Grosse Pointe City to Buy Tank, Software to Save on Fuel

The City of Grosse Pointe council unanimously approved $23,433 for the purchase of an aboveground fuel tank and the appropriate software Monday to be used for storing unleaded fuel. 

City Manager Peter Dame said the ability to purchase unleaded fuel at a wholesale price is expected to save 10 to 15 percent in fuel costs. The savings from the tank and software will pay for itself in about five years, he said, noting the higher the fuel prices spike, the faster it will pay for itself. 

The city already has a diesel fuel tank and this will work similarly, Dame said. The payoff will eventually be reflected in the operational budget, Dame explained.

In other business, Monday was the public hearing for the City's 2011-12 fiscal year budget. Kimberly Kleinow, finance director-treasurer, reviewed highlights of the budget to provide a snapshot of the details. 

Among the highlights:

• Reduction in staff, including seasonal and part-time parks and recreation, public works and a retirement in the public safety department.
• Budget reached without anticipation of state revenue-sharing funds.
• Elimination of the solid-waste fund and increases in refuse collection prices to make it a break-even rather than city-supplemented service.
• A 12-inch water main project on Mack Avenue, which is being funded by a special assessment on the businesses, a bond, estate funds and state funds. This is the second part of a longer-term project to improve the water flow of the city as a whole.
• Budget reached without seeking additional millage to fill deficit from taxpayers.

Approximately 75 percent of the city's budget is funded through property taxes, which dropped by $183,000 compared to last year. Residential property values dropped by 5.5 percent and commercial property values dropped by 2.2 percent, reducing the overall revenue for the city by 6.1 percent, Kleinow said.

The reduction this year follows a 9-percent decrease from last year, she said.

Councilwoman Jean Weipert, who led the meeting in Mayor Dale Scrace's absence, opened the meeting for public comment on the budget; however, no one spoke. She urged anyone who is interested to pick up a copy of the proposed budget this week as it will be up for the council's vote May 16.

Council members were also briefed on the state of the streets and sewers, many of which are in desperate need of repair, Dame said. There is an attempt to obtain a low-interest loan to help pay for some of the repairs but the city will not know whether it has been approved until November. If it's not approved Dame said the city will have to look to performing in-house repairs.