City Council - Regular Meeting

South City that are second Whatever the we're here just flying by the seat of my that I We need more.

You ready? You guys ready? Ready. Ready. Ready. Ready. Done. Do you want this? No. Welcome to the city of Task City Council for May 18th, 2026. I ask that you rise with me for the pledge of allegiance to the flag of the United States of America. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.

City clerk Beck, would you please call roll? Deore, present. Wilmott, present. NARB, present. Walker, present. Murphy, present. We have a quorum of five. Next is a proclamation. There's several of them. One is the first one's here Northman girls basketball team proclamation. Do you want them to come up, shall we?

Why don't you guys come up here and we'll get a picture of you guys as she reads the proclamation. Yep. Yep. Yep. What a team.

Are you ready? Oh yeah.

Whereas the 2025 2026 season was a notable year for Paskki Northman girls basketball team. And whereas on the basketball court, the girls team finished the season 22 and4 after starting the season at the beginning of November with conditioning workouts in Northman Stadium and running the hills at the hills at the Winter Sports Park and ending the season in March. And whereas the 2025 2026 Pitaski Northman girls team was a diverse team age-wise, but a team that gelled together seamlessly and included team members, excuse me if I butcher your names, Lauren Lee, Leah Situs, Claire O'Donnell, Kylie Bramley, Hayden Wegman, Wegman, excuse me, Julia Deterly,

Deerly, Deerly, Nora Rasnol, Courtney Ney Howard, Kora Howard, Llaya James, Ella Situs, Elena Flynn, Haley Wegman, Katie Robinson, Fran P, Isa

Sh, and Mia Wilson, coached by Brick Carlson. And whereas the following team standouts include won the Big North Conference in the regular season, won a district championship, won a regional championship for the first time since 1999, finished the regular season ranked number 15 in the state in division 2, beat both Traverse City Schools twice, beat Sue St. Marie three times, avenged losses to Cadillac and Gaylord with back-to-back wins against those teams later in the year. Ended the season on March 18th with a loss to number seven Flint Powers in the quarterfinals. Whereas the team wasn't just successful on the court, they earned team academic all state with the highest weighted average GPA of 3.9847 in the entire state with nine varsity players with a weighted GPA of 4.0 0 or higher. And whereas the five seniors are going to NCMC for elementary education, GVSU Honors College for Nursing, University of Cincinnati for material science and engineering, MSU for kinesiology, and the United States Military Academy at West Point for bi for biomedical engineering. And whereas the team is active in community engagement and invited Paskki youth girls basketball teams to join for practices during the season and invited them to play at halftime of one of the games. Visited the elementary schools to mingle and engage with those students and reconnect with the elementary schools that the team members attended and will be playing with Paskki Little League's challenger team on June 12th. Now therefore, John Murphy, mayor of the city of Paskki, together with city council, do hereby recognize and congratulate the Paskki Northman girls

basketball team, coaches and staff for their outstanding 2025 2026 season, culminating the division 2 regional championship and example of excellence in academics. I like especially the academic piece of it because that's going to take you a long way. And so congratulations not just to your success in basketball but also in the academic achievements because those are also really achieve number one in class B or high level of academic average. So that's something that really well I know the city really enjoyed attending your games, your tournaments up here. We really enjoy uh rooting you guys on and we look forward for future you setting the path for the future teams to do the same thing or maybe take it one step further. So again, let's give them a hand. boys.

Whereas Yeah. Boys, you guys want to come up? Are you here? Yeah.

Who wants to hold this? Mhm. Whereas the 2025 2026 season was a historic redemption year for Paskki Northman men's ski team with a new mindset of so what? Now what? And whereas the men's team returned to the summit of Michigan High School ski racing, securing their MHSAA Division 2 state championship on February 23rd, 2026 at Shesh Mountain. The Northman won five straight titles from 2020 to 2024 before a runner-up finish last year and also won eight straight state titles from 2011 to 2018. With this latest state title, the Northmen have now won 12 state titles in the last 14 years, cementing their status as one of the premier ski programs in the Midwest. And whereas the 2025 2026 Paskki Northman men's team includes seniors Taylor Kiswatter and Liam Clary, juniors Eli Deetur and Mick Galbreth, sophomores Chris Keywwater, freshman Cole Whitner, Griffin Dunn, Dominic Olsen, Kayn Galbreth, and Matthew Rajier. Coaching staff Tony Blancado, Jack Telcott, Eric Smith, and Corey Cook. And whereas the following team standouts include all six varsity men's team finished in the top 10 in the slalom at the state final. Taylor Keyweder capped his high school career by winning individual giant Salom, excuse me, I'm used to saying GS state title in a time of 49.38 seconds, nearly a full second ahead of the field. Eli Deur led the team in slalom, finishing fifth overall in the state with a time of 67.4. 46 seconds. Mick Galbreth finished sixth in slalom. Chris Keithwatter showed consistency by

finishing eighth in GS and 10th in slalom, providing vital points for the team win. Griffin Dunn and Cole Whitner sealed the state title by finishing seventh and eighth overall in the slalom. Liam Clearly, Dominic Olsen, Kayn Galbreth, and Ma Matthew Rajier were the team support staff on and off, winning as one. And whereas the team wasn't just fast on the hills, they earned academic all-state honors with a combined team GPA of 3.48, ranking 11th in the state for division 2. Now therefore, John Murphy, mayor of the city of Paskki, together with city council, do hereby recognize and congratulate the Paskki Northman men's ski team, coaches and staff for their outstanding 2025 2026 season, culminating the division 2 state championship, an example of excellence in academics. They probably don't get as many spectators as the uh girls did the cold but uh what a proud honor 12 out of 14 years you guys have carried on helping to carry on the flag of state championships of hill skiing and we want to say thank you very much for bringing an honor to not just the high school but to the city of Tasky as well. So again, thank you guys for what you do. We look forward to seeing more teams up here next year. So here we are. Thank you again.

I want to thank Sarah Beck for doing the reading. of course we are honored to honor you guys. Thank you again you guys. We'll see you next year. I hope all but all but the seniors and you guys see you next year. Thank you, Superintendent. Thank you. You got it.

Okay,

we've got more stuff going on here. We've got more students to honor and uh I'm going to turn this over to uh hear a presentation from the Vaski Youth Advisory Council. This is the second year that we've had this council. I gotta thank our city council award one uh Tina Deore for her leadership. It's been outstanding. Uh she she you can tell she loves this job and I think someday if she's not up here at city council. We hope that she will continue to lead the banner for this because uh she works really well with the school and with you guys. I know you guys shake your head when I mention her name and you guys all said yes. So that's a great a great tribute. Sir, take it away.

Hello everyone. I'm Taylor Keyser. I'll be doing an introduction for the Task Youth Advisory Council for this year of 2025 2026. Can we go to the next slide, please? So, starting off first, we're going to go over the leadership quadrant. Uh so a quick overview of our roles in the leadership quadrant would include primarily revolving around the monthly meetings with just the three people in the quadrant and Tina which are the two co-presidents myself and Charlie Olsen along with Ida Dawn and those happen like prior to our uh youth advisory council meetings with the whole group which happen on the second Monday of each month. In this meeting we finalized proposed agenda which one of the co-chairs will write up the which is one of the roles. We split the roles into that and the other person will go over to the meeting outreach once we finalize the agenda after these meetings and also in this meeting we will just check over the meeting minutes from the prior meeting. Each one of our positions is up for election in January. In the next year the two co-chairs will be Aya Shields and Om Jansen's while Ana Peek will be the next secretary. In January the members who are interested in these leadership roles come to the meeting prepared with a speech and that same goes for the quadrant chairs who are also decided in a vote. At the beginning of each of our yearly meetings, each member set a goal for a skill they hope to develop through this committee. My goal was to improve my public speaking. Through leading meetings alongside other members of the leadership quadrant and much help from Tina, I found myself speaking in front of a full room for nearly two hours each month. Serving as co-chair allowed me to accomplish this goal simply by stepping into and embracing my role. Thank you.

Hello. Um, my name is Charlie and this was my second year on the PAK and I served as co-chair. Um, to help Oh, next slide, please. Sorry. Thank you. This one? Yes.

Um, to help build leadership skills, Pak members participated in a put out the fire exercise. Before starting, members identified their leadership styles and were paired with people who approached the problems differently. During the activity, members represented either city A or township B, two communities with separate fire departments. A merger between the departments could save money for both communities, but disagreements about sharing costs and control made the decision complex. Members had to work together and use skills like communication, diplomacy, and teamwork to come to a decision. This exercise aimed to provide a real world example for members to work through as we learned to collaborate with others who may think differently than ourselves. Thank you.

