The Delhi Charter Township Board of Trustees met in a regular meeting on Tuesday, November 15, 2005 in the Multipurpose Room at the Community Services Center, 2074 Aurelius Road, Holt, Michigan. Supervisor Goodrich called the meeting to order at 7:30 p.m.


PLEDGE OF ALLEGIANCE

ROLL CALL

Members Present: Supervisor Stuart Goodrich, Treasurer Harry Ammon, Clerk Evan Hope, Trustees John Hayhoe, Jerry Ketchum, Paul Krepps, Roy Sweet

Others Present:
John Elsinga, Twp. Mgr.
Al McFadyen, DDA Executive Dir.
Jason Coker, Dir. of Accounting
Lt. Jeff Cook, Delhi Div., Ing. County Sheriff’s Office
Sandra Diorka, POTW Superintendent
Wendy Thielen, Assist. Twp. Mgr. of Human Resources
Tricia Vander Ploeg, Admin. Sec’y./Dep. Supervisor
Amy Finch, Assistant Twp. Clerk/Deputy Clerk



RECOGNITION OF STUDENTS

Supervisor Goodrich recognized several students in the audience from Holt Public Schools.


NEW BUSINESS

AMENDMENT TO DELHI TOWNSHIP POLICY NO. 119 - PURCHASING

The Board reviewed a memorandum dated October 27, 2005 from Twp. Mgr. Elsinga (ATTACHMENT I).

Twp. Mgr. Elsinga stated that this amendment will add language to the Purchasing Policy regarding the use of credit cards for small-value purchases.

KETCHUM MOVED TO APPROVE DELHI TOWNSHIP POLICY NO. 119 – PURCHASING, AS AMENDED.

A Roll Call Vote was recorded as follows:
Ayes: Ammon, Goodrich, Hayhoe, Hope, Ketchum, Krepps, Sweet
MOTION CARRIED



CONSENT AGENDA

A. Approval of Minutes – Committee of the Whole Meeting of November 1, 2005

B. Approval of Minutes – Regular Meeting of November 1, 2005

C. Approval of Claims – November 8, 2005 (ATTACHMENT II)

D. Approval of Payroll – November 3, 2005 (ATTACHMENT III)

E. Reappointment to the Zoning Board of Appeals – Leslie Turner (ATTACHMENT IV)

F. Reappointment to the Zoning Board of Appeals – James Walkinshaw (ATTACHMENT V)

G. Reappointment to the Zoning Board of Appeals – Paul Rankin (ATTACHMENT VI)

H. Acceptance of Sanitary Sewer System – Meadow Ridge Subdivision, Phases V and VI (ATTACHMENT VII)

I. Acceptance of Sanitary Sewer System – Three Lakes Subdivision, Phase II (ATTACHMENT VIII)

J. Acceptance of Sanitary Sewer System – Watts Landing Condominium (ATTACHMENT IX)

K. Resolution No. 2005-056 – Streetlight Special Assessment District/Roll – Three Lakes Subdivision, Phase II (ATTACHMENT X)

L. Resolution No. 2005-057 – Consumers Energy Change in Standard Streetlighting Contract – Request No. 02560614 – Three Lakes Subdivision, Phase II (ATTACHMENT XI)

M. Resolution No. 2005-055 – Petition Ingham County Drain Commissioner to Abandon a Portion of the Exner Drain (ATTACHMENT XII)

HAYHOE MOVED TO APPROVE THE CONSENT AGENDA ITEMS.

A Roll Call Vote was recorded as follows:
Ayes: Goodrich, Hayhoe, Hope, Ketchum, Krepps, Sweet, Ammon
MOTION CARRIED



LATE AGENDA ITEMS

UTILITY AGREEMENT FOR SANITARY SEWER BETWEEN DELHI CHARTER TOWNSHIP AND BERRY CONSTRUCTION COMPANY OF LANSING – BERRY FARMS SUBDIVISION, PHASE I

The Board reviewed (ATTACHMENT XIII).

