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City of Brownton- Minutes

City of Brownton

Brownton Council Minutes
May 7 2019
7 p.m.
Eric Holt of Conway, Deuth, and Schmiesing presented the 2018 Financial Audit Report. In summary:
º Cash decreased from $2,639,311 in 2017 to $1,668,950 in 2018.
º Capital Assets increased from $8,005,220 in 2017 to $10,644.210 in 2018
º Liabilities increased from $4,765,606 in 2017 to $6,728,500 in 2018 as the City incurred extra debt in 2018 for the street/utility project.
º Utility Rates have been increased over the past four years in anticipation of the new bond payments, however, haven’t made the progress intended due to expenditures incurred.
º The remaining Civic Center pledged balance deficit in the amount of $6,316.09 will be absorbed into the Civic Center Bond fund going forward. Special thank you to all who pledged ad contributed towards the Civic Center Renovation!
º The City’s taxable market value decreased to $15,061,800 in 2018; resulting in the City being over its legal debt limit.
º An additional single audit was required in 2018 due to the improvement project. This resulted in additional audit time and cost.
º Also reported were various policy procedural issues to be addressed by the City.
º Residents are welcome to come to the City Clerk’s Office to review the full financial report.
Ruth Bauer presented an RS Fiber Update. Senior lenders were active through the construction phase, but now want to be paid back. HBC (Hiawatha Broadband Corp.) has offered to take on the debt, they ae committed to help get through the lending cycle; interest rates will be 50% less than what was borrowed previously. RS Fiber is looking at selling about $2M in assets; main asset being fiber strands. RS Fiber continues to seek out money from the state but needs to demonstrate their capacity to qualify for the funding. HBC believes in the project and wants to see it through; plans are to be debt extinguished and get cities paid back in 8-9 years. An allocated $7K/month has been approved for marketing RS Fiber services. Hard wire into township is still the intent long term; in the meantime; they utilize towers in the country for Wi-Fi. RS Fiber needs to install 25 services per month for the next 8-9 years to meet their profit goals. If interested in RS Fiber service, call Customer Service at (800)628-1754.
Resident Shawn McCoy approached Council regarding his desire to purchase property at 818 Division and asked for leniency on delinquent property tax and assessments. As the house was uninhabited for five years, Council agreed to McCoy’s proposal to get it back onto the active tax roll; McCoy will pay $5,588.15 of the back tax and assessments in five annual installments beginning in 2020.
SEH Engineering update included request for approval of R&R Pay Application #8 in the amount of $111,408.40 for lateral work and manhole grouting. Lateral lining slowed due to excessive infiltration; crews are currently cleaning/televising. If clay lateral is found, City needs to decide whether to line from the main to 2’ past the curb. City cannot assess for this, cut could use the extra project bond/grant money. Council also approved the resolution to advertise for bids for the 2019 Street Improvement Project. Street Improvement discussion included First Avenue North as gravel only, Seventh Avenue South no longer shows pavement replaced on intersection, Ninth Avenue North street width will be reduced by six feet. Adding Storm Sewer by Ninth Avenue North and draining \into Second Street North would add an additional $18-$20K to the project; will bid as an alternate but not an absolute. Bid opening on Tuesday, June 4; tentative start date mid-July/August with four weeks to completion.
Council agreed that Brownton Bruins purchase liquor liability insurance when applying for a liquor license. It was also decided that rentals for the Civic Center and Community Center must provide proof of homeowner’s insurance and add a liquor liability rider for the day of the event when serving alcohol at events.
Council was indifferent in respect to red rock storage area and approved changing locks on the concession doors. BABS provided plans regarding new fences, however, Council had questions regarding the removal and replacement of the back stops warranting more discussion.
Consent agenda was presented and approved.
Public Works Draeger reported hauling sludge next week, repairs to a blower motor bearing, and flushing hydrants in May. Well inspections were complete. Well #2 needs to get pulled in the next year for maintenance; cost quoted at $6,500. Transformer behind fire hall was damaged; waiting on Quade to repair. Park shelter is settling; seeing gaps under the front SW door. Sentence to serve is to return to finish cleaning the City Cemetery. Carsen Streich returning for the summer. Crack filling quotes were reviewed; Gopher State Sealcoat coming in at $7,956 and Northwest Asphalt & Maintenance at $21,047. Upon motion, Council approved the bid from Gopher State Sealcoat. Council approved to purchase a bagger for the Xmark mower in the amount of $2,758.
Chief Bauer attended Chief’s convention, active shooter and defensive tactics training. Discussion included a camera system for body worn cameras with 4Tb storage, four cameras, and a standalone computer. The whole system will cost $4,500 with an additional $400/year licensing fee. Footage, only turned on during a call, can download and be viewed remotely. Bauer also reported they also have gun cameras available that video when gun is removed from the halter that run about $300/camera.
All School Reunion Liquor License was approved for the event to be held on July 27, 2019.
Blue Cross/Blue Shield health plan was reviewed and approved for City Employees.
The former Grocery Store abatement to demolish the building awaits a court date as it is being contested.
Planning and Zoning reported Scott Katzenmeyer’s plan to build a garage closer to his house, He will get the property surveyed and get locates to determine where utilities are to determine next steps.
Upon motion, meeting was adjourned.
Respectfully submitted by
Ella Kruse, City Clerk
(Published in The McLeod County Chronicle May 22, 2019)