Letter to the Editor: Village finances have reader rattled

Dear Editor,

To the Clarkston City Council:
I suggest the City Manager and Council reconsider continuing with the driveway installation at City Hall.
Concrete pouring is targeted for the end of the week of August 3, per Jonathan Smith.
One month ago, Council approved the 2020-21 budget as proposed by the City Manager. Since the approval several unbudgeted expenses have been identified:
1) City Hall driveway installation quote increased from $41K to $49K;
2) Interceptor drain project requires $98K from COVOC (City of the Village of Clarkston);
3) East Alley storm drain repair estimate for the city share is $19K;
4) Michigan Supreme Court decides against COVOC. James Tamm’s estimate last to Jonathan was $350K to Susan Bisio.
The above items total $475K not included in the current budget.
Smith included in last month’s budget approval resolution a constrained budget source of funds based on Tamm’s estimate of $300K for Bisio legal cost reimbursement. In that council meeting, Smith said Tamm had since raised the estimate to $350K.
Based on the $300K amount Smith said it could be funded by doing reduced/no capital projects (essentially infrastructure maintenance) for $244K savings, pulling $7K from the fund balance to its 16.7% minimum, and employee layoffs for $48.6K. The savings amount shown for layoffs was essentially the same amount as the driveway costs, $49K. There was no detail or discussion of how the layoff savings would be made, who would be impacted, how the November election would occur or how snow would be plowed or removed. and other functions required by law and safety.
If Michigan Municipal League or Tom Ryan professional liability insurance could cover the Bisio legal cost reimbursement, the than shortfall to budget becomes $125K. Using City Council Member Jason Kneisc’s suggestion of a SAD (special assessment district for assessing tax on a certain area) paid by residents, $176 per, for the city’s share $98K for the Interceptor project makes the shortfall to budget $27K. This is the best financial case for the city, but it depends of MML or Tom Ryan funding the Bisio legal costs.
I strongly recommend conserving cash until a source of funds, other than the City, is confirmed.
I recall no discussion or approval for driveway engineering costs. From my examination this morning, the driveway project is staked which suggests the engineering costs have been incurred. Smith described last evening the source of funds for the driveway installation as remains from City Hall construction and the parking fund. The source has no relevance to continuing to incur the $49K installation costs, given the city’s current financial situation and clouded outlook.
I believe continuing with the City Hall driveway installation is a huge mistake in judgment.

Best regards,
Chet Pardee
Clarkston

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