There was some good news and there was some bad news when it came to financial matters at the Wells City Council meeting on Monday, June 13.

The positive news came in the form of a clean audit report which was given by Jason Rasmussen of the Abdo accounting firm.

“The city has covered their operating costs and debt service in their Sewer Fund in three out of the last four years, which is good,” Rasmussen explained. “The Storm Sewer Fund is very healthy. This is important because you are building up funds you may need down the road at some point for a capitol improvement project.”

However, he did have a word of caution for the council.

“Keep an eye on inflation,” he said. “It may become necessary to adjust your rates at some point depending on what the inflation rate does.”

Rasmussen highlighted one other recommendation from the audit report.

“Currently, the city has multiple bank accounts for deposits and checks,” he noted. “We (Abdo) recommend consolidating to have one checking account for all deposits and checks utilizing a pooled cash function. This will allow for timelier and concise information for presentation to the City Council. Additionally, the city would no longer have to transfer dollars between bank accounts which will also reduce risk for the city’s assets.”

A unanimous vote was taken by the council to approve the audit report.

The financial bad news came from Mike Pyzick, the street department foreman, who also manages the golf course, parks and swimming pool for the city.

“We had a big expense right out of the gate at the swimming pool,” Pyzick told the council members. “The heat exchanger on the boiler at the swimming pool ruptured and needs to be replaced.”

A bid from Schwickert’s Tecta, LLC, of Mankato, in the amount of $46,795 to replace and install a new boiler was approved by the council.

“They are ready to come down tomorrow (June 14) and install the new one,” city administrator Connor LaPointe pointed out.

Approval was also given for repairs to be made to the baby pool heater in the amount of $2,375.

Next, Pyzick informed the council that a lawn mower used for mowing parts of the golf course had come to the end of its life.

“The unit is 15 years old and is worn out. John Deere won’t even consider trying to repair it,” Pyzick explained. “I have quotes for a new mower and they will only allow $200 trade-in value for the old machine.”

Pyzick shared three different bids he had received for new lawn mowers.

“Unfortunately, Kibble Equipment does not have the one, which would be the best fit for us, in stock and they do not know when they can get it,” Pyzick commented.

A John Deere X570 lawn tractor, which is the preferred unit, would cost $6,346.30. A nicer unit which is currently available would come with a price tag of over $8,000 and the council did not want to spend the extra money it would cost to obtain that unit.

A third option was to purchase a zero-turn mower. However, due to the damage those machines can do to the turf when they turn, that option was also discarded.

After much discussion, the council directed Pyzick to contact other dealers to see if the preferred model was available somewhere else.

The subject of installing some new fencing at Thompson and Half-Moon Park was discussed but the matter was tabled.

And, even though Minnesota is currently experiencing its hottest weather of 2022, the next topic of discussion was the city’s ability to conduct their snow removal operations.

“Our snow blower is in need of more repairs,” Pyzick informed the council members, reminding them he was just the messenger.

Two different repair estimates, one totaling almost $17,000 and another one totaling more than $25,000, were presented to the council.

These estimates come after the city has spent money on major repairs on the unit the last couple of years.

“It is an old unit,” Pyzick offered. “We may be better off replacing it.”

Council members were clearly frustrated at how much money has been required to keep the snow blower in service.

The two bids Pyzick had for new machines ranged from $164,373 for the low bid to $185,548 for the high bid.

“The one new machine is not even available right now,” Pyzick said.

“I think we need some time to think about this and I would recommend we table this,” mayor David Braun suggested.

Other members agreed and the matter was tabled.

There was some good news and there was some bad news when it came to financial matters at the Wells City Council ...

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