Board of Appeal and Equalization was opened. He explained the rules and duties of the board. The Minnesota Department of Revenue requires that adjusted ratios fall within a range of 90-105%. Median sales ratios are used for equalization.
There has been no change in tillable and nontillable land values. Building sites increased by 5%. There were 298 residential sales county wide, an increase over last year. There were 21 commercial sales county wide; no change in value due to the sale study.
Total 2018 assessed value for Preston is $75,524,900. This is an increase of 2.33% over 2017. New construction in Preston for 2018 assessment is valued at $414,800.
Hoff said he had reviewed an appeal from Steve Arends on his property valuation. He noted there were limited updates over the last few decades and a reduction in market value in the amount of $7,900 was recommended. The board approved the reduction.
Curt Hareldson addressed the board saying his property had basically not been improved since 1978. Yet, the valuation went up $900 last year and $3,300 this year. Hoff explained the valuation has gone up based on the sales study. Hareldson asked how the value could be increased when no one has looked inside of the home. Hoff said he could do an inspection of the property. The equalization board took no action. Hareldson will have to appeal to the county board after Hoff’s inspection to seek a reduction in valuation.
Other business in brief
• Jim Bakken, Public Works, reported that April 27 is Arbor Day. Every year the city plants a tree on that day. The mayor’s proclamation for Arbor Day and May as Arbor Month was ratified by the city council.
• The hire of Matson Kiehne, a Fillmore Central graduate and college student, was approved. He will work 40 hours per week starting May 7 in the summer helper position.
• The city Utility is requesting proposals to update utility maps, last updated in 1993. City staff suggested adding another option to the mapping project, storm water mapping. A motion was approved asking Utility to add storm water mapping as an option to the request for proposals.
• The council approved street closures for Trout Days. The list was the same as last year. The county will need to approve some of the street closures.
• Preston was endorsed by the county board as the site for a veterans home on April 10. City Administrator Joe Hoffman said the pitch for a veterans home will be continued in a few weeks before the Capital Investment Committee.
Hoffman said the utilities are already adjacent to the site. In his opinion it is “shovel ready.” They will be working with the Minnesota Department of Veterans Affairs to determine exactly what they want, what they consider to be “shovel ready.”
Councilman Robert Maust offered his suggestion for the eventual construction of a second road for truck traffic delivering food and supplies to the care center.
• Discussion continued about cleanup of the former Dairy & Farm site. Material will need to be removed that was under the fertilizer building.
• Hoffman reported that some water seeped into the council room after the recent rain. He will discuss the issue with contractors.
Leave a Reply