Mayor McLallen called the meeting to order at 7:31 P.M.

ROLL CALL: Mayor McLallen, Mayor Pro Tem Crawford, Council Members Clark, Kramer, Mitzel, Mutch, Schmid

ALSO PRESENT: City Manager Ed Kriewall, Assistant City Manager Craig Klaver, City Clerk Tonni Bartholomew

AUDIENCE PARTICIPATION - None

APPROVAL OF AGENDA

Mr. Klaver requested that they delete Item 2, Attorney. Mr. Klaver explained they scheduled this partly to discuss an opinion Mr. Kriewall had requested about the Motorsports grant. Instead, Mr. Kriewall has an opinion letter so they can remove that item from the agenda. Further, Mr. Klaver reported there are no anticipated changes to the attorney’s contract and noted they are reviewing that service as part of the Consultant Review Process.

Mr. Kriewall requested that they add as Item 6, Schedule an Executive Session to discuss Property Acquisition after the meeting.

Mayor McLallen noted there is also a proposal to amend the agenda to incorporate the carry over items from the April 24, 1997 agenda. She reported they are the Public Services Funds and they include: 1) Major Street, 2) Local Street, 3) Municipal, and 4) Water and Sewer.

CM-97-04-137: Moved by Clark, Seconded by Kramer, MOTION CARRIED UNANIMOUSLY: To approve Agenda as amended

Nay: None

PURPOSE OF MEETING: 1997-98 Budget Study Session

PROPOSED BUDGET REVIEW

1. Library

The Chairman of the Library Board, John Chambers reported they have forwarded a copy of its approved budget to Council. He stated members of the board under Mr. Evenhuis’ direction have continually met in various committees to bring the budget information currently before Council. He reported that he and Andrew Mutch served on the Computer Technology Committee, and Mr. Evenhuis and Mr. Krieger are members of the Long Range Planning Committee. He further noted he and Ms. Locke also facilitated the Compensation Committee.

Mr. Chambers reported they are adding a children’s librarian position. He stated one reason is because they are shifting some of the computer consultant cost to a current position with an overall cost savings to the library. He explained they currently have a person in house who has computer systems expertise. Mr. Chambers noted the volume they have in turnover tells them they need to add part time staff for shelving and circulation. He reported the statewide turnover ratio for circulation is approximately 1.8 and Novi is at 3.4; books do not stay in the facility. He noted besides Personnel, they continue to support the written material and it is reflected in about a 5% increase in the book budget. He further noted that in the Computer Information Systems, they would be sacrificing one for the other. Further, one of the CD-ROMS of previously printed material allows them to save thousands upon thousands of dollars in funds, but also permits them to have multiple access to that information. As a library user, he can attest it has been easy to access information from publications such as Standard & Poors without having to wait.

James Evenhuis reminded Council that at their meeting last summer, the Library Board would submit their long range plan in the spring. Mr. Evenhuis reported Step 1 of their Long Range Plan is the Novi Public Library Assessment that the board conducted in cooperation with Wayne State University Center for Urban Studies. As Novi rapidly grows, they knew they had to develop a strong and comprehensive long range plan if they were going to continue to meet the citizen’s library needs as they have in the past. Mr. Evenhuis reported they strategized about how to proceed and decided the first thing they had to do is go to the public to find out what they want and need, then build from there. The first step is the result of citizen focus groups and a 384-citizen telephone survey sampling. He advised they made fifteen minute calls to all ages. He reported everyone loved the library and added most people wanted more of everything. He noted they also found that many Novi residents are still using neighboring community libraries. This tells them Novi has to keep on increasing the size and scope of their collection to meet the information and recreational reading needs of their community. One question they were especially interested in that came out clearly in the survey was do Novi citizens want more branch libraries spread throughout the city or do they want a significant expansion of the current facility. He reported it was almost unanimous that they want a larger library in its current location.

Mr. Evenhuis reported their next step is to hire as their consultant a nationally respected library planner whose name is Anders Dahlgren from Madison, Wisconsin. Mr. Evenhuis reported the name of his company is Library Planning Associates, Inc. and noted he has done some fine work for the Rochester Hills Public Library. Further, he has worked with the Howell Public Library as they remodeled their Carnegie facility when they added significant space to the rear of this architectural gem. Mr. Dahlgren is currently working with the Milford Public Library for the expansion of their facilities. Mr. Evenhuis noted Mr. Dahlgren is respected nationally and they have a good feeling about working with him. Mr. Dahlgren will help them interpret the Wayne State study and he will also advise them on the best interim use of facilities now that the city is growing. Further, he will help them develop their vision of the strategic plan for serving a city that is growing to 50-60-70,000 people. They hope to have this part of the plan completed and ready to present to Council by the end of 1997.

Mayor McLallen asked if the budgeted $42,000 for Consulting is a projected cost or does it include all of the consulting. Mr. Chambers replied it is all of the consulting and it includes some dollars for Mr. Dahlgren’s services. He noted they are trying to shift some dollars away from the consultant for the computer systems.

The Mayor stated the library is experiencing the same challenges as the other city departments. Further, it appeared that the millage rate in new revenue over last year is approximately $96,000 and a large portion of that will go to Personnel. Mr. Chambers agreed and noted there has not been any personnel changes on a full time basis for three to four years. He stated it is a commitment to the future of the community without deviating from its direction or making any change in their current service. Mr. Chambers believes that is a difficult task to do with limited resources.

Councilman Schmid asked how many full time employees are currently on staff. Brenda Evans replied their full time employment is at 13.12 and part time is at 10.1.

Councilman Schmid asked what percentage of Novi residents use the library. Ms. Evans replied more than 50% of the Novi residents have a library card and she estimated they have 306,000 visits per year. She noted that is often the same person coming back once a week and added that Wayne State’s study included people who stated they visited once to twice a week.

Mr. Evenhuis stated Wayne State reported that Novi residents are well educated and tend to be frequent library users. He explained more than one half the residents use the library for educational or professional reading. Further, the national average for residents having library cards in cities of Novi’s size and larger is less than 26%. Further, Novi is also about double in circulation per capita which speaks very well for the overall community.

Mr. Chambers added that the library is filled to its capacity on Sundays and he does not know how the librarians can currently handle the volumes of people.

Councilwoman Mutch asked if there is any speculation that the high circulation rate is due to the young group population. Ms. Evans replied the ratio has been constant over the past few years. She reported 60% of their circulation is adult material and 40% is children’s material. She added there is currently no limit on the number of items they can check out and they would like to see the collection grow. Another message they heard very clearly from the study is that they need more books. Further, statistically, being a new community, certain libraries established much longer than Novi have years and years of collection and development. However, she noted not all of those materials stay useful. Further, Novi does not have huge archival backlog material. She said they keep trying to put money into books and nationwide, most libraries had to dip into their collection resources so that they can purchase computers. They feel fortunate that they can maintain an adequate computer base program and continue to expand their best sellers, children’s books and nonfiction. They have not had to sacrifice one for the other, but it is getting harder and harder.

