GLADSTONE — The city of Gladstone’s 2019-2020 fiscal year budget and Community Investment Plan (CIP) was approved after a public hearing during the city commission’s regular meeting Monday.

City Manager Darcy Long provided a snapshot presentation on the $18 million budget and the major projects the city is starting in the 2019-2020 fiscal year.

“This year the department heads, as per the ordinance and the policy we adopted, updated the CIP. We looked at projects completed and which ones needed to be bumped ahead or additional things added,” Long said.

The biggest capital project for the city is the 9th Street Project. The almost $4 million project entails a total reconstruction of 9th Street from Minneapolis Avenue to 4th Avenue.

“It is a total reconstruction of infrastructure on 9th Street, alleys, some other streets in there,” Long said.

The DDA will cover the cost of 70 percent of the project and the city will cover the remaining 30 percent because the project falls into the DDA’s jurisdiction.

Long said the city and the DDA have already committed funding from their budgets towards the project.

“I’ve said this over and over for about two years, a project of this magnitude can’t be done unless there is participation from the DDA — it’s just not going to happen,” Long said.

The DDA and city looked into a 15-year capital improvement bond to fund the project. The DDA is allocating $180,000 annually from its budget to cover its portion of the estimated 15-year bond interest and principle payments.

Other projects mentioned were the future purchases of a grader for the Department of Public Works, a slide for the beach, upgrades to the electric sub-station, new bucket truck for the electric department, and the rate and cost of service study for the city’s utilities: water, sewer, electric and garbage.

After Long’s presentation, Commissioner Brad Mantela mentioned the projects budgeted for aren’t set in stone when the budget is adopted. He explained things can happen and sometimes a project needs to be pushed because another project takes priority.

“When the budget is approved, it doesn’t approve every single item in the budget,” he said. “Each individual item stands on its own in there and this budget is really approving the funding there and the 15.4897 mills.”

Paul Geyer, a retiree from Gladstone Public Safety Department, commented on the budget regarding retirees and the recent changes made to the city’s retirees’ health care post-employment benefits. He had done his own calculations on how much the changes would save the city, which came out to a difference of $32,311.93.

“I do not understand how there can be a claim of over $150,000 in savings to the city in this fiscal year budget based on the changes that will be implemented by PA 202 on April 1, 2019,” Mantela read on behalf of Geyer as he was unable to attend the meeting.

Long had made a statement at a past meeting the changes would save the city around $150,000.

Public Act 202 required all local municipal governments in Michigan to report to the state treasurer the status of pension systems and retiree health insurance benefits. The city had to create a corrective action plan per the requirements of PA 202.

City commissioners decided the best course of action to meet the new pension funding requirements was to make changes to post-employment benefits.

Changes included ending all lifetime Medicare supplement benefits, which affected two retirees, and all other retirees will receive a stipend placed into a Health Reimbursement Account (HRA) of $602.01 monthly or $7,224.12 yearly for up to 10 years or until age 65.

City commissioners approved the plan and submitted it to the state. The plan was reviewed by the Michigan Treasury Municipal Stability Board and accepted.

The 2019-2020 fiscal year budget was unanimously approved by the commissioners. Mayor Joe Thompson was not at the meeting.

In other business, the commissioners:

– heard a public comment from Jay Botswick who was concerned the city manager had not gotten his evaluation yet and the city commissioners had not created goals for the city manager on behalf of the city per the city manager’s contract. Commissioner Mantela provided clarity the commission is working to get it done soon and they want to have a consulting agency facilitate the evaluation.

– heard a public comment from Linda Gray, a retiree from the city of Gladstone. She questioned how much the city was really going to save with having an outside company handle the retirement health benefits instead of city staff.

– Commissioner Dave Nemacheck asked for the millage rate and retirement legacy fund to be put on the agenda for the next regular commission meeting. He said he would like to discuss the possibility of raising the millage to increase the stipend amount retirees will receive each month for their post-retirement health benefits.

– are still looking into finding a facilitator for the meeting with retirees to discuss the recent cuts in health benefits and how the city communicated the changes.

– tabled the approval of agendas from past meetings for the next regular city commission meeting.

– accepted the fiscal year 2018-2019 budget amendments.

– accepted a bid from Tunnel Vision, a company based out of Escanaba, for the sewer line televising inspection project.

– approved the Gladstone Parks and Recreation Department’s application to the Delta County Community Foundation for the Ski Lodge Preliminary Engineer.

– approved the Gladstone Parks and Recreation Department’s application to the Hannahville 2% Grant for the Bike, Skills and Jump Track Sports Park Complex.

– approved of the DDA board appointment of Mike Williams. With this appointment the DDA board is now full.

– approved the EDC board appointment of Matt Krause.

– approved the Teamsters 406 employees tentative agreement on a wage re-opener. The agreement raises the hourly wages by $.75 and provides a $500 one time stipend. There are 17 Teamsters working for the city.