Next slide, please. Hello, my name is Ida Dwan and I'm the current secretary of Pasi Youth Advisory Council. I have served on PYC for 2 years now. Our quadrant system was implemented this year in order to increase leadership opportunities and efficiency. As you'll see tonight, there are four quadrants. Leadership, volunteerism, issues, and wait, communication, and quadrants meet prior to PYC meetings in order to discuss and take action on any current initiatives. Quadrant chairs schedule quadrant meetings, do outreach, and provide updates regarding Quadrant's work. in order to more experientially learn about city government governance um city sorry Podasi youth advisory council um I'm blanking I'm very tired I just came from like I like flew overnight from California and like my brain is totally fried um so for example we do agendas in minutes and offer opportunity for public comment. We also work in compliance with the Open Meetings Act. Um, next slide, please. So, shown on this slide are a couple member statements about what they've learned and achieved this past year from serving on PYSC. And personally in my goal, I think I've grown um in increasing my leadership skills and I've become more confident in sharing my opinions on various topics and I feel that PYC has given me a very good groundwork and experience for any

of my future endeavors in life. Thank you. Next slide, please. Hello, my name is Sam Engles. Uh, this is my second year on the city of Fitsky's youth advisory council. I am the chair for the volunteerism quadrant. So this year for volunteerism uh we set out to create stations to keep kids occupied at local events in the community. Uh next slide please. To begin with the first local event, the winter carnival at the winter sports park. We created stations such as ring toss, a photo booth, face painting, and mask making. These events were a big hit with the younger kids and took stress off the parents. This event was set up and sponsored by the parks and recck commission where we volunteered to assist. Uh, next slide, please. In these photos, we partnered with flowers with friends uh for our November meeting to make uh these flower setups for Veterans Day, which we handed out at the Odawa Casino. Uh, it was a big hit. It's a good good volunteerism event. And this year, my goal uh to was to expand on my leadership abilities by collaborating with my peers and expressing my ideas with confidence. I'd say I grew positively in this area, but I still have more growth in years to come throughout college. Thank you. Next slide, please. Um, hello. My name is Samya Pez. This is my first year on Pasi Youth Advisory

Council and I'm the mic down. There you go.

I'm part of the volunteerism quadrant along with everything else that Sam just mentioned. We helped uh parks and wreck with summer parks um picnics. These were held at Arlington, Curtis, and Washington Park. We held them for the community. We had food and games provided. Um, my goal for Pascio with Advisory Council this year was to get better uh with my local government and try and be a voice for my peers. I personally feel like I've gotten better knowing my local government, but not being a voice. I need to try and get better with that. Thank you, Chris,

just show the next slide, will you? There you go. Did I not answer? Perfect. Oh, stay next. It's okay.

Hi, my name is Chris Keith Sweater. This is my first year and I'm a part of the communications quadrant. Uh the communications quadrant is the voice of the PAS youth advisory council. We are the bridge between our work and the community through awareness by keeping the public informed engaged through presence by keeping the website updated and lastly through outreach by handing all physical and online outreach. Uh my personal goals, oh next year I will be the co-chair of the issues committee with Liam Washington and I am beyond excited to start working. My personal goals are to inspire younger students to play a more active role in our community by handing out a plethora of applications along with presenting to many classrooms. I feel I've greatly achieved this goal next year. My position will also be a great way to further her accomplish this. Thank you.

Next slide, please. My name is Amaly Jansen's. This is my second term on PAK and I am part of the communications quadrant as well as the incoming co-chair for the 2026 2027 term. We began the communications quadrant as a way to increase community awareness and outreach. We felt the best way to do this would be through a website. So about two years ago, council member Shields and I partnered with city clerk Sarah Beck to form our PAK website. On this website, you can find pictures of our s of our council volunteering at various events as well as pictures of us during our monthly meetings. You can also access our policies as well as agendas and minutes. And on the website, we also made sure to include a link to our PAK application that individuals can either fill out online or on a paper copy that has been provided to them. My goal in the beginning of the year as a PAK member was to gather a better understanding of how our city runs in order to see if working with the government is something I want to pursue in the future. and it has helped me realize that at some point in my life I do want to hold some some sort of leadership position. Thank you. Next slide, please. Good evening. My name is Aya Shields. This is my second term on PAK. This year, I've been a part of the communication quadrant and I'm elected to be co-president for the upcoming year. Something we find important in PAK is valuing youth voices. So, we tried to take youth ideas by reaching out in our school to ask their opinions on things going on in the city. For example, there's a survey sent out that high school students had access to so they could vote on what they wanted for the park. Riverbend Park is also hosting a summer ward picnic this year that Pak members will be helping out to be in more more involved in our community. Some other outreach we have done was an article and photo shoot done by the Michigan Municipal League as well as an article written by our PA council member Ida Dwan that was sent out in the news review. We also made PAK short shirts

that we could wear while volunteering. These were designed by our members and voted on by the whole council. My goal at the beginning of the year was to dive deeper to how the city government works and I've definitely learned more about it throughout this year by running meetings and stepping into the co-chair position. Thank you. Next slide.

Hi, I am Manny Leki, the chair of the communication quadrant and this is my first year on the Paskki Youth Advisory Council. The council has worked hard this year and has dialed in on our recruitment process. We utilize various outlets to spread the word about the council such as presentations at school during Thursdays and Fridays, a video presentation made by the communication quadrant, a homeschool network system mainly driven by Ida Dwan, and many others. The most efficient and successful outlet that was utilized were presentations given by council members Liam and Chris. At the beginning of each sophomore English class, both members would present to each class about PAK, why they should join and how to join. This outlet recruited the most applicants and informed people in a meaningful way. I personally presented to our tribal community through a meeting ran through Robin Engles. I was able to explain to parents what PAK was and the benefits of understanding our city council. Next slide, please. These are just some testimonies from us. And for me personally, I felt that I was able to achieve my goal. And my goal is while observing the city council in action during my service on Pekk, I've developed a better understanding of the government's process and specifically how the council approaches and then votes on issues even when there are differing opinions. Thank you. Thank you. Uh good evening council. My name is Brian Tang and this is my first year serving on Pataski youth virus theory council as a senior. Uh I am a part of the issues quadrant and this year we wanted to target something that maybe that not many people know that's happening in our city and that is homelessness. So, we were trying to bring back the I'm sorry, we were trying to bring back the unhoused voucher project uh where we were trying to uh

get with local nonprofits to like maybe get like hotel rooms or just a place to stay for the homeless. And we experienced a lot of uh obstacles, a lot of problems with communications, but we kept trying. And as of right now, that is still an ongoing process. And this was led by um Council Member Schuman. She's currently not here, but she did most of the work. So, a big applause to her. And as um as council member stated, we did a lot of uh flower arrangements for Veterans Day that was very successful. Veterans loved it and we were very happy to hear about that. Next slide, please. Maybe.

Thank you. Um and also in order for the issues quadrant to really uh think how we can make an impact on the city of Paskki, we first need to truly understand what is happening in our city and how it operates and we need to witness it firsthand. So as I use the var council, we send one to two PAC members to every city council meeting to document the information presented and report back to the group so we can stay informed and up to date on city business. Additionally, as uh council member Jansen stated, we met with city clerk Sarah Beck to review our new web page and discuss changes and additions that would better advertise us as a group to the public as well as make it so that um the public has easier access and easier to navigate and not as confusing as what it was. Um and as well as over the summer, uh youth council's member went on a trolley tour with Mr. Clingmith to the various parks that the city has to offer and which is what Liam will talk about next. Thank you so much.

Hello, my name is Liam Washington. This is my first year on Paskki and I'm currently serving on the issues squadron. In this picture, our group is visiting the winter sports park during the trolley tour that was led by Mr. Clinglesmith. We did this to get a better understanding of all the parks and what is needed to be put forward to solve the issues. Additionally, we were able to see firsthand where and the type of expansions that could be added to the park. For example, an expansion that we looked at was extra parking for moments of overcrowding like during the winter carnival. Next slide, please. In this picture, our group is actually voting on the expansions we saw. We rank them in order of importance. This was a good opportunity for us as it gave us the chance to see what the voting and expansion process would look like for the general public. To close, one of my goals this last year was to learn more and understand how local government is run. Through Paskki Act, I was able to do this. So, thank you very much.

Next slide, please. Good evening. My name is Eloise Jones and this has been my first year serving on the Paskki Youth Advisory Council as a member of the Issues Quadrant. This year during our April meeting, we had the privilege of hosting Eric Hemingway for a Native American cultural presentation. Mr. Hemingway shared the rich history of the native tribes in our area as well as the devastating impact settlement had on their communities and lands, but also the the impact of strong leadership and helping them persevere. Listening to such an engaging historian and storyteller while also having the opportunity to ask questions was an incredibly valuable experience for the PAK. Additionally, PAK members were given the opportunity to engage in Michigan Municipal League training along with city council members. Those of us that were able to attend gained a greater understanding of the open meetings act as well as parliamentary procedure. Next slide, please. My personal goal coming into PAK was to learn more about local policymaking and how officials collaborate across different departments. As a graduating senior at PHS, I've spent the last few years trying to figure out what I want to study in college and my time in PA has absolutely solidified my desire to pursue a career in government. Thank you. Next slide, please. Hi, my name is Ana Peek and I have been a member of PAK for just one year and I have been part of the volunteerism quadrant this year. Next year I was elected to be the secretary. This past March, me and Council Member Roier attended Michigan Municipal Le's Capital Conference down in Lancing. Next side slide, please. Hi, my name is Eliza O. This is my first year on Paskki youth advisory. I currently I'm in the volunteer quadrant

and next year I'm taking over as the volunteer quadrant chair. This is a photo of council member Peek and I having the opportunity to speak with state senator demuse. He told us about a bipartisan bill he was working on with the focus of human trafficking. He also discussed how hard it is to convey the damages the ice storm brought northern Michigan to those who live in the southern side of the state. Next slide. Here we were giving our presentation on our youth advisory council to a room of over 100 elected officials. Also, students from Farmington Hills Mayor Council attended our presentation and connected with us after. It was really helpful to exchange contact information with them. This way, we could reach out to them if we needed and discuss any ideas in the future. Next slide, please. Here we answered questions the audience asked following our presentation. A few specific questions were, "How does our youth youth council differ from a student council at a local high school? How do we gain interest of youth to apply?" And some other questions asked about how our meetings are run in the structure and format of the council. These questions helped us provide a blueprint for creating youth advisory councils to those in attendance of our presentation at Capcom. Next slide, please. Later, we met with House Representative Fairburn and we were lucky enough to be invited onto the House floor. We saw the process of voting on a bill and we were able to speak with many other representatives around us. We could ask them questions we had about the voting process. Next slide, please. Thank you so much for giving us the opportunity to speak to you guys today, and we really appreciate your time.