Ms. Evans reported another problem they have is their building. She explained every budget year they face the challenge of how much it costs to keep a heavily used building in good condition.

Because of the survey response, Councilwoman Mutch asked if they thought perhaps the citizens are saying that they want a centrally located library in this general area, but not necessarily that they want to expand the building. She believes there are limitations to what they can do to that building in terms of expansion.

Mr. Evenhuis replied that last month their book circulation was more than 30,000. He added they anticipate in another five to seven years that the circulation will be as much as 50,000 a month. Consequently, they must have many more books and resources, more parking and more space. Mr. Evenhuis explained this is one of the main topics they plan to discuss with their library consultant; they will ask him if they should build on or build new. He reiterated they know from the survey that people want a larger library.

Councilwoman Mutch asked if they interpreted that response meaning they want a centrally located library as opposed to that specific building.

Mr. Chambers stated their conclusion is the residents would rather see the facilities enlarged and not have a satellite facility at all. Further, they want to keep it open as a board because that allows them the flexibility to look at where that envelope should be or what they should do with the current envelope. He added like anything else, they have to take into account the cost considerations. Further, expanding the current facility may not be possible. However, they need to put the rest of the pieces together as the move along before they can provide solid answers.

Mr. Chambers further noted that because they emphasized children, they would be remiss not to say that they also have large print books for the visually impaired. He added they also provide some outreach facilities for those that are homebound.

Councilwoman Mutch asked if some residents use other libraries because they offer more or because they have specialized collections. Ms. Evans believes there is a certain amount of specialized collections. However, now any library can access the same resources on line and she can see some of the information being equalized. Further, because they are a reciprocal borrowing consortium of libraries, they are fortunate that people frequently gather what they can on a topic from a variety of libraries. They also noticed with things like best sellers, people often put themselves on lists at various libraries. Further, sometimes residents go to libraries that are not as heavily used and this good sharing relationship benefits the community. Ms. Evans reported their data base includes four counties with two billion records. Consequently, she does not think one community will have everything. Further, as digital access evolves, she believes there will be issues about on line sources charging for service. Ms. Evans added they have gotten a positive response about their reference staff and she thinks they frequently use the library for reference work because many universities are cutting back in that area.

Councilwoman Mutch asked if there is a way for the library and the other departments of the city to avoid duplication or supplement the other to serve the public better. Ms. Evans replied city staff has reviewed their Internet resources. When she has found things on the Internet for various city departments, she would copy what she found and then forward them to the appropriate department. She believes as people have direct Internet access from their own desk, they will do more of that themselves. She added that she and Mr. Gibson have discussed the advantages a Web site can provide for municipal governments. She explained taxpayers are now computer literate and they would like to see that kind of daily update. She thinks there could eventually be some kind of link between a library and an entire city home page. However, she believes discussion about this has been more of an informal one-on-one department kind of thing.

Mr. Chambers believes issues will increase with the growth of the Internet access. He explained internationally it has presented problems in terms of copy rights. Consequently, it has a local and international aspect to it. Further as it grows and changes, it will be a learning process for them.

Mr. Evenhuis also sees a growing need for government officials to provide more up to date and detailed information on more topics. Mr. Evenhuis reported one successful model is the Detroit Public Library’s Municipal Reference Library. The library is located in the City County Building, is staffed with two degreed librarians and a clerical staff dedicated to provide research services for Detroit and Wayne County officials.

Mr. Chambers complimented Mr. Evenhuis for the excellent job he has done as the board’s chairman for the last two years. He also complimented the other board members.

Mr. Evenhuis noted Mr. Chambers is the newly elected president of the Library Board.

Councilwoman Mutch asked if they are down by one member. Mr. Chambers replied they are.

2. Attorney - Removed

3. Public Services

4. Water and Sewer

Mr. Gibson stated Mr. Nowicki basically discussed these items at their last meeting. Mr. Gibson noted Mr. Nowicki has pointed out that the Major Street Fund, the Local Street and the Municipal Street Fund all combine to cover the funding for the Five Year Road Program. Mr. Gibson noted the Major and Local Street Funds are classifications established by the State of Michigan. Mr. Gibson explained that is how the city shared the gasoline tax and added it must be used for municipal city purposes. Further, traffic volumes basically determine the distinction between major and local streets. However, the greater portion of the gasoline tax is returned to major street funds; he believes it is three times as much.

Mr. Gibson reported the Municipal Street Fund was established by the City Charter and it is a millage funded to recognize that the Local Street Fund can never support itself. Consequently, they put additional property taxes in place primarily to supplement the Local Street Fund.

Mayor McLallen asked if there is less revenue received from the gasoline tax for the Local Street Fund. Mr. Nowicki stated those are estimates based on the 1990 census figures.

Mr. Gibson said that is correct and added some special money was coming from the State.

The Mayor stated it is approximately $70,000 less, but the Major Street Fund remained constant. The Mayor asked if they recommended a slight increase for the Municipal Street Fund. Mr. Gibson stated they made that recommendation and it amounted to approximately $200,000 in revenues.

Councilman Mitzel asked why would the Local Street fund decrease by $70,000. Mr. Gibson replied they changed their formula for funding. He said there was a supplement from last year that was discontinued for this year.

Councilman Mitzel asked if the formula would be based upon the mid-decade census. Mr. Gibson replied they have not recognized the mid-decade census historically.

Mayor McLallen noted that the Governor and certain industry leaders are heading to Washington to continue lobbying the Big Three. If they are successful, she asked if they can anticipate any revenues. Mr. Gibson believes they cannot anticipate that.

Councilman Mitzel asked what would the impact be without the tenth mil. Mr. Gibson replied it would impact the ability of the Five Year Road Program. He stated they basically take all resources available, they back out what they need for routine maintenance and anything left over is put into the Five Year Road Program.

Councilman Clark asked what is the Grand River bridge repair status. Mr. Nowicki reported the County ran into funding problems with the State and they are not looking at construction until next year. He explained when they went to program the funds, they had all been allocated. Mr. Nowicki believes they hope to get it funded next year.

Mayor McLallen noted they recommend that the increase be 1.1182 mils and the position of this Council is to levy that increase.

Councilman Kramer noted they are showing an operating loss and they do not indicate how they are covering that. Mr. Gibson replied that number is basically depreciation. He added that they do not set their quarterly charges to cover their depreciation and added it is basically a non-cash bookkeeping entry.

Councilman Kramer asked if it appears under Other Services & Charges. Mr. Gibson replied it did.

