RESOLUTIONS
58. A Resolution Approving a Deficit Reduction Plan for the Local Street Fund and Street Projects Fund for the fiscal year ending 2009.
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Motion to approve
Moved By: Elizabeth Fulton City Commissioner
Supported By: Lynn Gray City Commissioner
Comm. Yankama asked the Assistant City Manager how the City plans to pay for the $1.6M deficit.
Mr. Ritsema noted this is a structural deficit and there will be a one time local transfer of funds that was set aside for capital purposes for this year.
Comm. Yankama stated when money is taken from the General Fund, it affects other programs. He asked if TIFA funds or other funds could be used before dipping into the General Fund.
Mr. Ritsema noted that BCTIFA funds must be used in the TIFA district and cannot be used for other parts of the City. This resolution approves a one time transfer out of the designated fund balance.
Comm. Sullivan thanked the City Manager for answering her questions today and asked if the $700,000 shortfall was the result of the street fund deficit.
Ken Tsuchiyama stated the $700,000 shortfall in the General Fund Operating Budget will be discussed at tomorrow evening's workshop and is the result of a reduction in state shared revenue. This resolution deals with the local street fund which is primarily funded through state gas tax and vehicle registration fee revenue. Staff is suggesting using the fund balance that was not identified for this year and will not have any impact on city operations.
Comm. Sullivan asked if data will be provided at the workshop.
Mr. Tsuchiyama indicated that the purpose of the workshop is to share information and gain feedback on the midyear budget shortfall. He noted that the audit is available online.
Vice Mayor Simmons stated that it is ironic that the state requires a deficit reduction plan when the deficit is caused in a large part by the structural deficiencies of the state of Michigan. Although this resolution provides a quick fix for this year, Vice Mayor Simmons asked what happens if the state does not provide street funding.
Mr. Ritsema stated the City will need to cut expenditures/services or increase revenue. This is a crisis and the City needs to deal with it.
Ken Tsuchiyama indicated the City anticipates looking at other ways to support building and vehicle costs.
Comm. Yankama hoped that citizens would not be taxed to take care of streets and felt taking money from the General Fund is not a good idea.
Mayor Baldwin clarified the state system is not taking in as much money for gas taxes and vehicle registrations.
Votes For = 9
Susan Baldwin Mayor
Elizabeth Fulton City Commissioner
Ryan Hersha City Commissioner
Chris Simmons Vice Mayor
Lynn Gray City Commissioner
Laurie Sullivan City Commissioner
Diane Thompson City Commissioner
Bill Morris City Commissioner
Andrew Yankama City Commissioner
MOTION APPROVED
59. A Resolution setting a Closed Session immediately following the regular City Commission Meeting on Tuesday, January 19, 2010, in Room 302A, City Hall, Battle Creek, Michigan, on a labor matter.
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Motion to approve
Moved By: Ryan Hersha City Commissioner
Supported By: Lynn Gray City Commissioner
Votes For = 9
Susan Baldwin Mayor
Elizabeth Fulton City Commissioner
Ryan Hersha City Commissioner
Chris Simmons Vice Mayor
Lynn Gray City Commissioner
Laurie Sullivan City Commissioner
Diane Thompson City Commissioner
Bill Morris City Commissioner
Andrew Yankama City Commissioner
MOTION APPROVED |