Bancroft City Council Report for March
Apr 23, 2025 11:17AM ● By Anna Pro
Adapted from the official minutes recorded by City Clerk Debbie Swensen
Audit for Year Ending 9/30/2024
Zwygart, John, and Associates presented the fiscal year end audit 9/30/24. John explained the auditing standards he is required to follow by state law. The balance sheets for each fund and account were reviewed, including the bank, savings and cd’s. He explained that governmental funds are the activities supported by tax dollars and the proprietary business funds are supported by user fees. The balance sheet for the governmental funds shows the assets and liabilities. The city has a positive operating reserves of approximately five months. Larger cities shoot for about 3-6 months reserves.
The income statement for the general fund shows a net change of $52,000 without the reserves. The proprietary funds are operating at a positive balance on a cash basis. From a profit and loss standpoint, the water fund shows a deficiency but will have a positive change for the 2025 audit. On a cash basis there was a positive operations cash flow. Bancroft is operating at a positive cash balance overall with a five-month reserves set aside. The recommended target is approximately six months reserves.
John advised that the state of Idaho has come out with some new advisories and recommendations. One of the big changes is asking that small cities have two signers on all checks and have the mayor or council sign each individual statement before it is paid. Councilmember (CM) Eric Christensen stated that the city of Bancroft adopted this policy quite a few years ago and has been actively following it. John is glad to hear this and will document the compliance.
The sewer fund is operating at a positive overall cash flow. The sewer fund currently has a three-month reserve which might cover some of the engineering cost, but a bond loan will be required. John informed council that he is aware of the capital sewer project coming up and discussed that it will have a big impact on the user fees but is understandably unavoidable. The sanitation fund has a small reserve and should be fine unless the contracting company raises rates again. John commended the city for staying conscious of the sewer project and working diligently with the state water departments to find resolution and the best way to become compliant while looking out for the residents. John reviewed the water bond loan schedule with (DEQ) the Department of Water Resources. The balance sheet shows that all payments are current to date and the payoff date is 2036. Clerk Swensen asked council to consider paying off the interest or adjusting the loan payment a little higher to cut down on the term of the loan in preparation of the sewer project bond loan that is needed soon.
John discussed how grant money has become less available and has restrictive criteria. John advised that most larger grants are written by the hired engineers and the smaller grants are written by appointed individuals or grant writing non-profit organizations if available. John suggested that due to the time it takes and the workload, the city may want to consider look for help with grant writing.
SICOG representative, Amanda Collings was present at the meeting and stated that this is the reason she is in attendance at the meeting. She and Jules Belyea have been working with the clerk and have recently performed a needed income study in the community that should be good for up to five years. The study should help the city qualify for a few of the new upcoming grants. Amanda will go into more detail later in the meeting.
John stated that overall, there is 3-11 months of reserves built up between the three different utility funds.
John stated that all funds and accounts are in good standing to close out fiscal year ending 9/30/2024.
Building Permit-James Ackerman-Shed
Mayor Spencer informed council that he visited with Council President Rick Hatch regarding the setbacks, confirming the shed placement on the application meets city code. A final inspection will be performed after the shed is placed on the property. Application approved.
Code Enforcement
Mayor Spencer explained that the individual that will serve as a code enforcement officer could not attend the meeting and will be sworn in at the next meeting.
SICOG - Amanda Collins and Jules Belyea – Grant Updates
Amanda updated the council on where they are at with the grant progress. She has been corresponding with the city engineers regarding the facility planning study that was conducted previously by the engineers. Forsgren will send Amanda a copy of the results so she can go forward with applications as soon as possible. The grants she would like to apply for fall under structural, parks, and safety.
Amanda stated that its tough because these studies are only good for five years and then have to be conducted again. The studies performed by the engineers are very costly to the city. Jules Belyea and Amanda Collins stated that once the engineers send them a completed city facility plan, they will be able to move forward a couple of grants that are due in the fall of 2025.Amanda stated that the facility plan is critical in dealing with the sewer issues before the city can increase the rates and show justification of prepping for the capital sewer project. DEQ will evaluate the sewer and look at the depreciation values in order to assess the amount of bond the city will need a loan for.