I I want to say thank you for all that you have done of connecting learning more about the city, not just city council, but I know you've gone field trips with department heads. you've gotten a feel for what Paskki is all about and it enables you to to make better decisions on your on your own life I think as well as well as give us feedback. Somebody mentioned about public speaking. I think you guys have all taken a step forward on public speaking because some of you spoke last year and I see a big step forward on all of your your your confidence, your abilities and so that's feel very proud about that and also your goal setting. I was really impressed where you said, "Well, you accomplished this goal, but I have something more on this goal to work on." So, you're self-evaluating all the time to make yourself a better person. And hats off to each and every one of you. We're I know I'm speaking for council here. We are all impressed and congratulations and look forward to continue to working with those that are going to returning and those that are moving on. Keep up the good work and we'll probably see you in government someplace down the road. So, thank you. And I have something Mr. Moore would like to say.

Yeah, just real quick. One, I want to do a shout out to the Hestia Women's Giving Circle whose funding supported the attendance of these young women at Capcon. And finally, I just like to recognize our graduating seniors. So, if you're graduating and headed to the University of Michigan, please stand. If you're graduating heading to Notre Dame, please stand. You could stay standing. Go. And if you're graduating heading to Mallister College, please stand. That's it.

Again, thank you. We look forward. I know council, do you have anything you want to say or good? Thank you. Well done, guys. I'm very impressed. Thank you. Thank you. do good recruiting and bring more back like you guys are so that continues to grow. Talk to you soon. Nice job. Bye. Great job. So impressive. I hope we're as impressed with the next presentation as

I hope you're there. you're you're number four and that's uh clean up batters. So we're looking for you to hit a home run for us. Okay.

All right. This um there we go. She's gonna just bring up the presentation. So I'm Trina Oaks. I'm an audit partner with Dennis Gartland and Neargarth and I'm here tonight to go over the financial results of the city for December 31st, 2025. The results of the audit. Um so the first page right after the index and Sarah has graciously um accepted to to move the slides forward. So um is our independent auditor's report and the very first paragraph is our opinion. So we did find that everything was fairly presented in accordance with generally accepted accounting principles. So that's what's called a clean or an unmodified opinion and that's the highest level of assurance that we can provide you as auditors. Um it does go on to talk about um the basis for our opinions in government auditing standards. So this year in 2025 because the city received over $1 million in federal funding, we also had to do a federal funding audit. So an additional audit requirement this year in accordance with government auditing standards. And then it talks about responsibilities for management of the financial statements. And that is just letting you know that the financial statements themselves are the responsibility of management of the city and that our responsibility is to issue an opinion. So we'll turn next to page six in the printed booklet or um you can just scroll down a few pages um to the management's discussion and analysis. So that is a nice summary of the financial results for the year. that's prepared by management of the city. Um on the financial highlights page there, the city's net position increased by 5.8 million or 5.66% in 2025. Um it does give a breakdown here of the governmental activities and the business type activities and component units. Um so the business type includes the electric and water and sewer funds.

Governmental activities is pretty much everything else. Um total revenues and transfers for the year were 41 million and total expenses were 34.7 million. The general fund had an increase in fund balance of $938,000 and ended the year with fund balance of 7.6 million. Um of that 2.4 million is non-spendable and $42,000 is committed. So that leaves unassigned or available for operations of $4.8 million. The city also did talk about some of the project highlights. It's a lot of um street improvements that were done in 2025 as well as electrical system improvements. Then if we go back two pages to page eight, this is a summary of the net position with a table with some numbers in it. So total assets of the city were 111.8 million. Um that's made up of current assets of $50.8 8 million which is up 7% from last year and capital assets of 60.9 million which is buildings, equipment, vehicles. Um and that makes up 55% of the total assets of the city. Moving down to the liabilities there, total liabilities were 10.8 million. Um current liabilities were 3.1 million and non-current or long-term is 7.8 million. And that long-term includes $5.2 $2 million in debts and then $2 million in the net pension liability. Um so overall the liabilities are down 30% from fiscal year 2024. And then the net position there uh 99 the total net position 99.6 million which is up 5% from 2024. Um that's made up of a net investment in capital assets a 54.8 million restricted net position of 9.2 2 million which has to be used

for certain purposes and then unrestricted of 35.7 million. Um it does make note here that capital assets are largely made up of electric water and sewer and street system assets. U moving on to the next page page nine gives the revenues and expenses of the city. Um the revenues are broken down between program revenues which are specific to certain programs and then general revenues. So program revenues were 27.1 million which is up 12% from 2024. General revenues were 9.8 million and so total revenues were 36.9 million which is up 12%. Um total expenses were 31.8 million which is up 7% from fiscal year 2024. Um some of the more major areas of the city include the public safety, public works, um recreation and cultural, water and sewer and electric expenses. So overall on a citywide basis, there was a net increase in net position of $5.3 million. And from here, we're going to go all the way back to page 59, 58 in the paper copy, 59 in the PDF. Um the budgetary comparison for the general fund is presented there. So this shows the actual column of what how the city performed for the year for the general fund, the original budget and the final adopted budget. So the city adopted a final budget of 10.5 million for revenues and came in at 10.4. So just slightly under at about $93,000 under budgeted. Total expenditures were budgeted at 13.2 2 million and came in at 11.9. So better than budget by $1.3 million. Um so overall the city had budgeted to have a net loss for the year of 327,000

but ended the year with net income of $938,000. Um so that is a overall um positive variance better than budget by $1.2 million. Um the fund balance at the end of the year is $7.7 million. That's approximately 64% of an annual of your 2025 annual expenses or about seven and a half months of expenses in the fund balance. From here, we're going to go back to page 75 in the paper copy or 76 in the PDF, which is this is the schedule of expenditures of federal awards. So, this is that um federal grant audit that I mentioned. There were three separate grants received um grant sources. Um so the Michigan Department of DNR recreation grant sorry it's on page 75. Um treasury so um ARPA funds basically coronavirus state and local fiscal recovery funds. The city receives some and the city also received some from the county. So city receives some directly from the state and also applied for some from the county. And then the US Department of Homeland Security grant um FEMA dollars for the ice storm were about $895,000. So we did audit two of those three programs as a major program. So we looked at the compliance requirements for spending with those and the city was in compliance 100% with the programs that we looked at. Um any questions on the financial results? I can go over the letter. We can do questions at the end or we can do questions now. Start with the audit related communication letter. It's the separate letter that's attached with the financial statements. I didn't put Sorry Sarah didn't put a

page over. Um so this talks about compliance and internal controls. So that's compliance with general laws and regulations as well as your policies and procedures of the city. Um, again, we did do that federal grant audit and did not find any non-compliance or internal controls related to your federal funding. On page two, we did have one item that we have reported on in the past and is very common in governmental entities. So, that's the preparation of the financial statements. And so, this is a finding where the standards require that management prepare this entire booklet with all the disclosures, but in reality, we do it for almost all of our clients. Um the city does review and approve the financial statements, any audit adjustments, um the drafts of the financial statements before we issue them. So we're still independent to issue an opinion on the financial statements. Um we're reporting here that general fund had one function that exceeded the budget. So that's recorded um or reported within the financial statements as required by the standards. Under qualitative aspects of accounting practices, um the accounting policies are listed in note A. We found everything was recorded in the proper period. There was nothing where there was lack of guidance on how to record it. And then on page three of the letter, the estimates inherent in the financial statements include the net pension liability which is based on information provided by MS and then um the estimate of depreciation or depreciable lives which is based on the abdoped capitalization policies of the city. As far as significant disclosures, we mentioned the investment risk disclosures and the pension disclosures. We had no difficulties encountered in performing the audit. We had a couple of audit adjustments that are listed here at the bottom of the page. And then on the top of page four, um, as a matter of convenience, we also posted

adjustments for debt and capital asset activity, pension liability, and lease receivable activity, which is required by the standard. So we converted basically your component units um to full acral basis of accounting. There was no disagreements with management and no consultations with other accountants. And then starting on page five, there's some new standards that are coming out. It seems like they come out with new standards every year. Um the first one is the financial reporting model improvements. Um this is effective for 2026. It has several components here. The biggest that will affect the city is it's changing what it wants to see in the management discussion and analysis. So that first section will change next year as well as those um budgetary comparison schedules. It's wanting more um requiring more narrative of when you go over budget why that happened. Um disclosure of certain capital assets or gazby 104 is specific to certain kinds of assets um public private partnerships, leases, intangibles. um you don't currently have any of those, but this governs the accounting for those. The uniform grants guidance capitalization thresholds. So the um effective in the year ended September 30th, 2025, the federal guidelines increase the capitalization policy for federal grants up to $10,000. The city currently follows $5,000. Um so you could potentially increase your capitalization policy up to $10,000 if you would like to. it creates less bookkeeping um on your depreciation schedules for those and subsequent events. There's also another standard Gatsby 105 that just requires more information. If something happens after the end of the year that might have a potential liability or effect for the city, it has to be disclosed in the financial statements. And then finally on page six under other

matters, it talks about the all the schedules in the back of the financial statements behind all the notes um the pension um comparison schedules, the 10-year comparison schedules. Um we did look at the underlying information for those and found that everything was fairly presented. So any questions? Yes, I don't and I don't think you do. Council, do you have any questions? Jo on the letter related communication. I have actually three brief questions. One with a significant deficiency.

