INVOCATION
GENERAL PUBLIC COMMENT
Steven Wagner, 30 Post Avenue, asked the members of Post/Franklin Neighbors Creating Change, to stand in support of renovations for Hamilton Park and noted that June 6th will start a neighborhood fund raiser. Mr. Wagner would like a better explanation regarding not funding Hamilton Park
Rico Bailey stated he lives in the Post Franklin neighborhood and strongly supported funding renovations to Hamilton Park for the youth.
Angela Mosley, 31 W. Bidwell, spoke in favor of renovations of Hamilton Park. In tough economic times, families need green space for children and the community.
Sharon Stanton, of Restoration Life Church, commented that she would like to see renovations to Hamilton Park. Her church members would like to hold fund raisers to assist the park.
George Gray, 111 Academy, felt Hamilton Park needs renovations and asked the Commission to think seriously about changing the budget.
Dale Bennett, of JONAH, admired the Commission for their dedication to creating a budget and stated she would like to see the neighborhood organizer positions continued.
Pat Shellenberger supported Hamilton Park renovations and would like to see the organizers placed back into the budget.
Dick Fink, of Charitable Union, felt eliminating the neighborhood organizers would not be a wise decision as they provide a buffer between the neighborhoods and the City. He felt there are other resources available to keep the positions.
Lapeer Briggs, of Womens' Co-op, stated parks are important to increase neighborhood property values and asked for support of Hamilton Park renovations.
Jim Haadsma, 146 Lincoln, felt the attendance of the Post/Franklin neighborhood shows a lot of pride and asked the Commission for an uplift for the district.
Laurie Sullivan, 130 Frelinghuysen, stated the City talks about increasing strong neighborhoods and believed discontinuing what is working is not the right thing to do.
Jason Pantcost, President of Freedom Makers Neighborhood Association, did not think it wise to eliminate the neighborhood organizers.
John Cash, 121 Academy, Chairman of Post/Franklin Neighborhood Planning Council, stated Neighborhood Services has helped his neighborhood and believed moving the organizers to Neighborhoods Inc. would be a mistake. Secondly, he asked for renovations to Hamilton Park.
David Nielson, Chairman of McKinley/Verona Neighborhood Planning Council, hoped budget planning would include the restoration of services if anything is lost now. Neighborhood Services is an arm of city government where citizens know they will be listened to in an effective manner.
Anita Stuever, Leila Arboretum Society, understood the reasons for LAS' $10,000 cut in the budget and they will re-evaluate their budget after the annual plant sale this weekend.
Sam Gray, 245 Irving Park, stated the city needs to make an investment in children by renovating Hamilton Park. He announced the Juneteenth Celebration in Claude Evans Park on June 20, 2009.
John Kenefick spoke about Binder Park Golf Course and Full Blast past funding allocations.
PRESENTATION BY KEN TSUCHIYAMA
City Manager Ken Tsuchiyama stated the purpose of the workshop was to provide budget recommendations to the City Commission. For the public, he spoke of the rationale behind Hamilton Park and the neighborhood organizer funding issues. He stated the City supports Hamilton Park improvements; however, there is no money for the project. The City will still be pursuing grant dollars for the park. The City also recognizes the value that neighborhood organizers bring to the community and the administration is trying to change the culture of the organization by making the resources in the community as effective as possible. In these trying times, Mr. Tsuchiyama stated the City needs to become a better partner in working with other organizations, and the administration is committed in looking at their roles differently.
Mr. Tsuchiyama commented this has been the most difficult financial time he has experienced with the City and we need to position city government for the long term as the City cannot operate at a deficit or operate programs that are aimed at stimulating the economy. More than ever, jobs are important and we must continue our economic development efforts. Mr. Tsuchiyama continued explaining city government's goals: to ensure financial stability, to ensure the city is a meaningful community partner, to seek ways to have a positive impact on the local economy, manage and to minimize the negative impact city government has on the local economy. Mr. Tsuchiyama emphasized that the City needs to make the difficult decisions now; it will not help to postpone decisions.
The General Fund has a $750,000 shortfall and state shared revenue will be decreased by $180,000 to $230,000 for FY 08/09 For the upcoming fiscal year, the City has projected a $2M shortfall and further state shared revenue cuts are anticipated. Additionally, there is a $2.9M projected deficit in major and local street funds, and expenditures need to be realigned in the water and sewer fund as projected revenue is not being met.
A $3.4M General Fund shortfall is expected for the four years following the next fiscal year. The police and fire pension millage is likely to increase due to market fallout and Mr. Tsuchiyama was hopeful that funding corrections will be made at the state level for roads. Without staff reductions, there will be no significant ways of dealing with the budget shortfall.
With a long term perspective, there will be no quick fixes and priorities will be set. The City's highest priorities are police, fire, streets, water and sewer, neighborhoods, and economic development. Approaches to the budget takes into consideration the Commission's goals and trying to work with community partners. Some services will be reduced significantly or cease entirely.
