work session topics 23, 2017 a. …...work session topics october 23, 2017 1. 2018 operating budget...
TRANSCRIPT
WORK SESSION TOPICS OCTOBER 23, 2017
1. 2018 Operating Budget Discussion
The following items were identified in the budget transmittal letter as reading further discussion and additional information is provided on each identified item.
A. Services/Enforcement
1) Sidewalk snowplowing- based on most recent work session discussion on this topic, no impact to 201 8 Operating Budget
2) Blight ordinance-will need to evaluate potential staffing needs after future discussion on blight
3) No fee brush chipping
• Attachments o History of actual activity o 2017 Program Summary o 2017 Map of locations served o 2017 survey results o Fee/Policy Guidelines
B. Capital Funds 1) Downtown capital project funding-suggest
discussion in spring during development of 2019-2023 CIP. See question from Commissioner Gillis to see potential dollar impact
2) Reconstruction of paved residential alleys
• Attachments o Summary of residential/paved alleys
that a re in need of reconstruction o Map of residential paved alleys that
a re in need of reconstruction
C. Tax Increment Financing/Economic Development
• Attachments o Summary of current TIF district
captures and expenses o Impact of reducing capture
percentages o Outline of what each economic
development entity focuses on
( 60 minutes)
o Contract with MMDC for city-wide services
o Contract with MMDC and TIFA for Industrial Park North Services
o Contract with MMDC and LDFA for Smartzone services
o Contract with CMURC and LDFA for Smartzone services
D. Recreation Funding
" Attachments o History of actual activity and options o Potential fee increase analysis
E. Other items
o Analysis of early bird discounts o Summary of participation numbers for
programs offered o Research on fees charges by other
communities
" Attachments o Service Club expenses o Questions (and answers) received from
Commissioners
F. Is there any additional information needed on these topics or other topics the Commission would like to discuss at the Special Meeting October 30?
Brush Pick up
History - $35 charge for 30 minutes set 1/1/2005
2010 2011 2012 2013 2014 2015 2016
Revenue $6,749.45 $4,987.23 $3,790.17 $4,345.86 $4,008.23 $4,985.92 $4,760.11
Expense 8,885.22 9,041.88 7,190.64 9,473.17 8,365.99 11,707.04 12,484.88
Subsidy ($2,135.77) ($4,054.65) ($3,400.47) ($5,127.31) ($4,357.76) ($6,721.12) ($7,724.77)
% Subsidized 24% 45% 47% 54% 52% 57% 62%
Estimated # Participants 193 142 108 124 115 142 136
Average cost per pick up $ 46.04 $ 63.68 $ 66.58 $ 76.40 $ 72.75 $ 82.44 $ 91.80
Note: when the fee was set in 2005 it was based on an assumption to cover 1/2 of the cost by the fee
2017 No Fee Brush Pick -up - paid from Storm Clean-up Reserve -See attached summary of program, map of locations & survey results
Cost $ 19,377.21
#Participants 276
Cost per pick up $ 70.21
Brush Chipping Options
1. Leave program as is roughly 40% of cost paid by residents
2. Change fee to a higher/lower amount based on fee/charge policy guidelines
3. Provide no fee brush pick up in same format as last year, funded by either or a combination of Solid Waste Fund Balance ($648,943 note with millage being allocated to general fund, using fund balance to fund operations)
MRF reserve in excess of required $200,000 ($73,746)
General fund subsidy
HODAG reserve $311,342
A3
10/19/2017
To:
THE CITY OF
MT. PLEASANT, MICHIGAN
cm HALL 320 W. Broadway• 48858-2447
(989) 779-5300 (989) 773-4691 fax
Nancy Ridley, City Manager
PUBLIC SAFETY 804 E. High• 48858-3595
(989) 779-5100 (989)773-4020 fax
PUBLIC WORKS 1303 N. Franklin• 48858-4682
(989)779-5400 (989) 772-625ofax
July 17, 2017
From: John Zang, DPW Director
Subject: Free Brush Chipping Program Summary
The following is a summary for the 2017 Free Brush Chipping Program.
Number of Piles Chinned 276 Street Department Compensation $10,293.32 Administrative Costs (estimated) $ 1,500.00
j:quipmentRental 117 Hours $ 6,919.76 Fuel $ 664.13 Total Costs for Free Brush Chipping Program $19,377.21 Cost Per Brush Pile $ 70.20
Rental costs mav chanqe based upon actual timecard totals
Brush Chipping Program Notes:
A. The equipment rental total hours does not reflect total brush chipping time per location. This total includes travel time to and from DPW to empty the trucks, scheduled breaks and lunches, and fueling.
B. Most brush piles were small and did not exceed the 30 minute allotted time for the free brush chipping program. One pile on Highland was exceedingly large and the property owner was billed for the overage amount of 40 minutes.
C. Six residents registered for the program, but no brush piles were found at the curb out for chipping.
D. Two residents registered for the week of July 24 before the program was discontinued. These locations will be included with the regular brush chipping program list and completed next week.
E. We received four complaints and one thank-you. F. Brush chipping is a tough assignment for the Street Department crews. Despite
receiving the chipping guidelines in advance, many brush piles were not stacked correctly (tangled) and residents included unaccepted items, such as vines, thorns, and yard waste. One location included trim board and six Christmas trees. While no Street Department employee received medical attention for serious injuries, the crews did sustain cuts and bruises while handling the tangled brush piles.
G. A survey will be sent to those who participated requesting their feedback on the program.
Page f 1
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Ellis Deerfield
City of Mt. Pleasanh Df\'IS10"1 OF PUBLIC WORKS _J
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SURVEYS RECEIVED - 65
EXPECTATIONS MET-63
EXPECTATIONS NOT MET - 2
EXPLANATION: - Many older residents do not have the resources to dispose of vines and thorns, so please include them in the pickup.
- Frustrated with the discontinuation of service due to flood. Resident had only 10 minutes of chipping and asked to add neighbor to list, but staff told her that neighbor needed to sign up prior to the discontinuation of service. Resident believes this makes the City look very bad.
PROGRAM RULES REASONABLE - 63
PROGRAM RULES UNREASONABLE - 2
EXPLANATION: - It is unreasonable to pick up branches and exclude those with thorns.
HOW DID YOU HEAR ABOUT THE PROGRAM?
CONNECTIONS NEWSLETTER- 33
E-CONNECTIONS- 1
NEWSPAPER - 13
SOCIAL MEDIA - 6
MP CITY LINK - I
CITY COMMISSION MEETING- 2
CITY STAFF - 3
WORD OF MOUTH- 3
OTHER - 3
City of Mt. Pleasant Fee/Charges Policy Guidelines
General Statement Services/programs that generally fit the following criteria should be funded via fees/charges instead of general tax dollars.
,/ Service/program primarily benefits one property or one user User of the service/program generally has a choice/option to use it
*Please note that services which are operated as enterprise funds/self-supporting entities are always funded only by fees/charges ·
./ Water services
./ Wastewater services
./ Trash and recycling pick-up
Calculation of fee/charge The full costs for providing the identified service/program should be analyzed and fees/charges should be set at a level to cover the entire cost·:
Exceptions to fees/charges covering the full cost (and instead only covering a portion of the cost) are very limited and include only the following:
./ Recreational programs for children o In these cases, the fee/charge is expected to cover some percentage of the cost and the rest is
covered by general tax dollars. o Fees/charges for these programs should have a lower resident rate than non-resident rate since
general tax dollars are allocated to support the program . ./ Other programs as specifically identified by City Commission action.
Comparison to others When the fees/charges are recommended for approval to the City Commission, information from neighboring communities should be provided as information comparisons.
These guidelines should be reviewed every two years.
p)
ResidentialPa_ved Alleys in Need of Reconstruction -- _,, __
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---------- ------·"- ----
Rating Length Overlay Cost Reconstruction Cost Additional Cost -- ------------
1 1 300' $4,500 $36,000 $31,500 I f---------- -----
2 1 300' $4,500 $36,000 $31,500 ·-------- ·----!-- ---------3 1 635' i $9,525 $76,200 $66,675 ! - ------- -- --------
4 2 475' $7,125 $57,000 $49,875 --5 2 475' $7,125 $57,000 $49,875 _" ___ --------·-- ----- --
6 2 320' $4,800 $38,400 - $33,600 ---- --- -- - - --- --
7 3 300' $4,500 $36,000 $31,500 ------ ------8 3 475' $7,125 $57,000 $49,875
~·· - -
9 3 475' $7,125 $57,000 __ i $49,875 - -- -- --
10 3 300' $4,500 $36,000 '
$31,500 i ---~--- ---- ---- - --·---- ----1
11 3 475 1 $7,125 $57,000 I $49,875 ----- -------------
12 3 305' $4,575 $36,600 '
$32,025 --------' ---------- - - ----i 13 3 130' $1,950 $15,600 $13,650 I
f--- ------- ---$31,800 j $27,825
' 14 3 265' $3,975 ! ----;-·---- --
$627,600 -==+=-~-- $s49,:5o
--
----- ----·- ,., -- --
I Total $78,450
r -
----
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Estimated Capital Improvement Fund Balance 2018-2022 CIP (Before discussion of downtown parking lots & alleys) $797,160 -- -- -----······--·--- . --1 . __···-J: - -··-····----- - . -1 ···-··· ---- -
--
~-~~e: no petitions have been receive9_ f_~E reconstruction from ~~()J:?_~rty _()_~ners -i---
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3. CIP contribute additional cost of reconstruction vs. overlay. If the cost allocation for reconstruction changes, should the special assessment for overlays change?
