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Vol. XC, No. 125 Ann Arbor, Michigan-Tuesday, March 11, 1980 Ten Cents Twelve Pages
City administrators predict tight year fo
By JOHN GOYER
Faced with escalating energy costs, shrinking
ources of outside revenues, and new demands
on the city's budget, City Hall administrators
are predicting a tight year for Ann Arbor's'
government as they prepare the 1980-81 budget.
Adding pressure to the budget is a strong
sentiment among council-majority
Republicans to cut taxes this year.
IN A MEMO to City Council last week, City
Administrator Terry Sprenkel .described the
fiscal worries in the most flexible area of the
city's budget, the general fund. The fund
accounted for about $25.5 million of the city's
43.8 million in expenditures this fiscal
.ear-1979-80.
Sprenkel estimated that the general fund
would grow by only 4.3 per cent-while the cost
of government will probably rise at a rate of
about10per cent.
Sprenkel and Assistant City Administrator
Patrick Kenney, interviewed before spring
break, said the general fund would suffer both
from increasing energy costs and decreasing
amounts of funding from the federal and state
governments.
THEY SAID the cost of providing police and
fire protection and of collecting city refuse was
skyrocketing due to higher cost for fuel.
Sprenkel also said the cost of operating the
city's water and sewage treatment plants,
supported through funds separate from the
general fund, was also increasing due to rising
costs for energy and chemicals-some of which
rose 40 per cent.
Water and sewage treatment are funded
through self-sufficient budgets that are
separated from the general fund.
THESE FUNDS totalled some $10.5 million
this fiscal year, and along with the parking
system, are the major activities financed from
segregated funds.
State and federal contributions to the general.
fund, which added up to about $f million last'
year, are expected to decrease or increase only
slightly; Sprenkel said.
In addition to uncertainty over state sales tax
rebates, likely to rise little due to the dismal
condition of Michigan's economy, Sprenkel
said "there's a tremendous amount of
uncertainty over what the policy is going to be
for (federal) revenue sharing and what the.
formula is going to be."
ANN ARBOR probably will lose if the
revenue sharing formula is changed, Sprenkel
said, due to the city's high average income and
low unemployment.
The $25.5 million general fund financed
police and fire protection, City Hall salaries,
refuse collection, pension fund contributionsa
and payment of past city debts.
Property taxes, which accounted for nearly
$16 million in general fund revenues this year,
are slated to rise by.15 to 18 per cent-but taxes
are also the target of Fourth Ward Republicans
Ed Hood and David Fisher.I
UNDER THE Headlee Amendment, the city
could not receive an increase in total property
tax revenues more than the rate of inflation.
But the increase is measured using the
authorized level of taxation as a base, and the
city did not levy taxes last year at the full rate
authorized by the city's charter.
Hood, Fisher, and other Republicans are
responding to complaints of city property
r budget
owners, whose homes were upped in value by
about 20 per cent this year, thus increasing
their taxes even if the rate of taxation remains
constant. The assessment increase citywide
averaged 16 per cent, due to a lower increase
for commercial property.
At last Monday's council meeting, council
unanimously approved a Hood-Fisher proposal
to request Sprenkel to prepare two city budgets
for consideration in May: one a balanced
budget, and the other incorporating a 15 per
cent increase in funding for the city's general
fund:
THE DEMOCRATIC minority on council
voted for the resolution because they said they
did not object to the preparation of two budgets
for informational purposes, but they were
unanimous in opposing an actual 15 per cent
See TIGHT, Page 9
Chances
*for Soviet'
troop
removal
remote
From AP and UPI
Taking a tough new line, the Soviet
Union now says the chances it will pull
its 80,000 troops from Afghanistan are
"remote.
Pravada, the Communist party daily,
warned during the weekend that the
Soviet Union "will not remain passive"
to what it 'called American -and allied
"actions against our security."
SOVIET OCCUPATION forces in the
*war-torn country have launched a
second major offensive against Moslem
guerrillas into the eastern rebel-held
province of Paktia, it was reported
yesterday.
In Waslington, defense sources said
they expect an extra 25,000 to 30,000
Soviet troop 'I tfcemnt§ to pour
across into Afghanistan within the
month,' boosting-the total number of
troops in the country over 100,000.
Western diplomats in neighboring
Pakistan confirmed the apparent fresh
offensive, saying tanks backed by MiG
fighter-bombers and helicopter
gunships were engaged in heavy
fighting against rebels in the town of
Chigha Sarai.
REBEL GROUPS in Peshawar, near
the border with Afghanistan, also
reported "fierce fighting" in the
districts of Wolswali and Sarna. In the
Khost district, they said guerrillas
captured 29 Afghan army troops and
put 11 tanks and trucks out of action.
