At the May 13 meeting, the Rushford Council received and approved the comprehensive annual financial report. Kali Lentz of Smith Schafer & Associates presented the report. There were no surprises or issues with the audit.
General property tax revenue stability has continued with minimal upticks over the last few years. The 2023 levy of $1,082,255 was up about $65,000 from the prior year. Less was allocated to the General Fund and more to the Library Fund and debt service for the 2022 Improvement Project. Local Government Aid totaled $639,948 in 2023. Based on state formulas, this key piece of revenue is expected to increase to $705,947 in 2024.
“It’s nice. You haven’t had that big of an increase in a while,” added Lentz.
The police department expended $386,827 in 2023 with the increase due to insurance and salary costs. A law enforcement comparison with municipalities with departments and those contracting elsewhere shows Rushford sitting well for a city its size. Lentz pointed out that there are some things that departments and cities have no control over.
“Things are increasing. In general, things cost more money,” she noted.
The fire department and ambulance service are sitting well with their respective funds. The ambulance service saw an increase in operating costs in 2023 due to the city adding a full-time ambulance director halfway through the year. Likewise, the public works department and parks and recreation expenditures increased slightly.
The Airport Fund saw a big shift in capital outlay due to the hangar project funding. State and federal funding of $201,000 and $177,000 in insurance proceeds will offset expenses for the hangar. The Library Fund also saw a revenue increase due to donations coming in to offset the construction cost of the Susan Hart Memorial Gazebo.
Looking at the budget to actual expenditures, all categories were under budget except for tourism, which exceeded the budget by $1,156. The unassigned general fund reserves, as a percentage of total expenditures, are at a healthy 98%.
The Economic Development Authority (EDA) revolving loan fund continues to do good things, assisting with two new loans and additional housing rehabilitation last year. According to Lentz, the balance is currently $2.39 million. Likewise, the EDA fund balance is healthy and increased due to fewer specialty programs and consulting services.
The city has over $7.34 million in debt service in six outstanding bonds. When discussing notes payable, Lentz stated the city currently owes $328,177 in a contract for deed for land purchased in 2007 for the $699,000 Himlie Business Park.
Capital Improvement Fund expenditures for 2023 totaled $467,821. The fund balance is $898,388. Lentz noted the city typically spends $300,000-600,000 per year on these improvements. “It’s good planning on your part to cover these costs and keep your taxes at a steady level,” she said.
The Levee Improvement Fund balance is sitting at $282,000. The city is building reserves for future levee needs. The Army Corps of Engineers conducted inspections last year and the city will have a list of corrections/repairs to make this year. The levee is inspected every two to three years and corrections are ongoing.
When discussing the utility funds, Lentz noted the electric, water, and sewer funds cover operating expenses and a combined $2.56 million in revenue bonds. User rates for all three will remain the same. The electric rate was last changed in 2012, the water rate in 2015, and the sewer rate in 2021.
In other news, the council learned that the fiscal year estimate for Small Cities Assistance Transportation funding from the state will be $5,567. It received $40,600 in 2023.
“That’s not a lot of money,” noted Councilor Jim O’Donnell.
City Clerk Kathy Zacher noted that the state is beginning to build up the fund.
“They’re figuring out,” she said. “That’s just an estimate. Who knows… it could be better, it could be worse.”
City Administrator Tony Chladek pointed out that this new fund will be consistent, while previous funding was intermittent. The funds will go towards street maintenance.
The council also unanimously approved five other agenda items during regular business. They included a donation of $600 to be designated for the fire department, a premise permit for lawful gambling, and a resolution calling for a public hearing on the refinancing of a bond held by Winona Health Services in which the city acted as a conduit issuer. It also included publishing the lesson schedule, prices, and staff for the aquatic center and approving the retirement of Dave Howe from the Public Works Department, effective August 12. When asked about the timeframe of seeking a new hire for the position, Zacher noted the intention is to have it done soon so Hower is available for overlap in the time training the new hire is happening. The option of a phased retirement was also questioned, but it’s not feasible due to scheduling. Howe was thanked for his service.
Lastly, during updates/miscellaneous, Councilor Andrew Linder questioned city staff on updates regarding the tentative sale of the former Rushford-Peterson school site at 100 Mill Street. Mayor Terri Benson noted Chladek had updated the city and that while the sale isn’t complete, one is in the works. No specific plans for the site, currently owned by Well House Ministry, were discussed. There were no details provided on the buyer. Electric service was expected to be turned on May 14.
“We have to play this out as it is. We have to wait and see what they do,” said Benson. “To be honest I’m not sure they know. They know they have to come to us with building permits.”
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