City Commission

MEETING MINUTES OF THE CITY COMMISSION OF THE CITY OF DEVILS LAKE, ND SEPTEMBER 16, 2024 The regular meeting of the Devils Lake City Commission was held on September 16, 2024 with the following members present: President Moe and Commissioners Hach, Knowski, and Uhlenkamp. MEETING ITEMS 1) Call to Order 2) Pledge of Allegiance 3) Approval of Minutes – September 03, 2024 Commissioner Uhlenkamp made a motion to approve the meeting minutes from the September 03, 2024 regular meeting. Commissioner Knowski seconded the motion, and the motion was carried unanimously. AWARDS AND PROCLAMATIONS PUBLIC HEARINGS – 5:30 PM 1) 2025 Final Budget, Salary Plan, Position Authorization President Moe opened the public hearing. David Olson addressed the Commission concerning the Lake Region Public Library’s budget. The Library reduced the mills they were asking for. He suggested the City seek funding reductions in other places or making cuts across the board. Mr. Olson said he has concerns that the mill reduction to the Library beyond what was originally requested is because the City desires not to see a full time children’s librarian employed. President Moe asserted that was certainly not the case. Mr. Olson spoke fondly of the kindness he has been treated by children’s librarians over his lifelong experience. He read a quote from Laura Bush on the positive impacts of libraries on people’s lives. He said he was hoping that the City reconsider their mill reduction to the Library. President Moe said the Commission was not unsupportive of having a full-time children’s librarian but that their were concerns about funding. He added that because valuations increased, so did the value of a mill and that the actual dollars the library are set to receive is not far off from this year’s amount. President Moe said the City made it a priority to reduce mills this year because of increases due to the school district bond referendum passing and ambulance service mill levy establishment. He said the Airport and Jobs Development Authority were both impacted as well. President Moe said every year each department gets looked at in detail and that this is where the funding has broken out to. He said that the Library Director is going a good job and applauded her enthusiasm for the Library. The City Administrator communicated that between the City of Devils Lake and Ramsey County that the library was set to receive $1,000 more than in 2024. President Moe closed the public hearing and asked the City Administrator to give an overview of the 2025 final budget. He said the budget was slightly over a total of $2.076 million for property tax levy, for a total levy of 90.11 mills. He said the budget includes a 4% increase to health insurance rates, a 3% cost of living adjustment, and a slight restructure to the Police Department and shifting a position from the airport to the fire department due to the assumption of the ARFF mission. Commissioner Knowski made a motion to approve the 2025 Final Budget, Salary Plan, and Position Authorization. Commissioner Hach seconded the motion, and the motion was carried unanimously on a roll call vote. BID OPENINGS VISITORS OR DELEGATIONS COMMISSION PORTFOLIOS Commissioner Knowski – The City Engineer said everything was going well in the Utilities Department. Commissioner Hach - The City Engineer said everything was going well in the Sanitation Department and that fall cleanup will begin next week in Zone 1. The City Engineer said curb and gutter was being installed for the stromquist paving project right now. He said that pavement would be put in soon on the West Side project weather contingent. He said the south-side watermain project is pretty much complete. The City Assessor said everything was going well in the Assessing Department. Commissioner Uhlenkamp – The City Engineer reminded everyone that political signs need to be out of City right-of-way. He said this would mean the signs need to be on the property owner’s side of the sidewalk or if there is no sidewalk, five feet from the curb. Commissioner Uhlenkamp asked how the columbarium project was coming along at the Cemetery. The City Engineer said the project is complete. The Fire Chief said everything went well with National Night Out and the Fire Department’s Open House. President Moe – The Police Chief said National Night Out and their Tip-a-Cop event went well. The City Administrator gave notice to the Commission that the public hearing for special assessment lists will be on the October 7th Commission agenda. The City Attorney said everything was going well. President Moe asked about the