10/19/2017
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Economic Development TIFA Plans
District Demographics/Status
Year District Created
Central Business District 1984
Industrial Park North 1990
Mission Street DDA 1990
University Park LDFA 2000
Total TIFA
2018 Proposed Operating Expenses
District
Central Business District
Industrial Park North
Mission Street DDA
University Park LDFA
Total TIFA
2017 Base Current
Value Value
$6,100,000 $16,300,000
1,636,750 3,096,420
32,000,000 71,000,000
6,600,000 12,700,000
Expenses Mgt. Ma int.
$107,520
7,900 2,420
25,300 54,500
120,000
$260,720 $56,920
Proposed
#of Capture Parcels ~
413 88%
26 0%
616 28%
26 40%
Econ Dev Safetv
62,000 58,000
$62,000 $58,000
Estimated
12/31/2018 2018-22
Total City % Capture Working Capital Capture Capture Q!Y Capital Plan
$208,000 $130,000 62.5% $633,841 $1,300,000
0 0
62.9:1
87,416 0
264,000 166,000 352,936 1,375,000
94,000 30,000 31.9%1 278,682 0
$566,000 $326,000 $1,352,875
Corridor Master Fire Study* Plan* Suppression Other Capital Total Mgt Provided by
$75,000 $13,040 $60,000 $ 255,560 Director & Events Coordinator
10,320 MMDC
90,000 22,500 10,500 322,800 City (Mrdeza, Kain & Bundy)
3,070 123,070 CMURC $86,500 & MMDC $33,500
$90,000 $22,500 $75,000 $26,610 $60,000 $711,750
* - Note Master Plan/Corridor improvement is multiple year project totaling $90,000. The budget will be reduced in the amended budget process.
10/19/2017
Economic Development TIFA Plans
Capture Alternatives
District
Central Business District
Change
Mission Street DOA
Change LDFA
Notes:
2018 Budget Proposal
Capture Total City Capture
1' Capture Capture 1'
88% $208,000 $130,000 78%
28% 264,000 166,000 18%
40% 94,000 30,000
Reduce by .10 Reduce 10%
Total City Capture Total City Capture Capture 1' Capture Capture lstaff recommendation to Boards to cut if .10 reduction
$185,000 $115,000 80% $189,000 $119,0001$12,000 reduction in planter replacements & $12,000 reduction in parking lot renovatioos -23,000 15,000 -19,000 11,000 170,000 106,000 25% 236,000 148,000 $90,000 less working capital available for cross connector street future projects
-94,000 60,000 -28,000 18,000
- The LDFA Board recommended reducing capture to 40%, This results in a reduction in capture of $23,700 of which the City was $7,500,
-The LDFA has approval from the state for school capture until 2020 and the plan expires 2025. MEDC guidelines require that if a capture is reduced in a given year, the state portion shall be reduced proportionately.
The guidelines also say reserves shall not exceed 15% of total annual capture and you can have additional reserve to fund multi year projects.
- The CBD & Mission Street boards were asked to consider adopting an alternate budget with .10 reduction and proposed cuts. At the TIFA board the motion failed and the DDA board adopted
the alternate budget with preference for the higher capture budget.
10/19/2017
Mt. Pleasant Economic Development Synopsis Updated: October, 2017
Some thoughts on why pursue economic development activities:
• Promotes a vibrant, attractive community which encourages residents and visitors to experience its offerings
• Encourages a diversity of economic activities from retail to eating establishments and from manufacturers to the service industry. This helps to insulate the community from swings in the state and national economies and provides a more stable community climate offering consistent employment opportunities
• Helps to increase the tax base of the community which supports services demanded by residents without unreasonably increasing the millage rate
• Offsets the large amount of non-taxable land in the City due to the presence of Central Michigan University
• Allows the City to compete with other communities for businesses and residents looking for quality of life experiences now that much of the workforce has more opportunities to choose where they live based on lifestyles rather than proximity to their employer
• Proactively positions the City to be a desirable community to the next generations entering the workforce based on known trends and preferences
There are a number of organizations involved with economic development for the greater Isabella County area, including the City of Mt. Pleasant:
• City of Mt. Pleasant • Middle Michigan Development Corporation • CMU Research Corporation (CMU-RC) • Small Business Technology Center (SBDC) • East Michigan Council ofGovemments (EMCOG) • Great Lakes Bay Regional Alliance
The role and responsibility of each of these will be discussed in a bit more detail below.
City of Mt. Pleasant
• Primary staff responsible: William Mrdeza (city-wide), Michelle Sponseller (downtown focused)
• Work together on projects, but depending on location, one or the other staff will act as the City's lead and primary contact due to familiarity with the sites available and business climate of the area of interest
• Focus is on projects and sites within the City of Mt. Pleasant • Both staff work on placemaking initiatives as a means of attracting new talent to the
community
• Sponseller: >- Staff liaison to CBD-TIF and Principal Shopping District Board as well as the
Historic District Commission >- Assists with business attraction and retention in downtown >- Grant writing, certified grant administrator from MEDC >- Liaison for appropriate City and CDBG incentives and programs such as Rental
Rehab, Fayade Improvement, Historic Preservation Tax Credits and Redevelopment Liquor Licenses
>- Responsible for marketing downtown and related events >- Coordinates City-sponsored events and activities downtown >- Represents City's interests on Local, State, and Regional Boards, including the
Michigan Downtown Association and Michigan Historic Preservation Network
• Mrdeza: >- Staff liaison to the DDA Board as well as Brownfield/EDC Boards >- Assists with business attraction and retention community-wide >- Provides mix of appropriate incentives where needed for new development, including
those offered by the City and State >- Focus is primarily with commercial and retail sectors and works in partnership with
MMDC on manufacturers located in the City (including retention visits) >- Staff contact for Mt. Pleasant Center project as well as redevelopment opportunities
at that location >- Assists Finance Director and MMDC President market the City's business revolving
loan fund >- Represents City's interests on Local, State, and Regional Boards, including the
Middle Michigan Development Corporation, Rural Partners of Michigan, and the East Michigan Council of Governments' Full Board and R.E.D. Team
Middle Michigan Development Corporation
• Two county focus-Isabella and Clare • Primary responsibility is point of contact with the manufacturing sector • Provides a strong relationship between the City and State of Michigan staff and programs
affecting economic development • Partners with City staff for manufacturing retention calls within the City of Mt. Pleasant • Current focus is on retention and expansion of existing manufacturers • Assists manufacturers with obtaining workforce training funds as well as talent
recruitment • Responsible for marketing the CMU Smartzone, as well as marketing and maintenance in
Industrial Park North. • Responsible for working with property owners in Industrial Park South to maintain the
Certified Industrial Park status and compliance with the Industrial Park South Protective Covenants
• City and County voice with the state's Region 5 Prosperity Region and Great Lakes Bay Region Board as well as the State CDC Board which advises the Governor on economic development issues
• Provides information and assistance about state economic development programs to manufacturers in Isabella and Clare Counties that are not on the State's targeted industries list
CMU Research Corporation (CMU-RC)
• Primary responsibility for managing and marketing the CMU Smart Zone technology park
• Works to secure funding associated with business start-ups including from state and federal resources
• Manages the business incubator and assists entrepreneurs and start-up companies to grow their ideas into business opportunities
• Provides low cost and shared business services to keep initial business costs low as an entrepreneur focuses on product production and marketing )> Includes Co Work space
• Acts as City's referral resource for entrepreneurial assistance requests
Small Business Technology Center (SBDC)
• Receives no financial support from the City • Housed at Mid-Michigan Community College and part of the federal Small Business
Administration • Assists businesses with:
>- Business plan development >- Market research >- Raising capital )> Workshops on a variety of topics to help business operate and grow their businesses >- Technology commercialization >- Financial management >- Export strategies >- Strategic planning
• Works closely with CMU-RC to provide assistance to business start-ups and entrepreneurs
• Another referral resource for City staff to assist small businesses
East Michigan Council of Governments (EM COG)
• Receives no financial support from the City • 14 county regional plarming and development organization • Prepares the regional Comprehensive Economic Development Strategy document for
EDA; projects contained in the CEDS are potentially eligible for federal EDA funding • Created a regional economic plan for the creation of vibrant communities as part of a
prosperity plan for the region • Coordinated the regional Target Market Study for housing markets in eight counties
including Isabella County and Mt. Pleasant
• Contracts with regional connnunities for the preparation of comprehensive plans, park master plans, transportation planning initiatives including asset management P ASER pavement ratings and non-motorized planning, hazard mitigation plans, and other services
• Offers a forum for the discussion of issues and opportunities affecting other connnunities in the region
Great Lakes Bay Regional Alliance
• Receives no financial support from the City " City Manager, CMU-RC President, and MMDC President are all members of the Board
and represent Mt. Pleasant's interests • Mission of the organization is to "encourage, support, and celebrate regional
collaboration and initiatives that will improve the economic vitality and quality of life in the Great Lakes Bay Region"
• Charged with marketing the eight member counties for business attraction as well as tourism and quality of life experiences
Summary of City of Mt. Pleasant Master Plan Recommendations for Economic Vitality
• Goals include: }- Examine needed downtown improvements and increase tourism and marketing of the
City to draw more people to the Downtown }- Strengthen the City's tax base, particularly through economic diversity }- Enhance and improve employment opportunities and training for higher paying/non
service sector jobs }- Increase cooperation and coordination between governments and other organizations }- Improve City aesthetics to encourage business retention and recruitment
• Each goal has a number specific of strategies associated with it to guide implementation, including:
}- Suggestions for marketing Downtown and improving parking opportunities >- Diversifying businesses, continuing to offer Industrial Facility Tax Exemptions
(IFT's), and supporting small business start-ups }- Marketing the City's quality oflife offerings and providing incentives for
business to locate in the City }- Continued support for MMDC as a marketing arm for business attraction and
retention >- Support for infrastructure improvements to promote walkability and bikeability of
the connnunity, address the appearance of Mission Street, and reflect the individual character of neighborhoods
}- Improve gateway features to the City
Contract for Economic Development Services
This agreement made on this 1st day of January, 2016, by and between the City of Mt. Pleasant ("Client") and Middle Michigan Development Corporation (MMDC).
