Jeff Sterle, auditor with Sterle and Company, reviewed the 2023 financials with the council. Sterle said the general fund balance was in the black but stated there should be more of a fund balance than the City of Deer River has. Though this is a big improvement from past years, he explained, the city’s policy says the balance needs to be higher. Sterle said the fire fund has a good fund balance as well, and that the enterprise funds have a lot going on. Sterle said the water fund ended the year at a loss and the sewer fund was in the black. The licenses bureau was also in the black. The City continues to carry a high debt load. Sterle said even though there have been a lot of grant dollars there have also been some loans. The water and sewer rates should be reviewed as the USDA and PFA suggest.
City Administrator Mark Box said the rates have been increasing slowly over the last several years but if the City were to have the rate where the USDA wants them, they would be doubled. Sterle said that because of the federal dollars being spent on the projects, a single audit was needed for those funds again this year.
After discussion, the regular meeting minutes from previously were approved, as well as the work session minutes. Council approved payroll.
Deer River Fire Chief Jordan Osse reported on six calls for the month.
Osse said there have been some ongoing issues with the side-by-side track system. The problem was found and the unit should be back in service in about a week.
Osse said the department has finalized the rescue truck specifications and has asked for quotes from Rosenbauer, Pierce, Heiman, and Toyne. After repeated attempts to get quotes from all the different truck builders, Toyne is the only one who submitted a quote. It will take around 900 days to get the truck after the agreement is signed. The cost of the truck will be around $524,880. The final price for the truck will depend on how the city pays for the truck. There are dollars built into the quote for the chassis. The council asked if the City pays for the chassis up front, will that save money on the overall price? Osse will contact Toyne and ask. The council asked him to bring this back when he gets some more clarity.
The Wild Rice Run is coming up on July 13 with a start time of 8 a.m.
Osse said the department trained on auto extrication last week. Osse thanked Deer River Service for their continued support of the fire department. They dropped off the vehicles to train on and they picked them up when we were finished. The department will be doing its emergency vehicle operators course training this week.
Deer River Police Chief Judd Evans reported the calls for May 2024 were 256 calls compared to 295 calls in May 2023.
There were several calls related to school activities in May. There were some shoplifting complaints where the juveniles were cited for trespassing and cannot go into the business for one year. There was a fight and an assault with charges filed. The department also attended the senior graduation, and the 5th grade graduation, and helped with the bike rodeo at the track and field complex.
Evans said the department helped with the youth ATV class at the high school.
The department assisted the Itasca County Sheriff’s Office with several calls. They assisted on an assault call, with one being arrested. There was a burglary in progress in Squaw Lake. In addition, there was an intrusion alarm at the Cut Foot Visitor Center.
Evans said the department participated in a mock crash demonstration for the 10th through 12th graders at the high school.
Evans said there were more traffic stops in May, which he thought was due to the increased traffic related to the start of Summer.
Box presented the 2024-25 workers compensation insurance premium and renewal. Box recommended that the City choose the regular premium option, which council approved.
Box asked if the council had thought any more about whether to have the pavilion a reservable place. After discussion, the council agreed to let people reserve the pavilion for a fee of $50 for a half day and $100 for a full day. Box will talk with Steve to get a calendar on the website that would let people check for availability.
Approved resolution 2024-12 renewing the contract with the DNR to sell licenses. The contract needs to be renewed every five years.
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