Mr. Kriewall added they will take another look at that in a month or so. He reported Detroit just instituted a 2% sewerage increase effective July 1. Mr. Kriewall stated the Finance Director reviews that annually and he will provide an in depth operational and county overview of the entire fund within the next thirty days. Further, Mr. Kriewall stated they have tried to operate it on a break-even basis and ignore the depreciation as do most communities that are new to the system. He is not saying it is right or wrong, but he thinks the philosophy is down the road it requires some major investments. He added that may require them to have future rate increases, bonds or special assessments.

Mr. Gibson added they had extensive discussion with their auditors about this five or ten years ago and it was decided not to try to fund depreciation. He explained funding depreciation on a particular item gets a little tricky because by the time they have accumulated $1M fifty years later, they have to include inflation.

Councilman Kramer said in essence, they are still accounting for it in the budget as a Net Operating Loss. Consequently, they are still funding the depreciation. Mr. Kriewall stated they do not cover it under General Fund.

Councilman Kramer added they do not include this in the total city budget, this is just fund accounting and they are running the fund at a loss.

Councilman Mitzel thought they already discussed the possibility of setting aside money to cover replacement costs for the system. From his point of view, it would be prudent to start putting money away because they know they are going to have to replace pipes instead of waiting to get to that point and have a bond issue.

Mr. Gibson stated there are really two types of charges; the quarterly user charge and the connection charge. Mr. Gibson noted that the connection charge includes some factor for future expansion. Councilman Mitzel said that is for building the structure and he is talking about replacement.

Mr. Gibson went on to state as far as matching money, the growth is happening at a greater rate than they expected. Consequently, they currently have $20M in tap fees.

Councilman Mitzel noted that is for future expansion. Mr. Gibson stated it is for tap in service and for future expansion.

Councilman Schmid agrees with Councilman Mitzel’s statement about setting aside money in terms of establishing a Capital Fund where they would set aside certain dollars each year. He explained they could not draw from that fund and it would become a maturing fund for the city’s future.

Mr. Kriewall stated the problem with this is that in a new city, their specifications are so high on some of their materials that some systems have a one hundred-year life. Consequently, Mr. Kriewall would not worry about that for another fifty years. Mr. Kriewall further noted that hopefully their tap fees are high enough that when the build out is complete, they will still have $15-$20M in reserve.

Councilman Schmid believes they need to address capital improvements overall.

Mr. Gibson suggested they take any unappropriated fund balances after the audit is done for next year’s budget and start a capital improvement fund.

Councilman Schmid asked why can’t they start it this year. Mr. Gibson replied he is referring to the budget that is currently before Council. He explained they can put the unappropriated funds in a capital improvement fund once the audit is completed next October.

Councilman Schmid asked if there is a precedent for this in other cities. Mr. Gibson said there is. Because there is a limited resource and rather than increase the taxes to achieve some kind of balance sitting out there, Mr. Gibson suggested that they start accumulating money that would then tie to the CIP so they are in a five-year program.

Councilman Schmid believes some money should be set aside because someday there will be no new revenue except through taxes. Further, he believes they will also need some major improvements at that time. Mr. Gibson said one thing they are doing in that regard is that they are not levying all the funding.

Councilman Schmid is going to encourage that they do something for the future.

Mayor McLallen asked if Mr. Gibson meant that once they performed this year’s audit, the money beyond the 10% Fund Balance will be set aside. Mr. Gibson said it would be anything more than they anticipated. He added historically, that amount has been $400,000-$500,000. He added they are trying to decrease that number by anticipating use of more fund balance, but he believes there will still be some balance left. Mr. Gibson reported it will come out of the General Fund and then put into the Capital Fund. He noted they will not touch the 10% Fund Balance.

Councilman Mitzel remembered D.P.W. charges some employee’s hours to a certain fund

and asked how soon will they be able to do that for equipment. Mr. Gibson replied they are currently doing that.

Councilman Mitzel asked if a dump truck is used for Water & Sewer, does Water & Sewer fund a certain amount toward a new dump truck. Mr. Gibson replied it does not work that way. He explained everything currently flows out of the General Fund.

Councilman Mitzel said they have talked about doing this for several years and asked how soon can they implement this for equipment. Mr. Gibson sees this revolving fund being a paper magnet.

Councilman Mitzel interjected, it is working for labor and he believes they can apply the same concept to equipment. Mr. Gibson is concerned about how it would adversely impact the General Fund. He is suggesting that they could handle the same thing with the Capital Improvement Program they are discussing. He explained they could cycle the major pieces of equipment through the CIP and it could become part of their Five Year CIP. They can then weigh the value of the piece of equipment in terms of priority. If they do it through the Equipment Rental Fund, they basically are forcing a priority to the equipment.

Councilman Mitzel believes they have to start somewhere. It may not be a 100% replacement fund, but he thought they could phase it in. He suggested that they could have a rotation schedule for the vehicles. Councilman Mitzel said Mr. Gibson is saying that he only wants to only use the amount that is greater than 10% of what their fund balance is. Councilman Mitzel is saying they know a dump truck costs $80,000 and the life span is ten years, so they should put $8,000 per year into a fund for a new dump truck. They should then take that amount from the department’s budget that uses the dump truck.

Mr. Gibson stated when he was talking about the Capital Improvement Fund, he was suggesting that they kick off with anything that is available because of the audit. He is further saying that next year, all capital would be budgeted into that program and moved out of the General Fund which will allow them to get more money in there.

Councilman Mitzel stated then the first step is to ask Administration if they have a total vehicle capital equipment rotation replacement schedule. He recalled Council once asked for blue prints and they only received a listing from the police department. He is not certain if they ever received a listing for the entire city. Mr. Gibson replied they provided Council with that listing.

Councilman Mitzel stated if there is a listing, then they know what vehicles need to be replaced and asked if they can begin that for this budget. Mr. Gibson said they must understand that they would then do some doubling up. He explained to get the Equipment Rental into this budget, the amount being charged currently is just canceling out. Now they will add a replacement factor which is going to be shown under a separate fund and accumulate until they need it. He reported that will cause a heavy hit on the General Fund if they begin that this year.

Councilman Mitzel asked what would happen if they began next year. Mr. Gibson replied he is still instituting the Capital Improvement program. Councilman Mitzel is not disagreeing with him about that and stated no matter when they do it, it will be painful in the beginning. Further, he knows they currently have $20,000 more tonight with which they could start.

Mr. Gibson sees the CIP as a broader approach; he would hate to see them start to accumulate too much in reserves.

Councilman Mitzel is not saying they should put it into an equipment fund in the CIP plan. He is saying they should put it all into a CIP fund, out of which they can purchase equipment or repair the parking lot. He thinks they should start putting money aside because they know what equipment they have and they know what equipment they must replace. He thinks they should start putting in a tenth or fifteenth of the cost if the life span is ten or fifteen years.