WHEREAS, MMDC was created as a collaborative effort among many local entities in 1981 with
the expressed purpose of establishing a full-time, professional, fully-staffed economic development organization to represent the entire area with a single voice and point of contract to initiate and carry out economic development activity, typical and customary of the economic development industry, and
WHEREAS, MMDC has the necessary and appropriate personnel, facilities, and professional expertise to provide economic development services, and
WHEREAS, the Client intends to contract with MMDC to provide stated economic development
services as outlined in the attached "Exhibit A",
NOW, THEREFORE, for and in consideration of the mutual covenants hereinafter contained, the
Client and MMDC do hereby agree as follows:
I. Description of Services: MMDC shall provide to the Client comprehensive economic
development services as defined in the attached "Exhibit A." in connection herewith, MMDC shall make quarterly reports to the Client's Board and shall provide an annual report along
with a copy of its current strategic plan.
II. Term. This contract shall be for a three (3) year period, which begins on the first day of January, 2016 and expires on the 31st day of December, 2018.
III. Compensation. The Client shall pay MMDC one annual installments of $22,500 due payable January 1 of the contract year. Additions to the client fee can be mutually agreed to by the
Client and the MMDC on an annual basis.
.•
:~
IV. Amendment to Contract. This contract may be amended only in writing and signed by both
parties. However, Exhibits may be modified from time to time without need for contract amendment. Separate contracts may be negotiated to allow for added services as agreed by
both parties.
V. Termination. Unless otlwrwise terminated by notice in advance of expiration this contract
may be terminated by either party if the other party fails to meet obligations represented
under this agreement made through no fault of the terminating party. No such termination
shall be made unless notice is given by the terminating party not less than sixty (60) days
after written notice of the intent to terminate and an opportunity to correct the default. In addition, the Client may terminate this agreement for legal or financial cause in its sole
determination upon not less than Sixty (60) days written notice.
VI. Further Pronouncement. :MMDC is a private, non-profit economic development corporation,
acting as an independent contractor and is neither an agency nor an employee of the Client.
... Witl).ess ..._ . ·1
'ldDllL f · \
Jim Ho1!9t(Mayor
/fMt. Pleasant
( -----: Date
ames McBryde, Pres1oent/CEO
Middle Michigan Development
~Date
Exhibit A Middle Michigan Development Corporation
Economic Development Services
1. Serve as the Representative of the City of Mt. Pleasant for the Region 5 Revolving Loan Fund (RLF) a. Market Regional RLF Program to eligible Mt. Pleasant based businesses. b. Assist in preparation and packaging materials for consideration by tbe RLF. c. Regularly report to the Mt. Pleasant City Commission. d. Provide regular reports of Region 5 RLF activities to tbe Mt. Pleasant staff.
2. Real Estate Marketing and Business Attraction a. Maintain listings of industrial and technological properties within tbe Mt.
Pleasant city limits. The database will include the following information: • Primary contacts • Location and description of land and properties • Available buildings and property within the park and cost (if available) • Available economic incentives
b. Manage real estate leads with City of Mt. Pleasant staff. • Maintain real estate listings on multiple websites (mmdc.org;
greatlakesbay.com, and otbers as appropriate) • Communicate new prospects to appropriate City departments • Work cooperatively witb City staff for determining appropriate assistance
to be granted to prospects • Assist City staff with marketing City owned parcels
c. In conjunction with City staff, pursue land assembly and development opportunities for Industrial-zoned parcels north of Pickard Street for tbe purpose of new deve!Opment and blight elimination. • Communicate new prospects for tbe Pickard North area to appropriate
City departments • Work cooperatively witb City staff for determining appropriate assistance
to be granted to prospects • Assist City staff witb marketing Pickard North parcels
d. Market tbe Central Michigan University Research Corporation (CMURC). • Communicate new prospects for tbe University Park/CMU Smart Zone to
tbe CMURC and appropriate City departments • Work cooperatively with the CMURC and City staff for determining
appropriate assistance to be granted to prospects • Assist the CMURC and City staff with marketing CMURC parcels
3. Business Retention a. Schedule comprehensive retention visits with Mt. Pleasant based industrial
and technology companies with appropriate City staff. b. Maintain database of retention activities conducted within the Mt. Pleasant
city limits and make them available to City staff as needed. c. Employ best practices in marketing available land and buildings within the
City including the following: • On the MMDC website • On the Great Lakes Bay Region website • Through MEDC and MEDA when appropriate • Through real estate listing services • Internally within Central Michigan University • At site selector events • Through personal contacts • Through other available marketing opportunities
d. Visit businesses located in the Industrial Park North and South, at least annually, and provide necessary services to ensure their retention within the parks.
e. Assist companies with expansion projects within the city limits by providing technical assistance, such as tax abatement applications, identification of a customer base, financing information, available incentives through the City of Mt. Pleasant, the State of Michigan, and other .economic incentives when appropriate.
f. Initiate company retention visits in coordination with the City since the Michigan Economic Development Corporation (MEDC) Business Development Manager will no longer be initiating company retention visits due to the major downsizing of the MEDC in the fourth quarter of 2015.
g. Serve as the primary contact for state issues and incentives for the industrial and technological companies within Industrial Parks North and South.
h. Coordinate all efforts and work activities with organizations such as, but not limited to: Michigan Manufacturing Technical Center (MMTC), Small Business Development Center (SBDC), CMU's Isabella Bank Entrepreneurial Center, Region 5 Michigan Works!, Mt. Pleasant Area Chamber of Commerce, and others to ensure offerings of assistance and partuership with the City of Mt. Pleasant whenever possible.
i. Serve as principle coordinator and convener of the Site Review Committee to review all expansions and/or new development of buildings and make recommendations based on compliance with the protective covenants for projects located in Industrial Park South.
j. Maintain relationships with local and state-wide developers to encourage development of projects in the City of Mt. Pleasant in accordance with the City of Mt. Pleasant Economic Development Plan, Master Plan, and other appropriate guidance documents.
k. Facilitate public-private partuerships when appropriate. I. Work with the municipality to ensure a positive business atmosphere exists
within the City of Mt. Pleasant.
m. Foster relationships with companies within the City of Mt. Pleasant with the various schools at Mid-Michigan Community College and Central Michigan University for assistance in appropriate areas such as technology, marketing, finance, research, and manufacturing technology when appropriate.