Yes, it happens all the time. Every client has it. So what is your suggestion on the significant because it it to me it brings out unnecessary alarm when you significance. Yes. And there's no solution unless you just hire an accounting firm to correct. Yes. So that um what's your suggestion that we should do? Well the basically the suggestion is to review the drafts carefully look at the audit adjustments make sure that you understand everything that's in the financial statements and then if you did that if we did that that would be eliminated. No, it seems seems silly. It is. It's required by the standards. It's their language. They call it a significant deficiency.

That's that's what I thought because I to me it's not at all a reflection of it's not. No, we have it in a lot of smaller entities. Second question is I got a little confused on the the the adjustment of the million dollar um loan proceeds from the uh could you just explain that in in layman's term ling's term right so you received a brownfield development loan for your housing projects I believe um of $1 million and when that came in as revenue it was posted against fund balance or your equity rather than posted to revenue. So we just moved it to revenue for the financial statements.

How did that how did that flow in our budget and our reporting during the year?

I posted it directly to when I set it up with it in our system to establish a new fund. I posted it right to fund balance as equity. You know, it came in cash and equity in order for the budget to make sense. So at the end of the year when we did the budget for 2026, it would show estimated what the fund balance would be um for 2025 and estimated for 2026. So you'll see on page of the audit, you'll see that the fund balance I have and that the auditors have does agree. Okay. at the end of um so you're

I think you booked it to the loan proceeds and it wasn't really a a revenue like you know interest income or something that made sense so it was more for budget presentation back in October November. Okay. My third question, and I think this is a typo. On your very last paragraph, you said it's restricted for the use of the board of directors. I assume that's a that is for some other client, not are we the board of directors or we the city council? Oh, yes. It should say city council. So, this correct that is not a a normal term. No, no, thank you. This

So, mine is just a postcript on Mr. knocks because every year look I call this the catch 22 thing. I know it's this deficiency because essentially what it's saying is that using you is the deficiency sort of. Yes. So okay using us um again it's it's required. So it's inherent in the way that you do business but it's not as if we found anything wrong related to it.

And then on page three I know I asked this question last year too but my duty to do due diligence here. Um you say investment risk disclosures in note D describe various risks inherent in the city's investment portfolio and last year I asked you you know what advice do you give us to minimize or those identified risk and my recollection is there isn't any is that is that correct

that is true so your investment risk disclosures tells you things like maturity like how um how long of maturity you have on your assets the ratings that you have on those you use investment advisors, they have uh benchmarks that they have to meet. You're all within those benchmarks. This is simply pointing out that those, you know, risk disclosures are included in the financial statements. However, we're not identifying necessarily any risks. It just helps the reader um identify whether you're carrying current investments or long-term investments and what kind of ratings they have on those. Thank you. You're welcome,

Miss Walker. Thank you for your presentation. Um so on page two of the summary uh was it shared what what the general fund um had one function expenditure that exceeded budgeted amounts. It was it's in a footnote. Let me find it really quick. Capital out safety department. Oh put in their wages. We did do a budget amendment but I did not estimate enough um of wages. We have holidays in there, overtime, vacations, those last 15 days of the year, and we did budgeted amendments, I think the first meeting in December. So, thank you.

You don't know how much overtime they're going to how much snow or you know what happens with public safety. Yeah. So, how you prepare for like your budgeting season for the next year is you take into consideration all the recommendations here in preparation for rolling out the 2027 budget. So,

and usually general fund expenditures are shared about almost equally between parks and recreation and public safety. They're like anywhere from 28 to 36% of our general fund budget on a yearly basis. So I would um so when we get ready for um the planning for our budget for 2027, it would just we would want to make sure that we were compensating for enough of public safety wages and overtime and time and a half and triple time and Yes. Yeah.

It is sometimes very hard to plan for not necessarily wages but like other projects. You don't know what they're going to bill through the end of the year until after the end of the year. So you have to predict that when you're adopting your final budget amendments at the end of the year. So it's common to have overbudget. In total, the city was still a million dollars better than they budgeted for the general fund. Thank you. Noticeable city. Yes. This is not a and it's and we're within the fall area, so to speak, with other cities. I think every finance director tries to be in budget and they hate to see it when we have to report that they're not. But

Mr. Wilar, just one question and this could be for you, could be for staff as well and I'm trying to find the page. I can't find it real quick, but the uh analysis of the general fund actual versus uh budget at the end of the year there are general fund projects that overlap that time period. How this is remarkably close. Yes. In dollars. How did that happen? Meaning meaning if if a project not if not projects that's budgeted for 25 is not finished

and it's not you haven't in yet made the expenditures. How can you fairly compare budget versus actual? Most of our project projects are completed within the year. So we don't carry a lot of um um what are they called just carryover fund balance VIP construction and pro progress we don't have a lot of that especially with the general fund because most of those projects take place during the summer

um and and the streets as well. I think last year was the first year we've ever had kind of a carryover of a a large streets project. But at the when we're doing the budget comparing the the difference mostly in the budget when you compare when you look line for line in the general fund you know the revenue and the um expense side is mostly due to kind of guesstimating how much the chill maple block um little traverse wheelway um those grants that we had through those you know we were thinking maybe the chill this much would have been expended and we would have received this much revenue. So a lot of that was timing. So that's why you see such a

So there is some guesstimating that goes on at the grants definitely was a huge guesstimate just not knowing how fast Maple Block would expend um that grant you know we thought it would be completely done by fourth quarter last year and it's carried over. I think there three 375 400,000 still to spend on that grant. So that's where most of the variances were.

And then Pen Park project that came in 125,000 less than what was in the CIP or what was in the budget. Um, Maple Block, Travers, Marina, Gasoline, Marina, there's almost every year there's almost a budget adjustment for the marina because you just don't know whether and gas prices really um skew it from year to year. So you'll you'll see almost every year there's budget amendments for

well because I noticed the contrast between being able to look at this end of the year statement where everything comes together and the the the statements that we get with each council meeting that are largely unintelligible because of timing issues. In other words, you can't really look at them in a management and say, "Well, we're right on budget because of the timing issues." But it all seems to come together December 31st. And yeah because rather remarkable at the end of the year were acred were an acrruel basis the rest of the year were cash basis where if you're from the private sector you're acrruel every month thank you

that okay anyone else have a question or comment what what is our for merge what I don't know where percentage you're you're doing well. He's been making additional payments. Um, I know last year we did a half million. I was going to say it's it's an estimate. I always point out that it's an estimate because it can be on page page 62. Thank you. Just in case. Thank you. The amount is around four 39 or something. It was you're 95% funded at the end of 95% funded. 90.

I thought you'd look at that first this year. Yes. You were 88% funded in 2024. We are 85% funded. But but but I hate I hate to be a Debbie Downer, but most most of the increase was due to Mr. Investments. Um and you know that's at the that can change tomorrow. So that's the only drawback of but it's it's nice to see that number sitting there. We're so far ahead so many people. Oh, absolutely. We're not comparing ourselves. This was This was because council eight years ago started to put in a million dollars. We were over 8 million I think at one time, weren't we? Close to it.

Um it was always a million for I think four years in a row. That's on page I'm sorry 63 shows the extra contributions that have been made over the years. Side note, it does remain a moving target because of things that happen in Lancing. So we get excited about 95% and then they reassess something. Yeah. Yeah. Assumptions change, interest rates change. But back 10 years ago, we were in the 60s. So correct. Council took it that we needed to do something about it. It was like our federal debt and it was admirable. Staff supported and was very you guys were very positive about getting it down.

Oh yeah. Alstra. Yeah, there we go. I think Mr. Mr. Nav, you have something you want to say? Um, just a little bit of editorial. I I think I think this is great. I think this is the greatest report card. This is where, as you said, it kind of we go cash base cash bases and then it all comes together here. And I and I I want to con continue to um to reiterate how fiscally sound we are in my opinion how well you do in in presenting the numbers during the year to us and in the answers.

The report card comes out and says every year we're getting better and better. Our current ratio is amazing. We have we have you know we went through this year with a good with decent surplus in spite of the ice storm in spite of not posting the receivable from FEMA on the on in our budget that was that we treated that that came in. So, we have we're in I want to continue to say to council, we're really strong that we ought to feel very comfortable to make long-term commitments for the the better of the city because of these year after year after year improving the vision. That's all I wanted to say. Thank you.

