REGULAR MINUTES
PERE MARQUETTE DEPOT
Tuesday, May 19, 2015
A meeting of the City Council of the City of Belding, Michigan was convened in open and public session at 7:00 p.m. on Tuesday, May 19, 2015.
Council Member Jones delivered the invocation.
The Mayor led the audience in the Pledge of Allegiance.
The City Clerk took the roll call:
Members Present: Council Members Dennis Cooper, Mike Scheid, Jerome Lallo, Tom Jones and Ronald Gunderson
Members Absent: None
Approval of Agenda
Council Member Scheid made a motion to approve the agenda as presented, supported by Council Member Cooper.
The question on the motion was called and the result of the voting is as follows:
Ayes: Council Members Cooper, Scheid, Lallo, Jones and Gunderson
Nays: None
Public Comments
There were no public comments.
Public Hearing
A. Amendment to the Development Plan and Tax Increment Financing Plan of the City of Belding Downtown Development Authority
Mayor Gunderson opened the public hearing at 7:03 p.m.
City Manager Brown stated he would recommend moving ahead with the amendment. It will generate more funding at some point for improvements in the downtown area.
Lynee Wells, Urban Planner with Williams and Works, gave a presentation.
Joe Feuerstein, 901 W. State, stated he has been involved with this a long time. He has been against this a long time. It is so dysfunctional it is pitiful. He got the information to them that they didn’t have. Some information in the presentation was not right. The streetscapes put them in debt. A manager caved in to do renewal down here. It cost 1M. The DDA share was half of it and they got nothing out of them. They got $10,000 out of them for a grant. It got turned down to put a roof on the mall. Why don’t they have to mow, clean up brush, like everyone else? Taxpayers should not have to pay for this. They are taking money from the library.
Mayor Gunderson closed the public hearing at 7:22 p.m.
Council Member Jones had no questions.
Council Member Cooper had no comments.
Council Member Scheid asked if there was any rebuttal to what Joe said?
Ms. Wells stated they had looked at the minutes from past meetings regarding past projects. At that time, there was no mention of DDA responsibility.
Council Member Lallo stated, as Joe has eluded, the mall owners are not held responsible for clean-up.
Ms. Wells stated according to the DDA Act, the monies must be spent on a public facility. It does not include maintenance. If there is no public benefit, these funds would not be used, as they are not for private use. They can be used in all public spaces, rights of ways, for the utilities under them, parks, trails and spaces within the public realm. It is not for public repair.
Council Member Scheid asked who was responsible for the landscaping?
Mayor Gunderson stated that is a city responsibility.
Council Member Scheid asked if DDA money could be used to clean up the islands?
Ms. Wells stated if it is public property it can.
B. Continue public hearing from May 5, 2015 on FY 2015/16 Budget
Mayor Gunderson continued the public hearing at 7:29 p.m.
Katherine Henry, 806 Wildlife Trail, stated she had concerns about proposals. What she saw was part of the resolution, a summary of the new budget. On page 59 and 60, the city would be at a shortfall of $162,000, to be covered by raising the taxes. There would be an administrative fee of 1% for all units of government. Fees and expenses, those were being increased. There is a 1.6% increase for taxes. Not knowing what those numbers are, she cannot make a comment. There are extremely high taxes in Belding. To say there is a tax increase every year, it is already quite much. They are already pushed to the limit and they are not different from other people in the community.
The $162,000 listed in the resolution is the amount to be collected for the CIP for the budget year. When reference is made to raising taxes, it is meant to raise that amount for the current budget, not an increase in taxes.
Mayor Gunderson stated the 1.6% increase in taxes is just a statewide increase.
Mayor Gunderson closed the public hearing at 7:35 p.m.
Consent Agenda
A. Approve Independent Bank Checks 64056 to 64152 in the amount of $86,667.73
B. Approve Minutes: Special meeting, May 4, 2015
C. Approve Minutes: Regular scheduled meeting, May 5, 2015
D. Appointment of Patty Donovan to the DDA
E. Award Audit Contract to Vredeveld Haefner LLC
F. Drug Awareness/Freedom Walk – DART Transportation
Council Member Scheid made a motion to approve the consent agenda, supported by Council Member Lallo.
The question on the motion was called and the result of the voting is as follows:
Ayes: Council Members Cooper, Scheid, Lallo, Jones and Gunderson
Nays: None
Following are the resolutions contained in the Consent Agenda.
D. Appointment of Patty Donovan to the DDA
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN
APPOINTING PATTY DONOVAN TO THE DDA BOARD.