4. Technical Assistance with Economic Development Incentives a. Assist Mt. Pleasant companies with applications for state and local incentives
and conduct follow up assistance to the City of Mt. Pleasant to ensure tracking and compliance with statutory obligations and commitments made by companies in exchange for state and local tax incentives.
b. Assist in determining the level of assistance needed for tax incentives being recommended to the City of Mt. Pleasant City Commission.
c. Attend Commission meetings and represent local businesses making application for tax incentives.
d. Monitor legislative changes to incentive programs at state and local levels and notify City of material changes in the application of these programs.
e. Coordinate with City staff to assist businesses with compliance to City ordinances and policies.
CONTRACT FOR ECONOMIC DEVELOPMENT SERVICES
This agreement is made this 1st day of January, 2016, by and between the Mt. Pleasant Tax Increment Finance Authority (TIFA) and Middle Michigan Development Corporation (MMDC).
WHEREAS, MMDC was created as a collaborative effort among many local entities in 1981 with the expressed purpose of establishing a professional, fully-staff economic development organization to represent the entire area with a single voice and point-of-contact to initiate and carry out economic development initiatives, typical and customary of the economic development profession and industry, and
WHEREAS, MMDC has the necessary and appropriate personnel, facilities, and professional expertise to provide economic development services, and
WHEREAS, the TIFA intends to contract with MMDC to provide said economic development services as outlined in the attached Exhibit A;
NOW, THEREFORE, for and in consideration of the mutual covenants hereinafter contained, the Mt. Pleasant Tax Increment Finance Authority and MMDC do hereby agree as follows:
I. Description of Services: MMDC shall provide to the TIFA economic development services as defined in the attached Exhibit A In connection herewith, MMDC shall make regular reports to the TIP A Board and shall provide a copy of its current Strategic Plan and its Marketing Plan.
II. Term: This contract shall be for a period of Three (3) years, beginning the 1st day of January, 2016. This contract shall then automatically renew for successive One (1) year terms on the same terms and conditions contained herein, including compensation adjusted each and every year at the rate Three (3%) percent.
III. Compensation: The TIFA shall pay MMDC the annual sum of 7,500 DOLLARS, due and payable by the 15th of January of each year.
IV. Amendment to Contact: This contract may be amended only in writing and signed by both parties. However, Exhibit A may be modified from time to time without need for contract amendment.
V. Termination: Unless otherwise terminated by notice in advance of expiration, this contract may be terminated by either party if the other party fails to fulfill its
obligations under this agreement through no fault of the terminating party. No such termination shall be made unless the other party is given not less the Sixty (60) days written notice of intent to terminate and an opportunity to correct the default. In addition, the TIFA may terminate this agreement for legal or financial cause in its sole determination upon not less than Sixty (60) days notice.
VI. Further Pronouncement: MMDC is a private, non-profit economic development corporation, acting as an independent contractor and is neither an agency nor an employee of the Mt. Pleasant Tax Increment Finance Authority.
Tim Driessnack (Dated) Mt. Pleasant TIFA Board Chair
' /
ames McBryde, President / .
Middle Michigan Development Corporation (Dated)
Exhibit A Mt. Pleasant Tax Increment Finance Authority
Economic Development Services
A. Park Maintenance for Mt. Pleasant Industrial Park North
a. Send out request and accept bids for maintenance for Mt. Pleasant Industrial Park North every three years.
b. Compile bids on behalf of the Mt. Pleasant TIP A and present bids to the TIFA for approval.
c. Monitor all maintenance activities such as mowing, spring clean-up; fertilization of grassy areas, trees, and shrubs on a weekly basis.
d. Monitor the maintenance crew to insure that trees and shrubs are trimmed of dead and broken branches on a regular basis.
e. Monitor the pick-up of trash and litter along roadsides and through the common areas of the park on a weekly basis.
f. Monitor street lights and other park amenities for damage on a weekly basis and report any damages to the Mt. Pleasant TlF A for repair.
g. Prepare capital improvement recommendations.
B. Organizational Readiness
a. Collect and maintain databases of all industrial and technological companies within Mt. Pleasant Industrial Park North. The database will include the following information:
• Company name • Primary contacts • Number of employees • Location • Description of land and properties • Employee reductions and lay offs • Economic incentives • Available buildings and property within the park
b. Provide regular reports of activities to the Mt. Pleasant TIP A Board c. Regularly attend the Mt. Pleasant TIFA Board meetings
C. Business Retention and Attraction
a. Initiate company retention visits in coordination with the City to all industrial and technological companies within Mt. Pleasant Industrial Park North at least annually and provide services necessary to ensure their retention in the park. The Michigan Economic Development Corporation (MEDC) Business Development Manager will
no longer be initiating company retention visits due to the major downsizing of the MEDC in the fourth quarter of 2015.
b. Provide customized proposals to companies interested in location or expansion assistance in Mt. Pleasant Industrial Park North.
c. Market available land and buildings on the MMDC website, through personal contact, and all other marketing efforts.
d. Assist companies with expansion projects within the park by providing technical assistance in tax abatement applications, identification of a customer base, financing information and other incentives where appropriate.
Contract for SmartZone Attraction, Marketing and Development Services
This agreement is made this 12th day of January, 2017, by and between the Mt Pleasant Local Development Finance Authority (LDFA) and Middle Michigan Development Corporation (MMDC).
WHEREAS, MMDC was created as a collaborative effort among many local entities in 1981 with the expressed purpose of establishing a professional, fully-staffed economic development organization to represent the entire area with a single voice am! point of contact to initiate and carry out economic development initiatives, typical and customary of the economic development profession and industry, and
WHEREAS, MMDC has the necessary and appropriate personnel, facilities, and professional expertise to provide economic development services, and
WHEREAS, the LDFA intends to contract with MMDC to provide said Marketing, and Development services specifically in the geographic area known as "The Mt Pleasant SmartZone", as outlined in the attached "Exhibit Pl',
NOW, THEREFORE, for and in consideration of the mutual covenants hereinafter contained, the LDFA and MMDC do hereby agree as follows:
I. Description of Services. MMDC shall provide to the LDFA Marketing, and Development services as defined in the attached Exhibit A In connection herewith, MMDC shall make regular reports to the LDFA Board.
II. Term. This contract shall be for a period of One (1) year, beginning the 1st day of January, 2017. The contract can be reviewed and renewed on an annual basis.
III. Compensation. The LDFA shall pay MMDC, for the year 2017, on a quarterly basis, the sum of $33,500 for the cost of marketing.
IV. Amendment to Contract This contract may be amended only in writing and signed by both parties. However, Exhibits may be modified at the request of the LDFA Board or MMDC without need for contract amendment
V. Termination. Unless otherwise terminated by notice in advance of expiration, this contract may be terminated by either party if the other party fails to fulfill its obligations under this agreement through no fault of the terminating party. No such termination shall be made unless the other party is given not less then Sixty (60) days written notice of intent to terminate and an opportunity to correct the default In addition, the LDFA may terminate this agreement for legal or financial cause in its sole determination upon not less than Sixty (60) days notice.
VI. Further Pronouncement MMDC is a private, non-profit economic development corporation, acting as an independent contractor and is neither an agency nor an employee of the LDFA
Witnesses: Signed:
£~o;:
Agreement for SmartZone Attraction, Marketing and Development Services
This agreement is made this 12th day of January, 2017, by and between the Mt. Pleasant Local Development Finance Authority (LDFA) and Central Michigan University Research Corporation (CMURC).
WHEREAS, CMURC was created as a collaborative effort among many local entities in 2001 with the expressed purpose to be a leader in advancing economic development in the Mid-Michigan community by leveraging the resources of Central Michigan University, the Mt Pleasant SmartZone and its local, regional and State-wide partners to accelerate the success of entrepreneurs, growing businesses and jobs, and
WHEREAS, CMURC has the necessary and appropriate personnel, facilities, and professional expertise to provide economic development services, and
WHEREAS, the LDFA intends to contract with CMURC to provide said Marketing, and Development services specifically in the geographic area known as "The Mt. Pleasant SmartZone", as outlined in the attached "Exhibit A",
NOW, THEREFORE, for and in consideration of the mutual covenants hereinafter contained, the LDFA and CMURC do hereby agree as follows:
I. Descrjption of Services. CMURC shall provide Use of Funds to the LDFA for Marketing, and Development services as defined in the attached Exhibit A In connection herewith, CMURC shall make regular reports to the LDFA Board.
II. Term. This contract shall be for a period of One (1) year, beginning the 1" day of January, 2017. The contract can be reviewed and renewed on an annual basis.
