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SILVER CREEK TOWNSHIP

ANNUAL MEETING - MARCH 11, 2008

GENERAL REVIEW AND SUMMARY

 

The township continues to be in good financial condition with positive cash reserves which will allow us to continue our road improvement and paving program, and continue our road maintenance and other responsibilities in a reliable and efficient manner. 

 

The citizens will be voting on a budget tonight for the year 2009. 

 

The budget, receipt of funds, and expenditures are broken down into separate accounts as mandated by state law.

 

Road and Bridge Fund covers direct expenses related to road building and maintenance.  This includes wages for our road superintendent and additional part time help, employment taxes and benefits, fuel, calcium chloride dust control, gravel, equipment maintenance and repair, signs, culverts, insurance, related items. New road building and paving is included in Road and Bridge, along with additional funds from the voter approved Capital Road Improvement levy.

 

The Capital Road Improvement fund is used for expenditures specifically related to building, upgrading, paving and otherwise improving roads, not included with general maintenance.

 

The General Revenue fund deals with all other township government function expenses. These include legal and professional services, town board expense, U. S. state and local election expenses, town hall maintenance, clerk and treasurer wages, telephone and utilities, insurance, postage and office supplies, Internet service, paying the township assessor and related expenses.

 

 

ROAD AND BRIDGE FUND

 

Road Improvement projects completed in 2007

 

1)         Rebuilding of 120th Street road bed, prepared for future blacktopping  ($69,200)

 

2)         Rebuilding of Estes Avenue adjacent to Limestone Lake. Realignment of road bed and improvement to cul-de-sac.   ($15,500)

 

3)         Road rebuilding completed related to the new DNR Eagle Lake landing. This was a joint venture with funding provided by the Minnesota Department of Natural Resources for road work, and engineering expenses related to the project paid by the township.   ($77,250)

 

4)         Payment of costs associated with a new culvert installation on 127th St. This was a joint venture with certain funds paid by a Wright County grant.  ($15,000)

 

5)         Rebuilding of 127th Street from County Road 8 on the West to County Road 111 on the East. New road was designed and built to provide a higher level of safety and is ready for future blacktop paving.   ($195,500)

 

6)         Re-paving of 148th Street in front of Olson’s truck stop up to County Road 8. This was done in conjunction with the Counties resurfacing of Highway 8, and with a contribution towards cost by Olson’s truck stop.   ($35,100)

 

6)         Total expenditures for road and bridge were $688,896. Of those expenditures, $407,500 was for capital road improvements such as building and paving, and the balance of $281,396 was for general road maintenance such as road maintenance wages, fuel, gravel, chloride, grading and snow plowing.

 

 

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Road improvements planned for 2008  (Not listed by priority or starting date)

 

1)         Blacktop paving of 120th Street, approximately 1 mile.

 

2)         Blacktop paving of 148th Street continuing from Olson’s truck stop, west to the Clearwater/Silver Creek Township line. Approximately 3/10 mile.

 

3)         Reclaiming and repaving of blacktop surface of 140th Street and Duffield Avenue in West Sides Acres development.

 

The above capital road improvement projects are expected to cost approximately $260,000. A large portion of these projects continue to be managed by Brian Opatz, our road superintendent at significant cost savings to the township.  By utilizing our own employees and equipment on projects where possible, we continue to make the best use of our personnel and equipment resources. There is no major capital equipment expenditures planned for in the 2009 budget.

 

The General Revenue Fund has a reserve balance, funds from which may be transferred to pay for road improvement projects if necessary. The board, as allowed by state statute, plans to fund any over-runs in summer 2008 projects by transferring monies from the General Revenue fund.  In this manner, it is not necessary to increase the budget for Road and Bridge, and still retain an appropriate balance in the General Revenue account to fund general township operations.

 

 

2009 Budget Year road improvements

 

The board of supervisors requests the continuation of the $100,000 Capital Road Improvement Fund for year 2009. Although specific plans will not be developed for 2009 projects until a later date, anticipated paving projects include blacktop surfacing of 127th Street from County Road 8 to Country Road 111.  Other smaller projects may be added if funds are available.

 

All roads improvement projects are based upon traffic counts, present maintenance costs and similar impartial criteria.

 

Important Note

 

The board of supervisors is on record, that the projects outlined above are based upon their best intentions and information available at the time of budget development.  It should be noted that 1) it is possible that one or more of the projects might have to be delayed or postponed to another season and, 2) scope of the projects might be changed. Higher than expected bid prices, problems relating to road right-of-way acquisition and/or emergency road situations requiring cash resources might possibly change the plan for any project.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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GENERAL REVENUE FUND

 

 

1)         Total general revenue fund expenditures in the year 2007 were $152,472. This compares to $124,007 in 2006, an increase of $28,465.  Some expenses in 2007 which increased, will continue in 2008 and proposed for the 2009 budget being voted on include:

                 

a.                Major increase in State/County mandated recycling expense due to lower than anticipated citizen utilization of the recycling program, and subsequent reduction in Wright County reimbursement.  See discussion on page 4, item # 3

 

b.                Higher election expenses for all local, state and national elections based upon State/Federal mandates to local government, and subsequent higher costs.

