Grand Marais resident Karen Lohn, author of Peace Fibres: Stitching a Soulful World, gave the county board a braided scarf made by community members. “This scarf is part of a project to celebrate the International Day of Peace,” Lohn wrote to the board, “and to honor your work and achievements toward sustainable peace between and among all people. The scarf was braided by many hands, using strands blessed with peaceful intentions, contributed by diverse peoples from six continents. May you enjoy its beauty and unity of spirit or re-gift to encircle another with warm wishes for peace and harmony.” Accepting the scarf are (L-R) commissioners Bruce Martinson, Sue Hakes, Jan Hall, and Fritz Sobanja.
Can the county board avoid increasing the levy next year? On October 23, the board—sans Jim Johnson—tried to figure out how to avoid the 5.76 percent increase next year’s budget calls for.
Auditor-Treasurer Braidy Powers said one way to reduce the levy would be to use some of the county’s general fund balance. In future years, it could also sell off its tax-forfeited land.
The proposed levy increase includes cost of living raises of 1.8 and 2.4 percent (depending on the employee group), “which we feel are justified,” Powers said.
Not increasing the budget in 2013 would mean increasing the budget significantly the next year, Powers said, unless they start cutting services.
The Planning & Zoning budget is healthy this year, with permit revenues higher than expected. If this trend continues, the additional revenue could be added to the budget and help lower the levy.
Planning & Zoning Director Tim Nelson said that because of fluctuations in the recyclables market, his department paid $10,000- 12,000 this year to get rid of recyclables that he thinks they might receive $30,000 for next year. “I am optimistic that it may be more,” he said.
Fund balances
In order to keep the levy down, Public Health & Human Services is planning to use $79,570 of its fund balance and the Cook County Airport is planning to use $6,300 of its fund balance.
Commissioner Bruce Martinson asked Highway Engineer David Betts about using the Highway Department fund balance to pay for new equipment next year. “I’m uncomfortable going after the fund balance,” Betts said. They need to have money available to cover unexpected expenses, he said, adding, “We have a lot of them.” The county board has allowed the Highway Department to build up a fund balance over the last several years. “We’re trying to manage our money and be reasonable,” said Betts. “Just like other places, you keep a reserve.”
The board also talked about putting off equipment and vehicle purchases in the Highway Department, but Maintenance Supervisor Russell Klegstad said whatever they put off this next year would be added onto the following year’s expenses. Engineer Betts said they are looking at replacing a dozer that is at least 23 years old. The department ends up spending a lot of money on repairs as vehicles get old, he said.
EDA levy
Commissioner Martinson reported that the county could levy up to $311,000 for a housing program if it were not under the umbrella of the Cook County/Grand Marais Economic Development Authority (EDA). The EDA has requested a levy of $200,000, which includes $102,000 for the housing program run by Community Fundraising Solutions (CFS) and $36,000 for a director they do not have right now. (The housing program’s total budget is $118,000.)
Commissioner Sue Hakes said they should look at whether they could get the same housing services for less or use the money they are paying Community Fundraising Solutions to pay an EDA director to do a lot of what CFS has been doing. CFS has asked for about $75,000 a year (including a health insurance allowance) for 40+ hours of work a week. Hakes said if they pay CFS that much, they would have to pay an EDA director at least that much.
The board will continue to discuss the budget and levy until they are required to set it in December.
Lowering the levy by bonding
The board met with financial consultant Bruce Kimmel of Ehlers Inc. regarding going out for bids on two sets of bonds: $2,175,000 tax-exempt general obligation capital notes for equipment to be purchased in 2013 and $9,660,000 for the construction of the new community center.
Bonding for the equipment would help keep the 2013 levy down.
The equipment to be purchased includes communication equipment compatible with the state’s new Allied Radio Matrix for Emergency Response (ARMER) communication system, Highway Department equipment to be purchased next year, and shields and helmets for the Sheriff ’s Office, all of which are in next year’s budget.
Kimmel estimated the equipment bonds would average 1.23 percent interest over six years and the community center bonds would average 3 percent interest over about 21 years.
Kimmel estimated that the total debt service on all 1 percent recreation and infrastructure sales tax projects would be $25,829,176.25, all of which can be collected through the tax, which can be collected until the project and financing costs have been covered. The revenue from the 1 percent tax has been coming in sufficiently to make the bond payments as they became due.
The board will consider bids at 1:30 p.m. on November 27.
In other county news:
. The board approved a conditional use permit for the construction of a 195-foot multi-tenant cell phone tower on Minnesota Power/Allete property zoned Heavy Industrial in Taconite Harbor. AT&T, working through Minnesota Towers, will be putting up the tower and will lease space on it to other companies.
. The board gave Community Center Director Diane Booth authorization to spend $600 on polypropylene poultry fencing for the perimeter of the horse park on Fourth Avenue West. It will allow the horse park to also be used as a dog park now that the old Community Center hockey rink, which had a grass foundation, is being replaced with a new rink with a cement foundation.
. The Probation Department is planning to install lockers outside their office suite in the courthouse in an effort to increase security. People on probation will be required to leave jackets and other belongings in the lockers outside the office to minimize risk to staff.
. The board authorized hiring Chuck Anderson as a full-time deputy while two deputies are out on family and/or medical leave.
. The Federal Emergency Management Agency (FEMA) awarded Cook County $1,917,750 for outdoor wildfire sprinklers. In addition to this amount, property owners benefitting from the grant will supply a 25 percent match totaling $639,250 toward the cost.
. The Veterans Services Office received a grant from the state for $2,298. It will be used to reimburse mileage costs for veterans traveling to medical appointments, helping make up a previous reduction in state funding.
. The board set a public hearing for 10:30 a.m. February 26, 2013 to discuss making the ATV ordinance permanent. The current ordinance expires July 1.
The board discussed with members of the ATV Club whether the ordinance should continue to require an annual update on any reported ATV incidents. ATVer Chuck Silence said that no other local user group is monitored in this way and that persistent problems would be brought to the board by the Sheriff’s Office or the Minnesota Department of Natural Resources without requiring an annual report. “We’re being singled out by everybody,” he said.
Highway Engineer David Betts suggested amending the ordinance to allow ATVs on the shoulder of the Gunflint Trail from Grand Marais to County Road 60 instead of just up to County Road 8 since the road has an adequate shoulder up to that point.
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