City Council Meeting - 2023-12-18

Detailed briefing

Harbor Springs City Council Meeting — December 18, 2023 ATTENDEES: Roll call recorded Jamie Melky, Michael Bearman, Nancy Rondell, Matt Rivera, and Kathy Macho. • Council approved the consent agenda and unanimously adopted the 2024-2029 Capital Improvements Plan. Staff said the plan had no changes from its posted draft, though a potential State Street repaving project involving MDOT may still be considered for 2024. • Council approved the 2023 amended budget and 2024 proposed budget. Staff said council-requested changes left the 2024 general fund with a projected $104,000 surplus. Downtown snow removal remains in the general fund while negotiations continue over whether it could move elsewhere. • The police labor agreement was approved unanimously. Reported changes include pay-scale adjustments, a holiday, improved optical and boot reimbursements, simplified PTO rules, partial gym-membership reimbursement, and longevity pay. The agreement ends post-retirement health coverage for employees hired after January 1, 2024. Staff estimated the agreement adds about $55,000, or roughly 5.5%, to the police budget while providing long-term savings by reducing future retiree-health obligations. • Council unanimously approved the IBEW Local 876 agreement covering electrical and DPW employees for January 1, 2024 through December 31, 2028. Staff described wage changes, annual increases of at least 3% or CPI up to 5%, a flat $550 weekly on-call rate, President's Day as a holiday, PTO and optical changes, and the same elimination of post-retirement health coverage for future hires. The reported annual cost change is about $80,000. • The city manager reported encouraging progress with the county on the disputed DDA TIF capture issue. No proposal details were released; staff said a concrete proposal could lead to a closed-session discussion followed by open session. New DDA director Becky Goodman is scheduled to begin January 8. • Council made board and commission appointments. Lisa Nichols and Sharon Mahala were appointed to the Harbor Commission in a 4-1 vote. Other appointments were approved for ZBA, Planning Commission, Parks Board, Tree Advisory Board and DDA. Worth watching: • Whether negotiations with the county produce a DDA TIF-capture agreement and potential additional DDA revenue. • How the new union agreements affect future budgets, staffing retention and retiree-health liabilities. • Follow-through on possible 2024 State Street repaving participation with MDOT. Upcoming: The next council meeting is January 15; staff identified substation, vegetation management, Historical Society matters and term limits as expected agenda topics. Becky Goodman begins as DDA director January 8. Why it matters: The council finalized its annual budget and major labor agreements while setting up key 2024 decisions on infrastructure, downtown funding and city governance.

No open public follow-ups are linked to this meeting yet.