Village Council Work Session

Monday, December 6, 2004

Meet at Barber School

102 W. Exchange Street

Spring Lake, Michigan

7:00 PM

 

 

 

Work Session Discussion Items

 

·        Agenda Review:

 

This is the opportunity to discuss any changes to the
Regular Agenda, which follows tonight, or to remove items from the Consent Agenda for discussion.

 

·        Review of Cash Balances at Fiscal Year 2004 Year End on June 30, 2004, Exclusive of GASB-34 Assets

 

 

All material cash balances exceed the minimum, except for Local Streets, Water and Sewer.  The only surprise is the Sewer Fund.  Sewer revenues were wrongly estimated by me and fell $12,000 short.  Expenditures exceeded the budget by $38,000 due to one time depreciation and fixed asset adjustments associated with GASB-34 and changes in depreciation of sewer lines (from 80 years to only 50 years). 

 

The trend lines on cash are all good, and on track, except for the Building Fund discussed in the past.   Although user fees have been increased, more might be needed each year until such time as we catch up, or regular infusions from the general millage might be necessary. 

 

The Central Equipment and Public Improvement funds each posted large gains.  The former was due to deferrals on budgeted purchases and the latter is short-term due to savings from the Village Hall project.  These savings are tentatively slated for the Services garage expansion project.

 

 

Overall Revenues

 

With the exception of Sewer as noted above, revenues mostly exceed the budget for all the material funds.  Even Local Streets exceeded the budget by $7,000.  The Village Hall Construction fund fell short, but was only due to an error in our end of year estimates.

 

Overall Expenditures 

 

Overall expenditures were below budget by nearly $60,000.  The primary reductions were in the SL/FB Police Fund, the Building Fund, the Village Hall fund and the Water Fund. 

 

Conclusions Drawn

 

The Village’s financial condition is steady and improving with the exception of the Sewer and Building funds.  The worst-case scenario is we may need to adjust tax revenue to keep the Building Fund solvent in future years.  The Sewer fund should self adjust given non-reoccurrence of the loss on disposal of equipment and paying off a bond issue next year. 

 

P.S

 

The above is an apples-to-apples comparison to pre GASB- 34.  When the GASB-34 adjustments are made by the auditors and presented at the next meeting, we will focus specifically on the impact of this new financial accounting requirement. 

 

 

·        Review of a Public Notice to Fill In a Wetland for the Purpose of Expanding the Existing WESCO Fuel and Convenience Store

 

The Village received a notice from the Department of Environmental Quality for this proposed project.  It will impact 0.21 acres of wetland by placing fill to an average depth of three feet.  No mitigation is proposed. 

 

Any city, village, township or county wanting to make comments on the proposed project needs to furnish their office with written comments no later than December 20th.  See attached for more information. 

 

General discussion and direction is invited.

 

·        Review of the Charter Cable Draft Franchise Agreement

 

The group cable franchise negotiations are done. 

 

Most of our protections and requirements stayed the same in this round, except updates mandated by preemptive state and federal statutes/regulations. 

 

The gains were better insurance provisions, the potential to get grants to support school or Village channels, improved contact information, continuation of one free modem service for the Village, conclusion of the audit, continuation of the 5% franchise fee and three (PEG) channels, along with modest funding if desired. 

 

Significantly, the “bundling” clause changed given the advent of cable modem for internet users.  The change ensures that a “package” of services that includes television cannot be sold under the larger umbrella of “cable modem internet” services and franchise fees thereby be escaped.   Without this change, the cable company would have the right to offer cable modem via the internet and theoretically reduce the Village’s 5 % franchise payments under new Federal Communications Commission’s regulations.  This provision will stem such loss in the 5% and ensure that it is prorated appropriately.

 

A summary of provision changes from the chief negotiator is attached.  The entire proposed franchise document is on file with the Village Clerk if interested.

 

The next steps are to approve the franchise agreement via an ordinance by setting the public hearing followed by passage two weeks later; authorization to execute a cable modem side letter; and approval of a resolution resolving the franchise fee audit process.

 

Setting the public hearing for the next Council meeting is on the regular agenda tonight.

 

·        Miscellaneous Announcements or Status Reports

 

o       Applications to Planning Commission and Historic Commission to date  (PC: None to date) and (HC:  Potentially Mark Miller and Holly Johnson but need others)

o       Joint Meeting with Planning Commission (January 10:  Kick-off of SL Master Plan process and Zoning Code Re-Write are two possible agenda items)

o       Harbor Steel Redevelopment Streetscape Process

o       Closing with Oosting Construction (John)

o       Bell Ringing at Orchard Market

o       TIF District Status Report (Ryan and Bob)

 

Upcoming Agenda Items (Tentative)

 

December 20

Audit Report

Acceptance of Audit

Village Hall Extra Room Lease

Charter Cable Franchise Public Hearing

Set a public hearing for Downtown Ordinance Changes

 

January 3, 2005

Demolition Permit Process Extension, or Sunset

Downtown Master Plan Zoning Changes

Set a public hearing on Downtown zoning changes

Charter Cable Franchise Agreement

Planning Commission and Historic Commission appointments

Senioritas Liquor License

 

January 10, 2005

Joint Meeting with Planning Commission

 

January 17, 2005

Public Dumpsters Behind Village Hall serving the former Rich’s redevelopment and businesses on Savidge (permission to use Village property and build them)

Public hearing on Downtown Zoning changes