City of Southgate COMPLETE

City of Southgate COMPLETE PUBLIC HEARING May 05, 2010

RE: Fiscal Year 2010/2011 Budget

A Public Hearing of the Council of the City of Southgate was held in the Municipal Council Chambers, 14400 Dix-Toledo Highway, Southgate, Michigan on Wednesday, May 5, 2010 and was called to order at 8:30 P.M. by Council President Phillip J. Rauch.

Present: Carol Batko, Jan Ferencz, Patricia Ganzberger, Karen George, Phillip Rauch, Christopher Rollet, Dale Zamecki. Also Present: Mayor Joseph G. Kuspa, City Administrator Brandon Fournier, City Attorney Ed Zelenak, Assistant Administrator/Finance Director David Angileri, Engineer John Hennessey, Treasurer Sheryl Denman, City Clerk Thomas Alexander, Building Inspections Director Bob Casanova, DPS Director Keith Tackett, Fire Chief Douglas Gildner, Police Chief Thomas Coombs, Deputy Police Chief Jeff Meussner, Recreation Director Ronald Jewell, Business Development Coordinator Brian Batko.

The purpose of this public hearing, duly advertised, is to consider views and comments from interested individuals regarding the 2010/2011 Proposed Budget. 1. Letter from Assistant Administrator/Finance Director; re: 2010/2011 Budget.

Letter from Assistant Administrator/Finance Director Angileri was read as follows: Pursuant to the City Charter, a Public Hearing must be held to obtain comments from the public on the 2010/2011 Proposed Budget. Pursuant to the provision of the Public Act 5 of 1982, the City must also hold a Public Hearing in order to levy the Millage rate, which has been proposed in the Mayor’s 2010/11 Budget and are before you tonight on State form L-4029. All proposed millages are within our Charter of statutory limitations, and the City has complete authority to levy this Millage. Notice was given to the City’s official newspaper and a copy of the proposed budget has been available at the City Clerk’s Office for public inspection since March 30, 2010. Final Council approval is scheduled for May 19, 2010.

Council President Rauch asked for comments or questions from the audience, with no response.

Mayor Kuspa commended Assistant Administrator/Finance Director Angileri & Administrator Fournier for their hard work to produce a budget that reflects the anticipated reduction in State Shared Revenue.

Moved by Ganzberger, supported by Batko, RESOLVED, that this Public Hearing be closed at 8:32 PM. Carried unanimously.

2. Memo from CDBG Consultant; re: CDBG Reprogramming. Letter from CDBG Consultant was read as follows: As you are aware, over the course of this program year (2009/2010) and next program year (2010/2011), the City will be proceeding with two important construction projects as part of its Community Development Block Grant (CDBG) program: the ADA Doors Project and Civic Center Elevator Project. The engineering estimate for the ADA Doors Project is $49,124, while the engineering estimate for the Civic Center Elevator Project is $74,200. These engineering estimates are higher than the funds originally programmed for these projects for program year 2009/2010 and program year 2010/2011 as detailed below:

Currently Approved Program Year 2009/2010 Budget: Project Budget Senior Services $29,830 Housing Rehabilitation $91,170 Public Hearing COMPLETE May 05, 2010

ADA Doors $25,000 Administration $11,000 Total: $157,000

Currently Approved Program Year 2010/2011 Project Budget Senior Services $29,000 Housing Rehabilitation $57,795 Civic Center Elevator Project $60,000 Administration $10,205 Total $157,000

Fortunately, the City recently received program income in the amount of $46,887.50 from the housing rehabilitation program. This program income will be sufficient to cover the increased costs, as estimated, for the ADA Doors Project and Civic Center Elevator Project. The City Administration proposes to allocate the program income as follows:

 Transfer $26,880.75 to the program year 2009/2010 budget for the ADA Doors Project  Reprogram $16,956.75 to the program year 2009/2010 budget for the Civic Center Elevator Project.  Transfer $3,050 to the program year 2009/2010 budget for Administration.

Using this approach, the costs of the Civic Center Elevator Project would be covered by CDBG funds spread out over two program years. This would result in a new allotment for program year 2009/2010 as follows: Proposed Program Year 2009/2010 Budget

Project Budget Senior Services $29,830.00 Housing Rehabilitation $91,170.00 ADA Doors $51,880.75 Civic Center Elevator Project $16,956.75 Administration $14,050.00 Total: $203,887.50 Transferring the program income to the ADA Doors and Administration projects can be accomplished without a public hearing and does not require approval by the City Council. However, reprogramming the program income to a new program year 2009/2010 Civic Center Elevator Project does require approval by the City Council after a Public Hearing. After holding this public hearing, the Council will need to approve the reprogramming of $16,956.75 to the Civic Center Elevator Project for program year 2009/2010.

Council President Rauch asked for comments or questions from the audience, with no response. Moved by Ganzberger, supported by George, RESOLVED, that this Public Hearing be closed at 8:37 PM. Carried unanimously.

______Phillip J. Rauch Thomas M. Alexander Council President City Clerk

5.12.2011