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Record of Proceedings

Ferndale City Council Adopts FYE27-29 Budget, Approves Huntington Bank Contract, and Discusses Parking and Vacancy - April 27, 2026

City Council & CommissionsMonday, April 27, 2026
BodyFerndale, Michigan
SessionCity Council & Commissions
DateMonday, April 27, 2026
StatusFILED
Video Record
0:00 / 1:44:09

Transcript — Verbatim
0:00

Point the city could expect to amend its budget with a much more favorable revision in terms of total um expenditure reductions.

0:08

Right now, though, uh, with that role to the public improvement fund, the general fund is projecting a net revenue of about 30 uh 300,000.

0:18

That's just slightly less than one percent of the budget.

0:20

Um I would like to see that higher.

0:23

Um, where we're hopeful we'll you know we'll be able to reevaluate that in August.

0:27

If that uh were to pass in August, and then we'd be looking at more like 2.8 percent of uh budget, which is um very healthy in my uh opinion to have that really anything over two and a half percent as a budget buffer is very comfortable.

0:44

Uh also reflecting this budget, of course, is the final uh tax rollback factor, and as well the tax rate request forms are included in your agenda packet.

0:52

Uh those tax rate request forms are very formulaic, uh so it's really just a factor of what the prior years in most cases it's a factor of what the prior year's millage rate was uh multiplied by the headly reduction factor, which is a rate that is established for us based on headly and proposal A that limits how quickly our taxable value can grow.

1:14

Uh and in other cases, if it's a debt related millage, it is specific to what the debt repayment or the expense obligation of that item is.

1:24

Uh so the city doesn't have a lot of discretion over setting those rates, they are very factor-based.

1:30

Uh finally, in the water and sewer fund, the anticipated rate increases that we receive from uh the water resources commissioner office of 5.1 and 5.7 percent uh for sanitary and storm sewer, respectively, are also reflected.

1:45

So uh we are very confident that we have the all of the figures that are necessary for a reasonable and uh forward looking budget for fiscal year 27.

1:57

There's no outstanding uh major revenue or expense questions still to answer, and as I noted earlier, all funds are now reflective of a positive fund balance into future years.

2:08

Any questions because this is a public hearing, I will open it up to audience for questions first.

2:24

CNN open it up to council for any questions or comments.

2:31

Are you gonna close the public hearing?

2:33

Oh, sorry, close.

2:34

I don't know.

2:35

I guess since we're still too talking, I keep thinking that it's open all to everybody.

2:39

But I'm closing the public hearing then officially at 803, and I guess we need a motion to do that.

2:49

Motion to close the public hearing as yes, support all in favor?

2:55

Aye, aye.

2:56

Any opposed?

2:57

Okay.

2:58

Open up to council.

3:07

Chair, um Colleen, I know you and I have talked a little bit about the the downtown development authority and the net revenue versus appropriations and and their fund.

3:20

Can you can you give us a very high level overview of the the negative balances that we're projecting in the next few years?

3:29

Uh so originally by fiscal year 29 there was a projected deficit of I believe about 130,000 dollars as of the last reading.

3:39

Uh that is only resolved through deferring one of the major capital expenditures in fiscal year 29, um, which is not an item that could be wholly deferred, and that is for uh renewal of the TIFF for that district.

3:56

Uh so it is it should be expected that some costs will need to be incurred, and other measures would need to take place uh to reduce expenditures, really monitor expenditures between now and fiscal year 29 that help to ensure that that fund balance remains positive into the future that extensive conversation we we've been talking about this for months, so I'm not offended that that okay so I don't know why I keep getting confused about this.

5:00

So now we need uh the motion to adopt the fiscal year 2027 general budget, general appropriations budget, and resolution to set the fiscal year 27 tax, water, and sewer, and sanitation rates as submitted by the city manager.

5:08

So moved.

5:12

Support.

5:14

Sorry.

5:15

Roll call.

5:16

Kelly.

5:17

Yes.

5:17

McColski.

5:18

Yes.

5:18

Sabatini?

5:19

Yes.

5:20

Leaks May.

