[00:00:05]
ALL RIGHT. GOOD MORNING EVERYBODY. IT IS 830. WE'LL GO AHEAD AND GET OUR FISCAL COMMITTEE MEETING HERE UNDERWAY. WE'VE GOT SEVEN ITEMS BEFORE US ON THE DOCKET. SO ITEM NUMBER
[1. Resolution authorizing a Budget Substitution for multiple Lift Station projects in the combined amount of $985,000]
ONE, WE'RE STARTING WITH A RESOLUTION AUTHORIZING A BUDGET SUBSTITUTION FOR MULTIPLE LIFT STATION PROJECTS IN THE COMBINED AMOUNT OF 985,000. SO MOVED. ALL RIGHT. MOVED AND SUPPORTED. I BELIEVE. IT WAS COMING. CONNIE IS BEING SILLY. GOOD MORNING. THANKS FOR BEING HERE. GOOD MORNING. SO THIS MORNING, WE BRING A RESOLUTION FOR A BUDGET SUBSTITUTION. THIS IS FOR MULTIPLE LIFT STATION UPGRADES. THIS IS FOR ORCHARD VISTA ALPINE ESTATES AND COLINDALE GRAVITY SEWER. FOR ALL THREE LIFT STATIONS. IT REQUIRES RELOCATING THE ELECTRICAL EQUIPMENT CURRENTLY THERE IN CAN STILL LIFT STATIONS. THIS BRINGS THEM TO THE SURFACE AND GETS THEM OUT OF THE HUMIDITY, AND MAKES IT SAFER TO WORK ON. FOR ORCHARD VISTA AND ALPINE ESTATES. IT CALLS FOR REPLACING OUTDATED PUMPS AND FOR COLINDALE GRAVITY SEWER. IT ALSO INCLUDES A SINKING MANHOLE REPAIR. OKAY, THANKS. ANY QUESTIONS OR DISCUSSION, COLLEAGUES? HEARING AND SEEING. NONE. ALL RIGHT. I WILL CALL THE QUESTION. ALL THOSE IN FAVOR SAY AYE. AYE.[2. Resolution authorizing a Budget Substitution for the Sewer portion of the Fuller Ave - Kalamazoo to Adams project in the amount of $100,000]
THOSE OPPOSED? THAT CARRIES ITEM NUMBER TWO. WE'VE GOT A RESOLUTION AUTHORIZING A BUDGET SUBSTITUTION FOR THE SEWER PORTION OF THE FULLER AVE TO KALAMAZOO, FULLER AVE, KALAMAZOO TO ADAMS PROJECT IN THE AMOUNT OF $100,000. SUPPORT. ALL RIGHT. MOVED AND SUPPORTED BACK TO YOU.I'LL TAKE THIS ONE AGAIN. ALL RIGHT. SO THIS IS FOR A BUDGET SUBSTITUTION FOR $100,000. THIS IS TO RIGHTSIZE THE SEWER LINE ON FULLER AVENUE BETWEEN KALAMAZOO AND ADAMS. THIS IS ACTUALLY, LIKE, A BOTTLENECK. IT'S JUST A RIGHT SIZE. THE SEWER LINE. IT'S IN CONJUNCTION WITH THE VITAL STREETS. OKAY. GOT IT. THANK YOU. QUESTIONS, COLLEAGUES. ALL RIGHT, ALL THOSE IN FAVOR SAY AYE. AYE. THOSE OPPOSED? IT CARRIES. ITEM NUMBER THREE. WE'VE GOT A RESOLUTION
[3. Resolution authorizing a Budget Substitution of $198,000 for Water portion of the Fuller Avenue from Kalamazoo to Adams project]
AUTHORIZING BUDGET SUBSTITUTION OF $198,000 FOR WATER PORTION OF THE FULLER AVENUE OF FULLER AVENUE FROM KALAMAZOO TO ADAMS PROJECT. SO IT LOOKS LIKE THIS IS RELATED TO OUR PREVIOUS ITEM.HERE IT IS. THIS IS ESSENTIALLY TO. OH, SORRY. THANK YOU. ALL RIGHT. SORRY. SO EXCITED. THIS IS SMART. THIS IS ESSENTIALLY TO MAKE THE PROJECT WHOLE FOR WATER. THE PROJECT WILL BE DONE, I THINK, BY THE END OF JUNE. AND ESSENTIALLY BIDS CAME IN AND WATER HAD ABOUT $600,000 BUDGETED. IT CAME IN A LITTLE BIT OVER BUDGET FOR WATER SHARE OF IT. THERE WAS A LITTLE BIT OF INCREASED SCOPE OF WORK, SO MAKING IT WHOLE. OKAY, SO PREVIOUS RESOLUTION FOR THE SEWER PORTION, THIS ONE SPECIFIC TO WATER. YEP THAT IS CORRECT. ALL RIGHT. ANY OTHER QUESTIONS.
