Rochester Hills Legistar System

individuals escrow.

* Elections increased by $13,000 in wages

* Accounting reduced operating supplies.

* Legal some increases due to John Staran's work with REI.

* City Clerk reduction in MIS and occupancy charges.

* Human Resources all reductions.

* Treasury show employee health insurance increasing due to budget is based on what

employees currently have.

* Cemetery increase to salaries due to 3 1/2 payrolls in December.

* Crossing Guards remained the same with decreased operating supplies.

* Communications had reductions in all accounts.

* Ordinance remained the same.

* Planning Commission had all reductions.

* Planning Department shows a mix with Professional Services for Westfall/Gateway

contract increased by $49,000.

* ZBA has reductions.

* City BG reflects all reimbursements.

* Parks reflects a mix of reductions and increases.

Mr. Lee Zendel, Citizen Representative, asked for clarification regarding the Inter

Funded Administrative one-third (1/3) decrease.

Ms. Jenuwine explained the original Administration Charge allocation was $3.9 million.

The original budget came in at $2.7 million. An over allocation of $1.2 million was not

spent as follows:

* City Clerk's Office, Mayor's Office and City Council under budget by $500,000

* Accounting under budget by $100,000

* Human Resources under budget by $162,000

* Treasurer under budget by $175,000

* Communications under budget by $70,000

* Youth program was not implemented

Mr. Zendel inquired what Administrative Overhead Allocations are considered Capital

Expenditures and what are distributed to other Funds?

Ms. Jenuwine responded that if you have higher capital costs, you receive a higher

allocation. The Fund will receive a bigger allocation based on the Capital Expenditures.

She further explained the three (3) ways the General Administrative Charge is allocated

as follows:

* Consider Personnel costs in the General Fund.

* Consider size of Fund Balance in a Particular Fund.

* Consider amount of Expenditures.

Ms.Hill inquired as to pushing the budget forward sooner instead of waiting the full year

to allocate the monies back.

Ms. Jenuwine stated this can be done once the 2004 numbers are confirmed by auditors

in March.

Ms Jenuwine reviewed the changes to the following funds:

* Major Roads

* Local Roads

* Fire Administration

* Fire Apparatus

* Fire Operating Fund

* Special Police

* Extra Police Protection

* RARA no significant changes

* Pathways

* Solid Waste

* Tree Fund

* Drain Fund

* Debt Funds

* Water and Sewer Fund

Ms. Jenuwine will provide Susan Galeczka, City Council Liaison, revised resolution to

reflect appropriate changes.

Ms. Jenuwine further explained to Committee Members that the Water and Sewer

Budget was developed from the Black and Veach Software Program in Excel

Spreadsheets. She looked at the past ten (10) months of data and projected the last

two (2) months of the year. She then explained that she inflates for the difference and

cost between this year and last year to obtain a number.

Committee members discussed the Emerald Ash Borer destruction of City trees, noting

approximately 1800 right-of-way street trees have been cut down throughout the City.

Committee members agreed to look into the cost of hiring a contractor to grind the tree

stumps.

* Tree Fund is set-up to replace trees with the residents splitting the cost one-half with

the City.

* Tree Replacement Fund is to be used only for trees removed from right-of-ways in

front of people's homes.

Ms. Jenuwine referred to the language which says "maintenance" noting it is considered

"maintenance" to remove tree stumps. She further noted that the number of trees cut

down by the City is at 1000 and to have Mike Hartner, Director of Parks and Forestry put

together information so that they can make an informed decision.

Mr. Dalton stated that tree stumps should be removed this winter so that residents can

replant in the Spring.