City Commission Approves Budget, OKs Compari's Bar Addition

The city of Plymouth's 2011-2012 budget, approved Monday, includes an increase in the total millage from 15.9934 mills to 16.0134 mills because of general obligation bond debt retirement, according to a report by City Manager Paul Sincock.

Sincock spoke Monday during a public hearing at the Plymouth City Commission's regular meeting, which took place outdoors at .

He reported there are no increases in the two operating millage rates. He also said all the major operating funds of the city are balanced, although the Local Street Fund, Recreation Fund, Building Fund and Neighborhood Services Fund will receive operating subsidies from the city's General Fund for the 2011-12 fiscal year. 

Resident Michael Vas asked the commission about the city's "large, unfunded" pension obligation of nearly $7.9 million reported in an auditor's report in December 2010. He also asked the commission about the total dollar amount of health care obligations for retirees from the same audit and the commission's expenditure of $1 million in the last fiscal year for a geothermal project.

Mayor Dan Dwyer told Vas that he had complicated issues and the commission didn't have "calculators and budget books" to give an answer on the spot.

Vas responded that it was a public budget hearing and he didn't believe the questions were complicated and asked for answers in general terms.

Sincock said the retiree costs are estimated to peak in 2015-16, then would decrease. He said all the city's employees were moved off the old benefits program 10 years ago.

Sincock said the city has made significant changes to its insurance plan and has not experienced increases in health care costs for both retirees and active employees. 

The geothermal project, Sincock said, hadn't yet been operational for a full year, but the city is experiencing "everything that was anticipated" in the budget.

The commission unanimously approved the budget proposal.

Compari's bar addition approved

An application by  for a bar expansion into the adjacent space formerly occupied by  was unanimously approved after a public hearing in which nobody spoke.

The Liquor License Review Committee, composed of City Commission members, unanimously approved the application in a meeting that took place just before the commissioners' regular meeting.

No free haircuts in Kellogg Park

An application by the newly opened Clover Salon, 261 N. Main St., to offer free haircuts in Kellogg Park from 1 p.m.-4 p.m. June 26 was denied by the City Commission.

Mayor Dan Dwyer expressed concern about a business offering a commercial service at Kellogg Park, noting most events that take place are for nonprofits or other charitable causes.

Commissioners John Barnett and Ron Loiselle voted in favor of the event.

City earns glowing financial appraisal

Plymouth earned a glowing financial appraisal by Warren Creamer, director of Baird Research and Insights' Michigan Public Finance Team. 

Baird spoke at a study session at City Hall to discuss funding alternatives for the city. The study session took place before the Liquor License Review Committee and City Commission meetings Monday. 

Creamer told city officials at the study session that the city's debt life was short and its cash assets were solid. 

"I can't emphasize enough how important this cash is," he said.

He also told city officials that Plymouth's financial management will be a positive when it gets rated.

"The fact you're taking proactive steps will continue to be applauded by ratings agencies," he said.

Plymouth currently maintains an , among the highest ratings available, which can help the city borrow money.