Spencer City Council notes: January 7, 2019

Spencer City Council notes: January 7, 2019

Spencer City Council approves audit

The Spencer City Council on Monday approved the Fiscal Year 2018 audit as prepared by Winther Stave and Co.

The only expense that went over budget noted on Monday was one that had already been approved.

During the fiscal year that ended June 30, 2018, disbursements for debt service exceeded what was originally budgeted. A budget amendment had been approved to account for that, though.

“As a whole, your entire budget was definitely maintained well within what the overall budget was for the fiscal year 2018,” said Arvin Druvenga, CPA and partner at Winther Stave and Co.

Mill Creek Machining Jobs Trust contribution approved

The city council approved the city’s $4,500 contribution of a $9,000 Spencer Jobs Trust loan to Mill Creek Machining. The Jobs Trust board met Dec. 6, recommending the forgivable loan.

Spencer Municipal Utilities will contribute the other $4,500.

Mill Creek Machining, from Paulina, opened a second location in Spencer from Paulina to seek more workers. It’s now adding a second shift to its Spencer operations.

This loan is for three new positions and is forgivable as long as those positions are filled.

The money will come from the city’s fund covering miscellaneous economic development purposes. That fund has an annual budget of up to $60,000.

Indoor entertainment zoning special exception

The city council approved a final filing of an ordinance that amends the city code and permits indoor entertainment as a special exception use in the “E” heavy industrial zoning district.

Shine Bros. Corp. cardboard recycling agreement approved

A commercial cardboard recycling agreement with Shine Bros. Corp. was approved by council Monday night. Shine Bros. will charge $100 per ton for the services. That fee will increase 2 percent for a three-year period.

The city could choose to purchase Shine Bros.’s baler from the company for $200,000. The city has 6 months after the start of the contract to make that decision. The agreement results in an increase in unbudgeted expenses for the city’s solid waste operations budget.

An agenda item states the annual deficit created by the costs will be about $30,000 to $40,000. The costs will require the city to “find additional revenue” so the department can cover the expenses, according to the document.  The item states the issue will need to be discussed while the city plans its budget.

County to contribute to fire tower project

Clay County has agreed to contribute $125,000 over five years ($25,000 per year) toward. the Spencer Fire Department Fire Training Facility project. The project is expected to cost $691,701.06.

The council approved the agreement Monday.

Funds for the project come from the following sources:

  • Fire reserve fund: $271,969.00
  • Spencer Municipal Utilities: $152,800.40 (Reimbursement for water line installation)
  • Sewer reserve fund: $141,931.66
  • Clay County: $125,000 over five years

“I’m just happy that the fire department is working with the county and it’s a group program between the city and the county,” council member Ron Hanson said. “There’s a lot of area fire departments that are going to benefity by this training. I’m fully in favor of this project.”

The tower will be used for training by Spencer and other area fire departments. It will be located in the Green Industrial Center on the city’s east side.

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