 

c.                Outside certified audit of township books. See discussion on page 4, item # 4

 

2)         Silver Creek Township does not have any debt as of 12/31/2007 other than one bond which has financed previous road improvements (Locke Lake-142nd). This bond is paid off through collections of direct assessments of the properties which benefit from the improvements. This last remaining obligation was in fact paid off in February of 2008 and will show as a zero balance on next years report.

                                                                                                                                   

3)         The township earned $9433.00 in interest on savings of idle funds during the year.

 

4)         The township supervisors have begun conversations with the Wright County Sheriff’s Department to possibly pay for some additional patrol services in our township. The requested increase in the General Revenue budget of $25,000 would go, in part to this service, along with increases in recycling expenses, outside certified audit of township finances (see discussion on page 4)  and other general increases in expenses of operating the township.

 

 

SUMMARY

 

 

The township board of supervisors is requesting that the citizens approve a very nominal budget increase over last year in the amount of $25,000, in the General Revenue Account, and no increase in the Road and Bridge and Capital Improvement accounts.

 

Overall, this will raise the budget from 2008 of $705,000 to $730,000 for 2009. This is a 3.5% increase in the total budget.

 

The supervisors believe that, based upon our current cash balances, continued prudent control of operating expenses and attention to road building and maintenance costs, the township can continue to effectively move ahead with the capital road building plan first approved by voters for budget year 2006, and retained for budget year 2007 and 2008. 

 

 

 

 

 

 

 

 

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GENERAL DISCUSSION

 

1)         Township employees (maintenance and clerk)  have been given a 2.5% cost of living increase in wages for the coming year, in line with other local and county wage pay packages.

 

1)         Trash cleanup day is scheduled for Saturday, May 17th, from 8:00 AM to 1:00 PM at the town hall. Check the website at www.silvercreektwp.com  for prices and details.

 

2)         The township has provided access to the town hall for the Sheriff’s deputy working in our area to use the office for phone calls and other uses. The supervisors believe that this is a good way to encourage law enforcement presence in the area.

 

3)         A new recycling contractor was hired in 2008. Only one company responded to our bid request. Dave’s Sanitation, our previous contractor was very inexpensive, however service problems developed, and he in essence declined to continue service to the township. Our new contractor, West Central Sanitation collects on a bi-weekly basis, versus Dave’s weekly service. Even with this decrease in pickups, our costs have doubled with the new contract. The township is reimbursed from the county based on per-household participation in the recycling program as well as gross tonnage recycled. Our residents are not utilizing the recycling program to a great extent. This is substantially reducing our county reimbursement and increasing the use of township General Revenue funds from the general tax assessment to pay for recycling. Increase citizen recycling will improve this situation. It may be necessary in the near future for the board of supervisors to look at various cures for this shortfall, including a special annual levy of perhaps $25.00 per parcel/household to fund this shortfall.  Recycling is a State/County mandated program, so discontinuation of service is not an alternative.

 

4)       The township will be engaging a certified public accountant to conduct an independent audit of the township books and records. Up until this time, the township has operated under Minnesota Township Statute 366.20 which provided for the procedure of conducting a “local board of audit” on an annual basis, wherein a quorum of the supervisors review paid checks, accounts and disbursements for the year, and verify year ending bank statements balances with those of the township records of the treasurer and the clerk. Minnesota township statute 471.697 expressly requires that a city or township, having achieved a population of 2,500, or with a budget approximating $700,000 annually engage an outside accounting firm to audit the books within 180 days of the end of the fiscal year (December). Silver Creek Township now comes under this requirement. A certified accounting firm will soon be selected, based upon competitive bid to conduct the audit. We expect the cost to be approximately $5000 to $7500. This is a General Revenue account expense. Upon completion of the audit, the township is required to publish the audit or summary thereof in the townships’ official legal publication newspaper, and provide a copy to the Minnesota State auditor.

 

5)         Major commercial development is being proposed for Silver Creek Township. The Flying J Corporation has made an offer to purchase land in the south east corner of Interstate 94 and County Highway 8, with plans to approach the township and county for permits to develop and construct a large travel plaza and truck stop. It appears that the land is presently zoned for “Highway Commercial” purposes on the county land use plan. This company operates several hundred such facilities around the county. Plans call for a large facility including up to four restaurants or fast food outlets, fueling bays for trucks, motor homes and automobiles, truck parking, a convenience store, gift shops and related operations. A facility such as this one would employ up to 100 people in various positions and shifts according to company representatives. The township could possibly see $25,000 to $35,000 in tax revenue, depending on final assessed value, with the school district receiving a similar amount if it is built. Representatives of Flying J will make their first presentation to the township planning and zoning committee on Thursday, March 13th at the town hall at 7PM.  The public is invited to attend.