Council digests water rates, tree cuts and a bathhouse

At the Monday, August 25 meeting, city council sifted through several agenda items, with the water rate ordinance taking precedence. Public Works Director Simon Wiley provided a Power Point presentation to explain the requirements of Acts 605 & 925, along with breakdown of a sample water bill. (Wiley said he will also post the information on Facebook).

Alderman Rachael Moyer voiced concerns about citizens’ budgets and their ability to keep up with “aggressive increases” in water rates over the next ten years. She said she thought that further consideration of a sales tax, alongside a bond issue, could be an alternative solution.

Mayor Butch Berry told Moyer that the recently formed water committee (to evaluate alternatives for future rate increases and other revenue streams) had met twice with a third meeting on the horizon, and they were already considering introducing a new sales tax. However, any proposed sales tax could not likely be voted on until the next general election (due to new legislative changes regarding pop-up elections) and would not abide with the timing requirements of Acts 605 & 925. A potential sales tax would also not be guaranteed, as that would be up to voters.

Finance Director Michael Akins bridged gaps in the conversation explaining, “We did the rate study which was presented to and accepted by council in March of ‘25– We have two years to get those rates into place– because ours went up over 50 percent. Akins said council chose to implement the rate increase over time, with the 25 percent rate increase now, another 8 percent in January, and another 8 percent in January ’27. He said the first increase was supposed to have been implemented in July. With financing for improvements applied for based on the implementation of these rates, the $6 million loan could be left unapproved if the city fails to implement the rate increases.

“These rates are not there to pay for these capital improvements,” Akins said, “they’re there to make sure that our debt-ratio coverage is high enough that we can afford the financing to make these large projects. It even states in Act 605 that if we go to another project, we’ll have to do another rate study to make sure that we can do that. The better our financial position, then the better we are to borrow, do bonds, be able to do that kind of stuff at lower rates.”

Moyer thanked Akins for bringing facts to the conversation. Ordinance 2371 increasing the rates for water and wastewater usage was then amended, passed, and approved.

Appeal Denial of a Tree Removal Permit 10 Charles Circle

Director of Preservation and Planning Cassie Dishman said “the application was brought to them by Susan Leighy who worked with Building Inspector Paul Sutherland to mark the trees and prepare the application that went to the Board of Zoning Adjustment.”  The application was denied on a vote of three yays, one nay, with two absences.

Dishman explained that within the guidelines of the ordinance, a tree cutting permit could be approved without the submission of building plans, but no trees can be cut without submission and approval of the building plans.

Alderman Steve Holifield pointed out that one of the commissioners continuously abstains from voting on tree cut permits. Holifield verbally wondered if it were a violation of the code of ethics and whether it would be appropriate to consider removing that commissioner. “If he had voted one way or another, we might not even be discussing this tonight.”

Alderman Terry McClung said that the ordinance is subject to interpretation, alderman Harry Meyer motioned to deny the appeal, while alderman David Avanzino motioned to approve. The appeal was approved four-two with Berry acting as the fourth yay. Aldermen McClung and Meyer voted no.

Parks to apply for bathhouse money

Parks Director Sam Dudley came to council for permission to apply for a 50/50 grant to build a new bathhouse at Lake Leatherwood Park. Dudley said that ideally the Parks Commission would take out a loan for $200,000 to the match 50 percent of grant money earned for the (approx.) $400,000 project. Dudley said he believed they could generate revenue without the loan, but a loan would provide additional financial security. He said that in 2016, Lake Leatherwood City Park brought in around $100,000 compared to $300,000 in 2024, pointing to the growing numbers of visitors. Currently the park is operating with just two toilets and several port-o-potties. A Resolution was unanimously passed for the application of the grant.

Hospital Business

Alderman Moyer said she has made requests of the Hospital Commission for verification of the following:

• Aging accounts receivable.
• An opinion on the impact of bad debt recorded on the balance sheet.
• Verification of the $16,000 that was moved from the commission only account to the commission money market account.
• A reconciliation of the July reduction of the bank balance by $518,000. Moyer said that the number doesn’t reconcile with their cash and equivalence on the balance sheet. “So, balance sheet isn’t balancing basically,” Moyer said.

Moyer communicated her final concerns about decreasing bank balances saying that for future sustainability, both the commission and its new leadership needs to know what the true net patient revenue is. She added that she feels “strongly that a revised budget should be developed to guide their spending decisions through the end of the year particularly given the uncertainty around government funding for rural health.”

Other Business

• CAPC applicant position 3 Colton Scrivner approved. Meyer voted no.
• Peter Graham was nominated for HDC position one.
• Ferguson Stewart asked council to have a public educational session on water management to help people understand how to save water.
• Stewart (chaplain of the American Legion) announced the 9/11 commemoration at Planer Hill beginning at dusk and invited the public to participate.
• Council discussed the issue of vacant buildings and possible incentives to offer absent homeowners.
• Resolution was passed adopting the mid-year budget review.
• Resolutions were approved to set a public hearing date for consideration of vacating a section of Alpena Ave, Lone St., and an unnamed alley in the Riley and Armstrong.