Audrey, do you have something you want to say? We did post for the utility for the enterprise funds that amount was booked to revenue just because of the nature of the utility funds. But um all of the other funds it was booked to you know with crude revenue and grants receivable. So it's only on the balance sheet side just so it's recognized that it would be coming what about 415,000 was not able to be recorded as a receivable under governmental funds. that we got. Did you receive it now? Yes. Oh, yay. It's the first I've heard that has come through of my clients. They've all been waiting for it.

Can I ask how many cities you do this with? Oh gosh. I probably 10 or more cities, townships. Okay. Well, thank you for working with us and ours. You're welcome. We're all saying thank you very much. Oh, thank you. visit the city again next year. We wish you could have come in the summer. I think you can always come back and visit us again in the summer. Drive carefully. Thank you again. Thank you, Trina.

Next is the consent agenda. the May 7th, 2026 regular session city council meeting minutes as well as acknowledge a receipt from certain transition certain administrative transactions that have occurred since May 7th, 2026, as well as acknowledge a receipt of the April 2026 revenues and expenditures report and approval of the Bay Harbor Fireworks display permit for July 3rd, 2026. If there's something in there that you wish to have taken out for discussion, etc., please let me know. Otherwise, I entertain a motion or subtractions, additions, changes to this. Mr. Moore,

I just had one concern with the resolution relative to D, the fireworks display. I don't know if you want me to just present that now or pop it out. So, you want to pull it out or you want to just hear her make her comments and go from there? You want to deny it or something? Go for it. We'll listen.

Sure. Um, if you look on page 62 of the request, very appropriate that they indicate that they're requesting Coast Guard support for safety purposes as the sponsoring organization doesn't deem their patrol adequate for safety purposes. So they've applied to the Coast Guard, which is appropriate, but the Coast Guard hasn't approved that. So my only suggestion is that the resolution is fine, but it should be conditional on Coast Guard approval and participation because they themselves say that's required for safety purposes. So that's what I wanted to bring forward.

So in other words, if they don't approve it, it can't happen. No, no. Yeah, exactly. That you would want to have Yeah. Yeah, that's all. We just don't have that. But they legally can't do it without that approval anyway, can they? Uh not not the way this is drafted because this says that all requirements. The resolution says that the materials have been reviewed and all requirements have been satisfied. Okay. So that's that's why I just suggested um would you like to make a motion to to that? Yeah. Sure. I would or do we pull this out?

But that's up to others if they're agreeable to that. That's why I put it forward at the outset. council, your preference to either leave it in and put the addition of that in this or pull it out and do it as a separate issue. I I think that we can make a motion which includes that condition so that we don't have to make a separate resolution.

Sounds good to me. So I move for acceptance of the consent agenda and approval of the consent agenda as presented with the exception or with the addition of um uh assuring that u coastard approval is is uh is received uh to complete the fireworks display point. Support have a motion from Mr. Wilmont, a second from Mr. Moore. Any other discussions, questions or comments or anything? I go to Miss Deck for roll. Wilmont I Moore I Nocttra I Walker

I Murphy I motion passes 5 Z for consent agenda. Next is public comment. This is your opportunity if you wish to speak to council to come forward. Anyone wishes to speak to council? Sir, come on down. Here's here's the deal. You give us your full name. You don't have to give us your address unless you wish. Your full name. Push the button so it's green. Is it on the screen? It's green. And uh address council and not the audience. Go for it. Okay.

Hi, I'm Dell Engles, 1219 Kalamazoo. I tried to get uh my son Sam here through uh last few months to do my bidding, but he declined. Uh I'm here to discuss our rapidly increasing demographic segment um in the city uh our resident deer herd and um I'm at ground zero kind of for that um where our home is. Um the population is growing rapidly. Uh I have pretty much six to eight deer living on my property. Um, and any given day, most days, another 15 to 20 coming through to and fro. Um, there were four staring me down as I left the driveway this evening. Uh, heading down here. So, um, and the population is about to double because it's that time of the year, right? So, um, my concerns are that, um, a number of, uh, damage to my property, um, um, is, um, increasingly hard to deal with, impossible, it's a better term. Uh, deterioration of quality of life, you know, with pets and and such. uh concerns about health uh with ticks and Lyme disease, concerns um for the family and just concerns for nature balance. Um it's just not natural that there are no there's no balance here. So um I encourage the city to take some bold action. And if I could say it this way, uh I would say doing nothing is no longer an option. something needs

to happen. Um, it's just out of control. So, that's what I wanted to share. Thank you. Thank you. Anyone else wish to speak to counselors? Anybody on the line, Sarah? None. I see none. Now we go to city manager report. I turn over to Andrew War.

Thank you, mayor. Uh, city council. My comments are fairly brief. I knew we were heavy on pre presentations uh this evening, so I kept my report fairly condensed. Um upcoming meetings this week, tomorrow night, we have our downtown management board meeting. Uh Tuesday night, May 19th at 6 o'clock in the community room. Uh followed by Wednesday of this week, planning commission meets for their regular monthly meeting on May 20th at 6 o'clock as well in the community room. Some brief updates on our large spring construction projects. Howard Street, Mitchell to Michigan. Um water and storm sewer uh have been completed. Uh all infrastructure in place underground. Sidewalk uh uh brick work has started this week. Irrigation and restoration work has begun. Sod and tree planting starting this week. And then asphalt paving to start the last week of May. Um, and I'll always preface preface my comments, weather permitting, days like today are don't allow a lot of progress um, at least in the afternoon. So hopefully we don't have many more wash outs um, going forward. Park garden lot, storm sewer infrastructurees completed, irrigation and landscaping work uh, has started. Grading and the aggregate base is in place and complete. We will begin asphalt paving this week. Um concrete approach uh and remaining sidewalk to be completed the last week of May and then that follows cleanup, restoration, pavement markings, signage and the pay station installation following paving. So we are coming up against the kind of the fourth quarter of our project. So, both are both have progressed very well and that's a credit to um uh our

contractors that are working diligently to get this work done. One more reminder on our weekly rubbish collection program. We had round one last week. Uh we will complete round two this week starting tomorrow night or tomorrow I should say uh west of Howard Street, that's May 19th and then east of Howard Street on Wednesday, May 20th. So, we encourage folks to uh get their materials out uh to the curb. Um and refer to our website for things that are permitted uh to be placed at the curb. Um mattresses are not permitted. We have tagged a number of mattresses. Uh we do not pick up mattresses. Um we encourage those to be recycled at the facility, EMT's facility. Um, small yard waste continues through the end of the month on Thursdays. We also encourage folks do not put their put loose material in the gutter pans. Um, place them in a in a container. We will empty the container and leave your container. U, but placing them in the gutter pan causes um, storm water issues um, kind of filling our our catch basin cover. So, do not place your small yard waste in the gutter pans, uh, but containerize those and we'll pick those up. So, um, that goes on again through the end of May. And brush chipping will continue on through the summer into the fall on Mondays, first and third Mondays through the month of April or through the month of November um, for brush chipping services. So, just a few reminders. Um, again, our our projects are moving uh well. Um, and one more kudos uh to Audrey and Bridget and our finance team. Um, this audit doesn't happen on its own. There's a lot of

inputting into the portal that our auditors have provided us and that inputting goes on really uh for a two three month period. There's a lot of late evenings that Audrey has put into this and so again, kudos to Audrey and her team uh for the great work um and this audit that's been presented for to you this evening. Thank you. Thanks from as well. You deserve this. I know we've had council meetings where you'll he'll say, "Oh, we can ask Audrey. She's downstairs right now working. We know that you put I don't know if I'm working or not. I just You just don't want to go home.

I've got the TV. I've got the game on. Oh, okay. Mr. Will.

Yeah. Um my hats off particularly on this Howard Street project. I mean, you say that paving will begin the last week in May. Well, that's like next week. It looks like it's ready to pave now almost. I mean, it this looks like it's going to be hopefully um earlier than you had originally forecast if the weather holds out because it's going beautifully as compared to last year which was torture. I would yes I would say amen to those comments. Um I I certainly don't want to overpromise but we are headed on the on the on the right trajectory to potentially do a little bit better than what we said mid mid June. So, I don't want to jinx oursel and and have uh the monsoon start to pour into town and hover over us. But again, really credit to our team that's in the field, Jason and Matt, um who really and and and really get these projects. I I've I've been out on the field watching them kind of how they interact and it's like traffic cops out there directing traffic and and moving people around like like puzzle pieces. So, they've done a really great job of keeping up with uh our contractor. Our contractor has really, you know, done a a great job and uh so that that's that's been very very very helpful. Um I think we're all pushing in the right direction. We we have taken some some hits with downtown business owners. They're they're expressed concern about the how, you know, having that intersection down. It there's just not a We started very early. We started in April as quickly as we could. Um, and it's just been we're we're trying to get it. We no one wants to get out of downtown quicker than us. We we want to get out of the way. We we understand that it's an inconvenience. Um, but hopefully this short term inconvenience is something that we'll be

able to look back and say it was just a blip on the radar and and we can all enjoy improved infrastructure. we can all enjoy improved surface um and just the amenities that come along with that. So um we did have a water uh leak in the alley on Friday, of course afternoon that caused our crew to to stay um I think they finally wrapped up about 9:00 in the evening. We were concerned that that would require an outage, a water outage, which on a Friday night um shutting water off to uh restaurants downtown was was concerning. So, fortunately, we were able to kind of work around the water and and keep the water on. Uh again, kudos to our field staff for for being able to work through those conditions, but uh you just never know infrastructure- wise what may happen and what may pop next. But um we're excited to kind of be at this point anyway and hopefully we can kind of kick this uh across the goal line here soon.

