City of Grant

							  Fiscal Year 2008-2009
Proposed Operating Budget


       Adopted
      May 19, 2008
                                Fiscal Year 2008-2009 Budget Message

Honorable Mayor, City Commissioners, residents and tax payers of the City of Grant:

We are pleased to present the final draft of the proposed FY 2008-2009 annual City of Grant budget.
The development of this budget has been guided by a reviewing the City’s taxable value, anticipated
State revenue sharing, fees and service contract agreements.

The City of Grant’s taxable value declined slightly from $17,700,379 in 2007 to $17,392,207 for 2008.
This has been due to several demolitions within the City, leaving lots vacant, as well as a side-effect of
the economic climate in Michigan. All property tax revenue projections included in this budget are
based upon the adjusted taxable value. The current expected property tax revenue, adjusted for Headlee
Amendments Rollbacks fraction which was 1.0000 (means no change) is 10.3714 for the General
Operating Fund, 2.9559 for Roads and Right-of-Ways Fund, 0.4926 for Fire Operating, 0.4926 for Fire
Equipment, and 2.0000 for Sewer Bond Debt.

Improving the quality of life, sense of place and good public infrastructure are all important keys to
attracting and retaining investment. There have been several very positive developments for the City
that have been accomplished this year, are ongoing, or are planned for this upcoming fiscal year.

      The City has increased revenue for the police department by contracting with Grant Public
       Schools for a liaison officer as well as charging community center (alcohol) rentals for police
       protection.
      The City was awarded a $9,000 grant towards the purchase of a new police cruiser, keeping in
       line with the upgrading and rotating equipment.
      The City has been effective on upgrading the Blanche Lake baseball field, once again restoring
       its use by Little League.
      Rebuilding the Ryan Benson Skate Park out of steel with a $15,000 grant, ensuring its safety
      The Long term/planned project for the streetscape that Tobi Lake, Frank Peterson, Sherry Powell
       and I have all worked on will be scheduled for this next fiscal year, with grants of $125,000 and
       ~$360,000 awarded to help complete the project. This will help continue to economically
       promote the City and help improve the M-37 corridor as a “Gateway” into Newaygo County.
      Adding a City park on M-37 and historic preservation of the City Wooden Water Tower has/is
       also a great highlight to development. Several grants for $45,000, $5,000, and $3,000 coupled
       with fundraising efforts of the Grant Area Chamber of Commerce for $1,200 and City
       Fundraising of nearly $3,800 are funding the project. This project will not only help beautify the
       M-37 corridor, but it will also save the City budget $1,000’s of dollars that will no longer have to
       be paid to the railroad for leasing the land that the tower resides.
      Keeping in line with the capital improvement plan for the sewer system, it is likely that a nearly
       $2,000,000 upgrade will be made to the system, likely partially funded by a $900,000 USDA
       grant.
      The City was able to resurface nearly 60% of City Major and Local Streets this past year which
       has and will reduce maintenance costs for streets allowing the City to grow a healthy balance for
       other road repairs in the future.
      This past fiscal year the City created the City of Grant Downtown Development Authority. City
       staff has been working with this new Board to create by-laws and a Development and Finance
       Plan that will be carried out using TIF money for future development projects that the Board
       approves in its plans.
      The City will be working with MSHDA towards helping finance projects with private developers
       this year. It will require a lot of set-up work, much like that of the DDA.

Additionally, the City’s sustained involvement as a financial supporter of the Newaygo County
Economic Development Office will continue to make economic development expertise, tools and other
related resources available to the City of Grant.

The City of Grant provides a number of services to residents and business owners. Below are several of
the issues that have a positive impact on the level of services provided to the community.

Parks and Recreation:
The City has received grant funds and is currently carrying out the creation of a new park along M-37 to
restore the Wooden Water Tower. The City has also received grant funds to rebuild the Ryan Benson
Memorial Skatepark with a steel base. Blanche Lake Park has had work done to fix the baseball field
and the City is looking for funding to address restrooms at the park.

Ordinance Revisions:
This past year I have done quite a revision of City Ordinances and there will be more done this
upcoming year. This year we have revised the sewer-use ordinance and consolidated many old
amendments and planned for future use. The Burning Ordinance was also updated this year and
currently the City is working towards implementing, in part, the International Property Maintenance
Code. This upcoming fiscal year I plan to review and change the City Zoning Code to a Hybrid Zoning
Code. This will help modernize items within the code as well as allow more expedient service to
residents and business owners. This type of zoning code will also include “site picture examples” so as
to provide the examiner both a written description of the code as well as a visual example.

