Council decides to call, re-issue three bonds
The 2016 budget for the City of Mountain Lake took center stage at the Monday, August 3, Mountain Lake City Council meeting, touching on a number of related budget topics.
The points discussed included:
* Small Cities Assistance Account payments. The city will be receiving $30,852 in 2015. This account, funded by the 2015 Minnesota State Legislature, provides one-time money to cities that do not receive municipal state aid because they do not meet the 5,000 population eligibility threshold for the dedicated funds. City staff intends to use this money in 2016, increasing the amount of seal coating and crack filling work to be done.
* Cost of installing light-emitting diodes (LED) bulbs in existing street lights. The estimated total cost for this project is $120,000. Energy savings and Conservation Improvement Plan (CIP) rebates were also discussed. By consensus, council members agreed to include $25,000 in the 2016 budget for street light replacement.
* Replacing the black-and-white copier/printer/scanner and color printer. Mountain Lake City Administrator Wendy Meyer will gather more information on this for the next council meeting on Monday, August 17.
* Union contracts. In 2016, the city will be in the final year of the three-year contract with its unions. By council consensus, it was agreed that the increase set by union contract will be used for all 2016 city employee increases.
* Southwest/West-Central Educational Cooperative health insurance. The city is a member of the Southwest/West-Central Educational Cooperative health insurance group. The group will hold its annual meeting this Monday, August 10, at which time any premium increases will be announced.
Call, re-issuance of three bonds
Council members decided to call and re-issue three bonds – 2009A, Sewer Revenue Bond of 2001 and 2007C. The decision provides for the issuance and sale of $885,000 in 2015A General Obligation (G. O.) Refunding Bonds, pledging the security of net revenues and assessments and levying a tax for their payment.
Rusty Fitfield of Northland Securities reviewed the city’s Standard and Poor’s rating summary and bond sale summary with the council. While the city’s credit rating was from A to A+, the 2015A bonds’ interest rate was higher than anticipated. This reduced the savings somewhat, but will still save the city $41,864 (net present value savings). True interest cost was 2.77%
Reviewed were the reasons behind the credit rating upgrade and the higher interest rates.
In other business
* Received the second quarter billing of $1,640.22 from the Mountain Lake Public School District for the city’s share of funding for the Mountain Lake Public School indoor swimming pool. The city has agreed to contribute up to $15,000 per year for the operation and maintenance of the pool.
* Learned from Mountain Lake Mayor Mike Nelson that an agreement with Randy and Ronda Sawatzky of Mountain Lake has been signed, adding a “rustic path loop” on their property northwest of Mountain Lake, and adjacent to city and Minnesota Department of Natural Resources (DNR) property to the Mountain Lake Trail system. The property as a permanent Reinvest in Minnesota (RIM) easement, therefore no graveling or hard surfacing is/will be allowed; only occasional mowing. Mayor Nelson mowed that path loop last week. In addition, a rustic path has also been cut from the lake’s west end boat landing across “Second Island” (a peninsula that extends northeasterly into the lake). Several e-mails received from Rachel Yoder were discussed. Administrator Meyer will follow up with Yoder and the DNR.
* Reviewed the 2015 budget expenses and revenues through Monday, July 20.
* Issued by council consensus an administrative ticket to the property owner of Third Avenue Auto for a pile of tires.
* Decided by consensus that if the property owner of 1701 3rd Avenue does not appear at the Monday, August 17 council meeting to discuss the public nuisance violation, a criminal citation will be issued. The owner was to have appeared at this Monday, August 3 meeting.
* Heard from the property owner of 1429 6th Avenue concerning a camper pad on the property. The owner needs to install the camper pad, but is asking to be allowed to wait until electric utility work is done in the back yard. Administrator Meyer will contact the electrical superintendent, Ron Melson, and the matter will be discussed at the Monday, August 17 council meeting.
* Acknowledged during Public Forum three statements presented earlier in the day at Mountain Lake City Hall by resident Gloria McKissick. The statements concerned a neighbor’s dog, utility bills and building permits. City staff will research the issues for discussion at the Monday, August 17 meeting.