BUDGET RECOMMENDATIONS
The following vacant positions were eliminated - Graphic Production Operator, Sr. Code Compliance Officer, Customer Service Rep III, and 3 Police Officers.
Due to retirements, the following were eliminated: 6 Firefighter positions, 2 Police Sergeants, 1 Engineering Records Clerk, 1 Special Assessment Clerk, and there are 6-8 retirement decisions pending. Also, administration is recommending a reduction in the street & sidewalk improvement program by $200,000, and a reduction in the Finance Department budget by $70,000. DDA has committed to funding the Downtown Partnership with $220,000 and Downtown Festivals with $50,000.
Further recommendations are to eliminate the Cold Case team mid-year, 2 Neighborhood Organizers and 1 Word Processor from Neighborhood Services, increase Neighborhoods, Inc. contract by $60,000, reduce AccessVision contract by $12,000, reduce the Leila Arboretum Society contract by $10,000, eliminate the Assistant to the City Manager position, eliminate two street sweeping crews saving $300,000, reduce the city's snow and ice response saving $120,000, propose no pay increases for non-reps, and continue to negotiate with the unions for FY 09-10.
Budgeted special requests include funding the gang suppression unit at $350,000, and a $200,000 Full Blast subsidy. The City will not fund two additional property appraisers at $117,344, or a police records management system at $150,000.
The City plans to pursue grants and other outside funding opportunities for capital projects like park improvements, address the Rink management issues, complete major and local street fund deficit response during FY 09-10, address state shared revenue reductions, and conduct water and sewer rate studies.
COMMISSION DISCUSSION
Comm. Godfrey asked what is the cost for the neighborhood organizers.
Mr. Tsuchiyama replied that it costs approximately $124,000 for the two organizers.
Comm. Sofia asked what city departments are not impacted by cuts in the budget.
Mr. Tsuchiyama noted the following non-impacted departments: Transit, Assessor, Income Tax, Parks and Recreation, Human Resources, City Attorney, Information Services, and Risk Management.
Comm. Thompson asked what represents the total gang suppression budget of $350,000.
Deputy Chief Hampton stated the $350,000 is overtime costs for the gang suppression unit as six patrolman are taken out of the patrol division.
Comm. Hersha questioned BCTIFA projects, tab 12, page 29 of the proposed budget book.
Mr. Tsuchiyama stated each project is listed in the Capital Improvement Plan and requires City Commission approval. Page 29 are for industrial park improvements through TIFA funds.
Comm. Hersha asked for an explanation of the CIP prioritization process.
Mr. Tsuchiyama stated each department prioritizes their projects. TIFA projects are prioritized differently through BCU and the Tax Increment Finance Authority.
Comm. Hersha asked if there are specific grants to help Hamilton Park.
Mr. Tsuchiyama responded traditionally grants have become available through the Department of Natural Resources; however, there might be an opportunity through the American Recovery Act. The City Manager added that he and Jim Ritsema are working with a number of community organizations to do a better job of seeking federal funding.
Comm. Hersha asked what is the practical impact of snow and ice removal overtime reductions.
Mr. Tsuchiyama replied there is a possibility of changing shifts if a winter storm is coming. The challenge is relying on weather reports.
Vice Mayor Walker asked if there would be any cold case efforts surviving after the budget is decided.
Deputy Chief Hampton stated the Police Department has three detectives who have cold case experience, but the direction is undecided at this time.
Vice Mayor Walker understood that property appraisals are required every few years and asked if there was a plan.
Mr. Tsuchiyama stated the city does not want to ignore the state requirement and indicated that most other municipalities will be in the same situation.
Vice Mayor Walker appreciated the effort that has gone into the recommendations.
Comm. Yankama asked where the City stands with water equipment and shared his concern regarding diseases.
Mr. Tsuchiyama stated part of the City's system is aging and it takes money for maintenance. Revenue is not keeping up; however, the city's systems are very adequate according to the water quality report.
Comm. Yankama felt Hamilton Park needs some matching funds and asked if the City is looking at funding.
Mr. Tsuchiyama would like to seek grants for park improvements including Hamilton Park.
Comm. Simmons thanked staff for the budget binder and asked why the city is dipping into the general fund balance.
Mr. Ritsema noted for the current FY 08-09, the Commission adopted a budget adjustment of $750,000. The binder projects $500,000 use of fund balance which will be offset by departmental contingencies. If state shared revenue creates another adjustment, a resolution will come before the Commission in June 2009.
Comm. Simmons stated what is done with the revenue not used for the vacated positions.
Mr. Ritsema stated half of the savings goes into the department's contingency fund and the other half is returned to the undesignated fund balance.
Comm. Simmons asked if the Stabilization Fund was included in the $2M.