ALL RIGHTY. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED. SAME SIGN THAT CARRIES ITEM NUMBER FOUR.
[4. Resolution authorizing a Budget Substitution of $2,455,000 for Park Capital Projects]
WE'VE GOT A RESOLUTION AUTHORIZING A BUDGET SUBSTITUTION OF 2,455,000 FOR PARK CAPITAL PROJECTS. SO MOVED. SUPPORT. MOVED AND SUPPORT. GOOD MORNING, MR. MARQUART. GOOD MORNING, COMMISSIONERS. THIS IS A SIMPLE ACCOUNTING OF PARK FUNDS. SO ESSENTIALLY SHIFTING PARK BOND FUNDING THAT WAS SPRINKLED AMONGST SEVERAL DIFFERENT PROJECTS THROUGHOUT THE PARK SYSTEM AND MOVING THEM INTO THE CANAL PARK PROJECT THAT WE KNOW IS ADVANCING RAPIDLY.IT'S UNDER CONSTRUCTION CURRENTLY, AND THOSE REMAINING PROJECTS WILL THEN BE FUNDED BY OUR PARKS MILLAGE FUNDING ON AN ANNUAL CAPITAL ROLLING BASIS. OKAY. THANK YOU. ANY QUESTIONS OR DISCUSSION, COLLEAGUES? JUST ONE QUESTION. HOW MANY OTHER PROJECTS THEN IS THIS GOING TO IMPACT WHEN YOU SWITCH THOSE FUNDS OVER TO THE. IT IMPACTS ROUGHLY A LITTLE OVER A HALF DOZEN PROJECTS. BUT JUST TO BE REMINDED, THOSE PROJECTS ARE BEING FUNDED BY OUR PARKS MILLAGE FUNDING. SO NO CHANGE IN PROCESS. THANK YOU. OKAY. GOOD QUESTION. ALL RIGHT. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? SAME SIGN. IT CARRIES. THAT WILL BRING US TO ITEM NUMBER FIVE.
[5. Bid List Resolution for May 20, 2025]
WE'VE GOT OUR BID LIST RESOLUTION FOR MAY 20TH, 2025. SO MOVED. SUPPORT. ALL RIGHT.MOVED IN. SUPPORT. I'LL TURN TO OUR ACTING CFO. GOOD MORNING. COMMISSIONERS. REAL SHORT BID LIST TODAY. WE HAVE THREE ITEMS ON IT. ALL PRETTY STANDARD OPERATING ITEMS WE HAVE HAULING AND DISPOSAL OF NON-HAZARDOUS WASTE FOR THE ESD DEPARTMENT. WE HAVE A THREE YEAR EXTENSION
[00:05:01]
AGREEMENT FOR SOME SOFTWARE AT THE DEV CENTER. AND THEN LASTLY, A COOPERATIVE AGREEMENT THROUGH THE KENT COUNTY ROAD COMMISSION FOR PURCHASE AND DELIVERY OF VARIOUS GAS AND DIESEL FUELS FOR USE CITYWIDE. AND I'LL JUST NOTE ON THAT ONE, THE AMOUNT 3.2 MILLION IS EXACTLY THE SAME AMOUNT AS THREE YEARS AGO, ALTHOUGH OUR USAGE HAS DECLINED DUE TO ELECTRIC VEHICLES IN THE FLEET, COMPRESSED NATURAL GAS VEHICLES, THE PRICE PER UNIT HAS INCREASED. NOT SURPRISINGLY, I GUESS LAST THREE YEARS. SO IT KIND OF OFFSETS EACH OTHER AND WE END UP AT THE SAME AMOUNT. SO OKAY. AND I KNOW I BELIEVE THAT WAS ON PAGE 14. IF ANYBODY LISTENING WANTS TO GO CHECK OUT AND READ MORE INTO THOSE, I'LL TURN TO MY COLLEAGUES REAL QUICK. ANY OTHER QUESTIONS OR THOUGHTS? ALL RIGHT. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? SAME SIGN THAT CARRIES. SO[6. Comptroller's Warrant Report for the period of April 29, 2025 through May 5, 2025 in the amount of $3,547,372.73]