Mr. Gibson asked if he is saying they could still use that money for things other than equipment. Councilman Mitzel said that is correct because it is a General Capital Improvement Fund. He is also saying rather than wait until the fall, they should start getting into the habit of adding in the actual equipment of the department.

Councilman Kramer thinks it is a good idea, but they are going to have to walk into it. He suggested that Mr. Gibson study it and bring his findings back before Council. He thinks they will find an imbalance within the departments for a while. For example, they are not funding D.P.W. new equipment right now, but they are paying for all the police cars.

Mayor McLallen asked if using the $20,000 in the manner Councilman Mitzel suggested is possible. She added it would allow Mr. Gibson the time to research the feasibility of a capital fund.

Councilwoman Mutch believes that having some indication from Council as a whole in terms to their commitment to the idea of a Capital Improvement Fund would be useful.

Mayor McLallen believes Councilman Mitzel’s comments are directly related to vehicles, Councilman Schmid’s position is buildings and Mr. Gibson is supporting total capital improvements. She explained they are going to have to refine what this is directed at. However, the Mayor believes there is support to create a savings and this is the year to begin no matter how minuscule the money is.

The advantage’s Councilwoman Mutch sees in a Capital Improvement Fund is that Council is accountable for how the money is spent. Further, it is a flexible fund and it can include a wide range of projects.

Mayor ProTem Crawford said they had a CIP process for several years and it has got no attention. He thinks this is the time to begin the process by funding it with the $20,000 and if they have extra funds after the audit, they should apply it to this fund.

Mr. Gibson stated there is a short memo included in the packet and suggested that they build on that.

Councilman Clark agrees with the earlier comments and that Mr. Gibson should respond to Council’s directive after the October audit.

Mayor ProTem Crawford believes it may conflict with the holidays and suggested that the first of the year might be a better time.

Councilman Mitzel believes Mr. Gibson can provide answers about how they would break it out for the departments in terms of equipment and building maintenance.

Mayor McLallen said there is unanimous support to proceed with this issue.

A. Police and Fire

Mayor McLallen believes this budget speaks for itself. She stated the demands and needs are there and the question is how to set priorities for the money that is there. She asked if they are running on a deficit for police and fire.

Mr. Gibson explained the negative number in the Appropriation of Fund Balance is basically a course to get to a recommended balance of $344,000 at the year end. He stated they have an equipment schedule for the heavy fire vehicles and this will bring it to the balance it is supposed to be. He added they plan to save $104,096 of their current revenues to fit into the Fund Depreciation Schedule for heavy fire vehicles.

Councilman Schmid said there is $2,422,854 in revenue and the same figure is in appropriations. He asked what is the $104,000 for. Mr. Gibson replied besides funding the $2,422,854, there is a transfer to the General Fund and there is no major piece of fire equipment in the General Fund. Mr. Gibson noted it is a specific reimbursement for identifying road personnel in the police and fire departments and they basically reimburse the expenses there. The other purpose this fund serves is to build reserves so that when it is time to replace a piece of equipment, they have the cash available in this fund. Further, to maintain their schedule, they have to take $100,000 and leave it in that reserve. He added that the Chief has a detailed schedule showing when they schedule each piece of equipment to be replaced. They anticipate property tax revenues will be approximately $100,000 per year.

Councilman Kramer said this is one element of the discussion they just had. Mr. Gibson agreed, however this only included fire trucks.

Mayor McLallen noted this is a particular dedicated millage at a level that allows them to keep money in the fund.

B. Debt

Mr. Gibson reported the headings on Pages 134 and 135 should be reversed; Page 134 is really the 1997 Voted Street Fund and Page 135 is the 1991 Voted Street Fund. Mr. Gibson reported the Voted Street Fund is a fairly straight forward calculated fund. He stated they sell bonds and they have a schedule about how much principal and interest is due every year. Consequently, all they do is determine what kind of property tax revenue they need to generate enough to pay off the annual principal and interest.

Mr. Gibson stated basically the first page is for the road issue. He reported they sold $9M of the $17,100,000 that they have authorized; they expect to sell the balance of that in January or February. Basically, each of these is nothing more than scheduling the principal and interest, then determining what kind of millage they need to generate enough property taxes to cover the principal and interest. He reported there are several funds included in the Debt Service and they are; the 1997 Voted Street, the 1991 Voted Street Park Debt, ACT 175 series for road improvements, 1997 Fire Debt Fund, D.P.W., Civic Center, 1992 Refunding and 1993 Refunding. Mr. Gibson noted the Civic Center is virtually gone; there is one bond payment left in the year 2000. He explained they refunded that bond issue because they can sell new bonds at a lower rate.

Councilman Schmid asked for further definition for refunding. Mr. Gibson referred to Page 143 and reported they sold the refunding bonds in 1992. He noted they paid off the Civic Center and an old drain bond issue. He added that the 1993 Refunding paid off the first two series of the road bond issue in 1991.

C. Capital Projects

Mr. Gibson reported they have two active construction funds that should be winding up this year. They are the original road bond issue and the park land issue. Mr. Gibson said the only active ones were the 1997 Road and Street Construction Fund. Mr. Gibson reported they are recognizing the $9M worth of bond proceeds in the current year and they are anticipating some interest. Mr. Gibson explained this is immediate construction and affects the street funds and the drain funds, and it is difficult to determine how much is going to be done by June 30.

Mr. Gibson reported Page 147 is the Fire Capital Improvement Fund and that accounts for the bond issue.

Mr. Gibson distributed a memo concerning the Adopt a Highway Program that is being facilitated by Lou Martin.

Mr. Gibson distributed a three-page item with a JCK letter attached to answer the question about the $40,000 worth of charges for the lake clarity study in the Drain Revenue Fund.

Councilman Kramer stated the Adopt a Highway Program is a high school-city supported clean up at this point and asked if Mr. Martin will become more involved as they develop it into a program. Mr. Gibson said that was correct.

Mayor McLallen noted that it states in JCK’s letter that these studies are normally paid for by establishing a lake board and assessing adjoining residents.

Councilman Mitzel further noted if they are going to spend money on improving Walled Lake it is the adjoining residents who get to use the lake.

Mayor McLallen suggested that they forward this letter to LARA and the S.E.S. for their input.

Councilman Kramer suggested that the city conduct the study, but perhaps the sharing of the expense should be in the actual work.

Mayor McLallen asked under whose budget did this proposal come forward. Mr. Gibson replied it was under the Drain’s budget.

Mayor McLallen stated they are capable of doing it and assumes they have a significant reason for wanting the information.