WHEREAS, the term of office for Patty Donovan on the Downtown Development Authority has expired; and
WHEREAS, Patty Donovan has indicated her willingness to continue to serve on the board; and
WHEREAS, the DDA has recommended the appointment of Patty Donovan to the board.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that Patty Donovan be appointed to the DDA with a term of office to expire on May 19, 2019.
E. Award Audit Contract to Vredeveld Haefner LLC
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN APPROVING A THREE-YEAR CONTRACT WITH VREDEVELD HAEFNER LLC TO AUDIT THE CITY FINANCES.
WHEREAS, Vredeveld Haefner LLC was the lowest responsive and responsible bidder for a three year contract for audit services; and,
WHEREAS, for fiscal year 2014/15, the contract amount is $16,050; and,
WHEREAS, for fiscal year 2015/16, the contract amount is $16,150; and,
WHEREAS, for fiscal year 2016/17 the contract amount is $16,150.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that the three year audit contract with Vredeveld Haefner for fiscal years 2014/15, 2015/16, and 2016/17 be approved.
F. Drug Awareness/Freedom Walk – DART Transportation
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN AUTHORIZING THE USE OF BELDING DIAL-A-RIDE BUSES FOR SHUTTLE SERVICE.
WHEREAS, a request was received to use City of Belding Dial-A-Ride buses to shuttle participants for the Drug Awareness/Freedom Walk that will begin at the depot and end at encounter church on M44.; and
WHEREAS, two City of Belding Dial-A-Ride staff will donate their time and expertise to transport the participants on the bus back to the depot where their vehicles are located.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that the City of Belding Dial-A-Ride buses may be used for transporting participants for the Drug Awareness/Freedom Walk on May 30, 2015.
Reports by Council Liaisons
Council Member Cooper stated there has been no Rec Board meeting.
Council Member Scheid stated the Housing Commission will be meeting on Thursday, but he will miss the meeting.
Council Member Lallo had nothing.
Council Member Jones stated the Planning Commission meeting would be held on May 28, 2015.
Mayor Gunderson stated there was a library meeting last night and a special meeting this last Saturday on the personnel handbook. There will be a final draft to look through, and it will be passed on to the attorney. Tomorrow at 6:30 p.m., there will be speakers, John and Becky Schlatter, on Splittin’ the Mitten, describing M-66, which goes through the State of Michigan. On May 22 from 3-4 p.m., Jerod is hosting Pizza and Pages. Teens bring a book to talk about. It goes over well. At the DDA meeting in May, Lynee did a recap.
Unfinished Business
There was no unfinished business.
New Business
A. Ordinance to amend the Downtown Development and Tax Increment Financing Plan of the City of Belding Downtown Development Authority
The City Clerk read the preamble to the ordinance.
Council Member Scheid moved the introduction of the ordinance and the motion was supported by Council Member Cooper.
ORDINANCE NO. 536
AN ORDINANCE TO AMEND THE DOWNTOWN DEVELOPMENT AND
TAX INCREMENT FINANCING PLAN OF THE CITY OF BELDING
DOWNTOWN DEVELOPMENT AUTHORITY
WHEREAS, in accordance with Act 197 of the Public Acts of 1975 (the “Act”), the City if Belding Downtown Development Authority (DDA) has determined it is necessary for the improvement of the City of Belding Downtown Development District to prepare and submit an amended Downtown Development and Tax Increment Financing Plan; and
WHEREAS, on December 20, 1983 the City of Belding adopted Ordinance No. 393 establishing the City of Belding Downtown Development Authority and designating the boundaries of the Downtown District; and
WHEREAS, on August 1, 1984, the City of Belding DDA Board approved the Development Plan (the “Original Development Plan) and recommended it to the City Council, which approved the Original Development Plan by Resolution No. 84-8-94 on August 8, 1984; and
WHEREAS, on February 21, 2006 the City of Belding City Council adopted Ordinance No. 489 approving the amended Development Plan and Tax Increment Financing Plan for the City of Belding Downtown District and Development Area; and
WHEREAS, on April 2, 2015, the City of Belding Downtown Development Authority recommended to the City Council adoption of an amendment to the 2006 Development Plan and Tax Increment Financing Plan to modify the boundaries of the Development Area, to finance all or part of the costs associated with the proposed development of the development area and to defray the costs of the activities of DDA, to extend the terms of the plan, and to update eligible projects and TIF capture projections, as set forth in the Plan; and
WHEREAS, the City Council held a public hearing on May 19, 2015 to consider the Plan, after the giving of public notice as required by the Act, including notice by publication on April 28, 2015 and May 8, 2015 in the Daily News, a newspaper of general circulation within the City, and also by first-class mail to all property taxpayers of record within the downtown district, by posting in at least 20 conspicuous and public places in the downtown district, and by certified mail to the governing body of each taxing jurisdiction levying taxes that would be subject to capture if the Plan is approved; and
WHEREAS, the notice contained a description of the proposed development area, as well as a statement that maps, the Plan and the method of relocating families and individuals who may be displaced from the area were available for public inspection at the City Hall, and that all aspects of the Plan would be open for discussion at the public hearing; and
WHEREAS, prior to the public hearing, the City Council provided reasonable opportunity to the taxing jurisdictions levying taxes that would be subject to capture under the Plan to meet with the City Council, and it fully informed the taxing jurisdictions of the fiscal and economic implications of the Plan; and
WHEREAS, the City Council has provided the fullest opportunity for interested persons to be heard, whether in person or in writing, for expression of opinion, for argument on the merits, and for introduction of documentary evidence pertinent to the Plan.
