City Council

APPROVED 05/01/2023 SPECIAL BUDGET WORKSHOP MINUTES APRIL 17, 2023 THE SPECIAL BUDGET WORKSHOP OF THE RICHMOND CITY COUNCIL WAS CALLED TO ORDER AT 5:30 P.M., ON MONDAY, APRIL 17, 2023, BY MAYOR RIX. ROLL CALL: Present: Allen, LaFore, Misteravich, Reindel, Rix, Schultz, Warn Absent: None Others: City Manager Moore, City Treasurer Hatfield, City Clerk McCallister, Cable Coordinator Robbins, DPW Director Goetzinger Visitors: None AUDIENCE PARTICIPATION None received. ADOPTION OF AGENDA Motion by Warn, seconded by Schultz, to adopt the Agenda as presented. All yeas Motion passes ITEMS FOR CONSIDERATION 1. Review of the Manager’s Proposed FY2023-2024 City Budget Under the American Recover Act of 2021, the City of Richmond is estimated to receive $614,000. This past year, City Council approved the use of $423,489 for two new 9-1-1 consoles. The City, with the assistance of Macomb County Radio, contracted with Motorola for this project. This will leave $190,511 in ARPA funds that administration recommends we utilize toward the new fire engine. All funds will need to be programed prior to the end of 2024. Administration reviewed the technical aspects of how we recommend accounting for the ARPA funds with the federal government during the review of the General Fund Revenues. Dept. of Treasury recommends recording the revenues toward payroll expenses. CCBudgetWorkshop: 04/17/2023 Page 1 of 5  APPROVED 05/01/2023 Review of the proposed FY2023-24 Budget began with: 101-001 – General Fund Revenues – The proposed ending fund balance for June 30, 2024 is $1,982,795 which is 37.5% of expenditures. The current budget incorporates a $204,464 shortfall between revenues and expenditures in the General Fund. This short fall is in part due to capital projects, vehicle purchases, and a MERS contribution. The FY2023-24 budget calls for a general operating ad valorem property tax levy of 15.6637 mills. This year the City’s millage rate did not have a Headlee Millage Rollback. Due to the inflation rate of 7%, taxable value increased by the maximum 5% allowable under proposal A. One mill for general operating purposes is equal to $188,916 after TIFA capture. (Last year one mill was equal to $175,330). COUNCIL WAS IN GENERAL AGREEMENT WITH THE REVENUES AS PRESENTED. 101-103 Cable Television Committee – Council was in agreement that the purchase of a new high-definition recording equipment be purchased this fiscal year. The amount of time devoted to the school was discussed. COUNCIL WAS IN GENERAL AGREEMENTWITH THE BUDGET AS PRESENTED. 101-253 Treasurer – COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 101-448 Street Lighting – Discussed the possibility of transitioning into LED lighting in increments. Council commented that the decorative light pole bases need to have something done to them since they are deteriorating. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 101-906 General Fund Debt Service – COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 101-372 Building Department - COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 101-441 Public Service Director – COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 101-442 Department of Public Works - COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 202-ALL Major Street Fund – Although the Howard Street project has been budgeted for, it may not move forward as scheduled as it is dependent on the pricing. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. CCBudgetWorkshop: 04/17/2023 Page 2 of 5  APPROVED 05/01/2023 203-ALL Local Street Fund – COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 209-ALL Cemetery Fund – COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 237-ALL Mausoleum Fund – Council questioned the availability of open crypts and the condition of the current roof. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 402-ALL Wastewater Treatment Plan Equipment Replacement Fund – A funding application to purchase a new screw press was submitted to Congresswoman Lisa McClain’s office. Fifty-five (55) applications were received but only fifteen (15) projects were submitted to the Federal Government for funding, Richmond’s application was one (1) of the fifteen (15) to move forward to the next phase. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 404-ALL DPW Vehicle and Equipment Replacement Fund – DPW Director Goetzinger informed Council that he requested 40% of General Fund be allocated to equipment rental fees versus 35% from prior years. Councilors questioned City Manager Moore’s comfortability with this change. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 405-ALL Street Improvement Fund – COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 498-ALL Sanitary Sewer Contributing Capital Fund – The proposed water meter replacement program will focus mainly on residential meters that are currently over five (5) years old. They will benefit the resident with more accurate billing and will limit the staffing hours used to complete the monthly readings. In the event this item stays in the budget, a representative will speak at a future roundtable meeting to explain the process. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 499-ALL Water Contributing Capital Fund - COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 590-ALL Sanitary Sewer Fund – There is an increase proposed for the ready to serve charge on both the water and sewer of $3.00. CCBudgetWorkshop: 04/17/2023 Page 3 of 5  APPROVED 05/01/2023 Councilors requested general information be provided to consumers with the breakdown of each item on the bill for transparency. Moore indicated there already is a memo at the front counter with this information that could be used on the website. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. Meeting recessed at 6:57 p.m. for the Regular Council meeting Reconvened budget workshop at 7:46 p.m. 591-ALL Water Fund – There is a proposed 3% increase to the commodity charge which is just enough to cover the increase in chemical expenses. This is the first (1st) increase to the commodity charge since 2019. The Mayor would like an explanation of readiness to serve charge as well as the commodity charge explained in the quarterly newsletter. Additionally, Councilors would like to see a “New Resident Packet” created. The contents should incorporate the City Calendar, Quarterly Newsletter, Waste Management schedule, tax rate comparison and other beneficial information. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 598-ALL SWIP Fund – No projects this year. Discussed the gaps created by lot combinations. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. DPW Capital Improvement Sheets – COUNCIL WAS IN GENERAL AGREEMENT WITH THE CAPITAL IMPROVEMENT SHEETS AS PRESENTED. CITY MANAGER COMMENTS None COUNCIL COMMENTS Rix expressed concern with the Gratiot/Muttenville safety issues and has requested an upgrade to what is currently present (i.e. yellow flashing lights, additional stop sign, reflective tape, etc). Goetzinger indicated that restriping of Richmond’s street portion will be done. All Council was in agreement that this item be discussed at a future workshop. CCBudgetWorkshop: 04/17/2023 Page 4 of 5  APPROVED 05/01/2023 ADJOURNMENT Motion by Misteravich, seconded by Allen, to adjourn the Special Budget Workshop at 8:27 p.m. All yeas Motion passes Respectfully submitted: Heather L. McCallister City Clerk CCBudgetWorkshop: 04/17/2023 Page 5 of 5