The official Tass news agency said
American agents were continuing
subversive acts against Afghanistan,
and "this makes remote the possibility
of a withdrawal of Soviet troops."
After weeks of trying to justify its
actions in Afghanistan as a response to
See SOVIET, Page 7
Latest Khomeini
demands send U.in
k
a w ' -'d oM
Doily Photo by JIM KRUZ
MICILGAN'S Paul Heuerman (15) lays in a basket over Texas-El Paso's
Anthony.Burns. Ifeuerman scored 12 points in the Wolverines 74-65 victory
over Texas last night at Crisler Arena.
ichigan movUes to
final eightin NIT
From UPI and AP
TEHRAN, Iran-Ayatollah Ruhollah
Khomeini yesterday vetoed any release
of the U.S. hostages before May and a
special U.N. investigating commission
immediately packed its bags to leave
Iran with its mission in total collapse.
In Washington, the White House said
the mission had been suspended and
called the situation "very serious." The
statement blamed the failure of the
U.N. mission squarely on Iran's
revolutionary government, which was
unable to take custody of the hostages
as a prelude to their eventual freedom.
THE RULING Revolutionary
Council, reacting to Khomeini's vow to
"fight against the U.S. government
until death," backed off its demand to
take custody of approximately 50
Americans.
Khomeini, in a message broadcast on
Tehran Radio,' said the U.N.
Commission may not talk with the
Americans, now in their 128th day of
captivity, until the five-member panel
issues a report on its investigation of
the regime of the deposed shah.
Samir Sanbar, a spokesman for the
U.N. panel, said the five jurists were
departing for Geneva last night at 11
p.m. EST.
TIHE SPOKESMAN said the
-commission took the decision after
meeting with Foreign Minister Sadegh
Ghotbzadeh for three hours, from
11:45 p.m. to 2:45 a.m. local time.
The announcement of the five-
member panel's departure came after
a Revolutionary Council spokesman
said Khomeini ruled out any release of
the hostages until Iran's still-to-be
elected Parliament convenes and
discusses the hostage situation.
The Parliament will be elected in two
stages, with the second part of the
elections in April, meaning the
legislature will not sit as an official
body before May.
PRESIDENT CARTER summoned
Democratic and Republican
congressional leaders to a hurriedly
arranged conference yesterday on
developments in Iran that were
described as "very serious."
White House press secretary Jody
Powell, who announced the meeting
less than 15 minutes before it began,
said events, in Iran appear to have
taken "a very serious turn."
No decision ley Carter for dealing
with the situation, was disclosed by the
White House following the president's
meeting with the congressional leaders.
FOLLOWING T HE session with
Carter, one of the participants, Sen.
Jacob K. Javits (R-N.Y.), said the
setback in transfer of the hostages to
the ruling Revolutionary Council
represents "a real failure of the
government in Iran."
Senate Republican Leader Howard
Baker of Tennessee, who also met with
reporters outside the White House after
the meeting with Carter, described the
turnabout on the hostages as "another
disappointment in a long string of
disappointments."
Javits and Baker declined to discuss
Carter's mood or what steps he
mentioned that he might be considering
in the 128-day crisis.
But Baker, without offering specifics,
said he ,thought "there may be 'a
glimmer of hope" ahead.
There was speculation that the
administration might be preparing a
fresh Iran policy statement.
By STAN BRADBURY
There were six seconds remaining
in last night's second-round National
Invitation Tournament (NIT) game
between Michigan and Texas-El Paso
when Wolverine guard Keith Smith
conveyed the message. The right arm
went up, and with it came a thunderous
ovation from 10,478 Crisler Arena fans.
The second nerve-racking obstacle in
the race tok New York had been
hurdled, but not before the Miners gave
the Blue cagers all they could handle in
Michigan's 74-65 victory.
THE WOLVERINES now advance to
the third round Thursday night. A
victory in that contest would send them
to the Big Apple for the semi-final and
final rounds,i which will be played
March 17 and 19 in Madison Square
Garden.
Ironically, Michigan beat the taller
Miners at their own game-rebounding.
The Wolverines finished with a 37-26
edge on the boards, a factor that proved
most decisive in a game in which both
teams were nearly dead-even in their
field goal percentages.
See MICHIGAN. Page 10
Adminsitration officials said
yesterday they expect members of the
special fact-finding commission, sent to
Iran by the United Nations, to leave the
country without issuing a report unless
they are allowed to see the hostages.
The officials, speaking privately, said
the rules of operation for the
commission, as understood by both the
United States and the United Nations,
prohibit the release of a report on the
panel's findings unless the commission
has seen all the hostages.
