Woods council committee gets
fiscal forecast for coming year
Grosse Pointe Woods City Council members put their heads together for nearly three hours at the Committee of the Whole meeting Monday night (March 8) to analyze the current city budget and help make determinations for the coming year.
“Consolidation,” “collaboration” and “job cuts” were some of the language tossed around as officials discussed what costs and services could possibly be reduced or eliminated to help the bottom line.
Treasurer Dee Ann Irby said the city's current-year fund balance is $3.9 million, including $705,000 in anticipated revenue through this fiscal year.
Irby said cost-containment efforts among city departments, including reducing travel and other expenses, gained $194,000 in savings. An increase in property taxes added $440,000 and a reduction in pension costs added more savings.
But Irby said that with next year’s reduced tax revenues, the Woods will be $360,000 in the red if there aren't additional cuts to the budget.
All of the city’s union contracts expire in June and Irby expects that those re-negotiations will significantly help the bottom line.
While members discussed pooling resources like police and fire services between the five Grosse Pointes, Mayor Robert E. Novitke told those in attendance that the city’s fiscal forecast is not that dire.
“I don’t think it’s anywhere as dismal as it might seem with the red numbers – but do know that if we don’t do things here – we will have to be really careful.”
Novitke indicated that city officials have kept a tight rein on the city’s budget and Councilwoman Victoria A. Granger agreed.
“The cost cutting isn’t something that we have started in just the past two years. We have been pretty close to the bone for a long, long time and still have provided quality services – thus we were the best affordable suburb in Michigan.”
Novitke said the Grosse Pointe Chamber of Commerce is supposed to put together a survey to get feedback from all Grosse Pointe residents in regard to city services.
Novitke said the Chamber would pay half the cost of the survey and distribute the rest among the five Grosse Pointes.
The council committee also:
- Discussed a grass/lawn care ordinance that would require the owners of foreclosed properties and unoccupied homes with evidence of vacancy to pay a registration fee.
- Proposed ways to reduce costs of the city newsletter/calendar and bring it in-house.
- Shot down an ordinance proposal to charge 18 area liquor establishments $200 in annual liquor license renewal fees and another requiring license registration for landscape businesses in the city.
- Approved the creation of a new part-time Senior Coordinator position at the community center.
- Approved a proposed plan to allow AT&T to lease land and install a cell tower that would result in additional revenue to the city.
