Discussions to reduce snow plowing and overtime and possibly raise city taxes began at the St. Ignace City Council meeting Monday, December 1, the same day the federal government finally announced the country is officially in economic recession, and has been for a full year. Also discussed is an anticipated $105,000 debt in the city's local and major road funds by the end of this year.

Plagued by dwindling state contributions and tax and utility revenue reductions, higher costs for employees and equipment repair and replacement, plus the unknown factor of how much snow will need to be plowed this winter, Council is looking for additional revenue and ways to cut expenses.

One such cutback is overtime work for snowplowing, and Council discussed the possibility of allowing workers overtime only on an emergency basis.

Discussion about asking St. Ignace residents for a millage increase will continue at Council's next meeting, Monday, December 15, but a decision to put a millage on the ballot can be held until May 2009. That would still allow it to be retroactive to January 1, when the 2009 budget goes into effect.

"We've been cutting down on overtime in the past, but it will be more profound this year," Les Therrian, director of the city's Department of Public Works, said after the meeting about snowplowing. "We're going to be forced to have to leave snow on the road at times."

Emergency snowplowing will be the only time DPW workers will be allowed to collect overtime, he said.

He, the police, and City Foreman Gary Bigelow will decide when plowing is needed, based on when driving becomes a safety issue in town.

Under an earlier state treasury order, a committee comprised of City Clerk Renee Vonderwerth, Mr. Therrian, and City Manager Eric Dodson, has created a fiveyear deficit reduction plan that includes the possibility of a millage increase to cover expenses.

"I don't want my taxes to go up," said Councilman Tom Della- Moretta, "but as a city representative, with keeping our roads maintained and cleaned, it would be financially irresponsible to not at least explore the idea of a millage increase.

"The source of income that this Council has been relying on is no longer there," he added.

Another recommendation of the committee is to postpone filling a vacant heavy equipment position.

The city is collecting 16.26 mills (15.26 for general operations and one mill for recreation) now and is allowed to collect another 0.8% mills, which would generate $71,000, before it must ask city voters for extra funding.

City Treasurer Gene Elmer said the city charter allows the city to collect a maximum of 20 mills from residents.

If such a millage is presented to residents, Councilman Paul Fullerton suggested Council reevaluate the need on an annual basis.

Councilman Don Gustafson said the last time the city asked for more millage it was voted down.

Snowplowing and routine maintenance account for 98% of the city's major streets fund and 93% of its local streets fund. The state contracts for major street plowing, such as State Street, which is the I-75 business loop.

"The situation is that we continue to plow snow but with less than half of the (state) money," said Mr. Dodson.

The city's equipment fund is barely hanging on, added Mr. Therrian.

"We cannot keep not having anything in the equipment fund," Mr. Therrian told council members. "Renee, Eric, and I spent hours trying to find cuts in our budget."

In 2000, the city was receiving $122,000 from the state from its gas and weight tax and through Michigan Department of Transportation contracts. That amount has dwindled to $50,000, said Mr. Dodson.

Mrs. Vonderwerth said there is a cash deficit of $38,000 in the local streets fund and a $67,000 cash deficit in the major streets fund, however, "on paper, we have balanced the local streets fund for next year, but we are still facing an almost $25,000 deficit still in major streets," she said. "A lot of it depends on what kind of winter we see this year."

The major streets fund, said Mr. Dodson, has been in debt every year except once since 1999. During that same span, the local streets fund hit negative numbers only in 2005, owing to construction projects, however, it recovered the following year, said Mrs. Vonderwerth.

Council introduced the budget for next year, under Ordinance 617, without any discussion. A public hearing on next year's budget will be held just before Council's next regular meeting Monday, December 15, at 8 p.m.

The 16.26 mills, based on an estimated $87,821,121 taxable value of property, will bring in $1,423,520 in property taxes. Of that, approximately $1,190,520 will be credited to the city's general fund, $233,000 will be credited to the city's Downtown Development Authority fund, and $78,015 will go to the city's recreation program.

In other business, Council adopted a resolution asking Governor Jennifer Granholm to appoint a committee to conduct a feasibility study to rebuild the Father Marquette National Memorial museum, which was destroyed in a lightening fire in 2000. It was self-insured by the state and never rebuilt. The museum, the resolution states, will complete the "Triangle of History" that spans St. Ignace, Mackinac Island, and Mackinaw City by commemorating the French settlement of the Straits of Mackinac, which dates to 1671.

Mackinac State Historic Parks interprets British settlement at Mackinaw City through at the reconstructed Fort Michilimackinac, and the American settlement at Mackinac Island at Fort Mackinac.

The city has support from such U.S. Congressman Bart Stupak, State Senator Jason Allen, and State Representative Gary Mc- Dowell and has verbal support from the Mackinac Island State Park Commission, the governing board for Mackinac State Historic Parks.

Mr. Dodson updated Council on the construction of the new bus station on the corner of US-2 and Church Street. Concrete is being poured for the foundation and the building's walls are expected to arrive Monday, December 15. The opening is still expected to be May 29.

State money may be available to help the city manage its ash trees, which are being killed by the emerald ash borer. Mr. Dodson said the city has 217 ash trees at risk, which comprises 27% of all the trees in the city. It would take $82,000 to remove all the ash trees and $180,000 to replace them, he noted.

The city has already removed and replaced 80 ash trees in the downtown area.

Council re-appointed Cathie Sposito and Heather Aukeman for additional four-year terms on the Downtown Development Authority.

Council was in an executive session for five minutes to discuss collective bargaining with the city police union. Union contracts for police officers expires Wednesday, December 31.