THE CITY OF BELDING ORDAINS:
Section 1. Approval of Plan and Finding of Public Purpose. In accordance with Act 197, the City Council finds that the Downtown Development and Tax Increment Financing Plan, as proposed, constitutes a public purpose and will be a benefit to the City and its residents, and accordingly, the Council hereby approves the Plan. With the following amendments:
(a) Page 8, Section D, paragraph 3. Remove paragraph as follows:
The DDA has determined that the taking of privately-owned properties may be necessary in order to accomplish the land use and economic development objectives of the Plan. Per section The City may take private property for the purpose of transfer to the DDA, and may transfer the property to the DDA for use in an approved development, on terms and conditions the City deems appropriate, and the use shall be considered necessary for public purposes and for the benefit of the public.
(b) Page 15, Section K, item 8. Revise as follows:
The tax shall Levy up to 2 mills in the Downtown District, the final decision of the amount of the levy and timing, if ever, shall be determined by the DDA Board. Per Section 125.1662 of Act 197 of 1975, an authority, with the approval of the municipal governing body may levy an ad valorem tax on the real and tangible personal property not exempt by law and as finally equalized in the downtown district. The tax levy shall be not more than 2 mills.
Section 2. Findings in Accordance with Act 197. In approving the Plan, the City Council makes the following additional findings, in accordance with Section 19 of the Act:
(a) The Plan meets the requirements set forth in Section 17(2) of the Act.
(b) The proposed method of financing the activities, projects and improvements proposed in the Plan is feasible, and the DDA has the ability to arrange the financing.
(c) The activities, projects and improvements proposed in the Plan are reasonable and necessary to carry out the purposes of the Act.
(d) The acquisition of any land within the development area by the DDA, if accomplished in accordance with the Plan, would be reasonably necessary to carry out the purposes of the Plan and of the Act in an efficient and economically satisfactory manner.
(e) The activities, projects and improvements proposed in the Plan are in accord with the City of Belding Master Plan.
(f) Public services will be adequate to service the development area.
Section 3. Transmission of Tax Increment Revenues to the DDA. The City Clerk is hereby authorized and directed to provide to the County Treasurer copies of all information necessary to enable the City and County Treasurers to transmit tax increment revenues to the DDA in accordance with Section 15 of the Act.
Section 4. Effective Date. This Ordinance shall be declared an emergency ordinance and will become effective immediately upon its publication, or the publication of a summary of its provisions, in a local newspaper of general circulation within the City.
Ms. Wells stated the DDA would be capturing tax increment from taxing authorities. It is the difference between base value of 2006 to the present. The new plan continues this and shrinks the area from which they are collecting, because so many parcels had a negative capture.
Council Member Scheid stated some of the wording was confusing, as they are not trying to charge another 2%. It is being captured to stay here in town. Some of the properties were chosen so they don’t end up with a negative capture. It will help the downtown area.
Council Member Cooper stated the blue line is the new capture area. The money within the blue line will be used on those properties in the original area.
Ms. Wells stated that was correct. The values on the properties outside the blue line may go up at some point and could be adjusted to capture increment. They could do things on M-44, like gateway signage, to draw attention to the downtown.
Council Member Lallo asked if it was taking anything away from the library or museum?
Ms. Wells stated they are already capturing the increment, which for the library is $200. As they bring more investment, more people will patronize the businesses and will buy new property. The overall capture they have may go up.
Council Member Lallo asked, with her experience, how beneficial is wayfinding signage?
Ms. Wells stated many investments can be made to bring the community up. It is not just one thing. Anything visual to draw attention will help. There should be a social media presence of the downtown.
