Workshop

A.  FY 2020/21 Budget Workshop –  City Manager John Niemela gave the City Council member the following updates and proposals for the FY 2021 Budget:

General Fund

Niemela stated that 10 new homes were built in city last year and a significant increase in taxes for the marijuana grow-facility property.  Most general funds are the same as last year.  The Budget is conservative in most sharing funding. Belding is split within the State’s fiscal year so it is unknown what sharing will be.  2.762 in rev for gen fund.

Expense side: economic adjustments. The 606 Fund is Administrative, the 631 Fund is the Building.  Some additional money needs to be put into City Hall to help to make the building barrier-free.  In the current situation, the entrance for handicap access is locked due to security.  One option is to install a different camera system as the current one is no longer monitored by Central Dispatch.  Users must ring a door bell to front office and then someone needs to let them in.   Niemela is looking at the front entrance to see if it can be different; a ramp or possibly altering the front doors.  He is looking at some security measures to provide a safe separation of employees to the public. We could perhaps have the lobby reconfigured and buzz people in. Each main department is contributing to this benefit.

Finance

Remains the same as last year.

Clerk

Remains the same as last year with the exception of an increase in elections.  There will be two in the 2021 budget cycle.

Central Municipal

Changes in employee benefits, street lighting in parking lots and a reduction in the motor pool.

We are looking to possibly hire a maintenance person.  We have been spreading the cost over several budgets.  This person would cover the Bel as well as other entities.  It is hard for the Fire Department to do it if they are out on a call.  This position could help Ernie in general maintenance.  It would be desirable for the person to have some building experience.

Cemetery

Last year a street was paved so it was a big item, therefore a reduction shows this year as there are no big street improvements this year.

Police Department

Mostly economic changes are indicated.  There is a vehicle in the budget for this year to replace old one.  There is an increase in telephone charges as now calls are separated out by how they are individually used. 

Fire Department

Mostly reflects maintenance budget.  Funding set aside for grant applications re:  tanks.   There is an increase in motor fuel. Last year was at $5,000. Becky goes off of a three-year average to get this figure.

Parks

Money is planned to put into the parks. The plan is to build a new restroom facility.

Transfers

Shows debt service to the Building Authority; Dial a Ride budget; 425 Agreement with Otisco Township for Granco-Clark.  This is the last year for the Central Side Park Bond. $132,000 will drop off next year in bond services.

Bel

Mainly a maintenance budget, historically.

Community Promotions

The primary purpose is to assist in Labor Day.

Planning Commission

$20,000 for professional contractual services. Sustain a contingency account.

Council Member Davis inquired as to Park & Maintenance did we come up with more for the plan?  Niemela stated that it is just the direction we are going. There are no plans yet for what to do. In regards to the Police Department, the 661 Funds is to replace a cruiser. The price has gone up but it includes equipment and the changeover of equipment.  Last time the cost was about $33,000.  Imapala’s are no longer made.  The Charger has had some problems.  The price of Durango’s are close in price to Explorer.  The Tahoe is almost $4,000 more.  

Lawn upkeep around the mall will be done by a new person.  (Some mall property is privately owned.) There are some Building and Grounds issues—the lawn irrigation system is obsolete.  Leppink’s hire for their lawn care.  We maintain the areas in the city parking lot. City focuses on the public area.

Major Streets

There is a reasonably good increase ACT51 dollars. County gets to take a portion of the revenue.  About $75,000 goes to the county.  We will see about $750,000. $155,000 is available for street improvements. We work off a list of streets.   

Davis inquired as to what engineering services were used last year and not using this year.  Grand Rapids Metro Council will not be used per Niemela.

Local Streets

$578,000 but will transfer funds. We will receive $216,000 from the State and then rely on other sources. The Capital Improvement fund can fund $215,000.

Niemela asdvised the City Council Members that we can spend more time on details beyond tonight if needed.     

DDA

Losing some value in DDA capture area, re: Mall. In the past they have contributed money to the Labor Day Committee. Last year they spent money on the park benches.

Drug Forfeiture Fund

Repeat budget for specific expenditures.

Library

Standard Budget. They have a consistent revenue stream. The expenditure side is consistent. They receive some funding from donations.  Some are specific and they must fulfill those requests accordingly. The Library debt is $92,000-$93,000 per year. There is a challenge in how they budget due to a three-party  agreement.  We are looking into how to restructure the three-party agreement. It is challenging to work with Rural Development which is where the money was borrowed from.  The rate and term are fixed but RD will not confirm a payoff. Rewrite agreement including subject to change language.  Niemela has an attorney looking into refinancing with an outside source.

Museum Fund

Pretty much remains the same.

Bond Funds

Sewer Fund debt service term is now thru 23/24. Not a huge amount of money.

Building Authority

On last year right now.

Capital Improvement Fund

2 mills levied out of General Fund, the last few years for the Local Street Fund.

Dial a Ride

Consistent. Will not have a $150,000 bus purchase.  Contribution from General Fund is still required.  Decrease in fares due to decrease in rides. Davis inquired about the PT salaries going up last year and if that affects the fares going down. Amanda Hall commented that she cannot pinpoint the decrease.  The same amount of part timers are needed.

Sewer Fund

Consistent.  This item will be discussed at a regular meeting in proposing a change from in-house to a Management Operations System.

Mayor Miller asked if can we increase revenues on the Pitsch charges.  Niemela thinks an increase will be seen from Pitsch when the Management Operations System takes over.  Need to make sure Pitsch’s waste can fit our parameters. 

Water

Niemela pointed out that the money in here is for our requirement to switch out lead and galvanized steel lines.  We cannot bill individuals to do that so that is why a rate increase has been discussed. We are looking at a 10% increase in the next four years. The majority of homes in Belding are affected by this.

Internal Service Fund 606

Basically a maintenance fund, taken from all budgets.

Building & Grounds

Putting money into City Hall improvements re: barrier access and security.

Motor pool

Buying front-end loader and 2 police cars. New roof needed on building.

Health Insurance Fund

Payout for employee’s health insurance benefits

Cemetery

This is the Perpetual Care account.  We cannot do anything about it.

Fire Department Issues-

Tim Lubitz discussed the condition of the vehicles.  The ladder truck is 18 years old, there are 27 and 28 year old tankers, and several other old-age vehicles.  He can no longer fix them  because the technology is not there.  The sensors are so outdated that he cannot even buy them. He may have to take a truck out of service that is normally used for medical response services. The City has been buying used for so long that things cannot be maintained or replaced. 

Mayor Miller asked Lubitz and Niemela to identify the issues and put some plans together.

Davis inquired if there has ever been a replacement schedule.  Lubitz said no, however Greg Moore attempted to put one together.  The typical vehicle life of this type is 15 years.  There is no residual value in these trucks.  Niemela stated that it is a tough reality is that there is no option to cash-fund this type of purchase. It is at least two years before we can think about it.  Lubitz stated that we a buying problems if we are buying used.  Miller commented that plans without actions are only dreams.

Adjourn

Moved by Scheid, supported by Feehan to adjourn the meeting at 7:02 p.m.  Motion carried by the following roll call vote: yes – all.

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Brad Miller, Mayor

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Janae Cooper, City Clerk