KREPPS MOVED TO APPROVE THE UTILITY AGREEMENT BETWEEN DELHI CHARTER TOWNSHIP AND BERRY CONSTRUCTION CO. OF LANSING FOR THE ORDERLY EXTENSION AND ADMINISTRATION OF PUBLIC SANITARY SEWERS THROUGH THEIR BERRY FARMS SUBDIVISION, PHASE I DEVELOPMENT.

Sandra Diorka, POTW Superintendent, stated that this subdivision is unique due to the fact that there is a pre-existing sewer that is located through the middle of it. The new sections will connect at each end of the pre-existing sewer. Twp. Mgr. Elsinga stated that the purpose of the utility agreement is to help the Developer understand what the Township expects of them so that in the final approval process, the necessary easements, testing, etc. is complete.

A Roll Call Vote was recorded as follows:
Ayes: Hayhoe, Hope, Ketchum, Krepps, Sweet, Ammon, Goodrich
MOTION CARRIED



REPORTS
SUPERVISOR

POTTER PARK ZOO WONDERLAND OF LIGHTS, DELHI TOWNSHIP NIGHT

Tricia Vander Ploeg, Admin. Sec’y./Dep. Supervisor, stated that the Potter Park Zoo Wonderland of Lights, Delhi Township night is scheduled for December 9, 2005 from 5:00-8:00 p.m. Ms. Vander Ploeg encouraged the Board members to participate in the event by handing out candy canes and greeting people entering the zoo.


CHRISTMAS TREE LIGHTING

Supervisor Goodrich stated that the Christmas tree lighting would take place on December 7, 2005 at 6:30 p.m. in the front of the Community Services Center.


CITIZEN’S SURVEY

Supervisor Goodrich stated that the December 6, 2005 Committee of the Whole meeting will begin at 6:00 p.m. to discuss the results of the Citizen’s Survey. Lynn Harvey will be in attendance for this meeting.


TOWNSHIP MANAGER’S REVIEW

Supervisor Goodrich handed out packets to each of the Board members which contain the Township Manager’s review. Supervisor Goodrich requested that the Board members read and return the packets to him.


TREASURER

TAXES

Treasurer Ammon stated that the winter tax bills will be printed on November 21, 2005 and will be in mailboxes on December 1, 2005. Treasurer Ammon stated that the Township will collect $36,000,000 of which the Township will keep 12% of that amount.


TOWNSHIP MANAGER

MONTHLY REPORT – OCTOBER 2005

The Township Board reviewed the Township Manager’s Monthly report for October 2005 (ATTACHMENT XIV).

Twp. Mgr. Elsinga spoke about the Cedar Lake Update, FEMA’s Multi-Hazard Flood Map Modernization Project and Storm Water Phase II which are included in the monthly report.



PUBLIC HEARING – 8:00 P.M.

PUBLIC HEARING – FY 2006 BUDGET – GENERAL FUND AND SPECIAL REVENUE FUNDS

Jason Coker, Director of Accounting, handed out a summary of the 2006 General Fund Budget for year ending 12/31/06 to each Board member (ATTACHMENT XV).

HOPE MOVED TO OPEN THE PUBLIC HEARING ON THE FY 2006 BUDGET – GENERAL FUND AND SPECIAL REVENUE FUNDS.

A Voice Poll was recorded as follows: All Ayes
MOTION CARRIED

Jason Coker, Director of Accounting, gave a power point presentation on the overview of the FY 2006 Budget. Mr. Coker stated that the budget process begins in April of each year and ends in December. The Department Heads assemble and present their goals and objectives for the year to the Board. The Board also develops their goals and objectives for Township-wide goals and objectives. Mr. Coker puts together preliminary revenue estimates. After the Board reviews these items, they develop Budget guidelines. The Department Heads submit their requests to the Township Manager. The Director of Accounting, the Township Manager and the Department Heads meet to discuss their individual budgets to come up with a recommended budget. The recommended budget is then submitted to the Township Board. The Board holds four (4) public workshops where they meet with the Director of Accounting and Department Heads to make any necessary changes. The Accounting Department compiles the budget and a public hearing is set and held to adopt the budget.