Mr. Nowicki stated they definitely have a purpose for this study. He reported the philosophy behind the sedimentation part of the study is that as the sediment enters all of the lakes, it begins restricting flow from all the outfalls and causes upstream flooding. The Storm Water Committee considered that at their budget meeting and felt there are areas around the lake being developed that are almost fully developed. They thought they should begin this study now and return much of the drainage in the outfall areas pre-development conditions. Mr. Nowicki added they can already see that the sedimentation on the Walled Lake side of the Shawood Walled Lake Canal is actually restricting the flow. Consequently, Shawood Lake can be six to eight inches higher than Walled Lake.

The Mayor noted they artificially control Walled Lake. She thinks they need to look a this seriously and the actual funding is out of the drain budget, which they can well afford.

Mr. Nowicki said although this is a study, in effect it is putting together a complete work program all the way to the level of preparation of final bid documents. Therefore, there is an intended goal and that is the removal of the sedimentation and anything that restricts the flow.

Councilman Mitzel noted it is not the entire lake, but just those areas that are critical for the drainage.

Councilman Kramer asked if they would also be looking for recommendations for some sedimentation control structures. Mr. Nowicki does not recall stating that. He reported they now put in gas and oil separators for all their projects. Councilman Kramer said those is for the roads, but now they have watercourses that flow into the lake. He does not know if they thought to provide an area before it gets to the lake to drop out sediment. Mr. Nowicki replied that would require property acquisition and the widening the drains. They can look at that, but he is not certain that is the best way to accomplish that. Mr. Nowicki noted that typically decreases once construction is completed.

Councilman Clark suggested they clean up Shawood Lake in the same manner as Meadowbrook Lake.

Mr. Nowicki stated the wetlands are typically used to control and trap sediment. However, there has been a change in philosophy and wetlands are no longer used for that. In fact, they now have to construct sedimentation basins before the water gets to the wetlands.

Mayor McLallen asked if Mr. Nowicki is comfortable that this is a valid and necessary expenditure. Mr. Nowicki replied he definitely supports this study. He added that the Storm Water Committee does not normally take on studies unless they can serve a purpose and have a measurable goal.

Councilman Schmid recalled that Mr. Nowicki said there was a bill that would greatly impact storm water. Mr. Nowicki replied the DNR wants to limit the use of in line storm water detention basins. This means they would use the wetlands as the natural basin and construct just a dam. They are leaning toward having municipalities create a separate basin for storm water retention and detention which was contrary to the philosophy that this community put together twenty years ago. Now it looks as though the DNR is pushing the management of storm water in that area. Mr. Nowicki reported it creates some concerns because they are currently in a transition and securing permits is difficult. He cited the Oak Creek Basin as an example. Mr.Nowicki reported he has contacted Mr. Fried’s office and they are prepared to assist them. Mr. Nowicki added that the DNR is also saying that they now have to build basins in upland areas.

Councilman Kramer recalled they had already started that by requiring every sub to have their own drainage.

Mr. Nowicki stated there is also a concern about safety. He explained they are discovering that residents are plugging the outlets in many of the dry basins so they have an ice skating rink in the winter.

Mayor ProTem Crawford suggested that they do not publicly distribute the JCK letter. He said to suggest that the residents pay for this study is ridiculous because they are not the cause of the sedimentation problems.

Mr. Nowicki agreed. He added that the current storm water is at 1 mil and he believes they would get much opposition.

5. Wrap-up

Mr. Gibson noted the four items on first page under Other Stuff; 1) Data Processing Capital included in budget, 2) Copy materials for public hearing, 3) Draft of Adopting Resolution and 3) Changes to be considered for future budgets.

Mr. Gibson reported they began with a contingency number of $287,194 in the General Fund. He recalled when they looked at the Fire Department there was concern about the amounts used as estimated when compared with what has been spent to date in the capital area. When they reviewed it with the Chief, they felt those numbers should stay where they are depending upon what happens with Station 1. Unfortunately, they found one that was under estimated by -$7,531 and it is addressed in the first line.

Mr. Gibson reported Mrs. Bartholomew returned $10,000 from the Data Processing line item that they no longer needed.

In the Treasury budget, they noticed $12,000 had been duplicated in another line item.

In General Administration, the amount budgeted for Performance Adjustments was reduced by $5,000. Further, they increased the Beautification Commission’s budget by

-$1,350. Finally, they removed $20,000 for the Motorsports Museum.

In the Police Department’s budget there was a question under Personal Services (Temporary Salaries) about whether they included the $36,000 in the original amount for three temporary dispatchers. Mr. Gibson researched that and found they included it in the original numbers.

The Mayor said tonight there is a request for three more that were not included for the proposed twenty-four-hour accessible facility.

Mayor ProTem Crawford asked if they can assume the additional three will be $36,000.

Mr. Gibson noted the $36,000 are just the salaries and there is a companion item for social security which brings that item just under $40,000 in the budget.

Mr. Gibson reported that would bring the contingency to $325,313.

Mr. Gibson reported if Council approves a 3% Administrative Adjustment, that would amount to -$51,790. Further there are reclassifications as follows: City Clerk for -$1,068 and Building and Grounds for -$2,474 which would amount to a contingency of $269,981.

Mr. Gibson reported the Parks and Recreation Fund contingency started at $131,799. He noted they added two positions at -$27,121 and -$40,895 which amounts to a contingency of $63,783. Mr. Gibson reported -$7,347 is the 3% Administrative Adjustment and two reclassifications amount to -$2,550 and -$3,621. The total contingency amounts to $50,265.

The 3% Administrative Adjustment for Water and Sewer Fund is in a memo because they do not adopt a budget; the State Treasurer recommends -$3,086.

Councilman Schmid asked if there are more administrative people. Mr. Klaver said the

reclassification to an Executive Secretary is just a number change. He reported they currently have forty-two existing personnel, but they also propose approximately two additional.

The Mayor noted within the proposed budget there were three new people originally and she asked if Council added three more. Mr. Klaver replied they added two more. Mayor McLallen reported there is a total of five new employees.

Mr. Klaver does not want to get too technical and stated they will eventually provide a list. He explained there is a one month overlap on Dean Miller who is retiring in August. Consequently, they are over by one. He noted that has been accounted for in the budget and that the Systems Analyst position will disappear. Mr. Klaver reported there will be a Systems Manager and a Data Technician.

Councilman Kramer asked if they plan to hire an additional inspector for the Building Department. Mr. Kriewall replied they will monitor that need closely and they will address that outside the budget.

Mayor McLallen reported under the new budget, Personnel includes five new people and the contingency is down to $269,981. The Mayor asked if it is an unappropriated fund balance.

Mr. Gibson said this is the current year contingency and noted they intend to cover expenditures not anticipated or revenue short falls.