F arrell
resigns ag
ocke
coach
By MARK BOROWSKI
Michigan hockey coach Dan Farrell
announced his resignation yesterday
after being the Wolverine mentor for
seven years.
The 42-year-old Hamilton, Ontario
native has accepted a position with the
Merit Corporation, a Toronto-based in-
vestment firm.
"I HAVE BEEN approached by a
firm that gave me an opportunity that
was too good to pass up," Farrell said.
"It was not something I was looking for,
I had no intention of moving to Toronto.
"I was offered the position several
months ago and made the decision a
few weeks ago."
"It's been a great experience for me
here," continued Farrell, "and I have
really enjoyed working with the people
at Michigan. I'm going to miss it, but
I'm looking forward to a new
challenge."
HE ANNOUNCED his decision to
Michigan Athletic Director -Don
Canham last Tuesday. "Dan's done a
fine job with our hockey program and
we will miss him," said Canham. "We
are starting a search immediately and
hope to name a new coach shortly."
The decision came as a complete sur-
prise to Farrell's players. "I didn't
know what was happening until I got in-
to the dressing room," said junior
alternate captain Tim Manning. "I was
really shocked."
Departing senior Dan Lerg was also
See FARRELL, Page 11
City settles suit out of court with former clerk Weiss
By JOHN GOYER
and NICK KATSARELAS
Ann Arbor settled out of court yesterday with
former City Clerk Jerome Weiss, who charged
he was unjustly fired almost two years ago. The
suit was due to go to trial tomorrow morning.
Weiss settled for $7,500 from the city and a
statement signed by Mayor Louis Belcher to be
inserted in Weiss' personal record saying he was
a "dedicated and loyal city employee:"
BELCHER SAID he "could live with. the
statement," but added "If you read anything
between the lines, it isn't worth a warm pitcher
of spit."
Council unanimously approved the settlement
with Weiss after City Attorney Bruce Laidlaw
said the suit "has, the prospect of being a long-
term litigation."
Former City Administrator Sylvester Murray
suspended Weiss in May 1978 after 20 township
residents were found to have been mistakenly
registered as city voters for the 1977 election - a
contest in which former Mayor Albert Wheeler
defeated Belcher by one vote. Some city officials
blamed Weiss for the error, which resulted in a
lengthy court battle and an eventual special elec-
tion, which Belcher narrowly won.
SYLVESTER, after suspending Weiss, offered
him a lower-level job at a reduced salary. Weiss
agreed, but later asked for a vacation.
Weiss then told city officials he would not be
returning to work for the city. Months later, he
sued.
Weiss claims the May 1978 action violated due
process of law because Murray did not notify
council in writing within 24 hours of the
dismissal, nor did council review the case within
30 days, as the City Charter stipulates.
LAST SEPTEMBER, Murray - now Cincin-
nati's city manager --said he did not bring
Weiss' case to council for a vote because, "I
didn't want to embarrass him with a vote. I do
not doubt what the vote would have been."
In other action yesterday, council held its last
public hearing on the application for the 1980
Community Development Block Grant (CDBG),
a federally-funded housing assistance program.
The proposed appropriation of the $1.6 million
grant was addressed in the public hearing only
by Albert Wheeler, former city mayor and a con-
sultant with the Model City Health Care
program. He expressed support for the block
grant, stating that the funds would help maintain
housing for lower income people.
THE GRANT program makes available
monies for such programs as housing
rehabilitation and winterization, street repair
and park development, legal aid, child care
assistance, and senior and handicapped citizens'
services.
Council is scheduled to vote Monday on sub-
mitting the application to regional offices of the
department of Housing and Urban Development
(HUD) where it will undergo preliminary review
before going to the Washington D.C. office in
early May.
Barry Tilmann, acting director of the Com-
munity Development office, explained that
almost 32 per cent of the block grant will be used
for public services, although HUD last year
directed the city to aim for funding public ser-
vices at 20 per cent. But Tilmann said he believes
HUD will accept the city's higher allocation.
"We feel that because HUD has approved the
same figure in the past," Tilmann explained,
"they shouldn't change courses on us this time."
Sip-Z
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Crb-Hag
Hah-Kz
L-Mo
Students will be assigned times to CRISP between April 7
and April 18 according to the above schedule. LSA students
can pick up student verification fortes with their
appointment times at the LSA Building beginning April 3. 1-
('-n
ti
at Daytona Speedway. Debbie DeLaurentis of Daytona
Beach's Chamber of Commerce said the average number of
visitors drawn to the town during the seven-week spring
break period in March and April is 566,030. "There should
be as many if not more' visitors this year than last,
DeLaurentis predicted. "The beaches are packed every
year." It's only 51 weeks till spring break. E
On the inside
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