Ill. Compensation. The LDFA shall pay CMURC, for the year 2017, in two installments that follow the tax collection schedule: 85% in August, and the remaining 15% in December for a total of Annual LDFA approved budget amount of $86,500.
IV. Amendment to Contract. This contract may be amended only in writing and signed by both parties. However, Exhibits may be modified at the request of the LDFA Board or CMURC without need for contract amendment.
V. Termination. Unless otherwise terminated by notice in advance of expiration, this contract may be terminated by either party if the other party fails to fulfill its obligations under this agreement through no fault of the terminating party. No such termination shall be made unless the other party is given not less then Sixty ( 60) days written notice of intent to terminate and an opportunity to correct the default. In addition, the LDFA may terminate this agreement for legal or financial cause in its sole determination upon not less than Sixty (60) days notice.
VI. Further Pronouncement. CMURC is a private, non-profit economic development corporation, acting as an independent contractor and is neither an agency nor an employee of the LDFA.
Witnesses:
Rick Barz, Chairman, LDFA
0,CMURC
Mt Pleasant SmartZone
- MIDDLE MICHIGAN. DEVELOPMENT CORPORATION
[LDFA USE OF FUNDS]
2017 Mt. Pleasant SmartZone Local Developntent Finance Authority: Use of Funds
Exhibit A
Proposed 2017 Use of Funds SmartZone Development, Facilitation, and Management CMURC Allocati011: S27,000 Land Preparation: Analyze current infrastructure and determine developable parcels. Details: CMURC will work with the University, the City and third parties to determine actual land parcels for development. The SmartZone has broadly been defined as 300 acres for development, although the infrastructure and current parcels are no/ clear for actual available deve/opable land.
Facilitation: Assist compnnies to navigate through the University and the City of Mt. Pleasant development guides. Details: CMURC will guide a company through the proces.<for development. This requires different navigation than private land developmenl and there are many steps involved that are currently unknown.
Management: To manage the process from interest to implementation/assisting companies and developers to develop.
Details: CMURC will work with the City and the University to ident!JY documentation, approval process and current ongoing management of development and conlractua/ agreements 1vithin the Smar/Zone.
Business Incubation and Acee/era/Ion Detail CMURC Al/ocati011: $25,000 State of Michigan SmartZone Representation: To provide companies with access to capital and resources needed for a successful business. Details: Prepares and assists companies for submission into Smar/Zone PreSeed Fund (Angel Irrvestmen/ - Match Fund); SmartZone Microloan Fund; the Accelerator Fund (Grants up-lo $50,000); the Technology Commercialization Assistance Program (Match-Fund/or accelerating existing business in the inlegralion of new technology).
Advertising and Marketing: To establish positioning in the state as the place to locate and start a business. Details: Advertising for events; collateral material; Chamber of Commerce partnerships; website; National Business Incubator Association; Michigan Venture Capital Association.
SmartZone Marketing/Outreac/1 CMURC Allocaiton: S34,500 MMDC Allocatirm: S33,500 Total: 68,000 Recruitment: To seek out third-parties interested in developing in the SmartZone Land. Details: CMURC will facilitate one .. on-one recruitment efforts to create excitenient around the opportunities 1vithin the Smar/Zone and encourage developers to work through the process to find lvin-win development for the community, the University, and the developer.
Marketing: To create marketing strategy around the SmartZone Land. Details: CMURC and MMDC will work together to implement marketing strategies including press releases and social markeling tools. Manage content 011 the WW\v.mq;.;leasant.!H1)art?:D~,£.CO[!!, and use as a base marketing tool.
Corporate Recruitment: To attract companies to establish office(s) in the SmartZone Details: MMDC and CMURC will work with existing corporate relationships, CMU Career Services, CMU Corporate Outreach committee and appropriate programs for on campus facilities; attend trade shows to network and gain exposure with potential companies based on industry sectors specific to CMU Programming with added value potential.
Site Search Consultants: Gain awareness of the Mt Pleasant SmartZone among site search professionals. Delailv: MMDC will participaJe in local, rcgiunal, and slalc..JJVide effurls lo educated site search c.:unsultunt~· on the opportunity within the Mt. Pleasant SmartZone.
Great Lakes Bay Region Real GJS Planning: To market the lnnd and real-estate available to those interested in the region. Develop vision and potential of the SmartZone lnnd. Details: MMDC will feature the Mt. Pleasant Smar/Zone on its website under "Available Properties" and will work with the Great lakes Bay Regional Alliance lo communicate the opportunity within the Smar/Zone. MMDC will also develop its own comprehensive real estate website in early 2017 and will prominently feature the Mt. Pleasant Smar/Zone for site selectors. MMDC has posted available property on a website specific to those looking to location in the Great Lakes Bay Region: www.M!GreatLakesBax.$.i!J;s.com
Recreation Funding
Does not include PEAK
History
Actual 2010 2011 2012 2013 2014
Revenue $205,516.86 $171,001. 75 $196,406.94 $206,821.25 $240,955.35
Expenditures 514,009.49 411,479.04 404,059.92 435,806.86 514,557.26
Net (308,492.63) (240,477.29) (207,652.98) (228,985.61) (273,601.91)
Subsidy 310,430.00 252,430.00 231,430.00 231,430.00 - 231,430.00
Excess Revenue (Expenditures) $1,937.37 $11,952.71 $23,777.02 $2,444.39 ($42,171.91)
Balance $ 142,032.52 $ 153,985.23 $ 177,762.25 $ 180,206.84 $ 138,034.93
% of Operations 27.6% 37.4% 44.0% 41.4% 26.8%
Special Revenue Policy= 10% of operations
Note: 2018 proposed budget assumes increase in General Fund subsidy of $25,000 and increase in youth fees of $5
Funding Options
Shortfall needed to cover for program sustainability
Staff recommended changes in how programs
run not affecting program format/fee
Remaining shortfall
Options
1. Increase participation Fees $5
2. Increase participation fees more than $5
3. Eliminate early bird discount/institute late
fee
4. Increase General Fund Subsidy
Other Alternatives
Explore Recreation Authority
Request 2% Tribal Allocation
$40,000
---~1~4~,1~5c0cidentified after budget document was developed
25,850
9,455 See analysis of fees attached
20,135 See analysis of fees attached
15,055
25,850 Could be less if 1-3 chosen
Review program offerings and work with Parks & Recreation Commission to determine if some should be discontinued
10/19/2017
D
Budget
2015 2016 2017 2018
$223,845.47 $277,717.47 $201,570.00 $244,400.00
499,700.50 556,988.48 477,550.00 518,900.00
(275,855.03) (279,271.01) (275,980.00) (274,500.00)
231,430.00 231,430.00 251,430.00 276.430.00
($44,425.03) ($47,841.01) ($24,550.00) $1,930.00
$ 93,609.87 $ 45,768.86 $ 21,219.00 $ 23,149.00
18.7% 8.2% 4.4% 4.5%
OPTION A Current Fee Structure• Proposed Fee Structure
Enrollment# Program Resident Non Resident Resident Non Resident Based on total
numbers
390 Basketball $40 $55 $45 $60 $1,950 450 Spring Soccer $33 $50 $38 $55 $2,250 100 Tee Ball $30 $45 $35 $50 $500 140 Flag Football $45 $55 $50 $60 $700 450 Fall Soccer $33 $50 $38 $55 $2,250 120 Volleyball $40 $50 $45 $55 $600 241 DOON $20 $25 $25 $30 $1,205
TOTAL REVENUE $9,455
OPTION B Current Fee Structure• Proposed Fee Structure
Enrollment # Program Resident Non Resident Resident Non Resident Difference(based on
50/50 res split)
390 Basketball $40 $55 $50 $60 $2,925 450 Spring Soccer $33 $50 $50 $60 $6,075 100 Tee Ball $30 $45 $40 $50 $750 140 Flag Football $45 $55 $50 $60 $700 450 Fall Soccer $33 $50 $50 $60 $6,075 120 Volleyball $40 $50 $50 $60 $1,200 241 ODON $20 $25 $30 $35 $2,410
TOTAL REVENUE $20,135
' .,·. ••'.".
Spring Soccer
Tee Ball
Fall Soccer
Flag Football
Youth Volleyball
Basketball
!TOTAL DOLLARS
Spring Soccer
Tee Ball
Fall Soccer
Flag Football
Youth Volleyball
Basketball
Spring Soccer
Tee Ball
Fall Soccer
Flag Football
Youth Volleyball
Basketball
' " ·' •, •,····· ·'•' ·'•"'"· . ...... ~~ .+.·..:. ... a· .. .. .... , ...... ..: :.i:.!:.:· ·~~ ·,· , -'- '·" .•,-, •• •. '• ' ... • ;, •• • .• .. • .. u.• ...... ·. ·..:-~·-..:.-!o!-. ...