Council, any comments or questions? I see. Miss Walker. Thank you. Thanks, Shane, for the report. Um, can can you tell me if um or maybe you discussed this at last council meeting, but that the Paskki Farmers Market has been moved back a week because of the Howard Street reconstruction project and that it's going to be um hosted at uh the old Paskki News Review parking lot. I think the owner of that is offered to kick off the farmers market on May the 29th.

Thanks for that reminder. Um we were planning on starting on the 22nd. Um the decision was made by um by the chamber to push it one more week. Um and then they'll we'll have it probably one maybe two weeks at the former Paskki news review site in that parking lot um for that one to two week period and then we'll obviously be back open and be able to put it back where it was. But so there'll be a maybe one to two weeks that will be at that location, but that'll kick off on the 29th. Thank you. Anything else? Council, Miss M,

it was disappointing. You It was the chamber's decision to not do it on the 22nd. Is that correct? Yes. Do we have any reason why they decided not? Because I know there has been some disappointment expressed by both vendors and the public.

I think that was just a coordination of there there's still a lot going on down there. um still a lot of um construction traffic and then just for the safety of the general public, it would benefit us by pushing this one more week to kind of get some people out of the way and and kind of open a little bit of traffic for for the farmers market. So, that was one of the justifications. Nikki's got her hand up. She can probably talk more intelligently about it than I. Hey there. Hello, Nikki.

Hope everyone is well tonight. Uh, yes, you kind of touched on it, Shane. The the biggest concern um was just the additional traffic and by holding one week um it allows us a little bit more safety, a little bit more flexibility. Uh and we're extremely grateful um to David Mikl for allowing us to use the Paskki News Review parking lot. The original plan was to have it on the greenway corridor. Um, but with construction and with the darling lot um, and the space that we would need for the vendors, we were concerned that could be a safety issue as well. Um, so this is kind of the the best situation. And I will say that um Emily Stutter on her staff who runs the farmers market and is our market manager, we did um reach out to all vendors prior to moving it a week uh to see their comfort level as well. And they were in support of, you know, make sure that we're going to do it in the right way, do it where everyone is safe, our vendors are safe, um and we can kind of not make uh the congestion any worse. So, um, and we'll extend it a week, uh, most likely, uh, in the fall as well and go one extra week as long as weather allows us to.

Thank you, Nikki. Uh, any other comments, then we move on. We're going to go to old business. Second read and possible adoption of a proposed ordinance amending appendix A which is the zoning map concerning the reszoning of 224 Michigan Street from office service to B 2B mixeduse corridor. Mr. Moore,

I will once again make a statement for the record. I will abstain from voting on and participating in discussion on this resoning request and the following agenda item regarding the expansion of the parking exempt district due to a potential conflict of interest. as my husband and I own adjacent properties on the 200 block of Michigan Street. And as the next agenda item indicates, my husband Charlie Redstat offered input to the planning commission regarding his perspective on the proposed parking expansion. Thank you, Mr. N.

Just a question. Is there any changes from the first? This is Last time we were just We didn't have any issues with it. Yeah, correct. No changes. The the owner is here. She wasn't able to join us at the first reading. If you had any direct questions for Lindsay, she isn't in attendance today. Otherwise, I'd entertain the motion. I'd be happy to make a motion to um do this. I'll second the motion, Mayor. Okay. So, the motion is to uh approve the ordinance, amend the uh zoning map to include the reszoning of 220 Michigan

for Michigan Street. Okay. Any other discussion? Public wish to weigh in on this at this time. There being none, I go to Miss Beck for roll. Doc I. Walker. I Murphy

I. Motion passes 4 Z. The next one is the second read and possible adoption of a close ordinance amending appendix A zoning ordinance article uh 17 section 7704C concerning expanding parking exempt district to also to include 224 Michigan Street. Mr. Wilmark. Uh, I move acceptance uh of this provision uh to include the central business parking for 224 Michigan

support. I have a motion from Mr. Wilmont, a second from Mr. Knoprop. Any other discussion? Council public wish to speak on this to the council. There being none, I go to city clerk Beck for roll. Wilmont. I knock I Walker. I

I motion passes 4 Z. Now we're going to new business. There are three items. One's the adoption of proposed resolution that would establish property tax millage rates for 2026. And that would authorize appropriations of the property tax revenues, the various city funds, as well as previously have been approved as part of the city's 2026 annual budget. I'm going to turn it over to city manager Horn.

Thank you, Mayor. So, this is our our annual process that we go through um kind of setting our millages for our summer uh tax bills that will be released uh as was mentioned in the memo uh and approved in the 2026 budget. Um no changes to the established millage rates. Um obviously as we as we know the um inflation rate for 2026 as calculated uh by Treasury was 2.7%. Um and so we're capped at that um inflationary rate. So there will be um a loss of revenue for the city overall as a result of these uh headley rollbacks to the tune of about just over $200,000 in revenue loss that we will not realize as as a result of this continued uh roll back. Um, so there was a few questions that brought about today about how this may impact the average, I guess, uh, uh, taxpayer in the city of Paskki. As hard as it is to kind of maybe guesstimate, we we kind of see this as flat. When you add in the um uh the values taxable values that have increased in Pasi, you subtract that inflationary um rate uh that that the Headley has rolled back. So the millages that everybody will will pay are are less than what we had last year. So, I think that results, you know, I I ran a calculation just actually Audrey ran the calculation for council member Wilmont just to um kind of see how it may impact him directly. And I the change was $19. So, he'll pay $19 less in taxes. Um so, when you say flat, that's likely, you

know, you're not going to see a large increase, but you're not going to see a large uh decrease either. and when we when we do the tally um for individuals. So these rates that are on that are in the memo are what is um again Audrey went through and and made the calculations based on the the uh formula that's in in the memo as well. Obviously we don't have any um ability to make any changes to that. we run the numbers uh that were provided and then we the result is the millages that have slowly rolled back. Um, so obviously if we ever want to consider additional revenue that the, you know, looking at restoring some of this roll back that's occurred with an override um something that the school just went through um, you know, in May with their election. Got to recover some of this um, some of these millage rates that again we've lost over the course of time uh, based on Prop A. But um, these are the numbers that are in front of you. Again, no changes to the millage rates um from the previous year, just a reduction based on uh based on the Headley millage roll back. So, happy to answer questions. Audrey's here as well to answer questions or concerns. questions for council for either Audrey or manager.

It's actually not a question, but in doing the calculation, the proposed uh 2026 millages are actually 2% down. So, uh that's after Headley. Is that what you're saying? I didn't understand that because they're not the same as 2025. The the millage rate itself is decreased by two 2%. Well, 2.575 mills. Yes. Right. And the taxable value increased by 2.7%.

Right. So that all balances out in other words. So the the the millillage we you actually backed into the millages in accordance with what the budgetary needs were for the 2026 budget. Correct. No. No backing in. This is just we try to when we do the budget in the fall, we try to we track all year what we think the increase in taxable value will be or per the state inflationary rate, right? And we can get it pretty close because we've, you know, their calendar year is October through September.

Um so I had originally budgeted 2.5% taxable increase and it or 2.6 six and it came out to 2.7 when the um state released the number and then each unit of government schools or Greenwood Cemetery each unit has a different roll back factor. So that's why we can only speak for the city portion of the taxes, right? Yeah. Did that answer your question? It does. So the good news is the millages went down. Uh the the offsetting news is because of the appraised values going up even after Headley uh it doesn't result in much of a discount

for the taxpayer but at least it does not represent an increase and it doesn't um and that does not account for properties that have had improvements upon their property or for homes that have sold and unc uncapping to occur within those those new purchases. Even though there is there is some concerning rumors in Lancing about doing away with I don't know if you saw some of that uncapping discussion where potentially

that may go away. Um obviously when I bought my house on Lendell the previous owner had been there I don't know 30 plus years probably so he was he was capped and then when I bought it at uncapped and so I started at a a much higher um level. So, there's been discussion in Lancing about doing away with that. Um, I'm not sure what that looks like. Well, there's been there's been discussion about removing property tax completely. I don't know if that'll ever get traction, but um and who knows how that's going to be replaced, but um just a question. When you said they're talking about removing it, what does that mean? Just not uncapping it. So not um so when a when a property changes hands it would still be at the same level

taxable value. So you wouldn't realize we get to realize additional revenue because it it uncaps and it's now at that current modern day level. So there's discussion about eliminating that. So, um I don't again I don't know where that's at or if that's just uh in in uh discussionary phase, but uh that is out there. I know the league has advised its members about the municipal league has advised its members that this is ongoing discussion. So, I'm not a big cact guy, but that doesn't seem fair. Seem fair.

