Politics & Government

Ferndale Budget Passes with No Layoffs to Police, Fire

City eliminates open position in DPW, tables hike of sanitation fees, swallows water rate increase and holds onto SAFER Grant.

Less than 24 hours after a , approved a budget that left police and fire alone.

"We're grateful to be able to approve this budget as supposed to the one we drafted with the millage failing," Ferndale Mayor Dave Coulter said at Wednesday evening's meeting. "We do not have any cuts to police and fire now."

The millage will increase the city's general operating fund by 3 mills, or about 6 percent more on a resident's overall tax bill. It is expected to generate about $1.7 million in revenue for fiscal year 2012.

Without the millage revenue, the budget would have required laying off six firefighters, three police officers, two Department of Public Works employees and one from the courthouse, Ferndale Finance Director Jaynmarie Hubanks said.

This didn't happen, as the millage passed Tuesday .

The budget did have adjustments. The DPW eliminated a position, though the position was currently unfilled.

The council also approved a readiness-to-serve charge of $33 to all properties, even vacant ones. This means that even if no water is used, the infrastructure is there and the owner of the property must pay a $33 charge each quarterly billing cycle. Previously, owners of vacant homes didn't have to pay an infrastructure fee.

However, Ferndale residents won't be seeing higher water rates. Currently, the city purchases water from the Detroit Water and Sewerage Department. Ferndale's Interim City Manager Mark Wollenweber said those rates could have been 12 percent higher this year, but the city won't be passing along those rates to residents.

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The city will also forego a $12 meter operations fee and a $5.50 meter replacement fee.

"For some homeowners, this will actually be a decrease," Wollenweber said.

Mayor Pro Tem Kate Baker asked if this charge would change again next year and Wollenweber responded "probably not."

Sanitation fee hikes questioned

One item debated among council members was an increase of the sanitation fee.

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In the proposed budget, the fee would increase to $126 (from $101) for a single-family resident property, $108 (from $86) for an apartment unit and $215 (from $172) for a commercial property. This reflects a 25 percent increase from the 2010-11 rates. The money goes to the sanitation fund, which pays for duties around solid waste, yard waste, brush, recyclables, household hazardous waste and bulky waste, among other things.

Council contested this increase.

"I don't feel comfortable raising (the sanitation fee)," Councilwoman Melanie Piana said. "We just passed a millage and this is raising the fee. There is a lot of services here and I know a lot of us love them, but we need to look at this increase further."

Piana said she felt the discussion of increasing these fees wasn't laid out in DPW Director Byron Photiades' budget presentation to council.

"Can we put this on hold and talk about it at another meeting?" Piana said. "I don't feel comfortable agreeing to that rate increase today." 

Hubanks said she has to have the final budget by June 1. Council agreed to take sanitation fees out of the budget and discuss it at its next scheduled city council meeting Monday.

"There is no question that any cuts (to the sanitation fund) will be reflected in less services in this area," Wollenweber said.

For the first time, the sanitation fund's expenditure is greater than its revenue, Wollenweber said, thus resulting a proposed fee increase.

"We'll leave it at the original rate and bring this back next week," Coulter said.

State revenue sharing

The city is still budgeting for zero statutory revenue sharing coming from Lansing. "I'm not confident, but I believe there will be some money from the state," Wollenweber said. "I think the best way to handle the state revenue sharing is once we know what we can get, we'll amend the budget."

Wollenweber said the maximum statutory revenue sharing Ferndale can receive — if it falls under all of Gov. Rick Snyder's proposed qualifications — is about $744,000, about 60 percent of what the city received last year.

Resident Derek Pratley asked the city to consider not levying the 3 mills for fiscal year 2012, if it receives a certain amount of revenue sharing from the state. "Why not include some element of revenue sharing and not charge the full 3 mill max?" he asked.

Wollenweber said the idea was "interesting."

Coulter said if revenue sharing comes in, it's his plan to levy the 3 mills this year, as the ballot stated, and not levy the maximum 2.45 mills the next year.

"What statutory revenue sharing we get can offset the 2.45 mills next year," he said. "It could defer the savings for the residents on next year's budget."

SAFER Grant

The SAFER Grant was also discussed during the meeting. The SAFER grant is a federal grant from the Federal Emergency Management Agency (FEMA) that helps fire departments with staffing levels. to staff four firefighters. The catch was that if the city had to lay off any firefighters, the grant would ultimately be lost – unless the city could prove great financial hardship.

With the millage passing and no cuts to firefighters, the SAFER Grant is more likely to happen.

"I'm confident enough that we have enough revenue (for the grant)," Wollenweber said.

Fire Chief Kevin Sullivan is on vacation, so Wollenweber said he would have more details when Sullivan returned. "It's a positive issue. I think there is opportunity and at the face I think we would recommend it," Wollenweber said.

Call to audience

At the start of Wednesday's meeting, Mayor Coulter opened up the call to audience with a relieved laugh, saying, "Is there anything left to say?"

YES to Ferndale's Future campaigner Katie Hershberger, who has been at every budget meeting and always had something to say, addressed council.

"I’m pleased with the outcome of the election, but I also consider it on a vote of confidence in the council to make wise decisions about what's coming up," she said. "I'm very hopeful there will be no cuts for police and fire department and possible to bring back some of the firemen under the SAFER grant. I'm confident in this body … and for whoever sits up there, you have a greater responsibility now."

Co-chair of the YES to Ferndale's Future campaign Greg Pawlica also addressed council about moving forward.

"I'd like to thank everyone who was a part of the election, directly or indirectly," he said. "It was a slim margin by 198 votes. But I want to kind of reiterate what Katie said. Your job is a lot more tougher now 'cause a lot more eyes will be watching and I'm confident you'll make the right decisions."


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