City Council Minutes

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

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

Absent: Mayor Pro Tem Carolann Ayers (excused).

A. Citizen Comments None.

It was suggested that the order of the budget review be changed and that the Housing Commission budget be reviewed prior to examining the Revenue section of the budget.

Motion Hartshorne, seconded by Mittman to approve the agenda as amended. Motion carried unanimously.

The City Manager introduced the budget review session with an overview of the factors influencing the FY02/03 budget. The budget represents a continuation of previous levels of service in most departments. The proposed budget is a projected budget, which forecasts future revenues and expenditures three years beyond the proposed budget for fiscal year 2003. Items cited included:

The 2002-03 proposed operating millage is the same as last year at 13.30 mills; the current allowable maximum millage rate is 14.724.

The disparity between State Equalized Value and Taxable Value is now at 19%.

The percentage of general fund expenditures financed by property taxes is consistent with prior years at 69%.

Due to a slowdown in the economy during 2001, State-Shared Revenue decreased by 12.12% during FY 2002. It is anticipated that the State-Shared Revenue for the upcoming fiscal year will be no less than the fiscal year 2002 rates.

Although stable, the Water and Sewer Fund will require a rate adjustment to accommodate the 13.7% increase mandated by the City of Detroit.

The Assessor summarized the Assessment Cycle, stating that the overall assessment change for all classes was 11.68%. The community’s taxable value increased by 7.66%, as a result of the 3.2% increase allowed by the cost of living adjustment, the uncapping of values caused by the sales of properties, plus the increases from new construction. He noted that it is not expected that these numbers will be much different in coming years, as the cost of living adjustment is capped at a 5% maximum.

Council Comments: Questions were raised regarding specifics on the number of property turnovers within the community and the guidelines used to assess the various stages of new construction.

Housing Commission: There are no major changes reflected in this year’s budget. A slight increase in revenue reflects a proposed rent increase to the tenants consistent with the previous fiscal year. As this is the final year of the bond payment, carpet replacement, as needed, was noted as the only Capital Improvement project.

Motion Hartshorne, seconded by Swigart to increase the rent at Allen Terrace from $548 to $556 for the one-bedroom apartments and from $925 to $935 for the two-bedroom apartments, to begin July 1, 2002. Motion carried unanimously.

Revenues: The present budget reflects revenue derived from a proposed operating millage rate of 13.30. The primary source of General Fund Revenue is property taxes. 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: interest from investments, impounded vehicle fees, cemetery sales, grants, State-Shared Revenue, and District Court fines and forfeits. The challenge for future years is to look for alternate revenue sources.

Council Comments: Questions were asked regarding delinquent property taxes, dog licenses, impound fees, and grant opportunities. It was suggested that a "newcomers" package be created to use as a tool to inform new residents about licenses, trash pick up, recycling, and other items of interest.

City Council: There is a slight increase in expenditures, which is a reflection of the increase to Ceremonial Funds for the possibility of reinstating the fireworks at the Fourth of July celebration this year.

City Manager: A slight increase due to the change of venue of the ICMA conference and an increase in the cost of fringe benefits.

Council Comments: A comment suggested including funds in the Education and Training line item, which could be offset by decreasing other line items.

City Attorney: A slight increase in attorney service fees with a decrease in labor attorney costs is due to the successful negotiation of the four collective bargaining agreements during the FY2000-01 budget year. Overall legal services are at levels generally consistent with prior years.

Elections: The budget is increased in order to administer the two state elections scheduled this year, and to issue new voter identification cards to all voters in order to comply with the state statute relative to reapportionment. No Capital Outlay is requested.

Council Comments: Questions regarding the amount budgeted for Election Inspector wages and salaries and the increase in operating supplies.

City Clerk: A slight increase in the budget due to negotiated wage and salary increases and fringe benefit costs. No Capital Outlay is requested.

Finance and Administrative Services: Proposed expenditures show a slight increase due to significant staff time needed to focus on the implementation of GASB 34.

Technology: The proposed budget reflects a continuation of multi-year projects, including Document Imaging System implementation, financial software upgrades, City Hall computer replacement, and Website and E-Government planning. Funds for the GIS project have been moved to the Public Improvement Funds reserve.

Council Comments: Discussion regarding the City Hall computer replacement determined that it was more cost effective and efficient to replace all City Hall computers during the same fiscal year. Council suggested creating a reserve fund for future computer hardware purchases.

Taxation: The present budget reflects an increase in wages and salaries due to the eventual filling of the vacant clerical position.

Police: Significant factors in the proposed budget include attendance by the new sergeants to the 10-week Police Staff and Command course, court appearance wages and salaries, the purchase of two new police vehicles, and training for two new part-time dispatchers. Additional capital items include office furniture, a radar unit, and new cameras and/or monitors. It was noted that funding to participate with the Department of Corrections for a new range facility was cut from the proposed budget, but is still needed.

Council Comments: Questions regarding police patrols during live and simulcast racing, the proposed new firearms range, longevity pay and other fringe benefit items. Council requested information regarding the total number of racing days for the last five years.

Fire: A slight increase due to inflationary adjustments.

Fire Equipment & Replacement Fund: Firefighter helmets are proposed to be replaced during FY2003 at an estimated cost of $9,000.

Youth Assistance: This budget is on a calendar fiscal year, along with the Township, and has been approved through December 31, 2002. There are no significant changes from the previous year.

Hartshorne questioned the safety of the old boxcar located near the cider mill and requested a report that would indicate the number of City water customers for use during budget discussions regarding the proposed water rate increases.

B. Staff Communications

Word reminded Council that the next budget discussion meeting is scheduled for Thursday, April 18, 2002 at 7:30 p.m.

There being no further business to come before Council, the meeting was adjourned.

Respectfully submitted,

Dianne Massa

City Clerk