Yeah. I mean, there's two ways to look at it because we're not receiving, you know, kind of how the assessors base the value once you purchase that home because now your market value around you. Yeah. The the sales and everything that they base it on. Um, I receive phone calls from new owners of residents that, you know, they'll purchase a house and beforehand their real estate company or they've looked, you know, online in EMTT County and they have a pretty good idea of what that, say, older resident who's lived there 30 years is paying in taxes and then depending on their income,

you know, they pay the same amount the first year, the next year it becomes uncapped and they get this huge bill and they're so upset at the city. It's like it's a state Yes. It's a state um thing. But you know, I can see their concern when you you you think you budgeted this much for your taxes. I felt sorry for a couple people that have called older women is what it was. Those these two and I felt very bad because they called and said, "Do you realize what you guys are doing to me tax wise?" It's like the realtor should probably have let you know

what is going to happen within one year from the time you purchase it. So, how do you I may how do you so how do you explain that like when you're called upon and you're asked to like understate or justify that the city has increase my taxes? Um I I I don't understand how you would come back with like an answer to that.

The um I explain it kind of like I explained it here. You know, try to explain that that person has only their taxes have only increased per the inflationary rate each year. You know, it's capped at this much. But once you purchase a new home, the value of it is different than that person that had lived there for 30 years based on the sales around you and 50% of um replacement cost is part of it and market value at the time. But there was something I went to a conference last week and there was discussion about um mandating realators to disclose to purchasers um this uncapping process so so people would not be so unaware of it.

Yeah. Yeah. That would be great. Mr. Wilmont. Yeah, I would support that as well. Um because the truth of the matter is we've been in our home now since 2013. Let's see. That's 13 years, right? Uh we could not afford to buy our home today not just because of the price but also because of the subsequent change in the tax base. So it's it it really is a snowball in the face for people that don't understand that going in. Yeah, absolutely. Miss Walker.

Thank you, Mayor. And so in terms of like assessor and assessment of property, so just looking at my tax bill, which my taxes are super low, so it's like hardly anything, but it says like in the notes that you when your taxes do go up, it's like something like it's because of the market value of like the homes around you. No, your assessed value might increase. Okay. Based on market value and home sales around you, but taxable value is at these these um state rates of inflation or the state equalized value. Is that another like term that they use in like a line item in the

We used to have that on our tax bills. There used to be state equalized Yeah. assessed value and taxable value. And I think they got rid of that in 90 94 or something. I'm not I'm not sure on that. So, I just have another question because it relates to the people are receiving letters about be um having city staff or contractors come through and take pictures of the exterior part of their homes to determine if there's been any updates that would kind of trigger an increase in somebody's property value based on exterior improvements. Is that the objective of that? Are you talking from the assessor or correct?

Okay. Yeah, that that's updating. We're we're we are required to do um is it 20% 20%

20% of our parcels have to go through a process of kind of reassessing um each year. So we we we go around and and our assessor that's part of his contract to make sure that we're checking that box, if you will. So going around and getting pictures and and looking at um improvements that have been made as part of his um as part of his contract to do so. So yes, we we will go around and and get those pictures collected uh get those updates complete. Um so we are required to do 20%. Yep.

And that is not an extra building or out building for supplies or something like that. that that does not affect it at all. I know I think it would you put something on your property, an accessory building, because that would add value to your property. I just talked to somebody who at the arts commission who uh was told when they came through that their little shed that they put up does not count because it's not attached or a part of the actual home itself.

That was Kathy. Okay. Theoretically, you shouldn't be able to capture much because you already capture improvements through building permits, do you not? So, the assessor already has access to any improvements that may have been built, may have been made to the home by notification of the building permit. That That is correct. But I I live in the country. I redo our whole back deck and well if if it's not done with a permit right so we decide not to then it might be caught by this 20% review but theoretically the review shouldn't catch anything that hasn't already been caught through the building permit process

if if the resident is pulling the permit. So, I I put on a deck. I don't put I don't pull the permit. The purpose of the assessor inspecting the outside of my home, he would catch that. Oh, she put on a huge deck on the back. Permit was not pulled. The permit would be done based on your uh your contractor may have pulled the permit, but it'd be based on your address. So, theoretically, the assessor could have if I pulled the permit. Yeah. If you pulled Mr. more. Um, just for what it's worth following up to Miss Walker, um, it's my understanding based on the form that was submitted is it's optional. You Yeah. have to give permission. So, otherwise it's an estimate.

That's right. Yeah. Anything else, council? We need a motion on this. Do I have a motion? Move. Oh, wait. May I say one thing before we continue on the updated um budget numbers for the various funds? There's kind of an unknown. It's on page the second page of the agenda memo. So we have what the gross tax revenue revenues will be. Oh

um 76, I'm sorry. And we have the township act 425. That's the 2.5 that we pay to resort township and that's 2.5 mills of the act 24 properties that is updated from the assessor. I received a report, but the TIFFA captures this year two of the TIFFAS, the um lofts at Lumber Square and the Maple Block. Those, you know, it's our first year getting a large increase in those values of those two projects. So those estimates were taken off of um when the projects were brought to city council and approved what they estimated the increase value would be from one year to another. So that's the only thing that might um be significantly different is the tiffith captures here you know just to give a heads up you know for the future once we receive the tax role.

So the good news though is that in the resolution it's only the millage rates. Correct. Correct. Thank you. So, did I have a motion and support? I think who made and I needed a second support. So, I have a motion from Mr. Knobro and a second from Miss De Moore. Any other discussion? Public wish to weigh in on this? I go to Miss Beck for roll. Knock. I walker. I I motion passes 5.

Next is the adoption of a proposed resolution that would authorize contracting with RB Lions Incorporated of Charavoy for marine ice damage reports. I'll have uh Kendall come up. We kind of saved Kendall stuff to the last since he doesn't have anything to do tonight. Well, it's too foggy out there for Yeah. Well, we'll keep it we'll keep it brief.

This this is a periodic maintenance um issue, particularly when we get heavy ice in the marina, fluctuating water levels. Um you can take a walk down there and you can see a lot of the pilings that the boats tie up to are heaved. The ends of the docks. um some of the fingerp have been raised. So when that happens, we uh write a specification and and and offer that job or publicize that job for uh contractors to come out and and fix it. Um it we are still we need to do that this year. It's going to be a little bit of a challenge because of the the you know the ice was on the marina late. This bid didn't get out till late. So, we're going to have to do some marina shuffling with boats, but um um it's certainly something that we can't predict. Um but it it is something that we'll we'll need to address.

Question. More. Any thoughts on the significant difference between the two bids? The higher bid is out of Traverse City and that's about an 18 hour uh barge push. So at at 5 miles an hour, um it takes a lot of gas with the gas, you know, price is obviously a lot higher. Um so it's it's it's nice that um the the outfit out JB Lions out of Charlotte Boy was able to bid this. Got it. Thank you,

Mr. WA. Uh, I move that we uh uh adopt the proposed resolution authorizing to contract with RB Lions of Charlotte, Michigan for ice damage in the amount of $94,230. Second from anybody support Mr. Moore. There's a second. So I have a motion from Mr. Wilmont, second from Mr. Moore. Council, any other discussions, questions? I just had a just a question on the contract. What's the time, expected timing of start to finish? They will likely be here about a week. Um, hoping to get them in mid June. To get them in here mid June to start.

Yes. Thank you. Where do they take the dredges? No, that's a different That's the next one. That's the next one. Okay. So, there there will be some um maneuvering. It's not ideal. It's not the greatest time of the year to do this. We were hoping to have it done like now, but so we're going to have to move some boat have boat owners move around while we do this work, but um hopefully we can get in and get out and with limited disruption. We've done it. We've done it before. Um 2021 between the the actual pers, right?

They have to go between the peers. They won't have to go in any of the boat slips. Okay. Any other questions or possible motion? Already have it. We have from Mr. Wilmont and a second from Mr. Moore. Other questions? Public wish to weigh in. There being none, I go to Miss Beck for roll. Wilmont. I Walker. I knock I Murphy

I. Motion passes 5. Now I get my question answered. Next one is the adoption proposed resolution that authorized into execution of the state of Michigan Department of Resource Natural Resource Grant Agreement for the marine dredging. I go back to Kendall for information. Well, um, last year we had we had some significant depth issues, particularly between this this pier closest to us as our D pier and then the one next to us, the next one in is C pier. We had some pretty significant uh uh depth issues pertaining to the you know the river spoils um sediment uh movement and and fortunately this year because of our spring we're actually up about 18 inches. Um, we we I did have this a baometric survey on this to to uh we did a real comprehensive bottomland survey which indicates the depth of of every slip um in the marina as well as the the main channel and as far up the river as we could go. So hopefully this year um we are going to be able to to to operate. We have not had any issues thus far. Um but this is a this again is a is kind of a product of the environment with the low water levels. Obviously we need to have boats particularly the sailboats uh that have a lot of draft be able to get in and out of our of our pier or of our harbor. So this year it it's been it's been good, but um the plan is to get this out and to get this dredged this fall. So then we could dredge the entire marina after the season. Uh because again,

by the time we get this out, the state approves it, it's going to be July or August by the time, you know, this is this is a doable contract. And in my mind, it's going to be next to impossible to try to dredge every slip with with boats in there. So, this would be a project that we would do uh likely in October. Where does the dredging material go? 911 block 200 East Lake Street. Yeah. Y'all might be interested in

want some driving, but I guess it goes to an excavating pit is my guess. Uh it will go on public property. Uh in in the past we've taken it kind of behind Gibson's there in the um in the Bay River Valley. We have talked about potentially uh taking some of the spoils over to the winter sports park to help with some of the the the forming of our of our bottom of our um ski and sledding hill which will be contingent upon some other um plans we we have for that. So we have some options. It isn't something we have to decide tonight, but we'll evaluate as we write the specs to see where the best option to put that. This grant is for 200,000.