CM Eric Christensen asked if the city would be able to set a rate and then bring the cost back down if the project ends up costing less. Yes, it is possible but makes things more difficult for the public. Amanda suggested waiting for the completed study. This way there is no additional advertising and meeting costs associated with the rates.
Amanda stated that the city knows they will have to increase the rates eventually and can take the maximum increase each year when budgeting. She informed council that there is less money available in grants, but the studies will help with qualification. Amanda suggested that the city be ready to hold public hearings once the study is complete.
Amanda and Jules asked if there are any other projects the city has tried to find funds for over the years that will fall in the categories previously discussed.
Council wants to continue applying for streets, safety, and structural funding as well as parks and recs updates.
CM Eric Christensen suggested looking at a grant for paddle ball which is similar to pickle ball.
Clerk Swensen suggested applying for funding to replace the water meters and supporting software due upcoming requirements and standards of the Idaho Department of Environmental Quality and the Department of Water Resources. Cm, Christensen informed council that the 2005 water project was not able to replace the water meters or bore under the road and tracks to the north side of town due to running out of grant money.
Amanda will take all of the project suggestions and see what types of grants are available.
As soon as the engineers finalize the study and send it to SICOG, Amanda will begin the process of putting together grant packages. The final documents will need to be approved by council, signed, and submitted.
Council and Staff Reports
CM Jessica Vawser is pleased with the dog fees and stated that it is nice to be able to close the books a little earlier this year. She expressed concerns about potholes on the north side of town. Vawser stated that Gilbert Rd. is very rough and Airport Road is muddy and soft. Mayor Spencer will contact the county about getting the road bladed and hopefully the city can chipseal soon. CM Vawser stated that her son is planning to tear down his home and put up a new home eventually. He will pick up the applications for his building permit when ready.
CM Eric Christensen was contacted by a resident regarding his trailers that are not registered. The resident asked Christensen about turning a property into an Airbnb. Council advised Christensen to have the resident get on a city council meeting agenda due to some other property concerns.
Clerk Swensen asked council what vendors they would recommend for purchasing the items needed to construct the tetrahedron for the airport. Council would like to use the local vendors if they have the materials needed and reasonable cost.
CM Vawser asked if a concrete basketball pad would be something that would require a permit. Council advised that the resident fill out an application if there are any questions.
CM Nate Eiman is in charge of the North Gem School Project called “Cowboys in Action”. The students will be lending a hand in the community and doing projects to help beautify and enhance the appearance of the community. The event will be on May 19th with up to 40 students helping out around town. Nate asked the city council and city staff to make a list of items needing done. The city will provide shovels and other necessary items and tools required for the projects.
CM Vawser asked if the city can burn the ditch banks to get rid of the tall weeds. Mayor Spencer suggested that the city can possibly burn the ditch banks but would need to have it done before May 1st.
Maintenance Supervisor Moreland got a quote on Christmas lights for Main Street. They will cost approximately $2,700 and there is no warranty. Council would like to have a quote from the company in Salt Lake City that used to offer warranty on their lights.
Mayor Spencer informed the council that the transmission in the dump truck is bad and the city needs to decide if they want to purchase another truck from the state surplus sale or use the cities 10-wheeler. The city could convert the truck to a PTO system and put a dump bed on it. Mayor Spencer mentioned that the city also has the army trucks which would be heavy duty. A PTO system would range form $3-5k.
Council likes the idea of using the trucks that the city already has. Mayor Spencer will get additional information on what it will take to switch the trucks over. Mayor Spencer will also look into what the city can do in terms of getting a road grader.
CM Christensen asked if there has been any interest in the Fire Chief position.
CM Vawser stated that the city needs to contact former members of the fire department and get the equipment and radios back. Mayor Spencer will contact the former Fire Chief regarding the equipment and radios.