City Manager's Newsletter

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Business Registration Ordinance Passes: An ordinance requiring new businesses to register with the City was approved by the City Commission at its January 24, 2011 meeting. The registration requirements are minimal and no fee is required. This new law allows the City to obtain contact information from new business owners and also provides the City the opportunity to discuss zoning and licensing requirements with start-up businesses.

Budget-Building Process Continues
: At the same time federal and state budget proposals are making the news, the City is in the process of putting together the 2011-2012 St. Johns operating budget. The St. Johns Charter requires that a balanced budget be passed no later than June 1 of each calendar year.
With decreasing revenues (declining statutory revenue sharing from the state along with reduced property tax receipts) and increasing fixed costs, this will be an especially challenging exercise. Fortunately the City has been pro-active with respect to controlling operational costs, knowing the recession that has gripped Michigan for so many years will not evaporate overnight.
Within the last several years the City has enacted cost-savings measures with respect to retirement benefits (both for non-union and union employees) and health care. In 2003, the City replaced its defined benefit retirement plan with a defined contribution plan for all new non-union employees. This same retirement plan shift was negotiated for all new police officers (who are members of a collective bargaining unit) as of 2007. With respect to health care costs-which will likely rise another 8 to 10% this year-the City now requires employees to pay a portion of their health insurance premium.
City retirees do not receive medical insurance after they retire unlike other entities. Additionally, changes in the health care deductible for both individuals and families were made to further control costs in this area. The City continues to search for cost-saving measures in all areas of its operations as the budget-building process continues for the next fiscal year.
Medical Marihuana Moratorium Extended: The Michigan Medical Marihuana Act (the MMMA, passed by the voters in 2008) permits individuals with specific medical conditions to obtain and use marihuana as part of their treatment regimen. This state law is somewhat vague with respect to whether business ventures can be established to grow and dispense marihuana in Michigan communities. This has become a very controversial subject at the local level. Many towns, cities and townships have passed ordinances to establish a regulatory framework for medical marihuana cultivation, use and sales. Some public bodies have voted to outlaw it entirely. Several lawsuits have been filed against municipalities where it is claimed the local regulations violate the rights conferred on individuals and “caregivers” under the MMMA.
The St. Johns City Commission has been monitoring both regulatory efforts and pending court cases related to the MMMA. In order to develop sufficient information to consider workable local regulations in this arena, the city’s Medical Marihuana Moratorium originally passed by the City Commission in October 2010 has been extended, and is now in effect through May 21, 2011. The moratorium has the effect of precluding any commercial medical marihuana business or store from operating within the City limits during the moratorium. While the moratorium is in place, City staff continues to work toward drafting a proposed local ordinance which will address community concerns regarding medical marihuana.
Special Events Approved By Commission: The Lions Club Annual Easter Egg Hunt, scheduled for April 23, was approved at the January 24th meeting. The Lions Club also obtained approval for their White Cane Project (April 29-30).
Townsend Road Improvement Project: The City Commission passed the necessary resolution to advance this important road project. Contracts were signed and the bid letting will proceed in March. It is expected the construction project will be underway shortly after school lets out for summer. The 2007 Capital Improvement Bond monies are being utilized as the City’s match in obtaining the $615,000.00 grant from MDOT. Those bond monies are now minimal for future projects.
Dollar General Coming To St. Johns: The Planning Commission’s recommendations for site plan approval for a new Dollar General store at the old Theresa Merrill site was ratified by City Commission vote on February 14. Local residents provided valuable input during Planning Commission meetings to insure the development of this commercial enterprise took into account neighborhood concerns.