RESOLUTIONS
66. Resolution approving Fiscal Year 2008-2009 budget adjustments for the City's General Fund.
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Motion to approve
Moved By: Ryan Hersha City Commissioner
Supported By: Chris Simmons City Commissioner
Comm. Simmons asked what percentage of the projected income tax revenue is $550,000.
Jim Ritsema reported that income tax revenue is expecting to be 5% to 7% down from the budgeted amount.
Comm. Simmons asked what was the cause of the locat adjustment.
As of December 31, 2008, Jim Ritsema noted it was mostly attributed to corporate income tax, which is $3M of the total income tax. The City is now seeing a reduction in the actual withholdings which are expected to decrease between now and June.
Comm. Hersha asked if the budget workshops have been scheduled.
Jim Ritsema anticipated a late March workshop so that he would have better information for projections based on revenue from property and income taxes.
Ken Tsuchiyama added the City tries to be as conservative as possible, and 2009 will be a very challenging budget year.
Votes For = 8
Susan Baldwin City Commissioner
John Godfrey City Commissioner
Ryan Hersha City Commissioner
Chris Simmons City Commissioner
Mark Behnke Mayor
Sherry Sofia City Commissioner
Diane Thompson City Commissioner
Andrew Yankama City Commissioner
MOTION APPROVED
67. A Resolution Approving an updated Deficit Reduction Plan for the Binder Park Golf Course Fund for the fiscal years 2008 through 2012.
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Motion to approve
Moved By: Ryan Hersha City Commissioner
Supported By: Chris Simmons City Commissioner
Votes For = 8
Susan Baldwin City Commissioner
John Godfrey City Commissioner
Ryan Hersha City Commissioner
Chris Simmons City Commissioner
Mark Behnke Mayor
Sherry Sofia City Commissioner
Diane Thompson City Commissioner
Andrew Yankama City Commissioner
MOTION APPROVED
68. A Resolution authorizing the City Manager to sign Contract #08-5487, Job #101243 with the Michigan Department of Transportation (MDOT) for: Part A - reconstruction work along Emmett Street from Hazel Street to Fremont Street; including hot mix asphalt paving, storm sewer, concrete curb and gutter, concrete sidewalk, and traffic signal upgrading work; and Part B - watermain and sanitary sewer work along Emmett Street from Hazel Street to Fremont Street.
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Motion to approve
Moved By: Ryan Hersha City Commissioner
Supported By: Chris Simmons City Commissioner
Comm. Godfrey asked if the project will be conducted in the same manner as last year so that traffic can continue flowing.
Ken Tsuchiyama responded that traffic will be maintained as much as possible.
Votes For = 8
Susan Baldwin City Commissioner
John Godfrey City Commissioner
Ryan Hersha City Commissioner
Chris Simmons City Commissioner
Mark Behnke Mayor
Sherry Sofia City Commissioner
Diane Thompson City Commissioner
Andrew Yankama City Commissioner
MOTION APPROVED
69. Resolution pledging the City's Limited Tax Full Faith and Credit for TIFA Bonds
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Motion to approve
Moved By: Ryan Hersha City Commissioner
Supported By: Chris Simmons City Commissioner
Comm. Godfrey asked Mr. Ritsema to provide some background information.
In 2007, Jim Ritsema reported the Kellogg Company's hangar was purchased for the parallel runway project. A plan was put together that would construct a $8.5M facility where Kelloggs would construct it, the City would acquire it, TIFA would pay for the construction costs, and Kelloggs would pay lease payments. The project was placed on hold, and it now has been scaled back to a $4M project. Kelloggs is asking for the same construction funds. Because of the market, it is necessary to sell the bonds.
Comm. Godfrey asked if the time table will change. Will it cost TIFA more than originally calculated?
Jim Ritsema stated Kelloggs will pay the lease payment equal to what the debt service is. This resolution helps position TIFA to sell the bonds if the company elects to use this type of financing. The lease is a ten-year lease with 2 five-year renewals.
Comm. Godfrey questioned when the debt is retired, will the City continue to lease the facility to the company.
Jim Ritsema noted there is an option for Kelloggs to purchase it.
Comm. Yankama asked if things were going well for TIFA, would the City remove the guarantee.
Jim Ritsema answered the guarantee would stay with the bonds once the pledge is made.
Comm. Godfrey stated BCU has indicated that they will not be able to sustain the growth that they have experienced over the past decades. He asked if this gives the City concern with today's economy.