EARLY DISCOUNT NUMBERS
2013 2014 2015 2016 2017 109 142 131 249 313
85 116 91 108 67
197 142 207 172 207
0 49 58 28 59
22 19 46 48 53
167 108 152 225 295
$12,965 $12,950 $13,500 $14,230 $15,055
TOTAL PROGRAM NUMBERS
2013 2014 2015 2016 2017 213 233 240 378 430
185 193 169 160 102
386 387 415 426 506
0 82 98 117 142
122 118 136 136 143
255 250 324 390 397
TOTAL PROGRAM NUMBERS
2013 2014 2015 2016 2017 51% 61% 55% 66% 73%
46% 60% 54% 68% 66%
51% 37% 50% 40% 41%
60% 59% 24% 42%
18% 16% 34% 35% 37%
65% 43% 47% 58% 74%
Notes
Added K Soccer I•
2016 added K soccer/2017 Reduced to age 4-5 from 4-6
Earlier deadline/ earlier season/2017 includes Pre K
First year 2014/2 division 2015/
EVENT
YOUTH
YOUTH
YOUTH
YOUTH
YOUTH
YOUTH
YOUTH
YOUTH
YOUTH
YOUTH
YOUTH
YOUTH
YOUTH
YOUTH
YOUTH
ADULT
ADULT
ADULT
ADULT
ADULT
ADULT
EVENT
EVENT
EVENT
EVENT
EVENT
EVENT
EVENT
YOUTH
2017 Total Program Numbers
Programs Resident Non-Resident Total % Residen1 % Non-Resident
DD Dance* 87 154 241 36%
SS Basketball 13 17 30 43%
SS Soccer 12 12 24 50%
SS Golf 5 3 8 63%
SS Flag Football 6 6 12 50%
SS Tee Ball 20 38 58 34%
SS Tennis 5 5 10 50%
Tee-Ball so 52 102 49%
Spring Soccer 214 216 430 50%
Fall Soccer 248 258 506 49%
Flag Football 40 102 142 28%
Youth Dodgeball 29 39 68 43%
K-6 Volleyball 36 107 143 25%
K-6 Basketball 157 240 397 40%
Tennis Lessons** 27 35 62 44%
Golf** 9 26 35 26%
Tennis Lessons - Adult** 1 12 13 8%
Golf-Adult** 1 2 3 33%
Sand Volleyball 64 66 130 49%
Summer Kickball 72 59 131 55%
Fall Kickball
Softball 97 119 216 45%
Total 1106 1414 2520 44%
*Only reflects pre registrations. Number reflective of house, not number of participants.
** Contracted programs.
Great Egg Scramble 900
Winter Kids Expo 400
Under the Big Top 400
Teen Lock-In so Teen Cardboard Battle 15
Summer Reading Program 450
Man Vs. Mountain 280
British Soccer Camp** 42
TOTAL 2537
64%
57%
50%
38%
50%
66%
50%
51%
50%
51%
72%
57%
75%
60%
56%
74%
92%
67%
51%
45%
55%
56%
, .... _.- .;_._, ,_,,.,', '·'·'•(:•'·'• · . .:• .. . :t '<• . ...:. ' :•;1.,;,;; .. • '..'4!,!,!.• ·.·.· '· '~ ,','.'..'..1:.'... '. ' ~.:.:...:..:.. :...:....:...:: .: 1
ruit Youth Snort A"e Grouo Resident Fees Non-Resident Fees Ea riv Discount Late Fees Prooram Lenoth Notes Auburn Hills Soccer Leaeue 1st-6th grade $100 (new player) $110 (new player) 6 weeks
Soccer Leaeue 1st-6th grade $65 (returning play $75 (returning player) 6 weeks Beginners Soccer 4 & 5 year olds $39 $49 6 weeks
Midland Soccer Club 4-6 year olds $80 $25 8 weeks
Soccer Club 7-10 year olds $92 $25 8 weeks Basketball 2nd-tith grade $90 $20 7 weeks
Flag Football K-6thgrade $115 9 weeks
Lansing Flag Football K-6th grade $45 $50 $10 6 weeks
Soccer K-3rd grade $40 $45 $10 6weeks
Soccer 4th-6th grade $50 $55 $10 6weeks
Grand Rapids YMCA Soccer 4-17 year olds $45 $55 $5 Sweeks Basketball 1st-4th erade $65 $100 8 weeks Required to purchase reversible jersey and shorts
East Grand Rapids Pee Wee Soccer 4-5 years old $65 $80 7weeks Soccer K-6th grade $80 $95 7 weeks
Girls Basketball 3rd-6th grade $92 $107 $20 9 weeks Boys Basketball 3rd-6th grade $87 $102 $20 9 weeks
Bay City YMCA Basketball K-6th grade $65 $80 8 weeks Required to purchase reversible jersey Basketball 3-5years $50 6 weeks
Saginaw Volleyball 5th-8th grade $50 8 weeks Association Basketball Kindergarten $45 $10 6 weeks Association Basketball 1st-6th grade $60 $10 lOweeks Association
Rochester Avon Rec Authority Tee-Ball 4-7 year olds $75 $95 6 weeks Basketball K-6th grade $130 8 weeks
Fraser Flag Football 2nd-6th grade $65 $75 5 weeks Basketball 4th-8th grade $60 $70 8 weeks
I NOTES I - M any, if not all, of these programs are run in their own facilities. - Average cost for all programs across the state was $68
Club • 2017 2016 Staff
Rotary $656 $1,103 Mrdeza (Beltinck part of 2016)
Kiwanis Club 566 588 Longoria
Optimist Club 100 80 Hofer
$1,322 $1,771
•Year to date 10/6/2017
Questions (and answers) Received from Commissioners
Commissioner Gillis met with Mary Ann and Nancy to go over various budget questions. The following is a summary of some questions we thought the whole Commission might benefit from seeing. Please note that the wording of the question is Nancy's wording; not necessarily how Lori said it.
Q. HODAG funds - what can it be used for?
A. HODAG funds are from a federal grant received in the 1980's. The funds have since been "revolved" and no longer have federal grant requirements fo r t hem other t han they must be used for the original purpose
of enhancing neighborhoods in the City.
Q. Downtown Parking Lots & Alleys - how much was in the 2018-2022 CIP for downtown parking lots and alleys compared to what the TIFA board has currently recommended? (how much will need to be factored into the CIP for downtown parking lots if TIFA funds aren't used at the levels needed)
A. 2018-2022 Downtown Capital Improvement Plan
2018 2019 2020 2021 2022 Total
Adopted Plan
Parking Lots $30,000 $320,000 $45,000 $185,000 $295,000 $875,000
Alleys $0 $0 $0 $102,000 $141,000 $243,000
Plan after TIFA/ PSD reprioritized
Parking Lots $30,000 $100,000 $45,000 $185,000 $295,000 $655,000
Alleys $0 $0 $0 $0 $0 $0
Shortfall in Funding
Parking Lots $0 $220,000 $0 $0 $0 $220,000
Alleys $0 $0 $0 $102,000 $141,000 $243,000
Q. What is the status of Parcel B?
A. The Economic Development Corporation has signed a Purchase & Development Agreement with 410 W. Broadway, LLC. The LLC had 60 days for due diligence with options for extensions. The original 60 days elapsed and they paid the additional funds for the allowed 60-day extension . They continue their due diligence exploring options for the funding gap. They are working with the MEDC for funds and an amendment/extension to the current Brownfield plan. They expect to have a proposal for the BRDA board meeting on November 1st. We continue to be optimistic the funding gap can be filled and the project will continue with class A apartments and retail space.
Q. Will recommendations be made to charge Little League and Girls Softball for use of the fields based on the recommendation to increase the participation cost of youth sports by $5?
A. The recommendation to increase the cost of youth sports does not include increasing the zero dollar amount agreed to in the contract with Little League & Girls Softball to use the City fields for the programs they run.
Q. How much is paid to MMDC from the City in total and what is it used for? What does CMURC use their allocated funds for?
A. MMDC is paid $22,500 from the General Fund, $7,900 from Industrial Park North TIFA & $33,500 from Universit y Park LDFA. Copies of t he contracts with M M DC are included in t he work session packet item C.
Jim McBryde will attend the October 30th work session to provide an overview of MMDC services and answer any questions. The LDFA contract with CMURC is included in the work session packet item C and CMURC President Erin Strang will attend the October 30th work session to provide an overview of CMURC services and answer any questions.
Q. Page 17 - Why is $80,000 shown as going into the Economic Development line? What can that line item be used for? How is it different than the Economic Development Corporation?