Mr. Coker stated that during the budget workshops, the Board made many changes. Some of the larger changes included cutting $95,000 from the General Fund Budget, cutting $39,300 from the Infrastructure Budget, $30,000 was cut for a personal property tax audit and $15,000 for a Township newsletter. Other changes included an increase in interest revenue projection by $56,000 due to the increase of interest rates and an increase to the General Fund of $17,130 for lifeguards at Valhalla Park.

Budget in Brief. The total Township operating budget (does not include component units and non-routine capital improvements) of $13,877,170 represents a $190,580 decrease from the 2005 amended budget as it stands at September 30, 2005. Revenues from all funds are estimated to be $14,399,440 (does not include component units and anticipated borrowing of $2.5 million in the Sewer Fund), a decrease of $82,970 from the 2005 amended budget. The majority of the revenue decrease comes from a decrease in anticipated donations for the future Skate Park and a decrease in estimated permit and fee revenue in the Community Development Fund.

Personnel. The 2006 budget funds 103 full time equivalent positions. This is a decrease of approximately 2.5 full time equivalent positions from the 2005 budget. The biggest decrease came from the elimination of the Township Engineering Department, which consisted of one full-time employee and one part-time employee. One part-time position was eliminated in the Clerk’s office and one full-time position was changed to part-time in the Parks and Recreation Department. A Community Development Director was hired in 2005 and is reflected in the 2006 budget. The number of employees by department is presented in the appendix of this document.

The 2006 budget reflects an across-the-board 2.6% salary increase based on the 2004 Consumer Price Index for this area. Health and dental insurance have been budgeted at a 5% increase. If actual insurance costs increase higher than 5%, the Board may consider passing the additional costs on to employees.

Capital Improvements. Capital improvements are accounted for in various budgets. The following capital improvements are included in the 2006 budget:
POTW (wastewater treatment plant) solids handling upgrade ($4,500,000)
POTW master plan ($200,000)
Continued funding of the sewer rehabilitation program ($370,000)
Construction of sidewalks along Holt Road ($125,000)

Revenue Considerations. The General Fund has been using its fund balance since 2003 to balance revenues with expenditures. The 2006 budget will use $379,570 of fund balance. We continue to reduce costs where opportunities arise. However, the Township is considering options to increase revenues or decrease expenditures such as employee participation in the cost of health insurance, requesting a public safety millage in 2006, and/or decreasing investments in infrastructure.

Currently the General Fund is subsidizing the Community Development Fund because the Community Development Fund does not have any fund balance to use if the economy slows to a point that revenues do not sustain expenditures. The Township may evaluate permit fees to bring them in line with other communities and the Township’s actual costs. If the fees are increased, this may help the Community Development Fund become self-supporting.

General Fund. General Fund revenues are estimated at $6,671,880 for 2006, an increase of $120,200 from the 2005 amended budget. Property tax revenues are expected to increase by $213,000. Interest revenue is expected to increase by $45,000 due to higher interest rates. Transfers in from other funds are expected to decrease by $152,000. Declines in the cost allocations to the Sewer Fund and Community Development Fund are partially offset by an increase in transfers in from the Downtown Development Authority.

General Fund expenditures are budgeted at $7,051,450 for 2006, an increase of $5,400 from the 2005 amended budget as of September 30, 2005. Expenditures are relatively stable over last year. The 2006 budget projects the use of $379,570 in fund balance. The Engineering Department was eliminated in 2005 saving the Township approximately $140,000 per year. The Clerk’s office eliminated a part-time position saving approximately $26,000 per year. Infrastructure spending will decline by approximately $120,000 from the 2005 amended budget. Spending on public safety (police and fire protection) will increase by approximately $142,000 in 2006. The Township purchased land late in 2004 after the development of the 2005 budget. The debt service payments are approximately $50,000 per year. The Township is planning to renovate the Community Services Center by the end of 2005. The cost is projected at $250,000. There is a possibility that the renovation will not be complete by the end of 2005 and some of the costs may have to be paid from the 2006 budget.

