South Haven City Council members took a first look at the budget for 2016 last week, and it appears that a tax increase will be needed to help cover rising costs.
The council approved a preliminary levy with a 5-percent property tax levy increase on Tuesday, Sept. 1. That levy increase can be reduced before a final budget is approved in December, but cannot be increased. In actual dollars, the levy would rise from $114,270 this year to $119,984 next year.
City Clerk Carol Banken explained that much of the increase is due to rising rates for contracted services like police coverage. In addition, tools and equipment are needed for streets and public works projects, which the city is increasingly covering on its own to reduce reliance on contractors.
Other areas contributing to the increase are greater expenditures for the audit, a small increase for the fire department, and a provision for city staff wage increases of about 2 percent. Those wage increases have not been discussed by the council but were included in the preliminary document for consideration.
Banken added that none of the increase is due to operation of the new community hall, which actually uses less electricity and gas than the former building. Revenue from rentals has been enough to cover expenses.
If the 5-percent levy increase is adopted, the city’s budget for 2016 would be $188,347.
"By the final budget in December you’ll have a better (idea of the actual numbers)," Banken told council members.
Land sale discussed
Council members also discussed the possibility of selling land between the Cedar-Works building and the post office. That land is currently the VFW park that was donated to the city a few years ago and has a small picnic shelter on it.
Corinna Township resident David Stein, who purchased the building at the beginning of July, has inquired about buying the property in order to expand the building for a second hand or antique type of business.
There was some debate among council members whether selling the land was appropriate.
The hesitation was due to the fact that the land had been a donation to the city.
"I would not feel comfortable selling that land that they donated to us," said councilor Norm Bodeker.
Mayor Gene Edwards countered that investment in the city’s Main Street was a positive thing.
"I think it would be good to have some money in the city coffers," he said, pointing out that a flag pole and memorial have already been moved across the street to city hall. "That someone wants to build in our downtown excites me."
The value of the land is likely between $23,000 and $28,000. Councilor Jessica Jarvis suggested moving the park to the other side of the post office where there is a vacant corner and maintaining recognition of the VFW.
Councilor David Kothe agreed.
"I think a gift is a gift. To remember them, like (Jarvis) said, is a good idea," he said. "But once it’s given to you, it’s for you to use as you see fit. so I wouldn’t let that be a stumbling block."
Banken explained that a public hearing would have to be heard to change the use of the public land, and council members decided to continue thinking about the matter and took no action.
Other items
In other business, the council:
■ Heard from Fire Chief Ken "Oscar" Laney that the department responded to two fire calls and seven rescue calls in August.
Laney also said that two new firefighters are now certified and the department is at 26 members.
In addition, possible solutions to a water drainage problem between the fire station and a nearby neighbor are being explored.
■ Public works employee Daniel Dawson told council members that the water tower has been painted.
"It looked great when I came into town," said Edwards.
"It looks fantastic, especially in the morning with the sun on it," Dawson agreed.
While the season is now advanced, Dawson said the need for mowing has not tapered off like it usually does late in the year.
"I’m hoping for that nice brown color that you don’t have to mow, but apparently that’s not happening this year," he said.
Councilors agreed that the Class 2 rock that has been added to the alleys has made a nice difference, and heard that there were three hall rentals in August.
■ Decided to eliminate a seasonal public works helper position now that Dawson has been brought on full time. The council reserved the option to hire for the position if needed, however.
■ Discussed but decided against changing city regulations to allow Lala’s to serve hard liquor on Sundays. The establishment currently has a setup license for Sundays and can sell beer and wine, but had inquired about a possible change.
"We’ve never served hard liquor on Sunday in town," said Bodeker, adding that he understood why having a setup license that allows patrons to bring in their own bottles could also be problematic.
"I’m totally against it," said Edwards. "I don’t see any reason to sell hard liquor on Sunday."
■ Approved spending up to $1,000 to install a roof overhang over a north door on the community hall. In the past snow as blocked the door in the winter, meaning it cannot be used as an emergency exit.
■ Set a public hearing on delinquent water, sewer, garbage and recycling utility accounts for 7:15 p.m. on Tuesday, Oct. 6, during the regular council meeting.