A. The Economic Development line item on page 17 is the General Fund Balance assigned for economic initiatives established several years ago. The $80,000 contribution to the Economic Initiatives Assigned Fund Balance in 2018 is to allocate the increase in taxes generated by the Marriot Hotel to reimburse the line item for the City provided assistance for the cost to move the road to the hotel. When the road and infrastructure funding was approved, it was established that the increase of taxes in the amount of $80,000 per year would be put back into the fund for 4 years (from 2017 to 2020). This line item can be used for anything that the City Commission deems is likely to have a positive impact on economic development. The Economic Development Corporation is a separate legal entity set up to handle the sale of City owned property.
Q. Page 73 - why is the cost of farmers market so high? What is the actual net cost, then, after revenues are factored in?
A. Customers at the Farmers Market can use Project Fresh SNAP/DUFB and debit/credit cards to make purchases. The City pays the farmer for these non-cash purchases and bills the state and the credit card company, which is then shown as revenue in the Recreation Fund. This is about $33,000 in revenue and expense annually for those transactions. Before we allocate the cost of full-time administrative staff time to Farmers Market, it is close to break-even in net costs. Once full -time administrative staff time is allocated, costs exceed revenue by approximately $24,000.
Q. Page 75 - What was the original funding level of the Owner Occupied Incentive Program? How can we use the remaining funds as well as other HODAG funds to help homeowners?
A. The Owner Occupied Incentive Program began in 2008 with $100,000 set aside for the program and $71,510 incentives were provided under the program leaving $28,490 left from the original allocation. This program was suspended in 2016. The Neighborhood Resource Unit can make recommendations for a new program after the City Commission agrees on desired outcomes. During 2017 priority setting this item
2
was listed as an item to revisit in the second half of 2017 but did not occur. These funds and the HODAG
fund s must be used to enhance neighborhoods.
Q. Page 76 - why are there no costs shown to maintain the Cemetery? How much do we spend on maintenance of the cemetery?
A. The Cemetery Trust fund is established to pay for maintenance costs of the cemetery when there is no
more revenue collected for the cemetery (all lots are sold}. Currently a portion of the sale of a cemetery lot goes to the General Fund to pay for costs of maintaining the cemetery and a portion goes to this fund. Once all lots are so ld, a portion of t he maintenance can be paid from t his fund along w it h the funds generated from the charge for bur ials unt il all sites sold have burials in them. The cost to maintain the
cemetery is shown o n page 47 and is estimated at $66,210 for 2018.
Q. Page 61 - What is the cost of the bike route signage that is proposed?
A. $18,000 is included in supplies for bike route signs identified on the map on page 61
Q. Page 96 - Why do we provide Christmas Tree disposal for free but we don't provide brush chipping for free?
A. Christmas Tree disposal has been provided at no charge for many years. It has been funded by the prior millage rate that was allocated t o this fund and the balance in the solid waste fund. The 2018 disposal cost
is estimated at $9,170. It is less expensive than brush pick up as it is scheduled for a one week period and
less labor intensive to dispose of than brush. Based on the recently approved guidel ines for setting fees, this program can be reviewed against the guidelines to see if a fee should be established.
Q. Page 96 - How are the amounts paid to the MRF for processing determined?
A. The City has a cost sharing agreement with the County to operate the MRF. The amount we pay varies
w ith the percentage of t he recyclables delivered by the City and by the profit/loss of the MRF, which is dependent on the market price fo r recycling materials. Some quarters the County pays us and some we pay them. We have budgeted conservatively to estimate in 2018 we will have to pay the County $56,000. We expect it will be less than this if the market price remains stable for the materials.
From Mayor Ling :
Q. Pg. 10/111: YSU: When YSU is fully funded through the general fund will that be with one less officer as this current budget proposes?
A. YSU staffing is anticipated to be the same as proposed in the 2018 budget.
Q. Pg. VI: Snow Shoveling costs: in order to determine possible impact on DPW budget if we were to expand the amount of snow-plowing performed by the city staff, it would be very useful to know what percentage of sidewalks in residential areas could be covered if we doubled or tripled the current amount being spent to clear school walking routes. I believe the current amount being spent is $12,340.
A. The DPW staff currently clears approximately 16 miles of sidewalk and the $12,340 budget is based on a
three-year average of costs for doing that. There are approximately 89 miles of total sidewalk in t he City
and our best estimate is that there are approximately 46 miles in areas currently zoned as residential.
Current staffing levels and equipment are not adequate to clear much additional sidewalk during snow
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events. If the Commission desires additional miles of sidewalk clearing, we would recommend hiring a
contractor to perform the service. Since we have not bid the project, we do not have an answer on how
much additional sidewalk can be cleared for a given dollar amount.
Q. Pg. IX: Strategic Initiatives: communicating with citizens: I thought the plan was to expand the customer satisfaction survey started this year to additional areas. I am especially interested in developing a survey for areas with frequent interaction with citizen/customers such as those departments that collect for utility billings and services.
A. Sorry, since th is matter did not come up during the 2018 goal sett ing discussions, we missed that it was a
priority to continue to do so. We can add a strategic initiative for this matter if the Commission desires.
Q . Pg. 2: General Fund summary: on MERS explanation: is the $34,368 figure referring to the increase in the amount the city needs to contribute in 2018?
A. Yes, the $34,368 is an increase, but smaller than originally anticipated. This amount is spread across all
funds.
Q. Pg. 5 and Pg. 11: Sources of revenue: The pie chart on page 5 and the bar chart on page 11 don't seem to be consistent in identifying what has occurred with intergovernmental revenues and "other" revenues. Are the revenues grouped differently? The pie chart suggests inter-governmental stayed the same (23%), but the bar chart suggests a slight decrease in this category. Overall, what is the main reason that property taxes account for 50% of revenue in 2018 as opposed to 46% in 2017?
A. The numbers that drive the pie graph are formula driven with rounding. 2017 is slightly more than 23% but
rounded to 23% for the pie graph. 2018 is the opposite being slightly less than 23% but rounded up for the
pie graph. However, on the bar graph there are no rounding formulas. The change in property taxes
percentages are due to one-time funding sources in 2017 (2% grants, MMRMA net asset distribution, etc.)
and moving .5 mills from capital to operations in 2018.
Q. Pg. 13: I found the chart on page 13 that identified expenditures by specific department very useful.
Q. Pg. 18: why are diversion fines down by about $40,000?
A. Diversion fines have been budgeted at $40,000 for the past few years. The actual revenue that comes in is
unpredictable and fluctuates a great deal. Part of the amount over budget the last two years is because of
the consistent enforcement year round. As community standards are better understood, it is likely that
diversion fines will decrease. In addition, after the budget document was prepared, information regarding
the changes to the State Law became better understood and treating first offense MIPs as civil infraction
will reduce the diversion fines further.
Q. Pg. 24: Do professional services under City Commission include the costs for public notices?
A. Yes
Q. Pg. 25: International Relations: I wonder if we should consider making a regular contribution to this fund of between 2,000 and 5,000 so that when the exchange years for city officials occur, it is not such a large one time expenditure. The history of the relationship has been an official exchange every 5- l O years.
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A. If the Commission desires to set funding aside every year, we can easily accommodate this.
Q. Pg. 61: During the discussion of signage for bike paths, I think it would be useful to have a larger copy of this map. It is quite difficult to read in the budget document.
A. We will bring a larger copy to the work session discussion.
Q. Pg. 72: Youth Athletics: While we are proposing to increase funding to this area and add $5.00 to the fee because of increases in salaries due to minimum wage increases, the amount listed for compensation seems to have dropped since 2015 from $13,443 to $7,830. Are the actual compensation costs listed somewhere else in budget?
A. This is a timing issue between actual costs and budgeted costs. When Recreation programs are budgeted,
only temporary employee salaries are budgeted in the program. All of the variable costs to run the
program are included in the budget to show the variable cost of running the program. As the programs
happen during the year, full-time staff charge their actual time to the programs they work on, so we have a
clearer reflection of how much the full cost is to run a program. For 2015 & 2016 actual, a portion of the
full-time staff salaries is reflected in the Recreation Administration and a portion is reflected in the
program sections. However, for 2017 & 2018 budget, full-time staff are budgeted in the Recreation Admin
section and not in the programs.
Q . Page 75: Block Grant: I would like to see some discussion during budget work sessions on the future uses of this fund. I would personally favor using some of this fund for at least another year to keep an extra code enforcement officer. I am very reluctant to cut this third position so soon in our efforts to change expectations in the M-2 areas. I also think it would be appropriate to discuss whether or not this fund might be a source for continuing the brush pick-up program which is very neighborhood oriented. And, of course, this was a major source of funds in the past for the YSU.
