Lowell City Council Meeting Recap: Retirement, Roads and Reviewing Goals

After several recent short meetings, the Lowell City Council had a lot to talk about at last night’s session. It kicked off with a long presentation on the city’s employee retirement fund before moving on to trucking violations and future plans.

Retirement Fund Facing Shortfall

The first major agenda item of the night was a presentation by the Michigan Municipal Employee Retirement System (MERS). It was a somber look at the state of the city’s retirement fund.

According to Mike Overly, the city’s MERS representative, the Lowell retirement fund was only 65 percent funded at the end of 2015. That’s a decrease from 74 percent in 2014. The change can be attributed, in part, to increased life expectancy and lower returns on investments. Although the city is not required to fully fund its retirement plan at this time, as workers continue to retire, the shortfall in the fund will become a problem.

While many municipalities have moved to a deferred compensation retirement plan, the City of Lowell has continued to offer a defined benefit plan. That means that instead of contributing to a 401(k) or 457(b) account, city workers receive a traditional pension. Under the current system, workers contribute 5 percent of the cost into the plan while the city pays the other 95 percent.

City Manager Mike Burns expressed surprise that the City of Lowell still operates under the defined benefit system. Councilmember Greg Canfield suggested it might make sense to change the plan for new city hires. “Maybe get rid of the defined benefit,” he said. “However, not change what the current employees have.”

No action was required of the council, and the presentation was provided for educational purposes as the city prepares to begin work on the budget and union negotiations.

City to Begin Enforcing Weight Restrictions

Next up on the agenda was a proposal by Chief Steve Bukala.

He stated Officer Gordy Lauren has been to the Motor Carrier Enforcement Training, and as a result, the Lowell Police Department has become aware of a number of trucking violations that occur in the city.

Most notably, some overweight trucks are driving through Lowell to avoid the Ionia scales located east of M-66. To address this issue, Chief Bukala would like to purchase two portable weighing devices that can be used by Officer Lauren now that he is a trained Motor Carrier Enforcement Officer. The money would not have to come from the general fund since the police department has money from salvage inspections. That cash can only be spent on law enforcement items.

What’s more, the City of Lowell keeps 70 percent of fines received for citations written under local ordinances. That money can then be used for any purpose. Chief Bukala added there is a safety component to deterring trucks from the city since many are unfamiliar the local truck routes. Finally, the overweight trucks take a heavy toll on city streets which are already in questionable condition.

The council voted unanimously to purchase two scales at a cost of $4,895 each.

What to Watch for Next from Lowell City Council

The remainder of the meeting was focused on future action for the City Council. Members instructed Burns to begin drafting an ordinance to ensure money raised for the Showboat renovation would be used for that purpose. As envisioned, the ordinance will create a designated fund, administered by the city, for the renovation, maintenance and support of the Showboat.

Dr. Lew Bender, an organizational development specialist, was also on hand to follow up on a January goal-setting session held by the council. His presentation reviewed the city goals for the future which include community-wide branding, a finalized plan for the Riverwalk and consistent enforcement of codes.

The City Council members were also told they would soon be receiving iPads so they would no longer have to worry about leafing through those pesky paper packets at each meeting.

The next City Council meeting with be on March 6, and a budget workshop is planned for May 6.

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