Mr. Klaver reminded Council that they do have a pending fire contract and some retroactive wages would come out of this number.

Mr. Gibson reported if the Police Department adds two officers under the grant, the city’s match must come out of this number.

Mr. Klaver asked if there are any further questions about the reclassifications.

Mr. Klaver added there is also a minor issue under the fire proposal. He reported a part time pay request is already budgeted, but added they differ with one. He reported the Chief is recommending that it be expanded to include their part time clerical employee and the auxiliary. He believes a minor expansion like that is not wise. He added that Council may still want to look at the dollar amount they are currently paying the paid on call fire fighters.

Mayor McLallen does not have a problem with the increase for the part time employees, but asked why are they considering benefits for them. Mr. Klaver replied Council has made a distinction between normal part time and paid on call. He reported they felt it was a unique category and there are several minor, but none the less, fringe benefits paid to those employees. He noted they are not afforded to any other part time category.

Mayor McLallen said under the circumstances, Council may take the position that longevity is not a benefit that they are affording any longer.

Mayor ProTem Crawford asked if the auxiliary differ from paid on call. Mr. Klaver replied the auxiliary work more than two shifts and work with the FPO’s.

Mayor ProTem Crawford does not believe longevity applies to paid on call. Mr. Klaver agreed, but the Chief is proposing to expand that and Administration disagrees with that proposal.

Mayor McLallen believes there is a consensus to give the raise, but longevity is not an option.

Mayor ProTem Crawford asked how long has the part time clerical been on staff. Mr. Klaver believes it is five years and added they have never offered part time employees longevity.

Mr. Kriewall stated they are down to two items. He noted they are considering the opening of the police station for twenty-four hours and the proposed 3% Administrative Wage Adjustment.

Mayor McLallen stated a communications system was added to the proposed twenty-four-hour police station and noted it is much more expensive than the whole process. She asked what does that have to do with keeping the station open for twenty-four hours. She said they can understand the $5,000 expenditure for the bullet proof glass, but maximizing it through other inefficiencies within the department with a big capital hit was not Council’s intent.

Mr. Klaver stated there is some concern about the age of the equipment and that they cannot take 911 calls at the front desk.

Mayor ProTem Crawford asked if the new system would allow them to handle 911 calls at the front desk and in dispatch. Mr. Klaver replied the current system only allows the person at the front desk to take business calls.

Mayor ProTem Crawford asked if there is still a need for the dispatchers. Mr. Klaver said they are still needed and they have nothing to do with keeping the station open for twenty-four hours.

Mayor ProTem Crawford asked if that was the bare minimum. Mr. Klaver replied the three is predicated on what they typically define as part time and less than twenty-four hours. When they looked at other dispatch centers, one big advantage of part time is that they are usually more flexible. He reported they have had a problem in that operation with excessive turnover.

Mayor ProTem Crawford asked if the cost for three is $30,000, but the memo stated it is $50,000 for three more. The Mayor replied that cost includes the window and uniforms.

Mayor McLallen asked how many uniforms are they issued. Mr. Klaver is not certain.

The Mayor understands that the clerks in Records have ten uniforms.

Mr. Kriewall stated there is another way to do this. He stated if they could provide for a camera inside the lobby and secure the area in terms of doors and glass windows, they would not have to have anyone at the front counter. He believes this alternative could provide safety for the public because they would have access to the building.

Mayor ProTem Crawford noted police officers are not always there.

Mr. Kriewall agrees there will be situations when the dispatcher must contact a police officer to return to the station.

Mayor ProTem Crawford recalled they could also perform some routine office procedures during off hours.

Councilman Schmid agrees with Mr. Kriewall and if they want to offer a twenty-four-hour station, they should just install a camera.

Councilwoman Mutch has more concerns about greater security, even if someone at the police station can assure that a police officer is coming if needed. She agrees if they are going to do this that perhaps they should try building access where they provide some security first. Further, if they have dispatchers there and they can find other things for them to do to help justify the expense of having them there, that is also fine with her. However, it was not her intention to extend business hours.

Councilman Clark is more concerned about seeing that a police officer is there. He believes the worst thing that could happen would be to have a dispatcher behind plexiglass unable to help someone followed by someone who is deranged because there are no police officers in the building.

Mayor McLallen stated if they open the building, what is to keep the predator from coming in.

Mr. Klaver said they could have the technology set up so that if somebody came through the door, it automatically locked behind them. He reminded Council there is really access right now because they can buzz people in and the door will lock behind them after they enter.

Mayor McLallen stated they have three people in the budget that were hired and they are requesting two additional part time employees. The Mayor asked if they could accomplish this on a temporary basis. Mr. Klaver replied it could.

Councilman Mitzel recalled Councilwoman Mutch saying that instead hiring part time employees that they should try Mr. Kriewall’s suggestion to add the plexiglass and open the lobby with the monitor. They could then use the existing dispatchers.

Mayor ProTem Crawford does not believe they would make it user friendly this way.

Councilman Mitzel said they would at least be in the building.

Councilman Kramer said since they indicated that they have a high turnover in dispatch, they could add two for a three to six month trial period and then assess the program at that point.

Councilman Mitzel argued they should try Step 1 before they go to Step 2.

Councilman Schmid has never gotten a single complaint about the police department not being open for twenty-four hours.

Councilwoman Mutch does not recall ever receiving any complaints, but she has heard at least eight to ten comments that it is not open.

Councilman Clark suggested that they should first address the problems of the building and hold off on this issue.

Councilman Kramer noted opening the lobby by adding a camera is a minor cost.

Mr. Klaver suggested that they could provide a minimum report about what they could do technologically as far as access to the lobby.

Mayor ProTem Crawford believes they have a very concrete recommendation and said they were talking about another $40,000 to make it a user friendly community service. He cannot believe they are nickel-diming it to death. He noted they do not have to spend any money to have the door open twenty-four hours a day. He suggested that they could install a phone in the lobby instead of one outside. Further, they are talking about additional personnel that would give them more flexibility in dispatch. He reminded Council that they currently have high turnover and high stress rates. He believes the three budgeted dispatchers will help, but three more part time employees can certainly make it a more flexible and a more user friendly building.

Mayor McLallen asked if they have any statistics about the amount of people that use the building in the evening hours.

Mr. Kriewall believes a reasonable compromise might be to open the lobby and install a camera. He suggested that they limit the clerical staffing from 5:00 p.m. until 10:00 p.m.

He does not believe someone would come after 10:00 p.m. looking for a report and therefore, they should not have to staff it for a full twenty-four hours.

Councilman Schmid asked why can’t a dispatcher sit out there now. Mr. Klaver repeated that they do not have access to the equipment they need to dispatch.

