Menahga restructuring its investments for better return

The Menahga City Council reviewed the latest interest rate offers from Community First Bank, League of Minnesota Cities’ 4M Fund and TruStar Federal Credit Union on city investments

The city currently has five money market accounts at Community First Bank and one account at 4M Fund. The 4M Fund is managed by PMA Financial Network of Naperville, Ill.

Council member Mike Netland analyzed the offers to maximize the best interest rates, while retaining some liquidity.

Netland noted the highest bid in the 90-day maturity category was Community First Bank’s at 5.09% interest. However, PMA offered higher rates for Treasury bills and certificates of deposit.

“At the end of four years, the total impact of an additional interest income over and above what Community First offered was $12,980, and that becomes a meaningful number,” Netland said.

He proposed structuring money into the 4M Fund and 4M Plus Fund. Netland pointed out the 4M Fund is fully liquid, while the Plus Fund has a time commitment, “but it’s pretty short.”

Erickson agreed there are short-time options, like 30 or 90 days.

Netland proposed discussing the options with consultant Betty Thomsen, then proceeding with the investing. The council agreed.

The Menahga City Council rejected a contractor’s bid for repairing the kitchen roof at city hall.

On April 6, an ice dam caused a water leak and partial roof collapse above the kitchen sink.

ProContractors of Menahga estimated the repair at $2,940.

At the Monday, April 24 council meeting, Mayor Liz Olson questioned whether they should get another bid, since the city has a $1,000 deductible.

She suggested having Ralph Cox from the public works department look at the ceiling. He repaired damage in the women’s bathroom a few years ago, she added.

Council member Dan Warmbold noted that ProContractors proposed removing the damaged remainder of a 4-by-12-foot sheet drywall, installing new insulation in the attic, installing a new sheet of drywall, taping and painting.

Council member Durwin Tomperi said, “That’s way over market price.”

Menahga City Administrator Lacey Erickson said she would contact Cox.

In other business, the council did as follows:

• Agreed to submit a $39,410 grant application to Sourcewell’s Community Impact Funding. Calling the project the Betterment of Menahga, the city hopes to use the money to purchase office equipment, a new point-of-sale system for the liquor store, body cameras for the police department, update water lines for the campground, a new garage door fo the city shop, the kitchen ceiling repair, sponsorship for the Economic Alliance and small updates recommended by an energy audit.
• Awarded the request for proposal for the city’s two proposed sewer and water replacement projects to Ulteig Engineering. They had the lowest bid at $360,750 compared to Apex Engineering’s $393,462 and Moore Engineering’s $381,310.
• Learned that Menahga Police Chief Amy Lane is in the process of updating the city’s disaster response guide. “It’s very outdated,” she said. She’s working with Wadena County Emergency Management Director Tyler Wheeler on the project.
• Reminded the council a citywide clean-up day is 9 a.m. to 1 p.m. on Saturday, May 6. Old furniture, mattresses, tires, appliances, electronics and trash will be recycled at no cost for city residents. A hazardous waste pickup is scheduled from 9 to 11:30 a.m. on Tuesday, May 23 at city hall.