Workshop

A.  FY 2020/21 Budget Workshop – City Manager John Niemela gave the City Council member the following updates and proposals for the FY 2021/22 Budget:

101 GENERAL FUND

Property taxes

The City is still trying to catch-up from when the market crashed approximately 10 years ago. The line item will reflect an increase once Jacklyn Apartment’s Payment in Lieu of Taxes program is complete.

City Council

There is an increase in the Education & Training line item.

City Manager

The City Manager’s salary is determined on the City Council

Finance & Administrative Services  

No major changes are reflected in the proposed budget.

Clerk

The line item for Elections is reduced as there are no elections scheduled during the 2021/22 FY.

Central Municipal

Cost savings are a reflection of no longer hauling snow piles from the parking lot to Demorest Field to melt.  The City is responsible for maintaining street lights and decorative lights that the City owns.

Cemetery

This budget reflects that a part-time employee retired.

Police Department

The requested funding for radios shows in the CIP (Capital Improvement Plan).  The Police Department will be replacing two body armor vests every year.  They plan to purchase items such as these incrementally per year rather than trying to find the money to replace them all at once.  Historically, Code Enforcement has been part of the Police Department/Law Enforcement budget.  Code Enforcement duties were discussed and explained at length.  The implementation of Rental Ordinances was discussed.   

Fire Department

Typical expenditures listed.  The CIP shows the Fire Department setting up purchasing items in increments versus all at once.  They plan to purchase a truck with medical and fire equipment to save wear and tear on the new fire truck for medical calls.  The question of overtime was posed and explained.

Park Maintenance

Part of the Capital Improvement Plan.  A fence at Demorest Field needs repair.  The bathrooms and the pavilion need to be addressed at Central Riverside Park.

Transfers

This fund reflects money going out to help the Dial-A-Ride agreement and the 425 Agreement (sharing taxes) with Otisco Township to meet that obligation.

Bel

Funds maintained for building support.  The bulk of the expenses are covered by the museum.  The City works with the Museum Board for common expenses.   

Community Promotions

The City typically puts $5000 towards the fireworks display for the Labor Day celebration.  The budget may be increased to $7500 as there were no fireworks in 2021 due to the coronavirus pandemic.  The Master Plan is currently being updated; projections are subject to change every year.

Planning Commission

Michigan Planning Association Memberships are paid out of this account along with Williams and Works.  The City has had a contract with Williams and Works for about a year, but very little was done in 2020 due to Covid.

Contingency

This line item is required to have money set aside for unexpected things that arise.

202 MAJOR STREET FUND

Projections are based on the numbers that the State of Michigan provides.  We currently have a tentative list of streets slated for repairs.  Orchard Street is a major one.

203 LOCAL STREET FUND

County property taxes cannot be used for local streets.  Revenue is received from the Metro Act, if a Metro Act permit is obtained.  Additional revenue will be reflected from Point Broadband (formerly Casair), as they obtained a permit.    

DDA

Revenue is captured from the DDA (Downtown Development Authority) due to an increased value in taxes.

Drug Forfeiture Fund

This is a repeat budget for specific expenditures; a holding place in the event property is seized.

Library

Typical library expenditures.  If a donor gives money to the Library they are obligated to spend that money where it is requested to be spent by the donor.  The Library has a $90,000+ debt service obligation. This fund has been reviewed and approved by the Library Board.

Museum Fund

This is for the Belrockton.  The bulk of the expenditures are for the second and third floors.  Donations and fundraisers are used for improvements to displays. 

Bond Funds

Sewer Fund debt service is an obligation that must be met.  There are two separate debts.  One with a term now thru 23/24; the other now through 27/28.

Library Debt Fund

This is an obligation that must be met.  It was for building improvements.  The payoff is in 2048.

Capital Improvements Fund

This is the last year for the $53,000 debt service payment for the parking lot.  The funds will then go towards the debt service for the new fire truck.

Dial a Ride

The .529 account (Federal Reimbursement) is new this year per the auditors.  These are Federal Funds and State Revenue for running Dial A Ride.  Belding is scheduled for three new busses by the end of this year; we will have a whole new fleet.  The State of Michigan has signed off on the repairs to the building so that should be starting soon.

Water Fund

City Manager John Niemela and DPW Director Ernie Thomas continue to work with EGLE in regards to the lagoons.  The City is expected to receive approximately $570,000 in Federal Funds to use to clean ponds 4 and 5. The goal is to do the work in the 21/22 FY, with an obligation to spend the funds by 2024.   Sludge removal in ponds 4 and 5 is needed to create more holding capacity.  A plan is still needed to deal with ponds 1,2 and 3.

Adjourn

Moved by Feehan, supported by Steele to adjourn the Budget Workshop meeting at 7:11 p.m. to begin the regularly scheduled City Council meeting.  The Budget Workshop will resume at a later date and time.  Motion carried by the following roll call vote: yes – all.

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Bruce Meyers, Mayor Pro Tem

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Janae Cooper, City Clerk