A. We can add to the work session discussion list. In the work session materials for the no fee brush pickup
program, we have suggested that this could be a funding source. There have also been suggestions to use
some of these funds for a new/different owner-occupied incentive program.
Q. Pg. 107: I didn't really understand the explanation of what is happening with the "voluntary" capture of the library millage.
A. Earlier this year, Governor Snyder signed a bill that allowed libraries to opt out of having their portion of
incremental growth property taxes captured. After the budget was prepared, the Chippewa District Library
Board voluntarily agreed to let the City capture for DOA & TIFA, but not LDFA. The ODA and TIFA captures
are scheduled to phase-out over the next couple of years. The capture from the library will be amended in
the ODA and TIFA budgets during 2017.
Q. Pg. 131-134: Not really sure how to read the sewer and water rate studies. What are major conclusions we should be looking for that justify a rate increase?
A. Based on the upcoming CIP projects, rate increases are necessary in order to keep unassigned fund
balances at their minimums according to the approved polices. In some of the projected upcoming years
we are a little bit shy of the required fund balance. However, since the projections are estimates, we do
not believe a rate increase larger than the one proposed in the budget is necessary-but the chart does
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suggest a rate increase each year. We have tried to operate the water and sewer funds on more of a pay
as you go philosophy, which should help keep rates down in the future. We always have the option to
bond in the future, if needed.
From Com missioner Kulic k:
Q. Page VI - What is Start Smart?
A. Youth athletics program for ages 3-5 and their parents.
Q. Page VII - Isn't there enough funds in the Capital Funds to assist with residential alleys?
A. The five year CIP projects an available balance in the CIP of approximately $797,000 assuming grants and
other outside funding is received fo r ident ified projects. This projection is also dependent on receiving
projected Act 51 revenue increases that have allowed us to stop using dedicated capital millage for street
and sidewalk projects.
Q. Page XI - Wouldn't residential alley paving fit into reliable and sustainable infrastructure or well-maintained livable and desirable neighborhoods?
A. This would be an appropriate strategic initiative category if the Commission chooses to increase the
funding toward t he shared cost to re-pave alleys.
Q. Page XII - doesn't the Capital Project Funds show a proposed balance of $1,373,414 at the end of 2018?
A. Yes, however of that amount, $545,000 has already been committed for specific projects or reserves.
Q. Page 5 - Why don't the graphs show an increase in charges for services if we are going to fund rental inspection 100% from fees?
A. The increased rental housing fees went into effect on July 1, 2017 so one-half of the increased revenue is
reflected in the Amended 2017 budget and the other one-half increase is reflected in 2018. Based on the
total revenue numbers, the additional 2018 amount is not a large enough amount to affect the percent of
charges for services as a percent of the total revenue.
Q. Page 8 - Why was there such an increase between 2015 and 2016?
A. The$ 1.7 million dollars (approximately 15% of expenses) was moved from the Assigned Rainy Day Fund to
Unassigned Fund balance.
Q. Page 9 - Does the 2018 operational millage include the .5 from the Capital Improvement millage?
A. Yes
Q . Page 15 - I thought I heard at the MML conference that fire funding from the state was going to be lower than last year.
A. We have not heard this . Typically we do not know what the State of Ml is providing for fire protection until
we receive the check.
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Q. Page 16 - Who are we expecting a donation of $14,000 from?
A. Isabella Bank - for Nelson Park walkway.
Q. Page 21 - I like showing the FTE for each department.
Q. Page 44 - I would propose putting off the new City Master Plan until the 2020 US Census data is available.
A. Based on the Michigan Planning Enabling Act (Act 33 of 2008), at least every 5 years after adoption of a
master plan, a planning commission shall review the master plan and determine whether to commence
the procedure to amend the master plan or adopt a new master plan. During the goal setting discussions,
there was general agreement to start a full Master Plan process in 2018 since the last update finally
approved in 2014 was only an update. The 2020 census data will not be available until 2021 and staff does
not feel census data will have a significant enough impact on the next master plan to warrant waiting until
then .
Q. Page 52 - I assume that the requirement for commercial property to clear snow within 24 hours for commercial properties does not apply to the city clearing of school walking routes?
A. That assumption is correct.
Q. Page 58 - Where did the additional $10,000 for the beer festival come from?
A. $10,000 is additional General Fund contribution for all event support, not specifically the beer festival.
Q. Page 60 - Why not raise zoning application fees rather than transfer from the general fund?
A. This is a transfer to the General Fund from the CDBG to assist with costs associated with neighborhood
initiatives for specific master plan outreach. It is not related to zoning applications.
Q. Page 60 - How much is available for owner occupied incentive?
A. $28,490 from the original allocation plus any additional funds that might be allocated from HODAG.
Q. Page 64 - Why are professional services so much higher than prior years?
A. Overlays (Main, Preston & Sweeney) are scheduled to take place in 2018. Prior year projects have been
mostly reconstructs for Major Streets.
Q. Page 65 - Is the almost tripling of supplies because of bike routes?
A: Yes. The amount budgeted for the bike route signage is $18,000.
Q. Page 65 - Why is the overhead charges up $17 ,000?
A. Overhead rates are based on applicable cost center expenses spread over appropriate overhead paying
funds using an allocation based on prior year actual costs. This can be impacted by the cost centers
incurring additional expenditures, another fund spending less in a prior year (which shifts allocation costs
to another fund) or a specific fund spending more in a previous year.
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Q. Page 65 - Why is the Trunkline Maintenance other expenditures almost double?
A. Trunkline activity fluctuates from year to year. It is a program for the City to take care of certain State of
Ml owned road/infrastructure as needed -we are reimbursed 100% of whatever the actual cost ends up
being (maximum of $38,000 per year) .
Q. Page 67 - Street Construction why is compensation so much lower than 2017?
A. Fluctuations are based on projects and timing of projects (i.e. planning/designing future year projects in
current year). It is primarily where engineering will spend its time (Major vs. Local or
Maintenance/Overlays vs. Construction).
Q. Page 67 - Street Construction is professional services high because design for 2019 projects?
A. No, street reconstructs are more expensive in 2018 (Chippewa & Crosslanes) vs. 2017 (Forest).
Q. Page 67 - Street Maintenance why is FTE lower?
A. 2017 includes time spent on converting available organic materials on hand into usable black dirt. Other
fluctuations are timing of design/bid and project oversight.
Q. Page 67 - Why is professional services lower?
A. Special assessed overlays were completed in 2017 and are not planned for 2018 because we have not
received any petitions for overlay. 2018 alley plans includes tree trimming alleys as well as grading/brining
unpaved alleys to keep them in proper condition.
Q. Page 67 - Non Paved Maintenance how much non paved roads do we have?
A. 1.25 miles - mostly north of Pickard and West of Mission.
Q. Page 67 - Alley maintenance why is FTE so much lower?
A. We received a 2% grant for alley approach replacements in 2017.
Q. Page 68 - Snow and Ice I find it hard to believe that supplies will cost less in 2018 than 2017?
A. Union contract change that eliminated meals for specific snow event circumstances. Was rarely, if ever,
utilized but always budgeted in the past.
Q. Page 73 - Tournaments Professional Services $30,000 does this come back as revenue from tournament fees someplace else?
A. The $30,000 is for MASA providing officials and other services. It is expected to be covered by tournament
fees.
Q. Page 80 - Couldn't part of the $603,000 fund balance December 2018 be used for residential alley paving?
A. Yes.
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Q. Page 83 - What is the current status of the possible airport merger?
A. Discussions are still ongoing with potential partners. This project did not get the attention from the City
Manager during 2017 that we would have liked it to have.
Q. Page l 00 - Could we see the age of the trucks, mowers, gators etc. that are being replaced?
A. 12 Pickups are all around one year old - buyback program
Sign Truck - 1996
Stake Rack Truck - 1990
Mower- 2008
Gator- 2013
Quad - 2010
Q . Page l 02 - Who do we pay building rent to? A. This revenue comes into the Motor Pool Fund from Street s, Water, Wastewater and the General Fund to
cover DPW admin build ing/garage repairs, maintenance and capital projects, if any.
Q. Page 123 - Does Ford have a purchase buyback program for police vehicles?
A. Krapohl does not offer a buyback program for patrol vehicles. The conversion costs for patrol vehicles are
substantial so it does not make as much sense to turn them over every year. We added a police admin
veh icle to the buyback program in 2017 and will evaluate other non-patrol units as they are ready for
replacement.
Q. Page 126 - Why is the total levy lower in 2018 if the SEV is higher?
A. Data entry error for 2017. It is anticipated 2017 will be slightly higher than 2016.
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