New roadway and sidewalks are shown on Iron Street in Negaunee. According to the city of Negaunee’s Facebook page, construction will resume next spring with the use of the city’s $885,000 Revitalization and Placemaking Program grant from the Michigan Economic Development Corporation for the downtown streetscape. (Courtesy photo)

By DREYMA

BERONJA

Journal Staff Writer

NEGAUNEE — The Negaunee City Council moved ahead on several agenda items, including the approval of the 2024 budget and traffic code ordinance, on Thursday.

Councilor Matt Howard was the only one to vote against both items. He said the traffic code ordinance has “good and bad parts” but is concerned about how the ordinance will be enforced.

He also said the city is over budget and spending money on “stuff (the city) shouldn’t be spending it on.”

“I’m looking just through this budget message here and for some reason, we gotta run out and apply for every grant possible, even if it’s something we don’t need, and it still cost the city money,” Howard said. “To match it somehow or to maintain it somehow. It ends up costing everybody more money on something do we really need?”

Councilor Toby Smith said he thinks the budget is balanced.

“We just need to keep in mind and recognize that the drawdown to the fund balance is not necessarily a bad thing, not necessarily a good thing, something that we need to keep our eyes on and make sure that this does not become a habit in an unsustainable manner,” he said. “As it sits, in order to complete the various projects that we currently have on the books, I think this is a solid budget for the coming year.”

Councilor Anthony Stagliano agreed with Smith’s points and added that the city is in a “rebuilding mode.”

“We’re doing a lot of stuff, so yeah, we’re gonna run tight right now and that is all right,” he said. “We know our staff and counselors come up with a way to make it work. Let’s go forward with it.”

City Manager Nate Heffron made note that even though the budget was passed, the city cannot go out and spend all the money. He said anything over $5,000 will go to the council for approval or if there’s any bidding requirements.

Councilors also approved a 5.91% electric rate increase to adjust the 2024 revenue to match the proposed electric fund budget with a net income of $9,515.

Fixed residential rates will increase from $20 to $25 and the power cost adjustment cost factor will adjust from an average of 0.0031 kilowatt hours to zero kilowatt hours. For the average residential customer, this will be an increase of $6.50 a month.

There were also rate increases for the ice arena, recreation, water, sewer and garbage.

Smith said he was in favor of the nominal increases over the years in order to keep the city “in line with what they’re actually paying for the services.”

“These rates aren’t necessarily set by us, we’re just trying to cover the cost to the city in order to provide these services to our residents,” he said. “So in order to do so, those rates are going to have to go up.”

Smith said he would also like to see the city consider a rate study for the water and sewer fund, like the city did with the electric fund.

“It’s great that we’re putting all of these policies and procedures in place as it relates to the electric fund,” he said. “But if we’re putting all our attention there and ignoring our other funds, are we letting those backslide into a position where we’re not really looking out for our best interest?”

Howard said he was concerned about the numbers for the electric fund.

Heffron explained that the rate study is based on the current budget, “which if every dollar (is) spent, that’s what the net income would be.”

“In my experience so far, we sometimes spend all that money and other times we do not,” he said.

Residents and businesses will receive a notice about the rate increases in January or February.

Howard was the only councilor to vote against the financial policies.

Councilor Dana LaLonde submitted her resignation to the council due to her recent appointment to the Marquette County Commission. To fill LaLonde’s seat, the city is seeking candidates to submit applications.

The vacancy will be filled until next November’s election. Applications can be found on the city’s website under the document-city manager section titled “Boards and Commission Application.”

Applications will be accepted until noon on Wednesday, Dec. 6, and can be dropped off at city hall or mailed to the City of Negaunee, P.O. Box 70, Negaunee, MI 49866.

“It’s been a pleasure serving on the Negaunee City Council,” LaLonde said during public comment. “It’s been an honor to be a part of this and serving with other people that are dedicated to our community.”

Councilors also approved the Lake Superior Community Partnership economic development plan proposal. The proposal will cost the city $7,661 and is currently budgeted for. The Michigan Economic Development Corporation grant will cover 75%, leaving the city’s share at just over $1,900.

The plan is part of the city’s requirements to stay certified as a Redevelopment Ready Community, which the city was just certified last Monday.

“The Moving Forward Economic Development Strategic Plan was our guiding light to get us to the places we are now,” Heffron said. “This new Forge Your Adventure will be our next one (development strategic plan) for the next five years that will drive our economy.”

Thursday’s meeting was also the last regular council meeting for Stagliano, as his term expires at the end of the month.

“It’s been an honor to serve on the council,” he said. “I think we’ve done a lot in the three years that I’ve been here. They had the privilege to be a part of seeing our city continue to improve, grow and fix the deterioration that has happened over the last 50 years.”

Councilor Craig Ilmonen will serve another three-year term and Negaunee resident Kevin Flohe, who also won a seat in last week’s election, will take Stagliano’s vacancy.

The next regular meeting will be on Thursday, Dec. 14, at 6:30 p.m.

Dreyma Beronja can be reached at 906-228-2500 ext. 548. Their email address is dberonj@miningjournal.net.