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County disputes State Auditor’s finding on direct deposit program
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By Charlie Warner
Argus News Editor
Houston County Personnel Director Tim Comstock took issue with the findings of a portion of the audit report provided by the State Auditor’s Office this past December. Comstock discussed the issue with the county board during its Jan. 29 meeting.
“One of the issues discussed was with respect to our direct deposit program with Merchants Bank of Caledonia,” Comstock began. “According to the auditor’s report, the disk being used to take the direct deposit information to the bank was not encrypted and could therefore be construed as a data privacy issue.
“The report indicated that the county will pursue discussions with merchants Bank to develop a system where this information can be electronically transmitted through a secured website,” Comstock continued. “I would like to point out that the state auditors were notified that this issue has been resolved for quite some time and I question why it was still included in the final report.
“It should also be pointed out that there has never been an issue with the integrity or security of Merchants Bank website or any of their online banking programs,” Comstock stated.
“The staff at merchants Bank in Caledonia have been great to work with and very accommodating in developing a way for us to electronically transmit our specifically formatted payroll data to them,” Comstock concluded.
In other board action:
Flood recovery loan
guidelines approved
County EDA Director Joyce Iverson walked the county commissioners through the final guidelines of the Houston County Business Flood Recovery Loan Program and Revolving Loan Fund.
Iverson noted she worked with County Attorney Rick Jackson and County Recorder Beverly Bauer in making the final revisions. She added so far, her office has received 12 applications for the program, and anticipates an additional eight to 10 applicants. Four grant applications were approved at the Jan. 22 county board meeting.
The program is part of a grant agreement created by the state of Minnesota for up to $5 million in economic aid to businesses affected by the August 2007 floods. It includes $4,903,000 for business loans in Houston County, and $97,000 to administer the program. The program will be administered through the Southeast Minnesota Development Corporation and the Houston County EDA.
Assistance will be primarily for flood damages, although an assistance category will be made available to non-flood damaged businesses to increase the overall economic activity in Houston County.
Flood damaged businesses should also be allowed to utilize MIF recovery funds for not only “flood damages” but also to assist with construction, even if at a new location, with special provisions for leveraging other funds.
The program is geared to helping reopen and re-establish businesses to retain and create jobs.
A direct loan may cover up to 100 percent of documented flood losses, not to exceed $500,000. Seventy-five percent of the loan shall be forgivable at the end of 10 years of continuous operation of the business with 50 percent of the forgivable amount (up to a maximum of $100,000) forgiven at the end of five years, and the balance declining 20 percent per year and totally forgiven after 10 years. The other 25 percent of the loan is repayable as a low interest loan with the first payment deferred for three years.
MCCC contract approved
The county board approved a six-year agreement with the Minnesota Counties Computer Cooperative (MCCC) to provide continued computer support to the Public Health Department.
According to Public Health Nursing Director Deb Rock, Houston County is one of approximately 50 counties in the state that utilize MCCC’s services. All county health records are included in the system, with can be shared by all of the participating counties.
The cost of the service is $10,000 per year, which includes all software upgrades. Houston County has participated in MCCC since the mid 1990s. Rock noted that by 2115, all of the counties in the state will have to be part of a standardized system.
AgBMP application approved
County Environmental Services Officer Rick Frank brought the federal Ag Best Management Practices (BMP) Loan Program application for the board’s review.
According to Frank, the county has over $360,000 to be used for low-interest loans to improve feedlots, septic systems, structural controls (ponds, diversion dams, and contours), and sealing up abandoned wells.
The interest rate on the BMP loans is three percent with a one-half percent origination fee. Currently, Eastwood Bank of Houston is the only bank in the county handling the AgBMP loans.
Each government unit granted approval will receive $300,000 during the 2008 funding period.
The board unanimously approved a motion to submit the grant application.
You can contact Charlie Warner at
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