April 19, 2004

A special meeting of the City Council was held on Monday, April 19, 2004, at 7:00 p.m. in the Council Chambers in City Hall. Mayor Black presided.

Councilmen present: Drummond Black, Bruce Johnson, Hollis McKeag, James Myers, Joseph Rokosz

Councilmen absent: None

TAX RATE COMPARISON

Robert Fisher, Director of Fiscal Services, presented an overview of the 2004-05 proposed City of Midland tax rate of 9.97 mills and a comparison to previous tax rates.

TAXABLE VALUE GROWTH

Robert Fisher, Director of Fiscal Services, presented an overview of the 2004 taxable value growth, which is 1.24% more than the 2003 taxable value.

COMPARISON OF CITY COUNCIL GOALS WITH PROPOSED BUDGET

Jack Duso, Assistant City Manager, presented information on the proposed 2004-05 General Fund expenditures that comply with the 2004 City Council goals.

REVENUE OVERVIEW AND SPECIFICS

Dave Keenan, City Controller, presented an overview of the 2004-05 proposed General Fund revenues by category and described the declining investment earnings and state shared revenues since the 2000-01 fiscal year.

EXPENDITURE OVERVIEW

Dave Keenan, City Controller, presented an overview of the 2004-05 proposed General Fund expenditures by category.

EXPENDITURE SPECIFICS

Paula Speese, Human Resources Director, presented an overview of employee health insurance costs and pension costs and showed the increased costs of each since the 2000-01 fiscal year.

PLYMOUTH PARK POOL

Marty McGuire, Director of Public Services, presented an overview of the Plymouth Park Pool task force, plan, and the proposed 2004-05 budget appropriation for the multi-year funding of its refurbishment.

SIDEWALK CONSTRUCTION

Brian McManus, City Engineer, presented an overview of the 2004 sidewalk construction program and indicated that the total cost of the proposed program is $89,262 while the proposed 2004-05 budget is $80,000.

TAX APPEAL RESERVE

Robert Fisher, Director of Fiscal Services, explained the reduction of the Tax Appeal Reserve fund as a result of the MCV decision by the Michigan Tax Tribunal and the effect of the March 12, 2004, exchange of appraisals in the Dow Corning Corporation tax appeal, which lowers the reserve for that appeal from 80% of the value in contention to 60%. The combined effects on the Tax Appeal Reserve tax rate is a reduction of 2.97 mills.

TAX APPEAL DEFENSE COSTS

Robert Fisher, Director of Fiscal Services, presented an overview of the tax appeal defense costs and the proposed budget for those costs.

STAFFING LEVELS

Jack Duso, Assistant City Manager, presented statistics relative to the reduction of staffing levels in the proposed budget, which show increased demand for municipal services while staffing levels are lower than those in 1995.

BUDGET QUESTIONS FROM THE PUBLIC

Mr. William Fagley, 2700 Glendale Street, expressed his appreciation that the budget is on the City’s web site. He also asked for a reason for the increase in part-time employees in the proposed budget.

He also expressed his disappointment with the Michigan Tax Tribunal’s decision on the MCV tax appeal, which needed three corrections to make it right. He hopes that the Michigan Court of Appeals can reach a decision within one year and that the City can negotiate the remaining four years. He also mentioned that it is not the City’s fault.

Mr. Fagley went on to question the fund balances of the following Internal Service Funds: Data Processing Computer Rental Fund, Data Processing Operations Fund, Equipment Revolving Fund, Municipal Service Center Fund, and the Property and Liability Insurance Fund.

CITY COUNCIL QUESTIONS

Karl Tomion, City Manager, and City Administrative Staff members addressed various questions raised by the City Council.

Being no further business the meeting adjourned at 9:44 p.m.

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John E. Duso, Deputy City Clerk