Council Member Jones stated he appreciates Mr. Feuerstein’s concerns on what previous city managers have done. This council cannot go back to have groups reimburse the money. He hopes Joe keeps an eye on how monies are spent. It is the responsibility of the council and city manager to make sure rules are followed on payments to be made and agreements followed through on. If it was spent inappropriately in the past, they cannot do a lot about it. He hopes people call it to their attention if they think expenses are inappropriate in the future. He hopes the downtown is successful, but they must realize it is the whole city of Belding, all the corridors and downtown area. It is all a part of the community. Develop the whole city. Sometimes they must take one step, like tonight with the DDA.
Mayor Gunderson stated several DDA members are here and he appreciates them coming. He appreciates Lynee’s efforts. He explained the amendment to three neighbors. It did help them to be comfortable. He thanked all the DDA members and Lynee. He thought the most enjoyable part of the process was the Music in the Park, which was very interesting. It is a very good moving forward addition for the city. By reducing the capture area, it will help the city. It could be downtown movement. There will be money to do things with, to write grants and help people out. They will work to keep the whole city moving forward.
B. Adoption of FY 2015/16 Budget
The City Clerk read the preamble to the resolution.
Council Member Jones moved the passage of the resolution and the motion was supported by Council Member Scheid.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN ADOPTING THE FISCAL YEAR 2015/16 MUNICIPAL BUDGET.
WHEREAS, the City Manager of the City of Belding, Michigan has submitted to the Mayor and City Council a budget for Fiscal Year 2015/16 as required by the Belding City Charter; and,
WHEREAS, the Mayor and City Council of the City of Belding, Michigan have studied and reviewed said budget; and,
WHEREAS, a public hearing on said budget was held on May 19, 2015, in accordance with the provisions of Section 11.4 of the Belding City Charter; and,
WHEREAS, the City Clerk of the City of Belding has in accordance with Section 11.4 of the City Charter, and P.A. 621 of 1978, published notices of time and place of holding such hearings, and of the availability to the public of such proposed budget.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that they hereby appropriate the following sums of money deemed necessary to defray all the necessary expenses, liabilities and reserves of the City of Belding, Michigan for the fiscal year beginning July 1, 2015 and ending June 30, 2016.
BE IT FURTHER RESOLVED that the objects and purposes for which said appropriations are to be expended and the amount appropriated which authorizes such expenditures, as provided in the City Charter and City Code for each center and purpose are specified as follows:
APPROPRIATION CENTERS
| GENERAL OPERATING FUND | |
| City Council | $ 11,009 |
| City Manager | 116,672 |
| Finance & Administrative Services | 211,470 |
| City Clerk | 96,022 |
| Central Municipal Activities | 114,732 |
| Cemetery | 52,836 |
| Police Department | 809,118 |
| Fire Department | 501,671 |
| Park Maintenance | 87,839 |
| Interfund Transfers | 196,725 |
| Belrockton Community Center | 27,041 |
| Community Promotions | 6,450 |
| Planning & Community Development | 10,500 |
| Contingency | 33,631 |
| | |
| TOTAL GENERAL OPERATING FUNDS | 2,275,716 |
| | |
| MAJOR STREET FUND | 386,473 |
| | |
| LOCAL STREET FUND | 298,067 |
| | |
| PARK ELECTROLUX PROPERTY | 1,100 |
| | |
| DOWNTOWN DEVELOPMENT AUTHORITY | 5,296 |
| | |
| BUILDING INSPECTION | 21,350 |
| | |
| DRUG FORFEITURE | 2,500 |
| | |
| LIBRARY | 392,715 |
| | |
| MUSEUM FUND | 13,050 |
| | |
| SRF BOND PAYMENT FUND | 107,572 |
| | |
| BUILDING AUTHORITY DEBT FUND | 81,325 |
|
| |
| CIP BOND PAYMENT FUND | 80,550 |
| | |
| LIBRARY DEBT FUND | 96,000 |
| | |
| LIBRARY BOND REDEMPTION | 29,000 |
| | |
| CAPITAL IMPROVEMENTS FUND | 1,149,660 |
| | |
| DIAL-A-RIDE | 324,171 |
| | |
| SEWER FUND | 1,113,703 |
| | |
| WATER FUND | 1,957,219 |
| | |
| INTERNAL SERVICE FUND | 225,943 |
| | |
| BUILDING & GROUNDS FUND | 107,055 |
| | |
| MOTOR POOL FUND | 641,313 |
| | |
| HEALTH INSURANCE FUND | 506,084 |
| | |
| TOTAL APPROPRIATIONS | 9,815,862 |
BE IT FURTHER RESOLVED that the following amounts appropriated and allocated for the
fiscal year beginning July 1, 2015 and ending June 30, 2016, be and the same hereby are directed to be raised by mill levy as follows:
| | AMOUNT | AMOUNT TO BE RAISED |
| | APPROPRIATED | BY MILL LEVY TAXATION |
| | | |
| Capital Improvements | $ 1,149,660 | $ 162,000 |
| General Purpose | $ 2,275,716 | $1,337,000 |
BE IT FURTHER RESOLVED that for the purpose of raising said amounts by taxation in 2015-16, the City Council of the City of Belding, Michigan does hereby levy a tax of 17.9500 mills per dollar on the assessed valuation of all taxable property within the corporate limits of the City of Belding, and further, said mill levy shall include 15.9500 mills for the General Fund Operation, and 2.00 mills for Capital Improvements.