5:21

Yes.

5:22

Thank you.

5:23

That has passed our triennial our triennial budget for fiscal year 2027 through 29.

5:30

All right.

5:39

Thank you for everybody's work on that, by the way.

5:43

Consent agenda.

5:45

Approval of the April 13th.

5:48

2026 meeting minutes.

5:50

7B, acceptance of the resignation of Councilmember Donnie Johnson.

5:55

7C, approval to amend Chapter 6, Buildings and Regulations, Article 12, Environmental Performance Standards, Section 6 through 385 of the Ferndale Code of Ordinances.

6:09

7D, approval of resolution to authorize qualified licensees for the Ferndale Social District.

6:15

7E, approval of the resolution recognizing May as Jewish American Heritage Month.

6:21

7F, approval of the listed appointments and reappointments for city boards and commissions.

6:27

7G, approval of the fiscal year ending 26th third quarter budget amendment.

6:33

7H, approval of the professional services agreement with OHM advisors for as need planning services.

6:44

7i, approval of the street sweeping services agreement with the City of Pleasant Ridge.

6:49

7J, renewal of permit between the City of Ferndale and McClaude USA Telecommunications Services LLC.

6:58

7K, approval of the bid awards to Roller Construction Company and Becker Arena Products, Inc.

Discussion Breakdown — Share of Meeting
Parking██████████████████████████████████████38%
Public Works████████████████16%
Procedural█████████████13%
Community Engagement████████████12%
Public Engagement███████7%
Public Safety█████5%
Personnel Matters███3%
Parks and Recreation███3%
Fiscal Sustainability██2%
Summary of Proceedings

Ferndale City Council Meeting - April 27, 2026

The Ferndale City Council met in regular session at 7:00 PM on Monday, April 27, 2026, at City Hall, 300 E 9 Mile, Ferndale, MI. The meeting included adoption of the FYE27-29 triennial budget, approval of a large consent calendar, award of the city's banking services contract to Huntington Bank, and discussion-only items on downtown parking and filling the council vacancy. The available transcript begins during the budget public hearing, so the library presentation and the DPW/DDA/CEO partnership presentation from earlier in the agenda are not reflected in this summary.

Public Hearing & Budget Adoption

  • Finance staff presented the second reading of the FYE27-29 triennial budget. The general fund is projecting net revenue of about $300,000, just under 1% of the budget, with an August reevaluation expected to potentially raise the reserve to about 2.8% of the budget, described as a healthy buffer.
  • The budget reflects the final tax rollback factor and formula-based tax rate requests, including Headlee and Proposal A limits on taxable value growth, as well as anticipated Water Resources Commissioner Office rate increases of 5.1% for sanitary sewer and 5.7% for storm sewer.
  • All funds are projected to maintain positive fund balances into future years. On the DDA fund, a previously projected FYE29 deficit of about $130,000 remains a concern; a TIFF renewal capital expenditure cannot be fully deferred, so expenditure monitoring will be required.
  • The public hearing was closed at 8:03 PM. A motion to adopt the FYE27 general appropriations budget and set FYE27 tax, water, sewer, and sanitation rates passed by roll call, with no council member voting against.

Consent Calendar

  • The consent calendar was approved by roll call. It included approval of the April 13, 2026 meeting minutes; acceptance of Councilmember Donnie Johnson's resignation; amendment of Chapter 6, Article XII, Section 6-385 of the Ferndale Code; authorization of qualified licensees for the Ferndale Social District; a resolution recognizing May 2026 as Jewish American Heritage Month; board and commission appointments; the FYE26 third quarter budget amendment; an as-needed planning services agreement with OHM Advisors; a street sweeping services agreement with Pleasant Ridge; renewal of the McleodUSA Telecommunications permit; Harding Park inline skate rink bid awards to Rolar Construction and Becker Arena Products; a Giffels Webster project management agreement for $24,657; MLS GO youth soccer uniform kits from RCX Sports for $10,892.46; fiduciary liability policy renewal for $24,885; FYE26 audit engagement with Maner Costerisan for $62,600; a splash pad pump from HD Supply for $7,742.70; a maintenance services agreement with Center for Employment Opportunities for $42,000; a community tree planting program with Schichtel's Nursery not to exceed $15,000; and approval of bills and payrolls.