Correct. And the other 200 comes out of the tiff. Is that correct? Comes out of the marina fund. The marina fund or the the reserve. The marina reserve. Yes. Marina Reserve. Other thing to keep in mind is, and correct me if I have this wrong, Kendall, but this is a five-year grant, so we do have some time. Um, but like Kendall mentioned, we're we're hoping to get in and done this fall.

Well, the permit, the Eagle permit, which since this memo was submitted, I did receive notification from Eagle that the permit has been approved. So, we we actually have now a five-year permit um through the state where if we have to come back in four years and dredge, we don't need to go through the Eagle permitting process again. Typically, these these waterways grants are anywhere between two and three years. So, we have plenty of time to to be able to to get this project done. Do I have a motion, Mr. Wilma?

Yeah. A question for you. Do have you calculated the marina for the last couple years has been effectively sold out for the entire summer. Correct. So, well, whatever the sales are, what kind of decreased rental uh revenue activity do you anticipate as a result of these uh improvements? I don't anticipate any revenue decrease because of the improvements. Well, because you have to move boats around, you can't you can't occupy all the slips. Well, okay. So, um this is the the dredging project itself won't will be done after the season is out.

So, we won't have boats to to um to to navigate around the the the piling project. We as we've done with the past, we've communicated with the Boers and and with the barge operators. If if boats need to go, then we will allow them or we'll tell them to move the night the the day before. We typically have enough um enough open slips to accommodate that those number of boats. So they'll use the transient slip.

They'll use they'll use the transient slip. So we might have six or eight boats that might be pinned in and we'll communicate with those boat owners and say we're going to fix the docks. If you if you need to go someplace or want to go someplace, let's get your boat out. So then those we'll move them to another slip in the marina. We've had some sizable watercraft occupying premier spots. Those won't be compromised this year. Um, they shouldn't be compromised. Thank you, Mr. Dav. Just a follow-up question on your point about the removal of where it goes. It's a dumb question. Why Why can't you just put it in the middle of the bay? It's really deep water there. I wish we could. What's What's Is that a Is that a legal requirement? I got it.

It is. I know. was able to do that when when they dredged what is that little creek that or river that goes through there pine or what not river they took material out and were able to dump it I don't know how they got around that or not but but this is just stuff coming out of the water putting it back where it came from sediment believe me u commissioner I asked that question all sorts of ways um and is there any logic that they provide not really rules,

but those those that's um the um you used to be able to do that, but evidently that's not a a thing that Eagle or the Bottomland um the the bottomland division will from the Bear River Valley and like you're not going to take soil and sediment and move it into the middle of the lake where there's not like erosion or discharge happening. Yeah. Well, it's incredibly deep. Contact your person, your eagle. It's never as easy as as what it what you hope it could be. But do I have a motion? What for this one?

I'll be happy to make a motion. Mayor, have a motion from Miss Walker and a second from Mr. Wilmont. Wilmont. Second. Second. So motion from Mr. Miss Walker, a second from Mr. Wilmont. Other discussion public Walker I Deore I Nocttra I Murphy I motion passes 5-0 thank you you're very welcome uh next is city council comments and I'll start with ward three Mr. Knob trap by three. I I move it around. I try to, you know,

I recognize that. Keep everybody awake. I'm going to continue to reiterate that I wish I would like this council to think long term. Our finances are strong and you drive around this community. The downtown needs, if I look at this, the next 20 years, we want to have a thriving community. Um, our downtown needs a lot of work and our our housing stock of two to $400,000 housing stock needs help and I sure would like to see us become actively proactively partnering with with people that want to do that and in using some of our resources to support it. Just a continual thing.

Word for Miss Walker.

Thank you, Mayor. Um, I did have a question. I know that I was unable to attend the um the last city council meeting rescheduled for the Thursday of election week. Um and I I did notice that there was something that didn't get transferred uh from a first reading around bicycles to to city council for a second reading. And in the minutes or the notes, um, it said that it was going to be transferred to back down to the downtown management board for a formal discussion as well as parks and recreation for a formal discussion and recommendation. And I I'm just kind of curious, so would that be something that would transfer over to our next meeting because parks and recreation has met and the downtown management board will be meeting this week

tomorrow. Um but if there's no formal recommendations coming forward, then do we go back to a first reading again? Um there will be recommendations from both bodies that'll come back here for the June 1st meeting. So it' be a first reading basically. Yes, first reading. I attended the parks and wreck and they did pass a resolution which we will receive.

Okay. That's not something. Okay. And then Okay. So to go back to my comments, um I did uh in preparation for our ward convention, I have um somebody in my neighborhood and we're doing assessments of vacant buildings primarily housing. and we came up within a fourb block radius nine vacant buildings some of which are registered. Sarah Beck actually provided me with the list of those homes that have registered. There are no commercial properties registered with our vacancy ordinance. So I'm hopeful that maybe we will be revisiting that because the legal loopholes have been found by attorneys representing commercial property owners in downtown Baski. So clearly we got to go back to the to the drawing board again and talk to legal counsel about how you um move this because I can I can predict that what our city convention will look like will be the exact same conversation outrage of our residents about the downtown vacancies. So um place your bets now. And um I I am concerned about the number of vacancies because it's a cognitive disconnect between our housing crisis and unhoused people. And particularly on Bridge Street, there are four vacant homes on Bridge Street where the where the um housing um where the housing of the homeless shelter is too. So stark uh discrepancies in our neighborhood. At the same time, we had that juxtaposition of Ward 4 being the place where there are now another 262 units and with the um with a new hotel coming online, that'll be another nine units. So, over 270 units of rental housing in Ward 4 and yet many many vacancies of of homes as well. So, um looking forward to all that. I would just encourage council if you if

you see something that's not on the list, get get with me and we'll do a deep dive on it and figure out what's why is that why that's not on our list. And but I we do need to bring this back to you uh with some language. People get creative and we're finding creativity um every day. So that language will be coming or that ordinance will be coming back to you to tighten back up accordingly. There you go. I don't think there's any such word as legal creativity. Is there an actual word? Oh, yes. Ward two, Mr. WA.

Okay. I just wanted to report that uh I attended the uh Paskki Rails presentation at the Carnegie building on I think it was Wednesday or Thursday night. Um it it was largely the same presentation as we saw last year perhaps. Was that here in city council?

It was right here. Um but uh they have made progress. Uh their uh long range plan uh that has been a two-year three-year project will be released shortly if it's not already released and uh so you can be looking for that. Uh they've completed their models and uh they're still moving forward. Uh the on Friday I attended with Shane and uh Lindsay the uh Northern Lakes Economic Alliance uh symposium down at Bo Mountain. Um it was a good good event. Um a lot of local speakers. Um I learned a great deal and had an opportunity to network. That's my report.

Ward warned. More.

Um, support for Miss Walker's comments regarding followup uh on vacancies. I look forward to that. Um, second of all, in the lane of adults modeling mistakes, I omitted to announce one of the seniors. Um, so I will do that now. Mia Yepz, a member of the PAS Youth Advisory Council is headed to North Central Michigan College and then on to Northern Michigan. and want to make sure everybody saw um city manager's email about the zoning preeemption legislation that is still moving forward in Lancing. Um that should be on everybody's radar because it basically takes away the power of localities to make decisions about essential parts of zoning. And if you have a perspective on that, you may want to reach out to Representative Fairburn and or Senator Deoose. Thank you.

I had the opportunity to attend uh League of Women Voters on uh what night was there? Wednesday night. Uh Mr. Wilmont was also there and it was about uh climate change and how it's going to a effect migration of people into our area and that we really need to start taking a look at it. The arts commission on Thursday uh identified uh uh selected art for their uh marina walk um and we expect that those will be in and up and end of August. Uh, also I attended a conference uh in Traverse City on a Northwest Michigan arts and culture conference uh with and Sheila Runes our consultant for the arts commission also she also attended it. Um it's good that we have networking to see if we can get more funds and support for arts in our community. There being none, nothing else, I call this meeting adjourned. Have a good day. We have one more meeting and then we have the city convention award conventions. Uh city manager will be getting you guys as always will be getting a packet or a list couple page a page of uh activities that have happened in the city in the last year. So you'll have something to take to your wards. I asked for construction updates, too. I mean, I know that

we'll need construction updates and we'll also need updates on where we're at with uh the vacant buildings and going through court uh where we are with the uh county building department in the courts. I understand that once they take over our basically, is that right, Shane, or tied? Yeah, we're we're international property maintenance code. Um, Emtt County is building codes. So, those we work very closely together, but they're different statutes, different codes that we're working on, but different animal.

It's likely we're going to need to schedule some close session time uh in the near future to get further direction. Okay.