Grants:
Grant funding will continue to be a priority for the City. Last year you will note a $125,000 difference
when comparing the general fund portion of the budget. This is due to the approved $125,000 grant
from the FACF towards the streetscape. These funds are not reflected as part of the FY 08-09 budget in
the general fund as a new account dedicated for the streetscape will be receiving these funds.

Michigan Zoning Enabling Act:
The City has already made appropriate appointments between the Planning Commission and Zoning
Board of Appeals in regards to the new statute. The City has not had a Master Plan for the City
completed. The City has had various other plans completed, but the over all Master Plan has not. I have
started a draft of a Master Plan and will work with the Planning Commission and the City Commission
over this next year to cover the steps and getting this done.

Water/Sewer Rates:
This year I will not recommend raising water and sewer rates. The largest influence on the rates over
the past several years has been mandated GASB 34, which requires all governments to cover
depreciation. This year under Water Operating revenue and Expenditures it shows ($23,800), which is
in large part due to GASB 34. There is money in fund balance (water) that can be used if in fact all of
the planned operating expenses are needed. We did check with the auditors and they have stated that
this is ok with GASB 34.

Sidewalk 50/50 Replacement Program:
The City has budgeted for adding money to this program for this upcoming fiscal year. It is important to
try and handle trouble spots around town a little at a time instead of waiting until a large amount of
repairs are needed. This year we have planned for $1,235 to be set aside.

General Fund Balance:
The General Fund Balance entering FY 08-09 is anticipated at $60,168.08 in undedicated reserves. In
FY 06-07, the General Fund, fund balance was $53,998.00 in undedicated reserves. This has grown a
little over the past few years, and we will continue to add to it as we can. The larger fund balance from
several years ago that was partially used help build the new City Office will take some time to get back
to. At that time over $88,000 was transferred out of fund balance.

DPW Transportation:
This year we have budgeted for $30,000 to be set aside for DPW Capital Outlay. The DPW has several
equipment needs and after looking at the three major needs identified, I believe we can consolidate two
into one. The three equipment needs are a tractor, street sweeper and larger wood chipper. By
purchasing a new tractor, we can get a covered brush attachment which can clean our streets, thus
consolidating two of the needs. This tractor purchase can also include a snow blower and backhoe
attachment amongst other for other needs.

DPW Staffing:
This year I have decided to try a different approach to staffing the DPW. The year-round part-time
position has been eliminated and is being replaced by two, part-time seasonal workers. These workers
will work from June through August during some of the department’s busiest months. These part-time
workers will also take over mowing tall grass for grass violations in the City. This will return money to
the City. Over-all it is anticipated that this move will be more effective for providing services as well as
save the City money.

Police Transportation:
This past year the City addressed the capital needs request as outlined by the previous manager to
purchase a newer police vehicle. With the help of a USDA grant, nearly half of the cost was funded.
This year there will be no major purchase for the police department and the capital equipment schedule
has been updated to reflect this.
Transportation, General:
This year we partnered with the County Road Commission, the City of Newaygo, The City of White
Cloud and White Cloud Public Schools in purchasing our fuel together through Fuelman. This will save
the City some money as compared to being on our own.

Streetscape:
We have no official dates yet for scheduling this project, but it appears sometime in the spring of 2009.
The budget numbers are as accurate as possible to date, but it is certain that as the project approaches
some numbers will change.

Sewer Upgrades:
This fiscal year we will be moving forward with upgrades/improvements to the sewer system in the
City. Nearly half will be funded by a USDA grant. This project is what reflects the major difference
when comparing other recent years.

Assessing:
Assessing services also show an increase and this is due to a reassessment of the City. This was urged
by the State of Michigan as a review of our record cards indicates there are many discrepancies. Next
year this portion of the budget should fall back in line with previous years.




The Proposed FY-2008-2009 budget is hereby submitted to the residents of Grant for comments and the
members of the Grant City Commission for appropriate action. Please review the contents herein; City
staff will be available to address any questions or concerns.



Respectfully Submitted,



Douglas William La Fave
City Manager