Ken Tsuchiyama stated the intent of the BCU presentation was to show that the only sector that has consistently shown growth and stability has been the industrial park. The industrial park can not carry the rest of the community.
Votes For = 8
Susan Baldwin City Commissioner
John Godfrey City Commissioner
Ryan Hersha City Commissioner
Chris Simmons City Commissioner
Mark Behnke Mayor
Sherry Sofia City Commissioner
Diane Thompson City Commissioner
Andrew Yankama City Commissioner
MOTION APPROVED
70. Allocating Water and Sewer Fund dollars for design engineering on projects associated with proposed Federal Stimulus Programs.
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Motion to approve
Moved By: Ryan Hersha City Commissioner
Supported By: Chris Simmons City Commissioner
Comm. Hersha thanked staff for the preparation of the resolution and was pleased that it might help keep future water and sewer rate increases more reasonable. He hoped Battle Creek would receive stimulus dollars so that the City can make the investment as soon as possible.
Votes For = 8
Susan Baldwin City Commissioner
John Godfrey City Commissioner
Ryan Hersha City Commissioner
Chris Simmons City Commissioner
Mark Behnke Mayor
Sherry Sofia City Commissioner
Diane Thompson City Commissioner
Andrew Yankama City Commissioner
MOTION APPROVED
71. A Resolution urging Governor Granholm to call a special election to fill the vacant 19th District State Senate seat.
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Motion to approve
Moved By: Ryan Hersha City Commissioner
Supported By: Chris Simmons City Commissioner
Comm. Simmons commented that he has received many phone calls from citizens regarding the unemployment system in the state. Without someone in the State Senate seat, he stated that we do not have a voice in the important policy decisions that are being made affecting our community. Comm. Simmons said it is not likely that there will be a May election, but perhaps an August Primary and November Election. He urged commissioners to support the resolution.
Comm. Hersha would like to see representation, but was not overly concerned with the empty seat. He felt there was a partisan aspect to the resolution and would not be supporting it.
Comm. Godfrey felt it important that there is a voice in the Senate. He was amazed that an election had not been scheduled yet. While Kate Segal's representation in the House is noteworthy, he did not think it was good keeping the Senate seat unfilled during these trying economic times.
Comm. Thompson agreed with Comm. Godfrey's assessment and thanked Comm. Simmons for crafting the resolution.
Comm. Yankama concurred with Comm. Simmons and would like to see a resolution requiring a freeze on elected officials earning more than $100,000.
Comm. Simmons noted a special election would fill the remainder of Mark Schauer's four-year term.
Votes For = 7
Susan Baldwin City Commissioner
John Godfrey City Commissioner
Chris Simmons City Commissioner
Mark Behnke Mayor
Sherry Sofia City Commissioner
Diane Thompson City Commissioner
Andrew Yankama City Commissioner
Votes Against = 1
Ryan Hersha City Commissioner
MOTION APPROVED
72. A resolution establishing Industrial Development District No. 37.
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Resolution 72 was pulled from this evening's agenda.
73. A Resolution supporting the American Recovery and Reinvestment Act.
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Motion to approve
Moved By: Ryan Hersha City Commissioner
Supported By: Chris Simmons City Commissioner
Votes For = 6
John Godfrey City Commissioner
Ryan Hersha City Commissioner
Mark Behnke Mayor
Sherry Sofia City Commissioner
Diane Thompson City Commissioner
Andrew Yankama City Commissioner
Votes Against = 2
Susan Baldwin City Commissioner
Chris Simmons City Commissioner
MOTION APPROVED
Because the economic crisis is worsening, Comm. Hersha felt it important that Battle Creek express its support of the American Recovery and Reinvestment Act in hopes of putting people back to work.
Comm. Simmons stated he would rather support a plan that would provide tax relief to businesses who in turn create jobs. Although there are good things in the Act, it is highlighted as a bipartisan bill and Comm. Simmons could not support the resolution with the fundamental components of the American Recovery and Reinvestment Act.
Comm. Yankama stated the country has spent close to a trillion dollars helping Iraq, and felt we need to act now in assisting people in the United States with health care and loans.
Comm. Sofia shared her concern regarding the creation of jobs. She did not believe the Act would have the intended effect unless the benefit is targeted to those most in need. Comm. Sofia noted that the Senate Fiscal Agency has projected that Michigan will lose 780,000 jobs compared to 4 million lost nationally.
Comm. Hersha stated he sympathized with Comm. Sofia's point of view, and if he crafted the bill, he would craft it differently. However, he believed we can not let the perfect be the enemy of the good and that we must work together in creating the best possible stimulus package. |