hazard and proceedings for the distressed church on 2nd Street. The Fire Chief said a letter giving a 30-day notice was provided two weeks ago. He said they have until 30 days from the letter to provide the City with a plan to but the property into compliance. OLD BUSINESS CONSENT AGENDA NEW BUSINESS 1) Resolution Establishing Rates and Fees Effective January 01, 2025 The City Administrator gave an overview of the proposed rates and fees to take effect January 01, 2025. He said that City staff and the Commission will need to have a discussion on how to proceed with the rate and fee structure in the Sanitation Department. He said the absence of a recycling market has resulted in an over $100,000 drag on the Sanitation Department’s budget due to the lack of an off-setting revenue source. The City Administrator said it will be likely that an additional adjustment to the Sanitation Department’s rates and fees will be recommended between now and the end of the year to incorporate the added net cost of the recycling program. He said that he would like to go over a proposal with the City Engineer/Public Work’s Director Commissioner Hach made a motion to approve the Resolution Establishing Rates and Fees Effective January 01, 2025. Commissioner Knowski seconded the motion, and the motion was carried unanimously on a roll call vote. 2) Pay Estimate #2 – Mayo Construction – West Side Project Commissioner Uhlenkamp made a motion to approve Pay Estimate #2 to Mayo Construction. Commissioner Knowski seconded the motion, and the motion was carried unanimously on a roll call vote. 3) Declaration of Emergency and Budget Amendment 24-05 – Sanitation Roof Repair The City Administrator said it was budgeted to repair the roof for the Sanitation Department’s building in 2025. He said in seeking preliminary quotes from two vendors, there was a favorable quote and that staff would like to move forward repairing the roof with the selected vendor this fall rather than wait until spring. Commissioner Knowski made a motion to declare an emergency and approve Budget Amendment 24-05. Commissioner Uhlenkamp seconded the motion, and the motion was carried unanimously on a roll call vote. 4) Resolution Authorizing Redemption of Sales Tax Revenue Bond, Series 2015B ($1,280,000 plus Accrued Interest) The City Administrator updated the Commission on the status of the City’s fiscal year audits. He said that the City was expecting to begin their 2022 and 2023 audits at the end of August or beginning of September. He said that staffing changes at the State Auditor’s Office have pushed that timeline back. The City Administrator said that due to the City’s delay in getting financial audits completed, Moody’s will be placing the City’s bond rating up for review with the potential for possible future withdrawal without audited financial statements reported to them in 60-90 days. The City Administrator said the City is seeking proposals from private auditing firms to get the City back on track and on a normal cadence for yearly fiscal year audits and that staff would bring the proposals to the City Commission for their consideration at a special meeting in the near future. He said that after consulting with Northland Securities, the City’s financial advisor, it would be beneficial and strategic to payoff Sales Tax Revenue Bond, Series 2015B. He said this is the only debt on the books that carries a Moody’s rating. The City Administrator said that it would be strategic to eliminate issued debt that carries a bond rating to hedge against the possibility of the City’s rating getting withdrawn due to lack of sufficient information, which could risk a withdrawal of the rating or reduction in the bond rating for that series. The City Administrator said staff would present a proposed budget amendment to the Commission at the next meeting. Commissioner Knowski made a motion to approve the Resolution Authorizing Redemption of Sales Tax Revenue Bond, Series 2015B. Commissioner Hach seconded the motion, and the motion was carried unanimously on a roll call vote. CITIZEN COMMENT INFORMATIONAL ITEMS 1) August 2024 Financial Report The City Administrator said the August sales tax deposit was the highest received from the City since the Tax Commissioner’s Office began distributing funds monthly. LIST OF BILLS Commissioner Hach made a motion to approve the List of Bills. Commissioner Uhlenkamp seconded the motion, and the motion was carried unanimously on a roll call vote. __________________________________ __________________________________ SPENCER HALVORSON JIM MOE CITY ADMINISTRATOR/AUDITOR PRESIDENT OF CITY COMMISSION