Fund balance is expected to dip to $2,645,000 or 4.5 months of budgeted expenditures. The undesignated portion of fund balance is projected to be $2,365,000 or 4.0 months of budgeted expenditures. This fund balance is within the range of 3 to 6 months of budgeted expenditures that the board traditionally tries to maintain, but the Township needs to continue to work to reverse the trend of using fund balance. Possible solutions include cutting services, a “Headlee Override”, a special millage to fund designated services, or a combination of any or all of these options. A “Headlee Override” would allow the Township to levy the original authorized 5.0000 mills as opposed to the 4.3094 mills that the Township can actually levy for 2005. The Township has been using fund balance since 2003. Prior to that the Township added to fund balance for five consecutive years.

Parks & Recreation Fund. Total Parks and Recreation Fund revenues are budgeted at $649,030. The General Fund will contribute $499,130 to the Parks & Recreation Fund. Total expenditures are budgeted at $648,030. The 2005 amended budget reflects $75,000 of anticipated donations and $120,000 in loan proceeds to build a skate park. Likewise, the budget reflects a capital outlay expenditure of $195,000 for the Skate Park. The Skate Park’s construction will not be completed by the end of 2005 and some of the expenditures will occur in 2006 along with possibly some of the related revenues.

Fire Equipment, Training, and Apparatus Fund. Revenues for the Fire Equipment, Training, and Apparatus Fund are budgeted at $401,430 with total expenditures of $378,400. The projected fund balance at December 31, 2006 is $596,600. Revenues come from a special millage which is .4846 for the 2005 tax bills, the standby fee portion of the fire services contract with Alaiedon Township, and proceeds from sales of fixed assets. Expenditures for 2006 include $130,000 reimbursed to the General Fund for training salaries, $115,000 for an ambulance, $17,000 for a thermal imaging camera, and $16,000 to replace a 1996 Lumina.

Water Improvement Fund. Revenues for the Water Improvement Fund come from water hookup fees and special assessments. Revenues for the 2006 budget are forecasted at $164,780. Expenditures include administration, construction and debt service. The 2006 budget calls for $99,040 in expenditures. The projected fund balance at December 31, 2006 is $817,700.

Community Development Fund. Community Development Fund revenues are budgeted at $676,650. Total expenditures are budgeted at $673,770. The 2005 amended budget reflects a $148,500 transfer to the General Fund. The Township has decided that the Community Development Fund cannot afford to pay the General Fund for services it receives. Therefore, the 2006 budget does not reflect this transfer. All other activities are similar to prior years.

Sewer Fund. Sewer Fund revenues are budgeted at $5,431,920, which is very close to the 2005 amended budget. Not included in the revenue number is $2.5 million of anticipated bond proceeds to partially fund the $4.5 million POTW solids handling upgrade. Total expenditures are budgeted at $10,053,100, which is $3,190,910 over the 2005 amended budget. If the $4.5 million POTW solids handling upgrade is excluded, expenditures are comparable to 2005.

Al Ott, 4574 Glenberry, Holt – asked if there was an employee contribution for health care. Mr. Coker stated that currently there was no employee contribution for health care benefits.

Motion to Close Public Hearing – 8:27 p.m.

HOPE MOVED TO CLOSE THE PUBLIC HEARING.

A Voice Poll was recorded as follows: All Ayes
MOTION CARRIED

Twp. Mgr. Elsinga stated that this would be Mr. Coker’s last Board presentation. Mr. Coker has accepted a position with Consumers Energy in Jackson. Mr. Coker’s last day of employment will be December 9, 2005. Twp. Mgr. Elsinga congratulated Mr. Coker on his new position and thanked him for the work he did for Delhi Charter Township.


ADJOURNMENT

AMMON MOVED TO ADJOURN THE MEETING.

A Voice Poll was recorded as follows: All Ayes
MOTION CARRIED

Meeting adjourned at 8:30 p.m.