Regular Agenda - Banking Services

  • The council awarded the city's banking services contract to Huntington Bank after a presentation by finance staff. The city currently banks with Comerica but has experienced service and technology issues. The RFP drew five responses; Huntington was selected as the strongest option with the most government clients and better rates, reducing annual banking fees from about $72,000 to about $25,000.
  • Huntington agreed to waive treasury management fees during the first few months of implementation. Comerica will remain open until the transition is complete. The summer tax payment process will not be affected because the Comerica lockbox has been closed and payments will go directly to City Hall; finance staff said no additional accounts receivable headcount is needed.
  • The motion to award the contract to Huntington Bank passed by roll call, with no council member voting against.

Discussion Item - Downtown Parking

  • City staff and the DDA director presented options for downtown parking in the northeast quadrant. A small number of businesses support a valet service, while a larger contingent wants more on-street parking spaces rather than reusing existing spaces.
  • The DDA proposed a three-month valet pilot, previously approved by the DDA board at a cost not to exceed $30,000. It would run from 6 PM to midnight on Thursdays, Fridays, and Saturdays at a $10 flat rate. Staging would be at Bermuda and Vester using five city-owned spaces, with vehicles parked in the center of the mostly underused lot between the library and City Hall. Staff estimated about 40 cars per day and a net loss of about $5,000 to $6,000 per month; the break-even point would be roughly 80 cars per evening. The pilot was described as tuition for learning whether customers want valet service and what price they will pay.
  • Several council members expressed concern about the valet pilot because it removes existing parking spaces and loses money. Staff acknowledged that a strong group of businesses in the quadrant opposes the pilot for the same reason, preferring creation of additional spaces and use of the City Hall lot for employee and long-term parking.
  • Staff also discussed adding eight to nine on-street spaces on the west side of Bermuda between Vester and Breckenridge, with a one-time signage and striping cost of $2,000 to $4,000 and annual enforcement cost of about $3,500. The north side of Breckenridge could add about six spaces at slightly lower cost. No resident survey has been conducted, and council members asked for business and resident input before making permanent changes.
  • Council took no vote on the valet pilot. Staff will meet with businesses on Wednesday and will attempt to schedule a Friday meeting with Credit Union One about a larger private parking lot. The parking discussion is expected to return at the May 11 meeting, and a special meeting remains possible if a firm answer from Credit Union One arrives sooner.

Discussion Item - Council Vacancy

  • The council discussed how to fill the vacancy created by Donnie Johnson's resignation. As of the meeting there were 14 applicants, with applications open until May 5 and a final decision required by May 26.
  • Council supported holding a special candidate forum, likely on Wednesday, May 6 or Thursday, May 7, where applicants could speak for three to five minutes about their priorities, how they would fit with the council, and the policies that motivated them to apply. Applicants unable to attend could submit written responses to the full council email.
  • Council was advised that narrowing the candidate pool must occur in open session. The city manager will coordinate the date based on council member availability, with the May 11 regular meeting as the next step before the May 26 appointment deadline.

Department Updates and Call to Council

  • Parks and Recreation reported that Martin Roe Park construction mobilization began April 27, including demolition of the restroom and storage facility expected that Friday. The splash pad, playground, and pavilions remain available, with a temporary walking path detour and anticipated completion around October.
  • Police reported Police Week May 11-17, the memorial observance May 12 at 10 AM, and Touch-a-Truck and open house May 16 from 11 AM to 1 PM. Police also announced the passing of Auxiliary Officer Mark Webb, who served 17 years and passed away April 22.
  • Community updates included Cinco de Mayo festival road closures and public festival times May 2-3, plus openings on the DDA board, especially for representatives of the TIFF district.
  • In Call to Council, council members thanked staff and residents, encouraged applications for the vacancy, acknowledged concern about unauthorized activity near a downtown building, and noted Michigan Municipal League legislative work on Senate Bills 559, 561, and 912 related to revenue sharing.

