Schroeder citizens met Wednesday, August 12, 2015 to reconvene the annual meeting held March 11 at which they tentatively set a 2016 budget of $105,940 (plus $25,000 in donations approved by voters).
The 2016 levy was the main topic of discussion and centered on whether or not the township could use levy funds as grants (or gifts) to organizations such as the Birch Grove Community School (BGCS) or Schroeder Area Historical Society.
On the matter of giving funds to nonprofits, Schroeder Clerk Doug Schwecke said the board had been wrestling since March to resolve that issue, but still hadn’t come to a firm conclusion on the legality of the donations.
Concerns about the vote to grant the school $20,000 per year for five years was raised by many of the people attending the August 12 meeting. Despite concerns, last March citizens voted 44 yes, 21 no, to grant BGCS $20,000 for five years.
However, following that meeting Schroeder supervisors said the board would have the power to decide whether or not it would put the $20,000 down as a line item for the next five years or bring it back to the voters to vote on annually.
Supervisor Tina McKeever told the audience that a Minnesota Association of Townships (MAT) attorney had been meeting with representatives of the three West End townships and so far it seemed likely that the townships— under most circumstances— could levy to give to nonprofits.
“That depends though, doesn’t it?” said Charlie Muggley. “It depends on which attorney you ask and how you ask the question. I’ve heard that different attorneys give different answers. We want to be careful. We know we haven’t been doing this right in the past, and we don’t want to keep making the same mistake.”
Concerning the levy, Schroeder Treasurer Alicia Kangas said before any decisions were made, “Policies and procedures should be set.”
And Kangas urged, “Caution, caution, and more caution,” before donations were made that might not be legal.
Kangas reported the township had savings of $225,000 and $15,000 was left in a discretionary fund from last year’s levy that, she said, “you can spend anywhere you want.”
Before that vote last March, Schroeder citizens raised their hands in favor of giving the Tofte Fireworks committee $1,500 for the Fourth of July fireworks and also agreed to donate $1,000 to the Superior Timberwolves Sportsmans Club for a six-mile trail brushing project on the Schroeder Tote Road.
Paper ballots were also cast for the Birch Grove Foundation who sought $10,000 to help with the operation of the Birch Grove Community Center. Although close, residents voted 36-32 against the donation. However, Schroeder citizens voted 38 to 27 in favor of giving the Birch Grove Foundation $2,500 for senior programming.
Treasurer Kangas said the township had a fund balance of $173,801.47. She reported that the storefront loan program had $68,737 to borrow with one outstanding loan left that when fully paid back will bring the funds to more than $90,000.
When asked what the 2016 levy looked like, Schwecke said based on the township’s decision to give $25,000 to a variety of organizations at the March annual meeting and the township needing about $22,000 to cover expected expenses, the levy should be set at “about $47,000.”
Several motions were made—one calling for a zero 2016 levy which failed 7-19. The motion that passed 17-9 called for the levy to be set at $47,000 with a caveat—if the supervisors decided not to fund the $25,000 promised to the various entities, that money would be put into the township Road & Bridge Fund.
However, because $10,000 will be moved from the discretionary fund Kangas referred to, Schroeder residents will see a levy of $37,000. The remaining $5,000 in the discretionary fund will be placed in savings, the first time in four years the township has put money back into savings, said Kangas.
Supervisor and Board Chair Tina McKeever gave an update about Cook County’s Land Use Plan which is currently undergoing revision. McKeever is on the land use plan committee and she encouraged residents to view a draft of the plan on the county’s website and to come with suggestions for change to a public meeting on September 14 at 6:30 p.m. at the Cook County Community Center in Grand Marais.
McKeever said she also hoped Schroeder’s 10-year-old Township Plan could be reviewed and updated to fit in with the county’s plan. Both the county and Schroeder’s land use plans are available on the Schroeder Township website at www.schroedertownship.com.
Supervisor Bruce Martinson said he had checked with the Iron Range Resources and Rehabilitation Board (IRRRB) to see if the Schroeder Store Front Loan program or, as it is now called, The Schroeder Community Development Fund, could be used for purposes other than fixing up storefronts or business development. At the March annual meeting someone asked if the funds in the Store Front Loan could be used to help pay off a student’s debt, but Martinson said no. “The IRRRB stated that the money should be used only for economic development,” he said.
Representing the Lutsen Alpine Ski Team, John Oberholtzer came before the board at the regular meeting that immediately followed the annual meeting. Oberholtzer had asked for a $1,000 donation for the ski team at the March meeting, and the board said it would consider it. In July Oberholtzer brought a half dozen kids to Schroeder who helped pull weeds for a town beautification project.
Tina McKeever made a motion to grant $500 to the ski team and the board voted to give it to him while the other $500 will be voted on before the June meeting when donations will— or won’t—be given to the entities that voters approved giving to in March.
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