Financial implications of infrastructure projects

A reminder – the function of this news media is to provide information not pass judgement.

No one in this community is opposed to progress but how to pay for, and ensure a fair and equitable financial distribution and timeline requires basic financial information. In order for residents to give proper consideration to their potential financial obligations a full disclosure is preferred.

The graphic above comes from this official web site

https://www.accessmygov.com/MunicipalDashboard/FinancialData?uid=2090

 

The following is a depiction of actual financial data supplied by the Village in it’s accounting spreadsheets.

There are 3 major infrastructure projects being proposed.

The costs are divided by the latest official US Census figures.

Obviously the actual sewer transmission costs will depend on the extent of service connections within the Village and whether transmission is gravity or pumped fed. One item of concern in the preliminary language lists REU’s by Lot, not parcel. The final household obligation will depend on the ratio of loan to grant funding, connection fees and unfunded obligations to remove prior septic systems plus necessary household electrical upgraded.

village financial position

The Village amended it’s budget in June:

  • At the request of the USDA & Rural Development, repayment of loan for construction of new DPW building (approx.. $310k over 30 yrs.) must be amended into the 2017-2018 Village Budget. Loan repayment per month approx.. $1,225-$1500) ▪ Motion to amend the budget for repayment of DPW building in 2017-2018 Budget as follows: General $1,800, Water $7,200, Park $1,800, Major $3,600, Minor $3,600, by Bass, seconded by McPherson. Motion Carried 

A member of the Bear Lake News Board asked for more information concerning this item.

Hi Cindi
The June meeting of the Village Council indicates that a request was made by the USDA and Rural Development that the Village amend the Budget to reflect the monthly loan repayment for the new DPW building. I would like to formally request copies of any and all documents sent to the Village by the USDA and Rural Development regarding this matter.
Thank you

This was the response:

From: “Cindi McPherson, Clerk” <bearlakeclerk@gmail.com>
Date: July 14, 2017 at 2:12:43 PM EDT
Subject: Re: FOIA – USDA AND RURAL DEVELOPMENT LOAN LETTER RE: BUDGET AMENDMENT
I received a call from AES which stated we needed to show repayment of the loan for the DPW building in our budget.  There were no documents involved.
Cindi McPherson, Clerk
Village of Bear Lake
And in response:
Thanks for your prompt response, Cindi. Sounds like will have to FOIA from USDA and Rural Development as I am sure they would have to put a requirement such as this in writing.
I’m surprised that the Village would not want something in writing to back up the request and the need to amend the budget.
Thanks.
**************
July 11:

Good afternoon,

we are concerned about this item in the June Village of Bear Lake Minutes:
  1. “At the request of the USDA & Rural Development, repayment of loan for construction of new DPW building (approx.. $310k over 30 yrs.) must be amended into the 2017- 2018 Village Budget. Loan repayment per month approx.. $1,225-$1500)▪ Motion to amend the budget for repayment of DPW building in 2017-2018 Budget as follows: General $1,800, Water $7,200, Park $1,800, Major $3,600, Minor $3,600, by Bass, seconded by McPherson. Motion Carried

Yays: Bass, Evans, Johnson. McPherson, Ronning, Schroeder, Bair

Nays: None”

Under Michigan Freedom of Information Act Public Act 563 of 2014:

Please tell us, when did discussions commence regarding this loan? When was this discussed at a public meeting? As this intends to place an escrow and commit the General Fund does this require a published Notice of Intent? Does this loan require a renegotiation of the Qualifying Statement to authorize exceeding the Village debt to revenue ratio?

Vern Best

No response was received other than that already posted here REVISED FOIA Request Response Letter (2)

Here are the proposed construction plans:

BEAR LAKE PEC

Preliminary_Progress_6-22-16

4 thoughts on “Financial implications of infrastructure projects

  1. I am hearing that there is some kind of a meeting of the Village Council prior to the next monthly meeting but cannot seem to find notice of this or what it is about. Does the Independent News staff know anything about this?

    1. The Draft Minutes for the July Council meeting [https://bearlakemichigan49614.com/2017/08/06/july-19-2017-village-of-bear-lake-council-draft-minutes/] listed Addition:
      • New Business – Special Meeting in August
      President Bair reported a future meeting in August with Tamara Buswinka from AES to discuss grants for the village street scape. Fund development for the next phase of Hopkins Park.
      Although it is not noted in the Minutes and no official posting has been received, it was stated there would be a Public Hearing at 6.30pm immediately before the August 16, 2017 regular Council Meeting.

      A reminder that the Village has instituted a telephone conference callin service to enable public comment.
      https://bearlakemichigan49614.com/2017/07/19/village-of-bear-lake-conference-callin-service-established/

    1. It is imperative that the accrual accounting reports be available. Once funds are committed they become unavailable for other purposes.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s