City Council

APPROVED 05/06/2024 SPECIAL BUDGET WORKSHOP MINUTES APRIL 15, 2024 THE SPECIAL BUDGET WORKSHOP OF THE RICHMOND CITY COUNCIL WAS CALLED TO ORDER AT 5:30 P.M., ON MONDAY, APRIL 15, 2024, 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, DPW Director Goetzinger, City Assessor Elrod, Building Department Hayduk Visitors: Chantell LaForest (Waste Management) AUDIENCE PARTICIPATION None received. ADOPTION OF AGENDA Motion by Warn, seconded by Allen, to amend the Agenda to move item for discussion 101-001, General Receivables after item 101-528 Refuse Collection and Disposal. All yeas Motion passes ITEMS FOR CONSIDERATION 1. Review of the Manager’s Proposed FY2024-2025 City Budget The residential real estate market remained strong this year. Based on the rate of inflation (CPI) of 5.1%, the taxable values of residential properties under Proposal A will increase 5%. The taxable value of commercial and industrial properties will also increase by 5%. The budget includes a 2.5% wage increase for non-affiliated personnel, 2.5% wage increase in accordance with the Teamster and Communications labor contracts, and some salary adjustment to the seasonal employees. CCBudgetWorkshop: 04/15/2024 Page 1 of 5  APPROVED 05/06/2024 Review of the proposed FY2024-25 Budget began with: 101-209 Assessor – There was an additional item added. KCI Co. will print assessing notices at a discounted mailing cost. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 101-247 Board of Review – Administration budgeted $5,500 for reimbursements to account for property owners potentially petitioning the Michigan Tax Tribunal. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 101-372 Building Department - COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 101-528 Refuse Collection and Disposal – The contract with Waste Management is scheduled to expire 7/1/24. Waste Management Public Sector representative, Chantell LaForest, provided Council with the proposed rate increases and service changes for the next fiscal year. The Consensus request Administration to contact Priority and GFL for competitive quotes. If it is not possible to acquire bids due to time constraints, Council would like to request some changes to the proposed FY2024-2029 contract. COUNCIL WILL REVISIT THIS BUDGET ITEM ONCE MORE INFORMATION IS ACQUIRED. Budget Workshop Meeting recessed at 6:56 p.m. for the Regular Council meeting The Budget Workshop Meeting reconvened at 7:26 p.m. The FY2024-25 the City’s general operating millage will be 15.5039 mills. Due in large part to the uncapping of properties, the City will have a Headlee Rollback of .1598 for FY2024-25. The City’s general operating millage will be 15.5039 mills. 101-001 – General Fund Revenues – The proposed ending fund balance for June 30, 2025 is $2,145,727, however $1,000,000 of these funds were donated to the LWML and must be spent on the Library. The budget incorporates a $506,545 shortfall between revenues and expenditures in the General Fund. This shortfall is in part due to inflation, capital projects, vehicle purchases, equipment purchases and personnel costs. A correction to the verbiage is needed in the Budget Executive Summary where it notes “the current budget” and should reflect “the proposed budget”. COUNCIL WAS IN GENERAL AGREEMENT WITH THE REVENUES AS PRESENTED. CCBudgetWorkshop: 04/15/2024 Page 2 of 5  APPROVED 05/06/2024 101-441 Public Service Director – Increases to the ready to serve fee, water commodity and sewer commodity rates have been proposed. City Council wanted additional information on sewer rates and summer sewer discount. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 101-442 Department of Public Works – Council requested an increase to this budget item to provide more DPW apparel to workers for identification purposes and to maintain professionalism. COUNCIL HAS REQUESTED THIS ITEM BE APPROPRIATEDLY INCREASED TO REFLECT THE SUGGESTED MODIFICATIONS. 202-ALL Major Street Fund – Reconstruction of Oak Street from Main to Division and Preistap from Beech to Main has been accounted for. Repair to Main Street from Division to the railroad associated with the Water Main Project has been incorporated in the budget. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 203-ALL Local Street Fund – COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 209-ALL Cemetery Fund – Council at some point would like to see a new blue sign installed at the Cemetery. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 237-ALL Mausoleum Fund – COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 402-ALL Wastewater Treatment Plan Equipment Replacement Fund – There is potential grant funding for this item in the future. 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 $110,000 for the City’s portion of a leaf vacuum ($77,000 from General Fund and $33,000 from TIFA). DPW Director anticipates a demo of a unit in the fall. 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. CCBudgetWorkshop: 04/15/2024 Page 3 of 5  APPROVED 05/06/2024 498-ALL Sanitary Sewer Contributing Capital Fund – Sewer improvement related to Oak and Priestap Street project ($177,580) and an estimated $375,000 for a sewer lining project has been added to this year’s budget line item. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 499-ALL Water Contributing Capital Fund – This year’s budget includes a water main replacement related to the Oak and Priestap Street project and on Main Street (partially funded by Federal Funding). COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 590-ALL Sanitary Sewer Fund – There is a 5% increase proposed to the commodity charge (sewer rate). COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 591-ALL Water Fund – There is a proposed 3% increase to the commodity charge (water rate) and $3.00 increase to the reddiness to serve charge. Council will be reviewing additional information on rates. COUNCIL WAS IN GENERAL AGREEMENT WITH THE BUDGET AS PRESENTED. 598-ALL SWIP Fund – Several streets in Orchard Meadows are still lacking sidewalks. It was requested this item be added to the Quarterly Workshop meeting for further discussion. 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 New lights were installed at the crosswalk at Grove Street however the law stipulates the timing of when they can be utilized. Changes to the fee schedule (discounted pool filling) may stop after this summer. COUNCIL COMMENTS Allen inquired about the opening of the restrooms at Beebe Park. CCBudgetWorkshop: 04/15/2024 Page 4 of 5  APPROVED 05/06/2024 ADJOURNMENT Motion by Schultz, seconded by LaFore, to adjourn the Special Budget Workshop at 8:54 p.m. All yeas Motion passes Respectfully submitted: Heather L. McCallister City Clerk CCBudgetWorkshop: 04/15/2024 Page 5 of 5