THAT'LL BRING US TO ITEM NUMBER SIX. WE'VE GOT OUR COMPTROLLER'S REPORT FOR THE PERIOD OF APRIL 29TH, 2025 THROUGH MAY 5TH, 2025, IN THE AMOUNT OF $3,547,372.73. AND I WILL TURN TO OUR CITY COMPTROLLER. GOOD MORNING, COMMISSIONERS. MORNING. FOR THE PERIOD REFERENCE CASH PAYMENTS WERE RELEASED TOTALING APPROXIMATELY $3.5 MILLION. DURING THAT PERIOD, THERE WAS NOT A PAYROLL RELATED PAYMENTS MADE, BUT THERE WERE $750,000 IN INCOME TAX WARRANTS ISSUED.THERE'S LIMITED ACTIVITY HERE DUE TO THE TRANSITION OF THE CITY'S FINANCIAL SYSTEM. AND AS STATED HERE IN THE MEMO, ANY FUNDS MENTIONED THERE WERE ISSUED BY INDIVIDUALS NOT IN THE CITY COMPTROLLER'S OFFICE AND NOT IN ACCORDANCE WITH THE CITY CHARTER. OKAY. THAT IS RECEIVED
[7. Treasurer’s Report for Period of April 30, 2025 through May 7, 2025]
AND FILED. THANK YOU. LASTLY, WE'LL TURN FOR ITEM NUMBER SEVEN. WE'VE GOT OUR TREASURER'S REPORT FOR PERIOD OF APRIL 30TH, 2025 THROUGH MAY 7TH, 2025. GOOD MORNING, CHAIR AND COMMISSIONERS. GOOD MORNING. I WISH I HAD BETTER NEWS FOR YOU. UNFORTUNATELY I DON'T. SURE. DUE TO PRIMARILY FEDERAL ECONOMIC POLICY UNCERTAINTY, MOST NOTABLY WITH RESPECT TO TRADE AND TARIFFS, A MAJORITY OF ECONOMISTS ARE NOW INDICATING THAT THE US IS THAT OUR DOMESTIC ECONOMY IS LIKELY TO ENTER RECESSION LATER THIS YEAR. THAT DOES PUT THE FEDERAL RESERVE IN A BIT OF A BOX, BECAUSE INFLATION IS STILL ABOVE TARGET. IT'S CLOSE. IT'S COME DOWN SIGNIFICANTLY FROM ITS PEAK A FEW YEARS BACK. BUT IT IT IS STILL TOO HIGH. NORMALLY WHEN INFLATION IS HIGH, THE FED COMBATS THAT BY RAISING INTEREST RATES, WHICH SLOWS ECONOMIC ACTIVITY. AND BRINGS DOWN PRICES OR AT LEAST PRICE INFLATION I SHOULD SAY. UNFORTUNATELY, WHEN RECESSIONS HAPPEN, THE OPPOSITE MEDICINE IS CALLED FOR. RATE RATES NEED TO BE CUT IN ORDER TO SPUR ECONOMIC GROWTH. WELL, YOU'VE GOT A CONUNDRUM, BECAUSE NO MATTER WHICH COURSE OF ACTION THE FED TAKES, IF IT MAINTAINS HIGH RATES, THAT'S GOING TO HARM THE ECONOMY IN TERMS OF EMPLOYMENT, THAT SORT OF THING. IF IT LOWERS RATES, THAT HAS A POTENTIAL TO HARM THE ECONOMY IN TERMS OF PRICE LEVELS THAT CONSUMERS SEE. SO IT'S ALWAYS A THE FED ALWAYS HAS TO ACT IN AS A BIT OF A BALANCING ACT BETWEEN THOSE RISKS. OVERALL, IT'S DONE A FAIRLY DECENT JOB AS OF LATE UNDER CHAIRMAN JEROME POWELL'S LEADERSHIP. HOWEVER, THE MATH IS THE MATH AND IT IS DIFFICULT TO BE AVOIDED. NOW, OF COURSE, THERE'S A CHANCE THAT A MAJORITY OF ECONOMISTS ARE WRONG. I CERTAINLY HOPE THEY ARE. AND THE US MAY RECTIFY THE VARIOUS, YOU KNOW, CONCLUDE TRADE NEGOTIATIONS POSITIVELY IN AN EXPEDITIOUS MANNER, AND WE MOVE ON. AND THIS IS SIMPLY A BLIP.UNFORTUNATELY, THAT DOES NOT APPEAR TO BE LIKELY. IN A BROADER PICTURE, THE BOND MARKET HAS BEEN IN A SECULAR BULL MARKET ROUGHLY SINCE 1981, AND THAT CAME TO AN END IN THE DEPTHS OF COVID IN LATE 2020. AND WHAT THAT MEANS IS THAT WE BECAME VERY ACCUSTOMED TO, OVER TIME TO REALLY NOT HAVE TO WORRY ABOUT COST OF CAPITAL AT ALL. AND THAT REALLY DIDN'T ENTER AS A MAJOR FACTOR IN DECISION MAKING. AND THAT IS GOING TO HAVE TO, UNFORTUNATELY, CHANGE
