Grosse Pointe Shores financial outlook
is the bad-news sequel to recall

Grosse Pointe Shores residents might think they've put the city's most recent unpleasantness behind them, but what lies ahead could be just as bad.

That was clear after city council's finance committee met with the Committee of the Whole Tuesday (May 25) to discuss the sinkhole that is the municipal budget.

City Manager Brian Vick said the city administration has already made many accommodations to its shrinking revenue stream. City employees are working harder and some have taken pay cuts. Less money is going to maintenance and there are fewer part-time employees. City vehicles are on longer maintenance intervals, and many are on their last legs.

Public safety and public works comprise 70 percent of expenditures, but after a community survey revealed they ranked first and second in importance to residents, the city cannot make any changes to them.

After a one-mill tax increase last year led to a recall vote aimed at the mayor and four council members, raising taxes again is practically out of the question.

Vick said switching to curbside garbage pick-up is one area of potential savings, but because of union agreements the only money the city could recoup would be from the sale of the Cushmans, the small collection vehicles workers drive. Union agreements are in effect with 76 percent of city employees.

There was discussion about the city's legal services and how they might be made more cost effective. But it's a good bet residents could see decreased recreational activities and higher user fees.

Besides the overall drop in property values, resulting in fewer tax receipts, the major drag on the budget is rising employee costs – health benefits and contributions to retirement benefits, which are mandated by state law.

The city has taken measures to decrease the cost of their retirement plan and will continue to do so, Vick said. However, if the city changes benefits too much it is highly probable that there would be more employee retirements at an earlier age, which would increase the cost of their plan.

The finance committee will meet at least two more times before coming up with a budget, mandated to be submitted by June 11.  

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