The meeting was adjourned at 9:44 PM.

Key Outcomes

  • Adopted FYE27-29 triennial budget and FYE27 tax, water, sewer, and sanitation rates by roll call.
  • Approved the consent calendar by roll call.
  • Awarded the banking services contract to Huntington Bank by roll call.
  • Took no formal action on downtown parking; did not approve the valet pilot. Directed staff to gather additional business and resident input, pursue Credit Union One discussions, and return with more detailed options at the next meeting.
  • Agreed to hold a special candidate forum for the council vacancy, with the date to be set by the city manager and a final appointment required by May 26.

Meeting Transcript

Point the city could expect to amend its budget with a much more favorable revision in terms of total um expenditure reductions. Right now, though, uh, with that role to the public improvement fund, the general fund is projecting a net revenue of about 30 uh 300,000. That's just slightly less than one percent of the budget. Um I would like to see that higher. Um, where we're hopeful we'll you know we'll be able to reevaluate that in August. If that uh were to pass in August, and then we'd be looking at more like 2.8 percent of uh budget, which is um very healthy in my uh opinion to have that really anything over two and a half percent as a budget buffer is very comfortable. Uh also reflecting this budget, of course, is the final uh tax rollback factor, and as well the tax rate request forms are included in your agenda packet. Uh those tax rate request forms are very formulaic, uh so it's really just a factor of what the prior years in most cases it's a factor of what the prior year's millage rate was uh multiplied by the headly reduction factor, which is a rate that is established for us based on headly and proposal A that limits how quickly our taxable value can grow. Uh and in other cases, if it's a debt related millage, it is specific to what the debt repayment or the expense obligation of that item is. Uh so the city doesn't have a lot of discretion over setting those rates, they are very factor-based. Uh finally, in the water and sewer fund, the anticipated rate increases that we receive from uh the water resources commissioner office of 5.1 and 5.7 percent uh for sanitary and storm sewer, respectively, are also reflected. So uh we are very confident that we have the all of the figures that are necessary for a reasonable and uh forward looking budget for fiscal year 27. There's no outstanding uh major revenue or expense questions still to answer, and as I noted earlier, all funds are now reflective of a positive fund balance into future years. Any questions because this is a public hearing, I will open it up to audience for questions first. CNN open it up to council for any questions or comments. Are you gonna close the public hearing? Oh, sorry, close. I don't know. I guess since we're still too talking, I keep thinking that it's open all to everybody. But I'm closing the public hearing then officially at 803, and I guess we need a motion to do that. Motion to close the public hearing as yes, support all in favor? Aye, aye. Any opposed? Okay. Open up to council. Chair, um Colleen, I know you and I have talked a little bit about the the downtown development authority and the net revenue versus appropriations and and their fund. Can you can you give us a very high level overview of the the negative balances that we're projecting in the next few years? Uh so originally by fiscal year 29 there was a projected deficit of I believe about 130,000 dollars as of the last reading. Uh that is only resolved through deferring one of the major capital expenditures in fiscal year 29, um, which is not an item that could be wholly deferred, and that is for uh renewal of the TIFF for that district. Uh so it is it should be expected that some costs will need to be incurred, and other measures would need to take place uh to reduce expenditures, really monitor expenditures between now and fiscal year 29 that help to ensure that that fund balance remains positive into the future that extensive conversation we we've been talking about this for months, so I'm not offended that that okay so I don't know why I keep getting confused about this. So now we need uh the motion to adopt the fiscal year 2027 general budget, general appropriations budget, and resolution to set the fiscal year 27 tax, water, and sewer, and sanitation rates as submitted by the city manager. So moved. Support. Sorry. Roll call. Kelly. Yes. McColski. Yes. Sabatini? Yes. Leaks May. Yes. Thank you. That has passed our triennial our triennial budget for fiscal year 2027 through 29. All right. Thank you for everybody's work on that, by the way. Consent agenda. Approval of the April 13th. 2026 meeting minutes.

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