Councilman Schmid asked what are they going to do with the additional dispatchers. Mr. Klaver stated they will handle business calls, not dispatch calls. Mr. Kriewall added they are also going to work for people that call in sick.

The Mayor believes the issue really is they are open to the public from 8:00 a.m. until 5:00 p.m. and that the public is generally not in the area during those times. She believes they should ask how can they flex their staff to better serve the community.

Mr. Kriewall believes there is enough clerical staff there right now.

The Mayor asked if this is also an issue in the Civic Center. She asked why don’t they provide flex hours to meet the times when their citizens are really in the city. She does not believe it will require more staff. Instead, it would mean employees could volunteer evening hours perhaps one night per week in exchange for flex time.

Mr. Kriewall stated they will come back before Council to discuss that issue at the June 2 meeting.

Mayor McLallen stated the next item is the Administrative Staff 3% Wage Increase. The Mayor reported the consumer price index and inflation were just more than 2%, so 3% is appropriate.

Mayor McLallen reported the City Council Appointed Officials Compensation Review consists of Councilman Clark, Councilwoman Mutch and herself. She explained the committee has met over the past two weeks and reviewed performance and wages of all the parties concerned. They compared them with comparable communities and where they fall within Novi’s structure. The recommendation was to give the base 3% wage to the City Clerk and City Manager. They further recommend a merit increase of $4,500. That would put the City Clerk in the low-mid range at $56,000 and under comparable department heads within the city. She believes this is a fair recommendation in recognition of a very positive year given all the elections and realignment of staffing. They would raise the City Manager to $96,000 because this has been a very busy year and they agree that the city is being run in a positive manner.

Councilman Schmid asked if the comparables are in writing. The Mayor replied the Committee has the comparables.

Councilman Schmid asked when did they decide this. The Mayor stated it is the Committee’s recommendation.

Councilman Schmid understands that, but asked if they should have some paperwork like they have for every other budget issue.

The Mayor replied the committee has all of the documentation and it was the committee’s consensus to bring that position before Council.

Councilman Schmid said the other Council members are expected to make a decision with no paperwork or no comparables.

Mayor ProTem Crawford stated it is based on the Committee’s recommendation and that is why they have a committee.

The Mayor reported the Clerk’s current salary is $50,000. The $6,000 increase reflects both the merit increase and the 3% increase. It is a 12% increase overall.

The Mayor reported the City Manager’s current salary is $87,500 and the $8,500 increase equates to 9.7% overall.

The Mayor stated both positions are well within the low to midrange of comparable communities in terms of population. She added that Novi does not really have any comparables in terms of work load. Further, there were unusual demanding situations in both departments and the committee felt both individuals met them very well.

Councilman Schmid asked how long did they know about this. The Mayor replied the Committee made their final recommendation this afternoon at 6:00 p.m. The noted there were two meetings, but they were only able to review the City Clerk at their first meeting.

Councilman Kramer said the basic increase is 3% and is consistent with everything they negotiated. He added they are recognizing merit with an increment of $4,500 for each which he believes they both earned this year.

Councilman Schmid agrees. He does not have any problem with a $4,500 increase, he is concerned about the process. He believes 12% and 9% is a substantial increase in any market.

Mayor ProTem Crawford asked if the two new positions in the Administrative range already have a set salary excluding the 3%. Mr. Kriewall said they would not get a 3% increase.

Mayor ProTem Crawford noted they have adjusted the range 3%.

Councilman Mitzel said they established ranges two years ago based on the fact that midpoint was where everyone’s salary was at that point.

Mr. Klaver recalled they deliberately skewed it low.

Councilman Mitzel said all they have done in the last two years is amend the minimum and maximum. They have not realigned it based on whether someone got a merit increase.

Mr. Klaver stated no one has gone beyond their range parameters. He reminded Council that they warned them that at some point in time some of these positions would have to come back.

Mayor ProTem Crawford asked why is the new Executive Secretary in the Clerk’s office lower than the other Executive Secretary positions. Mr. Kriewall replied they always pay the City Manager’s Executive Secretary more because of the different job responsibilities.

Mayor ProTem Crawford recalled Lou Martin was to provide a report about upgrading the lighting and audio in the Council Chambers. Mr. Kriewall replied he is currently experimenting with different sound systems.

Mayor ProTem Crawford asked if he has prepared any kind of preliminary report so they can put something in a contingency. He suggested allocating $20,000 for this purpose.

Mr. Kriewall believes $20,000 would be more than adequate.

Mayor McLallen stated there is a consensus to allocate $20,000 in a contingency for audio/video and lighting for the Council Chambers.

Mayor ProTem Crawford asked if they expect Chief Lenaghan to come back with information on Fire Station #4 land. Mr. Klaver replied bids are due Friday.

Councilman Mitzel asked if they will allocate the $20,000 for the Motorsports Museum to start the Capital Fund.

Mayor McLallen replied the contingency has $269,000. She noted they just locked out $20,000 for audio/visual communication and there was an earlier consensus to lock out $20,000 for the Capital Fund seed money.

Councilman Mitzel is not comfortable with the reclassification of the Executive Secretary to the Administrative Assistant position. He suggested that Mr. Kriewall do further research to convince him somehow that this is appropriate.

Mr. Klaver said they were not making the change because it is their intention to bring back any proposed reclassification that does not require a separate budget action.

Mr. Kriewall added that they are not requesting a change in the wage.

Mayor ProTem Crawford asked if they would also revisit Mr. Wahl’s title change. Mr. Klaver said they would bring that back also.

Councilman Mitzel noted the issue of sidewalks and safety paths is missing from the budget.

Mayor McLallen said even if they only allocated $10,000 per year, they would still have a little bit more than they have for sidewalks and safety paths. She stated they talk about it every year, but every year they hear such bike paths also have a huge liability. She reminded Council that they also have not put aside money to maintain these paths. She believes if they have a commitment on the exterior roads to move people within the community without having them travel in the gravel or in the middle of the road, they have to put their money where their mouths are. She is particularly concerned about the area near Orchard Ridge and Ten Mile because that is where all the kids are, and that is where they will construct the ice arena.

Councilman Mitzel said there still is the issue of concrete versus asphalt and he would like to find out what the status of that is with Ordinance Review.

Mayor McLallen noted the boardwalk on the west side of Novi Road meets current building codes and added aesthetics has nothing to do with its construction. She said the city unfortunately has no input about that.

Mayor McLallen would like them to begin to put seed money out to move the sidewalks and safety paths plan ahead. She believes they will ultimately need a bond issue for maintenance and construction.

Councilman Clark noticed that over the next two years they will remove a couple of the debt items.

Councilman Schmid believes they should also have a maintenance plan and agrees they may have to address this by putting a bonding issue before the public.

