JENKINS — The Jenkins City Council agreed to put $200,850 of their road maintenance fund to work for the city by investing it into a liquid fund earning 4.87% interest.
Mayor Charles Hoffman floated the idea of some day investing up to half of that $200,850 into a one year or longer CD to gain a higher interest rate. Hoffman said they needed at least half of the fund to remain liquid in case of unexpected overages for the 2023 road project, in addition to other unplanned road work.
Hoffman pointed out that starting with the completion of the 2023 project, the city will start a five-year road maintenance program with a project every five years, giving the fund time to earn interest and time for the council to budget and plan.
We can make our money work for us.
Council member Andrew Rudlang said he didn't see a problem with the 4.87% rate, which is not far from the other investment options that are not liquid. In addition, he had Hoffman and Clerk Krista Okerman confirm that the CDs are not liquid, but the city can withdraw funds in an emergency with a penalty.
Hoffman acknowledged that the interest that would be earned in just a year doesn't amount to much compared to the budget as a whole, but every little bit helps.
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"If we can earn that, we don't have to levy for it," Hoffman said.
"We can make our money work for us," council member Roman Siltman said.
Council member Jerimey Flategraff later agreed the council should consider diversifying with a portion in the liquid fund and a portion in CDs.
"I'd like to see some go to liquid and some go longer term," Flategraff said.
In other business Monday, May 8, the council:
- Agreed to acquire signs designating parking on Veteran's Street on the corner of the intersection with Highway 371 as parallel parking only after seeing a large truck block lanes of traffic while parked nose in at the antique shop there.
- Agreed to simplify the city noise ordinance after realizing the rules used by Jenkins and other area cities, based on Minnesota Pollution Control Agency policies, are specific to the point of being unenforceable. The ordinance now depends on a sound meter approved by the city, not certified under MPCA guidelines.
- Agreed to hire Betty Guenin to clean city hall using the same conditions as a current cleaning contract, canceled by the previous cleaners.
- Agreed to meet with the Pine River Area Foundation to discuss that group administering charitable gambling funds to be used to develop a new veterans memorial using the PRAF's nonprofit status.
- Approved moving Cassandra Delougherty, the city's administrative assistant, from probationary to permanent status, with a $2/hour increase in pay and discussion of benefits. Any decision on benefits will need to reflect on all city employees, so the personnel committee is weighing options.
- Agreed to officially choose the new CityofJenkins.com domain, securing the address as the new website is developed.
Travis Grimler is a staff writer for the Pineandlakes Echo Journal weekly newspaper in Pequot Lakes/Pine River. He may be reached at 218-855-5853 or travis.grimler@pineandlakes.com.
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