City Council Minutes

Mayor Johnson called the meeting to order with the Pledge of Allegiance at 7:30 p.m. in the City Council Chambers of the Northville City Hall, 215 West Main Street, Northville, Michigan.

Present: Mayor Christopher Johnson, Mayor ProTem Carolann Ayers, Councilmembers Kevin Hartshorne, Jerome Mittman, and Thomas Swigart.

Absent: None.

Also Present: City Manager Gary Word, Assistant City Manager/Finance Director Nicolette Bateson, DPW Director James Gallogly, Accounting Supervisor Sandi Wiktorowski, Housing Director Joanne Inglis, Youth Assistance Director Mary Ellen King, Parks and Recreation Director Traci Sincock, Police Chief James Petres, Fire Chief James Allen, Assessor John McClenaghan, Housing Commissioners Butch Casterline, Sue Ellen Hooper, and Bill Robertson, and Northville Reporter Lon Huhman.

A. Citizen Comments: None.

It was suggested that the order of budget review be changed and that the Housing Commission budget be reviewed after examining the Revenue portion of the budget.

Motion Ayers, seconded by Harthsorne to approve the agenda as amended. Motion carried unanimously.

Assistant City Manager/Finance Director Nickie Bateson stated the FY 01/02 budget shows a decrease in revenues of 4.48% and a decrease in expenditures of 4.13% from last year. Assessor John McClenaghan stated the budget reflects a 6.24% increase in taxable value from last year. The difference between the taxable value and the State Equalized Value was pointed out as a reminder that Proposal A limits the City from capitalizing on the growing real estate values in the area. Other items cited were:

- The current allowable maximum millage rate is 14.896.

- Residential properties account for 83% of the tax base.

- The total levy for the proposed fiscal year is the lowest in the past 10 years.

Revenues: The present budget reflects revenue derived from a proposed operating millage rate of 13.30. A review was given of prior years’ racetrack revenues and the subsequent expenditure allocations. Items reflecting a significant change from the previous year’s figures were: building permits, grants, State sales tax, cemetery sales, and District Court fines.

Council comments: Questions regarding specifics of the racetrack expenditures, fund balance, and investment proceeds.

Housing Commission: There are no major changes reflected in this year’s budget. A slight increase in revenue reflects a slight rent increase to the tenants. Expenditure increases are a reflection of anticipated energy costs, and the addition of a residents’ appreciation function. The building bonds will be retired in FY 02/03.

Council comments: Questions regarding financing future capital improvement projects, and the needs survey regarding senior housing.

Motion Hartshorne, seconded by Swigart to increase the rent at Allen Terrace from $540 to $548 for the one-bedroom apartments and from $915 to $925 for the two-bedroom apartments, to begin July 1, 2001. Motion carried unanimously.

City Council: There is a slight decrease in expenditures, which is a reflection of the absence of fireworks at the Fourth of July celebration this year.

City Manager: A slight increase due to the change of venue of the ICMA conference, which will be held in Salt Lake City, Utah.

City Attorney: No significant change in the projected budget from the previous fiscal year.

Council comment: Question regarding large increase from FY 99/00 to FY 00/01. Answer:

FY 99/00 contained the negotiation of four labor contracts that were settled in FY 00/01.

Finance and Administrative Services: There is a slight decrease in the level of expenditures due to the reallocation of a portion of wages and fringes to the Technology portion of the budget. The remainder of the budget reflects minor increases.

Technology: The current budget reflects a continuation of multi-year projects including the implementation of GIS and document imaging, software upgrades, and establishing a City web site. This will be the first year staff wages are quantified and allocated to this portion of the budget.

Council comments: Questions were asked regarding the specifics of staff time allocation, the document imaging project, and the development of the City web site.

Taxation: The present budget reflects a decrease in wages and salaries due to the absence of a Tax clerk . However, there is an increase in the contractual services primarily due to the hiring of a temporary employee. There are no significant changes in the budget for the Tax Department.

Police: Significant factors in the proposed budget for the Police Department include a pay increase for the crossing guards, the attendance by the new sergeant to the 10-week Police Staff and Command course, the training for two new part-time dispatchers, and the purchase of two new police vehicles and an additional in-car video camera and recorder. Additional capital items include a video tape storage cabinet, a bulk video tape eraser, a prisoner restraint chair, and CPR training mannequins. Funds for replacing older equipment is also included.

Council comments: Questions regarding the effectiveness of the D.A.R.E. program and the level of education of the new officers being hired.

Fire: The new rescue unit will arrive sometime this month and the new pumper sometime in the summer months. These two pieces of equipment have been purchased through the millage approved by the voters in November 2000. A new fund, Fire Equipment and Replacement Fund, has been established to actively plan for the purchase of equipment that will need to be replaced due to the use and age. The fund will be sourced by contributions from the General Fund with items designated for purchase in specific fiscal years.

Youth Assistance: No significant changes from the previous year.

Council comments: Explanation was given regarding the revenue generated by the shared services agreement and by the Township millage. Further discussion took place over the programs that the Youth Assistance is sponsoring.

City Manager Word stated the Friends of the Mill Pond had requested the City Council set aside funds on a yearly basis for the purpose of dredging the Mill Pond at some future date. Word also indicated to the Council a request by the retirees for a cost of living increase adjustment to be made in their pensions. Further information will be presented regarding this request at a future budget meeting.

There being no further business, the meeting was adjourned.

Meeting adjourned 9:25 p.m.

Respectfully submitted,

Carol T. Kasprowicz

Deputy City Clerk