[00:10:02]
GOING FORWARD. THAT IS SIMPLY THE WORLD WE LIVE IN. DIFFICULT DECISIONS WILL NEED TO BE MADE ON YOUR PART OF WHAT PROJECTS TO PURSUE AND WHICH ONES TO LEAVE BEHIND. IN ADDITION, AS YOU NO DOUBT HAVE HEARD, MOODY'S INVESTOR SERVICE DOWNGRADED THE UNITED STATES DEBT OVER THE WEEKEND FROM TRIPLE A TO DOUBLE AA ONE. IT JOINS THE OTHER TWO MAJOR RATING AGENCIES IN THAT ACTION. STANDARD AND POOR'S DID THAT QUITE SOME TIME AGO. AND FITCH JUST A COUPLE OF YEARS AGO. OVERALL, THAT DOESN'T NECESSARILY ADD NEW INFORMATION TO THE ECONOMY PER SE, BUT RATHER SIMPLY A NEW ANALYSIS. IT WILL AFFECT SOME MARGINAL BUYING OF TREASURY SECURITIES ON THE FRINGES, ESPECIALLY BY FOREIGN SOVEREIGNS, WITH PARTICULAR CREDIT MANDATES. BUT OVERALL, THE NET EFFECT IS HIGHER COST OF CAPITAL. HAVING SAID ALL THAT, OUR INVESTMENT BALANCES ARE, AS OF THIS REPORT, AT THEIR LOW WATERMARK WITHIN OUR FISCAL CYCLE. SO EXPECT THE NUMBERS TO CLIMB OVER OVER TIME, AS OBVIOUSLY WHEN JULY ROLLS AROUND. INCOME TAX OR PROPERTY TAX RECEIPTS ROLL IN. BUT EVEN MORE THAN THAT, OVER THE NEXT SEVERAL DAYS, OUR CASH POSITION IMPROVES. AND IN THE LAST COUPLE OF WEEKS WE HAVE AS WELL. BUT HAVING SAID THAT, AS OF THIS REPORT, THE CITY'S INVESTMENT STOOD AT $657 MILLION IN CHANGE, YIELDING 3.27%. HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. ALL RIGHT. THANK YOU. I HAVE A QUICK QUESTION. I KNOW IF MAJORITY OF ECONOMISTS ARE FORECASTING SOME SORT OF RECESSION LATER THIS YEAR, IS THERE ANY INDICATION? I MEAN, THE WORD RECESSION CAN BE BROAD. IT COULD BE BRIEF AND SHALLOW. IT COULD BE LONG AND, YOU KNOW, MUCH MORE SERIOUS. SO LIKE IS THERE ANY INDICATION IF THIS IS LIKE AN 0809 RECESSION, IS IT MORE LIKE A FEW YEARS BACK WHEN IT WAS, YOU KNOW, TWO QUARTERS, OR IS IT STILL TOO EARLY TO TELL? IT'S DEFINITELY IN THE THIRD CAMP, TOO EARLY TO TELL. THERE'S A WIDE RANGE OF OPINIONS ON THE MATTER. I WILL SAY BACK, IF YOU ASKED ME THE SAME QUESTION BACK IN FEBRUARY OR MARCH, THE ANSWER WOULD HAVE BEEN MOST LIKELY VERY MILD. OBVIOUSLY, SINCE THAT POINT IN TIME, TRADE TENSIONS AND. YOU KNOW, WHAT WE'RE SEEING AT PORTS CERTAINLY HAS BECOME MORE OF A FACTOR. OKAY. THAT'S GOOD INFORMATION TO HAVE. ALL RIGHT. I'LL TURN TO MY COLLEAGUES AND SEE IF THEY HAVE ANY QUESTIONS OR THOUGHTS. LOTS OF THOUGHTS BUT I'LL KEEP THEM. THANK YOU VERY MUCH, COMPTROLLER AND TREASURER, FOR YOUR REPORTS THIS MORNING. YEAH. THANKS SO MUCH.ALL RIGHT. WE'LL GO AHEAD AND RECEIVE AND
* This transcript was compiled from uncorrected Closed Captioning.