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Serving Northern St. Louis County, Minnesota

Greenwood suspends community loan program

Jodi Summit
Posted 12/20/18

GREENWOOD TWP- The Greenwood Town Board, Tuesday, voted to suspend its Community Enhancement Loan program, due to the inability to find an area bank or other institution able to manage the …

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Greenwood suspends community loan program

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GREENWOOD TWP- The Greenwood Town Board, Tuesday, voted to suspend its Community Enhancement Loan program, due to the inability to find an area bank or other institution able to manage the low-interest loan program. Township Treasurer Pam Rodgers noted that the township, itself, does not have the ability to run the loan program on its own. The loan program had previously been overseen by Frandsen Bank in Tower, but they notified the township last month that they were discontinuing that service.

The township currently has about $97,000 in the fund, which made two-year, low-interest loans to cover up to half the cost of installing a new septic system or replacing a failing system. The fund was started with a $40,000 grant from the IRRRB, and later grew with funding from the township, along with the interest payments received.

Rodgers noted that the IRRRB considers the $40,000 initial grant closed, and the township has no restrictions on its use. Clerk Sue Drobac noted there are no current requests for funding.

The town board will have the option of moving the money, now in a restricted fund, to the general fund, but took no action at this time other than to formally suspend the loan program.

In other business, Rodgers spoke to the board about the value that township residents receive as a result of the Class 7 insurance rating achieved by the township fire department, which is the highest available to areas not served by hydrants. This rating, she noted, translates to discounts of 20- to 40-percent off the average insurance rates in an area. Rodgers said her family gets a 28-percent discount. She noted that a property with a $300,000 valuation pays about $95 per year right now in township taxes, which alone would be less than what people are saving on their homeowner’s insurance.

“That same home in Beatty Township pays a little over $300,” she said, “and $1,200 in Breitung.”

In other business the board:

 Approved the hiring of election judges for the March 12 township election. One supervisor seat, currently held by Carmen DeLuca, and the treasurer seat, held by Pam Rodgers, will be on the ballot.

 Heard from Chair Mike Ralston who updated residents on the township’s Errors and Omissions insurance policy. The township’s carrier, Western World, had contacted the township last month to inform them they would no longer cover costs related to a claim by Jeff Maus. The insurance policy did have an exclusion relating to costs of wrongful employment claims by police or fire departments. Ralston noted they are working with another insurance company to find coverage. The township receives most of its insurance coverage through the Minnesota Association of Townships, but they had stopped covering E and O claims for the township two years ago, due to the township’s claim history.

“We are bound as a township to defend any and all claims,” Ralston noted, “so any future claims would be funded by the township out-of-pocket.”

 Set a new policy for the archiving of township emails.

 Noted the township had received a visit from an investigator from the Department of Labor and Standards, relating to the Maus case with Minnesota OSHA. Rodgers said they had provided all the information requested, though more information may be requested in the future. She said the township could expect a report in three months.

 Gave first reading to some changes to the fire department SOGs and POC policies that clarify member requirements to be eligible for pension payments as well as continued membership. The requirements include details of attendance at meetings and drills, as well as responding to emergency calls, and when members may be excused due to illness, work commitments, or travel.

 Approved the purchase of up to six new or used radios for the fire department at a cost of up to $10,000, and also approved a trial of a pager-like system that works with department members’ personal cell phones.

 Heard public input at the end of the meeting. Jeff Maus talked about campaign promises made by candidate Carmen DeLuca when he was running for office. John Bassing questioned the fire department for paying the department’s safety officer while he is out of the state for the winter. Joanne Bassing spoke on township taxation, noting that residents had approved the recent lower levies at the annual meetings. Barb Lofquist talked about the recreation area.

on the issue of having the township pay for work to maintain the recreation area. Rick Stoehr, via letter, reiterated his comments about the comprehensive plan community survey.