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Chisago City’s 2004 year-end audit was presented at the city council meeting last week, at the first regular session attended by newly-elected council persons Larry Parker and Don Taylor.

Council was told the budget was nearly dead-on in general fund revenues and expenditures, and the city’s fund balance (savings) is back up where it needs to be after several years of being relatively thin.

City staff, especially finance manager Gail Wilson, received a glowing report from Steve McDonald, of the auditing firm Abdo, Eick & Meyers, for their exemplary bookkeeping and for staying within budget.

Chisago City gets a little over 50 percent of its revenues from taxes. The other half is generated through grants, investments, charges for services and licenses and permit fees. The 2004 year showed about a $38,000 increase in revenues above what was budgeted.

Chisago City debt increased in 2004 by 50 percent due to issuance of $1.3 million in General Obligation Improvement Bonds. Still, $240,000 in long term debt was retired during the year. The city’s outstanding debt at the end of 2004 was $2.8 million.

The audit recommended that in the coming year or so city officials evaluate water and sewer rates to determine if increases are needed to cover operating expenses and payment of debt tied to the opening of the new wastewater treatment plant, by the Chisago Lakes Joint Sewer Commission.

Overall the city’s actual tax levy in 2004 decreased by 3.25 percent, but net tax capacity increased by over 13 percent which had the effect of decreasing the tax RATE by almost 15 percent.

In other matters the council sat as the Board of Review for property valuation appeals and went through about 40 parcels whose owners submitted requests for adjustment.

Many sites were given field visits by county assessor’s staff and some parcels received adjustments. The main reasons for changes in valuation included construction quality, lot desirability and size, shoreline front footage, unidentified powerline easements, etc. Board of Review took at least an hour. Residents who wish to continue their valuation appeal need to appear next before the County Board.

Mayor Chris DuBose and Council member David Giese announced in the meeting that they have sold their interests in a potential development site north of town. They are no longer involved in the future use of these parcels-- one has been annexed into the city from Chisago Lake Township and the other annexation out of Lent Township was pending.

Ponds of Old Towne developer Vicki Miller appeared before council hoping to receive the certificate of completion for the subdivision.

Miller felt she had gone above and beyond what was required in the developer’s agreement and asked for special considerations for her landscaping and lighting.

Miller was told she still needs to install the sidewalk that was part of the developer’s agreement and there was much discussion.

Council agreed that installing an 8-foot walk (in the original agreement) isn’t practical because of topography and wetlands-- so the city council unanimously supported a motion for a five-foot cement sidewalk.

City Attorney Tim Miller needs to review items in the developers agreement versus what has actually been done (puch list) and he said he’d report back on negotiations with developer Miller (no relation) on the sidewalk issue.

When the certificate of completion is granted by the city it triggers a one-year “warranty” for the development and after this time period the city takes over. Miller mentioned the letter of credit on the project has expired so there will need to be a new one drawn or a warranty bond presented to the city.

In another matter, council agreed the city administrator should “take the lead” and start the process of hiring a planner whose wages are being partially funded under a special Greater Minnesota Housing Fund grant that Chisago City, Lindstrom and Wyoming have been awarded.

The grant supports a regional approach to housing issues in Lindstrom, Chisago City and Wyoming.

A special event permit was discussed with the owner of Scooters in Chisago City, Lori Bostic.

There is going to be a benefit motorcycle run and pig roast in July to raise money for Jacob Puchtel, 6, who was hit by a truck one year ago and is undergoing medical care.

Bostic and her event workers were asked to coordinate the fundraiser with Lakes Area Police and city staff. Scooters overflow crowd and a pig roast will using Moberg Park, plus the lot in the park will be reserved for motorcyclists.

Fire Chief Mike Klun got the okay from council to increase the pension benefit from $2,050 to $2,250 per year of service. There will be no increase in the city contribution to the benefit fund, which is about $14,000 annually.

Klun said the fund is sound and will still have a balance even with increased benefits.

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