Deer Creek audit shows positive signs for general fund
News | Published on May 6, 2025 at 3:12pm GMT+0000 | Author: Tucker Henderson
0By Chad Koenen
Publisher
The City of Deer Creek’s general fund continues to go in the right direction financially, at least according to its 2024 year-end audit.
During its regularly scheduled meeting last Monday night, the Deer Creek City Council heard from Dean Birkhead of Carlson SV who update the city council on its 2024 year-end audit.
According to the audit the city saw its cash balance grow in the general fund by $22,393 as it continues to maintain a healthy fund balance, despite its rather small size in population. That fund balance has provided the city cash for a number of projects over the years and has been something that Birkhead said has been built up for quite some time, which is not always the case for communities big and small across the state.
“I can safely say under any measure the city’s general fund balance is in very good shape. That has been built up for many years, even going back to when the city was incorporated,” said Birkhead.
One item that Birkhead noted during his audit report was the water fund, that showed a $50,152 decrease in cash and ended the year with a negative fund balance of $12,943.
Birkhead said the reason the cash balance was negative had more to due with the timing of the audit due to the capital outlay of the water tower project, as opposed to anything that should be alarming to the city.
“It was basically timing,” said Birkhead of the negative fund balance.
In all, Birkhead was complimentary of the City of Deer Creek and its financial position at the end of 2024.
In other news
• Heard the monthly call report from the New York Mills Police Chief Bobby Berndt who stated the police department responded to 15 calls during the month of March for a total of 30 hours of service. Berndt suggested the city council search the community for nuisance properties again this spring since it is approaching May. The city council will look at the progress of previous nuisance properties and what other properties may need to be cleaned up as well.
• Discussed a need for a parking ordinance/snow removal policy after some residents have not moved their vehicles to off-street parking during large snowfalls. The city council spent quite a bit of time discussing what an ordinance should look like and how it can be enforced in the city limits. Councilman Danny Hendershot said a similar ordinance was in place a number of years ago in which residents who left their vehicle on the street for one snow fall had to move their vehicle before the next snowfall or they risked being fined. He said any ordinance the city passes regarding a parking ordinance/snow removal policy should be black and white for the benefit of the city and property owners.
• Approved delegating the enforcement and regulating cannabis to Otter Tail County. A majority of the cities in the county has made a similar move, which would be similar to how the county is in charge of enforcing and regulating tobacco licenses for many communities in the county.
• Approved a recommendation from the Deer Creek Volunteer Fire Department Relief Association to join PERA that would increase the existing level of benefit per year of service from $2,300 to $2,700 per year of service effective January 1, 2026. PERA will decrease the years needed to serve from 10 years to just five years where the firefighter will be 40 percent vested for retirement.
• Heard the contractor who won the bid for the water tower refurbishing project in Deer Creek has officially defaulted on the project. The project was originally scheduled to be completed in 2024, but the contractor did not complete the work spelled out as part of the bid specifications. The contractor requested an extension until the start of the spring 2025 construction season but has yet to show up to complete the work. The city council officially declared the contractor in default and has been working with the city’s attorney about the next steps it can take.
• Approved switching the Deer Creek Fire Relief Association’s pension plan to a statewide PERA plan. The plan will allow the department to increase its per year retirement pension from $2,300 to $2,700 per year of service effective January 1, 2026. The plan also reportedly provides better vesting benefits than its current plan as well.