City Leaders Ponder Projects Using Unexpected Surpluses

By Greg Chandler
Zeeland Record


Zeeland city officials are considering moving ahead with several major projects, using about $2.75 million in revenues that the city didn’t plan on when it put together its current budget earlier this year.

The City Council on Aug. 17 heard a proposal from Interim City Manager Kevin Plockmeyer, where he outlined three ­potential projects for the use of the ­unexpected funds.

The city ended the 2025-26 fiscal year with a general fund surplus of about $800,000. In addition, the city received a $1.95 million check from the state in May to reimburse the city for personal property taxes.

Possible project options include reconstruction of 84th Avenue, south of Riley Street, in the area where the JR Automation global headquarters is under construction; engineering and design work on building improvements at City Hall and the Howard Miller Library and Community Center; and reconstruction at Lawrence Street Park.

“We feel it is good to take those funds and allocate them for a purpose,” Plockmeyer said.

“We don’t want to use these ­unbudgeted surpluses for operational­ expenses. We don’t want to add to the operating budget.”

Plockmeyer proposed allocating $1.2 million for the 84th Avenue project. The project will entail rebuilding the road, with curb and gutter and a new paved surface. He would like to have the road project completed by next spring, when the JR 
Automation facility is expected to open. 

Project engineers have estimated the construction price tag for 84th at more than $1.11 million. Up until now, the city had been expecting to finance the project through the sale of bonds. Using the available one-time funding would allow the city to avoid bonding, Plockmeyer said.

“From a timing perspective, we’re far more nimble if we have the cash in hand, as opposed to having to go through the bonding process,” he said.

The road construction costs will eventually be paid back to the city through capture of tax revenues that will be generated by growth in JR Automation’s property value. The City Council in May approved adding JR Automation to the city’s brownfield redevelopment plan, making that tax capture possible.

Other improvements are planned in the area of JR Automation, including bike paths and reopening the CSX railroad crossing that has been closed since late 2003. The city recently resolved a lawsuit with CSX, but does not yet have a firm schedule for reopening the crossing. For now, the city will wait until a future budget cycle to allocate funding for that project, Plockmeyer said.

Plockmeyer proposed allocating $750,000 for design and construction administration work on the Howard Miller Library and Community Center, and City Hall – which has been termed “Series 1” in the city’s facilities implementation plan. That funding would go along with another $250,000 in reserves from the facilities maintenance fund for the design work.

Officials have estimated about $7.7 million in improvements are needed at the library and community center, including renovation of the library itself and the building’s lower level, mechanical upgrades and replacement of the roof. 

City Hall improvements that have been recommended include interior renovations, roof and window replacement, mechanical and technology upgrades and replacement of the elevator. Those improvements have an estimated price tag of $2.47 million, Plockmeyer said.

“The library gets 100,000 people in a year. We haven’t touched that building in nearly 30 years, and it’s getting tired,” Plockmeyer said. “Because of some of the work that we need to do in that facility impacts (City Hall), we need to look at those two buildings in tandem.”

Because of the size and complexity of the proposed improvements, it’s expected that the design and engineering process will take about a year and a half, Plockmeyer said.

“Just signing on with an architect, starting off the process, does not mean that the project is a go, but at least it gets us to the point where we can say ‘yes, it’s time to go,’” he said.

The council is expected to decide next month whether to move ahead with the design plans.

Finally, there’s Lawrence Street Park. Based on feedback from residents through the city Parks and Recreation master plan update, the park has been identified as the next major project in the city’s parks system.

Proposed improvements to the park include removing the existing playground, installing new playground equipment, new concrete walkways, improved restrooms and site improvements. Early estimates put the project cost at $1.08 million. Plockmeyer proposed allocating $800,000 from the one-time funding for the project and pairing it with $500,000 left over from the Hoogland Park project that was completed last year for a $1.3 million budget.

The city could seek bids for the Lawrence Street Park improvements about a year from now, Plockmeyer said.

No decisions have been made yet on how the general fund surplus and personal property tax reimbursement dollars will be spent. Plockmeyer says the city has been able to use the latter funding to take on projects it might otherwise have not been able to move ahead with. Examples include the construction of the downtown snowmelt system.

“We haven’t used it for ongoing operational expenses or anything like that,” Plockmeyer said. “I think we’ve done some very dynamic things for this community with this funding.”


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