Still working out financial woes

Posted 1/24/01

Still working out financial woes

By Danielle Strenke

The Harris City Council continued the restructuring of the cityís accounting practices at its Wednesday, Jan. 17 meeting, by reviewing in detail specific budgets and costs of its well and wastewater treatment plan improvement projects.

Steve Thatcher of Thatcher Engineering went over specific budget numbers with Mayor Richard Hanson and the city council, including the proposed budget on the project, current balances on the project, and payment schedules. He told the council that the account was current, and the next payment on the well was due in February.

The well project had an estimated budget of $368,000, Thatcher said. ěWe will be coming in under budget, even with conservative estimates,î he said.

At the last meeting, the council had questioned a bill received from the company that drilled the well, Traut Wells. Thatcher assured the council that the bill was valid, and it was final payment on the project.

A letter received with the bill was unclear whether the drilling of a second well was paid for by the city or the contractor.

Thatcher explained that the second well was drilled, after the first one collapsed on itself during construction. It was unforeseen, and Traut did assume all costs on drilling the second well. The council then approved payment to Traut, in the amount of $5,739.

Councilmembers asked about the status on the project. ěIs the well project complete yet, or are there loose ends,î councilmember Lyle Holmstrom asked.

ěThere are a few loose ends, and a few houses that donít have water meters yet,î Thatcher said. ěBut they are minor items, and the well company has been notified.î

He told the council that he had been questioned about the possibility of the city extending water and sewer out to the property surrounding I-35. Potential developers of the property had asked for the city to look at cost estimates of the extension. The council also said the impact on the existing system would have to be factored in with the cost, including the construction of another lagoon, if needed.

Thatcher told the council that the project should not include any costs to the city. ěThe cost should all be borne by the benefitting property owners, the businesses,î he said.

ěHave you also looked at the lagoon capacity?,î said councilmember Wayne Buisman. It would have to be determined whether the existing lagoon has enough capacity to add the area to its load. ěThey will have to pay an impact fee on what it will do to the lagoon,î Mayor Hanson said.

Mark Vahlsing, with the Chisago County Housing and Redevelopment Authority and Economic Development Authority, spoke with the city about potential development of the old mill site in Harris. He said he has been approached by a developer, with the possibility of locating property there.

Councilmember Dan Walton asked how many acres were involved. ěFive acres maybe,î Vahlsing said.

The intent of the developer, he said, was to find a location for a multi-unit senior townhouse development. ěI would think some type of townhome development may have a better use than a couple of single family homes,î Vahlsing said. ěI think thatís something weíll deal with when the subdivision ordinance is completed,î Mayor Hanson said.

He told the council that the Planning Commission would be re-viewing the finalized versions of both the subdivision and zoning ordinances at its Feb. 13 meeting. If approved, the commission will send them on to the council to adopt the final versions.

The council continues to bring current all of the cityís past due bills. Bills approved for payment included a $228 bill to East Central Energy, for service of the security light at the old skating rink. The council estimated that the payment was for two yearsí worth of service.

The council also approved payment of over $7,000 for state and federal withholdings for 2000, but the was advised that the city still owes for 1999, and the state payment for 1998.

ěSo the money that hasnít been used to pay the bills, where did that go?î councilmember David Christianson asked. ěThatís what weíre trying to figure out,î Walton said.

In other business, the council:

ď Discussed applicants for the city clerkís position, and agreed that one applicant should be brought back for a second interview.

ď Agreed to have North Branch Schools Superintendent Dr. Bob Stepaniak speak with the council at an upcoming meeting. Stepaniak will explain the proposed May referendum for the North Branch School District.

ď Was told that repairs to the road grader were less than expected, totaling around $1,500.