Workshop

1. Fiscal Year 2019/20 Budget

City Manager Niemela stated there was a significant increase in the Dial-A-Ride budget, primarily because they are getting new buses from the State, which is shown in revenue.  There will be some additional revenue from the State, and fares are up slightly.  The bus expense is listed under expenditures.  There will still be a $12,000 deficit.  He feels they can bring it down to zero, by looking at three options.  #1 - They will get rid of the two buses that are being replaced and he thinks they can keep the revenue.  #2 - There may be a fare increase.  The shortfall is a sustained problem.  The department receives an $80,000 subsidy from city funds.  #3 - They will also look at process, to see if they are maximizing the time on the road with the buses. 

In the General Fund, there is $2.7M in revenue.  There is an increase of 4% in property values.  From 2008 – 2019, the city has not caught up, even with new construction.  There will be a modest increase in revenue sharing from the State.  The sale of the Ranney property was $200,000.

City Council – there was a transfer out to 606, as a proportionate share of the costs are spread across the departments. 

City Manager - mileage is provided for travel to meetings or conferences. 

Finance Department - the assessment by Rick ended this year. 

City Clerk – it is a non-election year.

CMA – catch all – maintenance and lighting for parking lots. 

Cemetery – road repair will be done, including additional paving and overlay. 

Police Department – there will be a modest increase in salaries of 2%.  The Sergeant position will be filled.  The department no longer has a part-time officer, so it ends up being in overtime.  That is dictated by activity.  Josh will do some bike patrol as the schedule permits.

Fire Department – there is a 2% salary increase in the contract.  Regarding the FEMA firefighter grant equipment, they are working with Grattan and Cannon Township on a combined grant application.  That would be the city share of the match.  Or if they do not receive the grant, they could use the money in the line item to upgrade the tanks, which would be a combination of new tanks and testing.   

Park Maintenance – building repair and maintenance of $19,000 is included for repair of the restroom pavilion.

Interfund Transfers – money from the General Fund is transferred to DART, and debt service is paid.  As a part of the 425 Agreement with Granco Clark, the city provides Otisco Township with a portion of the taxes collected. 

Belrockton – funds for cleaning of the facility.  Repairs must be made to the back stairway.  The city was renting the parking lot from the Masonic Lodge for over $3,000 per year, which included snow removal and an overhead light.  That was for the public to use that parking lot.  The parking lot in the back of the Belrockton was expanded and paved.  The Masonic Lodge did not reach out until this year for renewal of the lease, it has been over two years.  That is too much of a price to pay for parking from time to time. 

Community promotions – supports the Labor Day activities.

Planning & Community Development – proposed $20,000 for a planning and zoning consultant. 

Council Member Meyers asked if the city can bring training to the boards?

City Manager Niemela stated MML offers training, and there is a planning organization which also offers training.  He will see if they do on site training.  The city may host it for another community, as well.  Buy in will be needed from the board members.    

The meeting was recessed at 6:02 p.m.

The meeting was reconvened at 6:10 p.m.

Contingency – 1.5% of the budget is required. 

Major Street – the governor wants to raise the fuel tax.  It would more than double the current amount.  In November, 2018, a 1 mill levy for five years passed in Ionia County.  That comes back to the City of Belding in the amount of $94,000.  It is restricted for Major Streets.  He will plan for about $140,000 of paving this year.  They will do N. State (local street) and Reed Street (major street) in the current fiscal year.  The city can transfer state funds to local.  The city will transfer $142,000 to the Local Street Fund.  50% can be transferred.

Local Streets – there is a transfer in from Major Streets.  N. State will be done in this fiscal year. They will square off the corner with the road going from north to west.    

Electrolux property – Electrolux gave $75,000 for improvements. $25,000 was used for the mural.  $50,000 will be the match for the DNR grant.  They are waiting for plan approvals and specs from the DNR, and then it will be bid. 

Downtown Development Authority – generates $18,000 from the downtown development area.  They do small projects.  This year they will use up to $8,000 for park benches in the DDA area.  A bench and matching 22 gallon trash container is a little over $700 each and will need a concrete base.  He needs to find the right locations. 

Drug Forfeiture – money that has accumulated over the past few years goes toward the Central Michigan Enforcement Team.  Now there are more requirements for forfeitures.  They work on suspects identified by the city for drugs, as well as their own suspects. 

Library Fund – they are the beneficiary of the county wide millage.  Penal fines come back to the jurisdictions by formula.  The Library Board approves the budget.  There are building and capital improvements in the amount of $15,000.

Museum Fund – activities for the museum.  They look at building repairs and the stair issue.

Bond Payment Fund – sewer bond payment.  It will be paid off in 2027/28.  The lift station was done in 2005 or 2006.

Park Improvements – Central Riverside and Demorest – will be paid off in 2020/21.  It includes the trail behind Belhaven and the East Riverside trail.

CIB  Bond payment – the lift stations will be paid in 2027/28.

Library Debt Fund – the payment is $95,000 a year.  It will be paid off in 2045/46.  It is down to $1.5 million.

Capital Improvements Fund – that is 2 mills out of the regular general operating millage. It is used to help pay for projects.  This year it went into Local Streets.

Sewer Fund – the SAW Grant Capital Improvement Plan will come back soon. 

Water – Capital Improvement Plan for water – they met with F&V and the consultant on the CIP they worked on.  They will come to council with recommendations on the utility rate structure. 

Internal Services Fund – revenue from the departments to pay for the audit and general service expenses. 

Building and Grounds – for the city hall building.  There is $30,000 for building repair and improvements.  It will include outside painting for the doorway, pillars, overhead door area and wood on the outside of the building.  The windows have been replaced. 

Motor Pool Fund – owns all the equipment and is responsible for maintenance of it.  Includes the replacement of two vehicles, a pick-up and dump truck.  They will get rid of one pickup.  The equipment lift at DPW will be repaired.  It would be $50,000 to replace the lift. 

Health Insurance funds – draws money from other line items. 

River Ridge Cemetery – perpetual care fund, restricted for future use.

Adjournment

Council Member Scheid moved to adjourn the meeting, supported by Council Member Feehan.

Ayes:               Council Members Scheid, Davis, Meyers, Feehan and Miller.

            Nays:               None

The Mayor adjourned the meeting at 7:02 p.m.