BE IT FURTHER RESOLVED that an administrative fee of 1% shall be added and collected for all units of government - said fee to be continued until rescinded.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to make budgetary transfers within the appropriation centers, also known as funds, established through this budget, except that all transfers between appropriation centers may be made only by further action of the City Council, pursuant to the provisions of the Michigan Uniform Accounting and Budgeting Act; and that the City Manager is hereby authorized to release bidding documents for those capital items requiring bids. Bidding documents may also be described as Requests for Proposals.
Council Member Scheid stated there are logical things to be taken care of. He has no problems. They may have to amend the budget during the year and that is a normal thing. They worked diligently on it.
Council Member Lallo stated he believes they have a tremendous staff and department heads. They had to cut back but they will do their jobs diligently. Services will still be provided.
Council Member Jones thanked the staff and employees on their diligent work on this, especially Becky as the new bookkeeper for the city and for Bruce’s hard work in stepping in. It is a good budget for the city. He appreciates all the work staff put in it to get it done.
Council Member Cooper stated they talked about funding for the police and they are not able to do it. He is not against providing money to city departments to take care of the issues in the community, but if it cannot guarantee it would take care of the issue, they should be careful in providing the funds. He thanked Becky and Bruce.
Mayor Gunderson thanked everyone for bringing everything together and for the time spent with council. Changes were made to bring on a part time police officer.
The question on the resolution was called and the result of the voting is as follows:
Ayes: Council Members Cooper, Scheid, Lallo, Jones and Gunderson
Nays: None
Public Comments
There were no public comments.
City Manager’s Comments
There were no city manager’s comments.
Council Comments
Council Member Lallo congratulated Cory from the Daily News for the several awards he received. They are lucky to have Cory living in the community. He is always fair and accurate and gives both sides of the story. It speaks volumes for a small community. The Memorial Day ceremony will be held at the Freedom Wall at 10 a.m.
Council Member Jones stated Bud Jonas is running a car tour this weekend, out at the Candlestone. On Thursday at 7 p.m., there will be a guest speaker, who was a POW in the camps during his childhood during the war. The general public is invited. On the consent agenda, he has known Patty a long time, but he would like to see more background in the agenda with the resolution, an original application and more detail. She will be a good addition. He wants more than was in the packet. Everyone should remember the reason for this weekend. A lot of people died for their freedom and to be able to have meetings like this. They decide and vote for the community.
Council Member Cooper stated he heard from individuals in the town that they are receiving a card in the mail stating the city will be there in 30 days to assess the property. Is there a schedule for that?
Finance Director Schlienz stated the assessor has to do the whole town in two years.
Council Member Cooper thanked everyone for being here tonight.
Council Member Scheid thanked them for being here and wished them a good evening.
Mayor Gunderson stated there will be a special meeting tomorrow night for adoption of the DDA ordinance at 7:30 p.m. They have accomplished a lot with the DDA and budget. He hopes the meetings will be good in the future. He hopes they accomplish a lot at all the boards. He thanked everyone for coming. They should remember the reason for Memorial Day. Denny has a great presentation. He thanked them for the budget.
Council Member Scheid stated they did lost WWII vets this year, John Geisen and Dr. Andenno. John was very frail at the end and was grateful to be around to see this get started. They should thank the veterans from WWII, as they went above and beyond to protect them. There is a heritage in this country, and they should promote it in this area.
Adjournment
Council Member Scheid moved to adjourn the meeting, supported by Council Member Cooper.
Ayes: Council Members Cooper, Scheid, Lallo, Jones and Gunderson
Nays: None
The Mayor adjourned the meeting at 8:03 p.m.
| | Ronald Gunderson, Mayor |
| Kareen J. Thomas, City Clerk | |
