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E.L. feels squeeze as it plans budget

April 21, 2009

The economy’s impact on city services was reflected in sections of the city’s budget, which was presented Tuesday to the East Lansing City Council.

The city’s human services, parking fund and capital improvement received little or no increase in funding, due in part to difficult economic times, council members said.

Without accounting for the City Center II bonds, the proposed city budget would increase between 1 and 2 percent, council members said.

East Lansing Mayor Vic Loomis said the City Center II bonds only will be issued if the project proceeds as planned. He would not elaborate on the likelihood that the project will proceed as planned.

The city’s capital improvement and parking fund sections of the proposed budget have limited increases in funding aside from the City Center II theater project and parking ramp, which will be funded by bonds that will be repaid through revenue from the parking ramp.

However Jim van Ravensway, director of planning and community development for East Lansing, said the money the city collects from parking now has leveled off within the last year.

“There’s flat revenue in the parking system,” he said. “Normally, we’d project an increase in revenue, but not this year and maybe not for the next three years.”

A public hearing also was held to discuss the city’s preliminary budget and tax rate, after the council discussed that section of the budget last week. Such a formal hearing is required by law to allow public response and recommendations, said Mary Haskell, the city’s finance director.

Green buildings

The city’s green building policy was approved, meaning that after April 30, any project financed by city-approved economic development funds that has not finalized site plans is required to be Leadership in Energy and Environmental Design (LEED) certified.

East Lansing is the first city in Michigan to tie economic incentives to green construction.

Under the policy, projects receiving funds from development programs such as Brownfield redevelopments or Tax Increment Financing will be required to contain features that are environmentally friendly and promote human health.

Although plans for City Center II have been approved, Tim Schmitt, a community development analyst for the city, said the main building of the project was previously required to be LEED certified, and city staff will work with developers and encourage them to consider LEED certification for other buildings.

“We want to go back and see if we can work with them to have other parts of the project also be LEED certified,” Schmitt said.

City officials said the green building practice could be beneficial in luring future development to East Lansing.

“I think that it’s an important statement for the city to make where there’s public incentives involved,” said Ted Staton, city manager for East Lansing.

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