A $7.3 million balanced budget for the coming year was adopted by the St. Ignace City Council Monday, December 15, keeping the millage rate of 16.26 mills at the same level as last year. The major streets fund, which had a $30,000 deficit, will be infused from the general fund.

Council also ratified a three year contract with the police union, giving members a 2.5% pay increase each year. The contract also stipulates a 10-hour work day and a 40- hour work week for officers, a move said City Manager Eric Dodson, that will increase law enforcement coverage in the city. Police will pay 1.7% in employee retirement premiums with a 0.5% reduction in the third year, and they will receive the same health benefits as the city's other bargaining unit, which has optical benefits.

The major streets fund was balanced using a refund from the city's insurance liability pool. The annual rebate varies yearly, but for 2008, the refund was $56,000. City Manager Eric Dodson called the transfer a "Band-Aid" fix and advised Council that other steps will have to be taken next year to balance the account.

During its December 1 meeting, Council began discussing a possible millage increase to alleviate a continued reduction in state funding for winter and summer maintenance of major streets, including State Street, which is the I-75 business loop. For 2009, the city will receive $8,195 less than last year for a total of $51,176, a 9.5% reduction. Over the last nine years, state funding has been reduced by more than 50%.

Discussion continued Monday night when Mr. Dodson reviewed plans to reduce snowplowing expenditures, eliminate overtime when not related to safety, and reduce the use of salt.

Department of Public Works Director Les Therrian said that funds not used in the winter on both major and local streets are used for road maintenance the rest of the year, including filling potholes and adding gravel to the sides of roads. The last few winters have used most of the funds, he added.

"If we have a bad winter, and that's what has been hurting us," he said, "that really affects our streets. We would like to have these streets have a comprehensive program to repair them, but we don't have the money to buy materials."

Mr. Dodson agreed that a comprehensive program is needed to plan for street work and equipment replacement.

"We very much are focusing toward the long term," he said, "and we will be giving you some additional plans, probably the first meeting in February. I know that R.S. Scott has done a rating of all of our streets. That was a few years ago. The lowest rated streets are probably lower now."

Mr. Dodson said the city also is pursuing increased funding for plowing at the Mackinac County Airport and will be talking to county officials about the road program. The city receives $10,000 from the county for road maintenance.

"Stay tuned," he said. "I'm not going to come to you tonight and recommend we take drastic actions this evening."

Responding to the discussion from the December 1 meeting, Councilmen Don Gustafson suggested expediting the audit. He said getting the final audit as soon as possible is critical in getting needed financial information in case Council decides to ask for a millage. He questioned if the city is receiving county road work comparable with taxes paid to the county. He also suggested that within the bargaining contract, some staff could be placed on weekend work with days off during the week, which may help reduce potential overtime.

Mr. Gustafson said he was not in favor of acting on the city council's ability to levy, without voter consent, an additional 0.8 mills, which still may not solve the problem for streets. Levying 0.8 mills would generate approximately $71,000.

"To throw a half-mill at the problem is not acceptable to me," he said. "All that does is throw money at it. From my perspective, I need to know what we are throwing money at."

To further the discussion, Councilmen Tom Della-Moretta suggested the development of a "very specific" comprehensive plan for road maintenance. Mayor Paul Grondin said that with such a document, they would consider asking voters to consider a millage increase.

Given the economic climate, said Mr. Gustafson, he would still want to investigate other avenues before raising taxes.

With the adoption of the 2009 budget, the city is estimating it will collect $1,423,520 in property taxes based on a 16.26 mil levy on $87,821,121 taxable value. From the taxes collected, the Downtown Development Authority will receive $233,000 and $78,015 will be directed to the Recreation Department.

During the public hearing on the budget, resident Dean Baker read a letter he had sent to the mayor and city council declaring that raising taxes would be premature, that the city needs a long-term, comprehensive road maintenance program, and that staffing cuts should be made in the police department. He questioned the need for a marina director and harbormaster, noting the city could save about $10,000 a year without them.

"I feel we are headed for a financial train wreck if council doesn't act decisively, immediately," he said.

He called for leadership and suggested the city put in place a threeyear, 50% rollback on all elected officials compensation packages, a three-year, 25% rollback on all committee stipends, and a threeyear freeze on pay packages for salaried and hourly employees. He said wages and compensation should be based on rank, responsibility, education, and seniority. Yearly bonuses should be based on merit.

He also suggested money could be saved by turning off the lights at Wawatam Lighthouse during the winter, and he questioned the need to remove snow from the boardwalk.

Deb Evashevski, Downtown Development Authority (DDA) director, explained the need to keep snow removed from the marina docks and the boardwalk to the lighthouse is an extension of it. The DDA purchased the snowblower and pays to keep the lights on yeararound.

The community, she said, is trying to improve the economy and encourage year-around tourism.

"We don't want to roll up our sidewalks and roll up our streets in the wintertime," she said. "We don't want people to think we're not here in the wintertime. We don't want to turn off our lights in the wintertime. Our shoulder seasons are very important to our businesses that are open all year long. We're trying to stay alive."

She continued, "We don't want to turn our lights out, Dean. We don't want to go to sleep all winter."

Mr. Baker said he was just looking for ways to cut spending.

Resident Donna Pope said she agreed with Mrs. Evashevski. The lighthouse helps draw people to the area, she said, and the light would be needed for snowmobilers crossing the ice bridge from Mackinac Island.

At the next council meeting, said Mr. Dodson, members will address 2008 budget adjustments. Council also will begin receiving a monthly financial report beginning in 2009, and it will be issued at the second meeting of each month through the year.

"It's a little more comprehensive reporting by us to give you a full picture as you ride this roller coaster in 2009," said Mr. Dodson.

Sewer Project

Work on the project has stopped for the winter, reported Mr. Therrian.

Bus Station

The trusses and walls are scheduled to arrive this week and will be put in place, if the winds die down, said Mr. Dodson. The project remains on schedule for a May 29 completion, he said, although work may not be complete until the first week in June.

Marley Street Water Tower

The 300,000 gallon water tower needs exterior and interior painting. Council approved hiring Dixon Engineering of Lake Odessa for $2,800 as project engineers and inspectors. The city will seek bids and is estimating the project cost at $140,000, which includes a $17,000 contingency fund. The city is hoping the slow economy and early bid letting will result in lower bids. Bids are expected to be in by early April.

The city has money in the budget to allow for 10-year financing of the work and will seek a U.S. Department of Agriculture loan.

The painting, said Mr. Therrian, needs to done between May 1 and June 15, which is when the weather is warmer for painting and before the summer tourist season and increased water demand.

The tower, he said, will be out of service for about four to five weeks. During that time, the city will use the Evergreen Shores tower.

The tower was last painted in 1981.

Charter Channel Change

Resident Donna Pope said a game show channel, popular with many senior citizens, had moved in the cable lineup. Charger Communications now is charging $5 for the channel.

"I'm here complaining," she said, and a petition is circulating around the community in protest.

Mr. Dodson said federal and state laws have limited the city's ability to negotiate with the cable company, even though the city franchises it to do business here. He said he would have a cable representative call her.

Council next meets Monday, January 5, at 8 p.m. at City Hall.