Mr. Ritsema reported the Stabilization Fund results in a $250,000 transfer out of the General Fund and is part of the budget.
Comm. Simmons stated MDOT's projections are bleak and asked if the City has a contingency plan.
Mr. Tsuchiyama stated the City does not have a contingency plan but anticipated that the state will come up with a plan.
Comm. Godfrey asked what type of impact will be made with street sweeping teams.
Chris Dopp said the city does five full sweeps through the city and would focus on the curbed roads.
Comm. Sofia asked how the $200,000 cut affected the street budget.
Chris Dopp stated since 1990, the City has averaged about 24 miles per year of street improvements.
Comm. Sofia asked if it was possible if Hamilton Park neighborhood could place money into a designated fund for improvements.
Mr. Ritsema said a trust fund was possible if it is tied to a City project.
Comm. Thompson asked if the purchase of the new financial software has created efficiencies.
As the City looks at ways to streamline business and move through the phases of the software installation, Mr. Ritsema anticipated many efficiencies.
Comm. Hersha asked for information regarding the neighborhood organizers' position.
Mr. Tsuchiyama stated neighborhood organizing efforts are difficult to predict and the City needs to find ways to reduce costs by partnering with other organizations.
By transferring the responsibility to Neighborhoods Inc., Vice Mayor Walker struggled with the organizer positions being transferred to Neighborhoods, Inc. as future funding was unpredictable.
Mr. Tsuchiyama said the proposed contract with Neighborhoods Inc. is $260,000 as opposed to $200,000 in the past.
Comm. Yankama asked why the Full Blast/Y Center idea will work.
Mr. Tsuchiyama stated the partnership is still developing. The Y Center is in a not very cost effective building. There will be significant savings between the two organizations and joint use of the facility. He commended Jeff Hovarter for collaborating with other organizations in the community.
Comm. Yankama asked when Binder Park Golf Course will be profitable.
Mr. Tsuchiyama stated the challenge is the economy as citizens have less discretionary dollars to use for recreation.
COMMISSION RECOMMENDATIONS
Comm. Godfrey appreciated staff's work and stated he was not willing to give up neighborhood organizers.
Comm. Thompson echoed Comm. Godfrey's comments. She suggested funding two neighborhood organizers and eliminating two support staff and using volunteers for some of the work.
Comm. Hersha suggested continuing discussion of the City Manager's budget recommendation with the removal of the elimination of the neighborhood services organizers and $60,000 subsidy to Neighborhoods Inc.
Comm. Sofia asked if there was any consideration given to eliminating one of the organizers. She suggested utilizing more people like Jamie Nelson in other organizations to help with neighborhood needs.
Mr. Tsuchiyama stated eliminating one position was not considered.
Comm. Yankama felt there are many organizations in the community and felt the City should keep the entire neighborhood staff. He supported looking at other ways to saving the $124,000.
Comm. Simmons stated the Full Blast endowment fund was not meant to be dipped into and did not feel we should be subsidizing Full Blast. He was pleased that the LOCC did not recommend salary increases and suggested a 5-10% reduction in Commission budget.
Comm. Baldwin reminded everyone there will be a $3.4M deficit in the future and a $2.9M street shortfall. She would like to see the organizers teaching the residents how to be advocates for themselves. Comm. Baldwin also clarified that her husband was no longer associated with Neighborhoods, Inc.
Vice Mayor Walker felt that the neighborhood organizers should stay within the City organization and would like to see what the $60,000 subsidy would buy for the City.
Mayor Behnke commended the staff on a very thorough and comprehensive budget.
Comm. Hersha had serious concerns about the snow and ice situation. He was in support of funding Hamilton Park renovations.
Mr. Tsuchiyama stated the city does not have the funds for the park renovation; however, the city will still be seeking grant dollars.
Mr. Ritsema said the TIFA funds are captured dollars and must be used in certain districts.
Mayor Behnke respected the Hamilton Park comments and encouraged the City Manager to find a solution.
Comm. Yankama asked Jeff Hovarter to speak about the DNR grant for parks.
Mr. Hovarter said the Natural Resources Trust Fund has $800M. About five counties get most of the money. The appropriations process takes about two years.
Mr. Tsuchiyama summarized that the Commission is not comfortable with the neighborhood organizer elimination piece. Staff will come up with suggestions for other things that might be reduced to achieve the $200M shortfall.
Comm. Godfrey asked if another workshop was necessary.
Mr. Tsuchiyama said there could be further discussion prior to a Commission meeting. Once an alternative is identified, the information will be presented to the Commission.
NEXT STEPS
A resolution will be brought before the City Commission to hold a Budget Public Hearing on June 2nd or June 16th.
In June, another resolution will come forward dealing with the state shared revenue shortfall.
ADJOURNMENT
Mayor Behnke adjourned the Budget Workshop at 9:20 P.M. |