By Lexi MooreAt Tuesday’s council meeting, Hills resident Pete Hoff accepted the appointment to fill the open seat left vacant when Councilman Dana Dahlquist resigned in June.During the June meeting Keith Elbers made a motion to ask Hoff to fill the seat for the remainder of Dahlquist’s term. Ross Metzger seconded the motion and the council approved it.Hoff will remain on the council until the next regular city election in November of 2006. At that time, he can decide to run for office in the regular election or step down.After the council passed a resolution accepting his appointment, Hoff was sworn in and welcomed to join the remainder of the meeting.Mayor Jim Jellema welcomed Hoff on behalf of the council, "Thank you for stepping up. We sure appreciate your expertise and knowledge."2004 audit report shows city is in the black:Matt Taubert, a representative from the accounting firm of Meulebroeck, Taubert & Co., presented the council with copies of the city’s audit for the 2004 fiscal year.At the end of the year, Dec. 31, 2004, the city’s fund balance had a $4,987 loss ending at $546,528.Overall Taubert said he feels the city budgeted well in 2004."Your city, for a small city, is in good shape. Keep up the good work," he said.The general fund accounts for all city expenditures and revenues. The loss in the general fund was a product of the street fund. The remaining funds, park and recreation, fire equipment, economic development authority and utilities, did not see any decrease during the year.Taubert said the street fund is set up to be flexible because some years there will be bigger expenditures than other years. This was one of those years.The water, sewer, garbage, apartment and condominium funds, grouped as proprietary funds, produced the bulk of the city’s revenue in 2004. Overall, the sewer fund brought in the biggest gain with a net income of $42,839, followed by the apartment fund with a net income of $38,585.According to the report, proprietary net assets increased by $98,060 or 39 percent during the 2004 fiscal year.Again, Taubert said he was pleased with the performance of the proprietary funds, although he cautioned council members to keep rates competitive."Very good, all three utility funds are going in the right direction, but keep on top of the rates so that things don’t get out of control."Rural water billDan Cook, Rock County Rural Water, appeared before the council regarding a credit the city took on their April and May water bills. The city took the credit to recover the cost of water used when the city was forced to flush their water lines in the fall and spring.Residents in Hills had problems with brownish red particles in the water during part of 2004. RCRW found the problem and instructed the city to flush their water system on several occasions. The flushing would help push the buildup from chemicals used by RCRW out of the pipes.The city sought a credit of $4,826.75, which includes city employee time used and the water charged at the same rate the city charges its residents.RCRW board did not feel the credit was fair and asked Cook to pass along a letter detailing services they have provided free or at discounted rates. The board felt the water credit should be given at the rate they charge the city, not the rate the city charges residents. They felt an amount of $1,115 was sufficient compensation.Following discussion, the city decided to ask the RCRW board for a $2,400 credit.Street assessmentsThe council passed a motion to assess property owners on Elizabeth Ave. to cover the costs of asphalting the street. Property owners assessed are Bevy Massena, Rod Schulte, United Enterprises and Mark Raymond.The council decided to charge the owners by the square footage owned along the road. The cost of the job, based on a quote from Asco Asphalt Co., is $2,890. The quote, divided by the 2,980 square feet involved, is roughly 97 cents per square foot. The motion approved by the council will assess property owners over 10 years at 8 percent based on the amount of footage they own, determined by county records, multiplied by 97 cents per square foot.
