BY PHIL CUSTODIO
Clarkston News Editor
The new city budget calls for a $28,456 withdrawal from its savings account.
“Last year, we added to the fund balance. This year, we’re proposing we use some of that excess,” said Mayor Steven Percival at the June 12 City Council meeting and budget public hearing. “It’s arguable you could go further. We still have a lot of projects on the horizon you could use some of the excess on.”
Proposed spending items for the upcoming year include $2,800 for a Building Department software upgrade; $8,500 for sidewalk replacement on Miller Road; $10,000 for converting paper archives into electronic files; $12,000 for repairing damage to Village Hall caused by mice, woodpeckers, and ants; $16,000 for asphalt overlay on Miller Road; and $8,000 for parking kiosk.
“There are still a lot of decisions to be made in regards to parking,” Smith said.
Council member Jason Kneisc, who is on the city Parking Committee, said paid parking kiosks are still up in the air.
“We’re not sure what that’s going to be,” Kneisc said. “Could it (‘kiosks’) read ‘parking improvements’ instead? That seems to make more sense.”
“We know we’re going to go to paid parking, we just don’t know what yet,” Percival said. “There will be revenue. We’ll see some of that coming in next year.”
The city’s fund balance increased this past year, from $178,306 to $225,081, said City Manager Jonathan Smith.
“Some of the things we had budgeted, we just didn’t do or came in less expensive,” Smith said. “The interim city manager (Rich Little) didn’t draw any salary. We were without a treasurer for 2-3 months.”
The property tax millage rate is budgeted
at 12.0966, down from 12.1056 this past year.
The city’s maximum allowable millage for fiscal year 2017-2018 is 12.7876, rolled back from last year’s 12.9168 due to the state Headlee law.
“The Headlee effect has really been kicking in these last four years,” Smith said. “It’s good for homeowners, bad for the city in terms of revenue.”
With another reduction of 0.691 due to the city library millage resolution of 2014, the proposed millage rate for 2017-2018 is 12.0966. The library measure was passed as part of the campaign for the Clarkston Independence District Library.
“The wording is somewhat in dispute – was it intended to be in place for one year or every year,” Smith asked.
The issue may be addressed by the Finance Committee over the next year, he said.
The measure was enacted to avoid double taxation of residents, said resident Lorry Mahler during the public hearing.
“It’s very clear,” Mahler said.
“It was never the city’s money to spend,” said Council member Sue Wylie. “We’re just channeling it to the library.”
“The letter of the law says to reduce it,” Percival said.
Clarkston’s taxable property value after the state Proposal A cap is $40,833,740, up 3.57 percent from last year. Tax revenue, which is the millage rate times taxable value divided by 1,000, equals $493,949, up $16,665 from last year’s $477,284.
“Home values are coming back,” Smith said. “Taxable value is limited by Proposal A –the rate of inflation or five percent, whichever is less.”
The state law was passed to make sure people weren’t taxed out of their homes when property values increased, he said.
Funding from the state is budgeted at $75,000, unchanged from last year.
“Michigan is the only state showing negative growth (in state revenue sharing) over the last 10 years,” Smith said. “They’re essentially using funds usually directed to communities on its own revenue growth. Unfortunately, we don’t see that changing anytime soon.”
Spending projects discussed but not included in the budget include full milling of Miller Road before paving, $34,000; $6,000 for additional sidewalk replacement, $420,000 for long term requirement; $60,000 for additional road paving, $1.17 million for long term requirement; new office computers, $21,000; and playground upgrades and marsh walkway in Depot Park, $12,000.
Council member Eric Haven, member of the Friends of Depot Park committee, said adding $6,000 to the budget for a parks and recreation plan could yield grant funding from the state Department of Natural Resources.
Percival agreed with the recommendation.
“We’re just spinning our wheels here if we don’t get the park plan in place,” the mayor said. “We can get that plan done and move forward with soliciting for grants.”
The final budget will be presented to city council at its June 26 meeting. The city must pass its budget by the end of June, according to state law.
“We’re a little late getting this to you but it’s still within the statute,” said Smith, who is working on his first budget as city manager along with new Treasurer Greg Cote’.

  Budget, City, clarkston, Clarkston City Council