As 2016 heads into the end of the year, cities are looking to finalize their budgets and levies for 2017. After a detailed summary at the Monday, September 12 Rushford Council meeting, the city is looking at a proposed 2017 levy of $867,000. This represents a 9.8%, or $77,000, increase over 2016 levy of $790,000.
City Clerk/Treasurer Kathy Zacher noted the percentage would not translate to a 9.8% increase in property owner’s individual tax levy. The 6.8% increase in 2016 maintained fairly steady numbers for most. “The percentage isn’t a real indicator. There are unknown factors,” added Zacher. The city won’t know real numbers until it receives information from the county assessor in November.
The city is looking to continue to grow general fund reserves as recommended by both the auditor and recent credit rating from the firm of Standard & Poor’s. At the last bond review, Standard & Poor’s indicated the city should have more than $500,000 or more in reserves. Scoring the city on liabilities, the firm specifically noted items of concern and set the benchmark. “There were liabilities that scared them,” said City Administrator Tony Chladek. “They feel the economy is not strong and we have a number of other debts.”
The city has made an impressive comeback to its general fund revenues since 2007, when they dropped to just 11% following the devastating flooding. The fund now sits a little over a healthy 60%. Currently, $500,000 would represent a percentage of approximately 63%. However, with the shifting that occurs within a city’s revenue and expenses, Standard & Poor’s isn’t looking for a percentage, but rather a consistent cash amount. The city will take action on the preliminary levy at the next meeting.
Rushford Community Ambulance is raising the per capita fee for next year’s billing cycle for contracts with ten townships and three cities that it provides service to. Contracts were renewed in 2015 and at that time, it was indicated by the service that it was anticipating a need to amend the $4 per capita that had been in place since 2007.
The fee will be raised to $5 per capita, which will equate to an additional $4,081 annually to cover the increased operating expenses. It will also replenish funds for anticipated equipment upgrades in 5-7 years. The townships and cities will be billed for coverage at the new rate for 2017.
As a follow up to recent information, a report from the Minnesota Department of Health indicates there was nothing the Rushford Aquatic Center could have done to further prevent a Cryptosporidium contamination that occurred in late August, prompting the early closing of the pool. According to the report, the contamination was by human contact brought in by children with the parasite. With only a handful of days remaining in the center’s season, the city opted to close the pool for the remainder of the season rather than risk spreading the problem. “This is considered the best option by the Minnesota Department of Health” stated the report.
The pool underwent a hyper chlorination for an extended period, as per instruction by the Centers for Disease Control, to ensure the termination of any parasite. “The pool is well maintained and the standard operating procedures at this pool are excellent. There is no way this problem could have been prevented by staff,” continued the report.
The 2016 Street Maintenance Project sealcoating is now complete and the city has approved the $64,575 quote to Pearson Brothers. The council was also presented with a recommendation for Asphalt Armor Sealcoating to two patched areas; the Circle Drive cul-de-sac and Southview Court. Both patched areas were needed following utility line repair under the roadway. The Circle Drive patch was quoted at $3,583.01, while the Southview Court quote was $6,212.05.
The city of Rushford has been contacted to act as an issuer of bank-qualified revenue bonds to be loaned to Winona Health to refinance a project in the city of Winona. The bonds will be placed directly with and purchased by one or more banks, indicated Briggs and Morgan who is acting as bond counsel for Winona Health.
The city, along with the City of Winona and at least one other issuing city, are acting only as a conduit. The money and obligations are between the lender and borrower only, so there is no risk or cost to the city. The City of Rushford may actually receive funds as a part of the deal through an issuer administration fee. According to City Clerk/Treasurer Zacher, this could equate to $12,000-14,000. The issuance of bonds will also not affect the city’s credit rating.
Rushford was chosen to participate in the agreement because Winona Health operates a clinic in the city.
The next regularly scheduled council meeting is Monday, September 26, at 6:30 p.m., at city hall. The public is encouraged to attend.
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