Audit finds city holding its own
Published 3:07 am Wednesday, January 25, 2006
By By JOHN EBY / Dowagiac Daily News
Auditor Ken Berthiaume of Saginaw delivered Dowagiac some good financial news Monday night in the form of an unqualified opinion with no exceptions.
Government activities cost the city about $3.1 million a year, he said, with property taxes the source of $1.3 million in revenue and state grants accountable for $778,000.
A $215,000 profit from business activities helps subsidize government activities, Berthiaume said in his presentation to City Council.
All funds ended with positive balances, he noted. “The funds are in pretty good shape,” with the general fund reserve changing from $687,000 to $627,000. Fund balances decreased 14 percent, he said, but for example, $150,000 was anticipated for the S. Lowe Street bridge project.
Berthiaume said the city has 63 percent of its $11 million pension liability funded, with $4 million unfunded.
In other business, the council after a public hearing approved Jerz Machine Tool's application for an industrial facilities tax (IFT) exemption, a six-year, 50-percent break in exchange for personal property investment that will retain 10 jobs in Dowagiac.
Jerz is investing $618,226 for new machinery, a vertical machining center, and robotic equipment at its facility on E. Railroad Street in the former Jessup Door plant.
President Greg Jerz said he has 12 fulltime employees and 15 part-time employees. He said this investment will not increase employment, but will “stabilize and modernize” his company, positioning it, he hopes, for the next 10 years.
Public nuisance
hearing Feb. 13
Council members set a public hearing for their next meeting Feb. 13 at 7 p.m. to consider declaring property owned by Duane and Durwood Swartz of Bakersfield, Calif., at 311 Hamilton St. a public nuisance.
According to the Dec. 28, 2005, code enforcement report, the vacant two-story, wood-framed residential structure was built around 1900 and has a true cash value of $82,400. Electrical service has been disconnected since February 2004. Deteriorating roofs on the house and garage do not adequately protect the interiors from adverse weather. Several dead trees, fallen limbs and “other yard defects … contribute to the decay,” according to the report, which also states, “The present condition of the property is generating several complaints/concerns from neighborhood residents.”
If the owners do not complete repairs, costs associated with the work would be recovered through placement of a special assessment on the property.
Dog-walking leaving
a mess at cemetery
Second Ward Councilman Bob Schuur echoed citizen Robert Mortimore's concern about citizens not cleaning up after their dogs on walks at Riverside Cemetery.
Dial-A-Ride
budget set
The Dial-A-Ride budget anticipates revenue and expenses balanced at $186,289, including $45,431 from local millage, $14,600 from fares, $73,118 from the state and $27,943 federal money.
The city applied for replacement of two buses for 2007 with state and federal matching funds.
Appointments
Guy Piper and Jerry Ostrowski were reappointed to five-year terms expiring in December 2011 to the Construction Board of Appeals.
The council ended its Jan. 23 meeting in closed session with City Manager Bill Nelson and City Attorney Mark Westrate to discuss litigation and the sale or lease of real property.