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March 20 2017 Budget Summary

March 20, 2017

A Fiscal Year (FY) 2016-2017 budget work session of the Buchanan City Commission was held at City Hall, 302 N. Redbud Trail, Buchanan, Michigan, Monday, March 20, 2017, at 6:30 p.m.

Commissioners Present:    Carla Cole, Brenda Hess, Dale Toerne, Dan Vigansky
Commissioners Absent:    Patricia Moore
Staff Present:                   City Manager Bill Marx, City Treasurer Juli O’Bryant, City Clerk Gladys Bybee
                                      1 visitor
2017-2018 BUDGET
GENERAL FUND - Budget Books were distributed to the Commissioners on Friday, March 17, 2017.  Juli says Page 12, General Fund Budget Comparison FY 2016-17 VS FY 2017-18 (snapshot of Budget), increased general fund by 3% with a $4,915 projected surplus. Juli noted that we are on target with current budget.  Capital Outlay Expenditure Requests from the Police, Fire, and DPW Departments were explained by Juli and Bill.  Discussion was shared.  Noted that fire truck will be paid off this year and we are in the second year on five year increase for Fire Department.

MAJOR STREETS - Five percent overall increase. Increased expenditure for tree removal in this budget.  All shared discussion.

LOCAL STREETS – Eight percent overall increase.  All shared discussion.

STREET REPAIR & MAINTENANCE- Four mills are designated to this fund per vote of electors. Will be bringing forward a list of estimates on chip and seal for City Streets.

The Streets, Debt and Industrial Facilities Tax (IFT) was discussed.

BROWNFIELD TIF - The Brownfield Tax Increment Finance (TIF) budget comparison was discussed; River, Smith, and Third Street Brownfield’s.  The nine acre development on River Street that is designated for the Fire Department and DPW buildings were discussed.

WATER AND SEWER - Juli distributed Projected RTS & Water/Sewer Revenue – Effective July 2017, Long term Debt Summary, Water & Sewer Rate History and Residential Utility Billing Rate Increase Comparison.  All shared discussion about the $2.00 increase ongoing for future wastewater treatment plant.  Juli noted assessing the annual water and sewer is difficult and she is estimating a four percent increase in the water and sewer.  Bill says we are trying to reduce our debt and be in a better position when we have to bond to build the future plant.  Noted that Buchanan Township has not moved forward on setting funds aside to repair any of their water/sewer infrastructure.

Thrill on the Hill subsidizing the Recreation and Park Fund was discussed.  All shared in discussing the Thrill on the Hill event. Upgrading Riverfront Park was also discussed.

Fire Chief Mike Adams arrived and reported the Fire Department has no river rescue capabilities, fire hoses are failing and need to be replaced and Self-contained breathing apparatus (SCUBA) will need replaced in 2019.  Millage will be going away in five years and that would be a great time to replace with a new millage.

The Commissioners’ specific questions were answered throughout the work session.  

There being no other discussion, the session adjourned at 8:11 p.m.

Gladys Bybee, Buchanan City Clerk

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