After asking a distinguished group of residents for advice on its budget woes, the Wayzata City Council heard recommendations from three months of study.
"For many years many of us assumed that there will always be funds available for all the services we have become accustomed to. This is not necessarily the situation going forward," said John Berg, chairperson of the task force that Mayor Ken Willcox called together after the city ran up against a $300,000 budget shortfall and was forced to make difficult cuts.
The task force delivered its 16 recommendations to the council on Oct. 27.
"This started earlier this year as we on the council got a little nervous about our finances," Willcox said.
He stopped nothing short of paraphrasing a Warren Buffett quote about the economy.
"When the tide goes out you see who was swimming without a bathing suit," Willcox said.
While many of the task force's recommendations seemed like common sense financial management - one was to keep track of the city's cash flow, for instance - they have significant implications for the council if it turns them into action.
"Overall we strongly believe that they will, if implemented, position the city well financially for the future," Berg said.
The city has been hammered by a lack of redevelopment, declining trends in the value of commercial real estate, the inability of some tenants to pay high rents, as well as the economy in general.It's turned to borrowing more instead of paying cash and last year voted to bond for a street project, something the city had avoided.
Berg said Wayzata's cash reserves have fallen by 56 percent since 2001 and that the city is well under the 35 percent fund balance to expenditure ratio recommended by the state.
"The general fund balance to expenditure ratio has decreased and is currently at 23.3 percent. The state auditor ... recommends that should be in the range of 35 to 50 [percent]. We have an informal policy in Wayzata that it should be at 40" percent, Berg said.
He said the city should develop a cash flow summary and every quarter readjust for shortfalls.
The task force also came up with a list of six properties the city could sell to get more cash and possibly make $2.7 million. One of those was the Eastman site that has been considered for a new municipal restaurant and liquor store.
The task force urged the council to make a decision soon on the muni issue.
It also noted that the city could consider sharing services like police, inspection, engineering or finance with other cities.
And it told Wayzata to hire a finance director.
The city hasn't had a finance director since 2006, with the last being David Frischmon, who was an advisor to the latest task force.
The task force was made up of residents who've been heavy hitters in business or local government: John Berg, Steve Bloomer, Peggy Douglas, J.C. Kiser, Jack Morrison and Casey Rosen.
There was also a push to have the city approach developers to improve property values, and to do more forecasting.
"We strongly believe that it is important that in this process the city be proactive and not reactive," Berg said.
Of course, skepticism may have its place.
City councils in Wayzata have had task forces study plenty of issues in the past yet haven't always followed up with action - the muni issue being a prime example.
But already this year the city has made cuts to staff positions and even its gardens.
Willcox said the council will not sit still.
"This is our action plan for us going forward. We will grab it and run with it," Willcox said.