Councilwoman Mutch stated if they set aside $15,000 per year for the sidewalks that they have just proposed, it would take four hundred years to complete them. Consequently, she also believes it will require a bond. She thinks if they can come up with a very selective plan based on some good information, it is likely people will support it.

Councilman Kramer stated everyone has done a conscientious job in estimating the budget. He proposed that a 0.5% reduction in the proposed $17M budget would provide $86,000 for sidewalks and would hardly be noticeable.

Councilman Schmid would not agree to an $86,000 allocation for sidewalks until they have a maintenance program.

The Mayor stated they have a goal, but they may have to direct staff and money. Perhaps this year’s money can be used to get the plan in order.

Councilman Clark said they might have created a potential liability because sidewalks only go part of the way. He explained he has seen young children on bicycles traveling from the gravel onto the roadway because the sidewalk ends near the wetland.

Councilman Mitzel believes they had a comprehensive sidewalk proposal late last fall.

Councilman Schmid recommended that they get rid of 90% of the Planning Commission’s budget. He explained they do more studies with which they do nothing. Some examples are $30,000 for the 20/20 Program, a $26,000 allocation to provide public seminars and so forth, and a $10,000 allocation for Imperviousness Surfaces.

Councilwoman Mutch recalled that Mr. Black said the Storm Water Committee already conducted an impervious study.

Councilman Mitzel reminded Council that the Storm Water Committee is coming back with their findings from their study.

Mayor McLallen believes Councilman Schmid may have brought up an actual source of funding in the form of some of these studies.

Councilman Schmid stated he will not approve this budget if they increase taxes beyond what they would normally get through the SEV.

Councilman Mitzel reminded Council they have already used half the road fund for the ice arena.

Councilman Schmid said they could use the 0.5% proposed by Councilman Kramer in any way they wish.

Mayor ProTem Crawford is not personally in favor of asking the departments to reduce their budget by any percentage. He knows they have tried to keep their budgets lean and Administration has already pared them down. He thinks any further reduction is unfair because it affects different departments in different ways when they ask them to reduce it further. He would be willing to cut back on studies and surveys, but reiterated he is opposed to reducing budget’s city wide.

Councilman Mitzel asked if Councilman Schmid would be willing to still have the extra $200,000 in the road fund if it were not from a tax increase. Councilman Schmid does not mind that it came from a tax increase and he added it is similar to the lake clarity testing; why would they put a memo out to start a war.

Mr. Kriewall believes the only reason they proposed going to the maximum millage is that they got the feeling from the public that they should do more for roads. He said they could operate that road fund with $200,000 less, but if they do not levy and collect that $200,000, they could put $200,000 more in future bond issues. He added they are really not funding everything that is on the drawing board. He explained the bond issue that they approved last November was about half of what they really see out there. In other words, there are many improvements and other roads that need to be paved that they are not addressing. Further, it is more of a philosophical issue. They are not really troubled if they take that $200,000 because all they are really doing is moving that $200,000 into the future.

Mayor McLallen said the $200,000 is something, but it is not much in the long run. The Mayor noted they have a maximum debt millage that they cannot achieve without a vote. She believes she would go to a vote for more for parks before she would request more money for roads.

Councilman Clark suggested that they set the $200,000 aside this year.

Mayor McLallen stated there is a consensus not to increase the road mil.

Mayor ProTem Crawford asked if the budget will stand as submitted.

Councilman Schmid would like to look more closely at some planning studies and look at starting a capital fund.

Mayor ProTem Crawford said although it will not be in the budget, there is a consensus to add additional money after the budget audit.

Councilman Clark thought the $200,000 from the road fund and since they are not increasing that millage, are they in favor of the budget as proposed. He added that Council should ask themselves if they are in favor of the studies.

Mayor McLallen believes the initial reductions are about $40,000 in the Planning Commission.

Councilwoman Mutch asked if the $36,000 budgeted for improvements will roll over because of the delay in the land acquisition for the Fuerst property. Mr. Gibson reported they currently spent $500.00 and they will roll over the rest. Mr. Klaver noted they have approximately $5,000.00 in outstanding bills.

Other than the Planning Department, Mayor McLallen asked if there are any other areas that they cannot support or hold over for another year.

Councilman Kramer asked if they could delay the purchase of some assessing vehicles. Mr. Kriewall does not recommend that action.

Mayor McLallen believes there is a consensus that the bottom line of the budget is acceptable, but there are areas where there may be greater demands for funds this year than where they propose the money. She cited some studies in the Planning Commission’s budget as a means to cut corners.

Mr. Kriewall said in the past they have taken a sum out of the budget and let the Planning Commission determine where they want to spend the balance.

Mayor ProTem Crawford believes they need to send a specific directive to eliminate certain studies.

Councilwoman Mutch agrees with comments made in terms of the studies, but noted Council should keep in mind there was tremendous support for greater involvement, more information and improved communications in virtually every Planning Commission meeting. She believes the public may see this action as Council being uninterested in communicating with the public.

Mayor McLallen believes there are other ways to achieve their goals and noted Council has cited two areas for cuts.

Councilman Kramer believes the Planning cuts total $20,000. He explained if they look at the $26,500 amount there is $11,000 for public seminars and the rest is for large scale maps and a newsletter. He believes they should cut the newsletter, but preserve the large scale maps and the project map. He further noted the cost for the Imperviousness Survey is $10,600.

Mayor McLallen said Council consensus is to target $40,000; they can achieve that target by removing the Imperviousness Survey and Public Relations studies from the Planning Commission’s proposed budget.

Councilwoman Mutch asked if there is support to bring the Fuerst property amount back up. She believes it will be less than $20,000.

Councilman Mitzel said the study cuts would increase the contingency and they can do a budget amendment for that.

Councilwoman Mutch stated there might be some direction informing the Planning Commission that the city has a Public Information Director, they have cable access and they have a library for information.

Councilman Mitzel does not want to see individual quarterly mailings from Parks and Recreation, the Planning Commission, the Library and the City as a whole because it appears that the city is unorganized.

Councilman Schmid believes they can eliminate the Demographic Study, and the Projections and the Economic Base Study.

Mayor ProTem Crawford believes Mr. Rogers gave an appropriate explanation to justify the Demographic Study.

Councilman Mitzel believes it is just reformatting demographic information that they already have.

Council consensus is to remove the Imperviousness Survey and another $15,000 from the Planning Commission’s budget.

Councilman Schmid asked the minutes to reflect that Council is leaning toward better communications.

CM-97-04-138: Moved by Clark, Seconded by Schmid, MOTION CARRIED UNANIMOUSLY: To permit Mayor ProTem Crawford to abstain from the vote for the Administrative 3% Wage Resolution

ADJOURNMENT

There being no further business before City Council, the meeting was adjourned at 11:05 P.M.

Transcribed by Barbara Holmes