Council sets to work on proposed budget
The 2004-05 proposed budget for the city of Rogers City, with double digit increases in health care costs, anticipated reductions in revenue sharing, and various other uncertainties, is scheduled for a public hearing at Monday?s regular meeting of the city council. Council members, mayor Beach Hall, city manager John Bruning and staff conducted the second of two workshops Tuesday in council chambers at city hall. Discussed during the 50-minute meeting were topics such as funding for the school resource officer, the future of city hall, the proposed purchase of a new patrol car, and the settlement dollars from Michigan Limestone Operations. Tuesday morning?s session also included continued talks regarding water and sewer rates.,P. ?COUNCIL MEMBERS felt we should try and keep the average water and sewer bill at the rate it was this year, instead of a proposed increase for next year of about a nickel per 100 cubic feet, which would have been about 30 cents on water and 30 cents on sewer,? Hall said. In order to do that the city will have to reduce the capital accounts to compensate, Hall said. ?As a result there should be no increase in the average water and sewer bills,? Hall said.,p. However, customers with a flat sewer rate will see an increase to the level of that of an average customer. The garbage bill also will go up 17 cents in accordance with the cost of living clause in the contract with the waste hauler. Bruning believes the city is ?in pretty good shape? and that council has been frugal and cautious with their spending. ?That?s kept us healthy,? said Bruning.
BASED ON PROJECTIONS, the city is anticipating a reduction in revenue sharing, as has been the case the past couple of years. ?We?re not sure exactly what those numbers will be, but the projections we?ve received indicate a reduction,? said Bruning. Rogers City?s revenue sharing has been decreased by about $90,000 over the last three years. ?That?s a substantial hit to any community?s budget, especially as small as ours,? said Hall. Bruning said the numbers being tossed around have been informal, but he has been in contact with the Michigan Municipal League, which is not expecting the funds from Lansing to be completely eliminated. Increases in health care coverage also have made it difficult for Rogers City, or any municipality, to balance the budget. While increases are lower for the 2004-05 budget compared to recent years, the increase to Rogers City health care costs have gone up about 15 percent this year. ?It?s still significant,? said Bruning.
THE GENERAL FUND, not including restrictive funds, which covers line items such as police, fire, administration, parks, and the Department of Public Works, is a proposed $300,000. There were questions from council members regarding the Michigan Limestone Operations, Inc., settlement of $175,000. The company had agreed to pay the city $87,500 for the upcoming fiscal year and an identical amount the following year. A few months ago, MLO?s parent company, Oglebay Norton, filed for bankruptcy protection and the situation has city officials concerned. Bruning said O-N scheduled to make a payment before the end of the fiscal year June 30. In the proposed budget are restrictive funds, which would amount to $60,000 over the next two years, to look at the future needs of city hall. Bruning said there are some challenges ahead with inadequate storage and a poor heating system. He also said the structure is ?antiquated.? ?There?s routine maintenance that?s always required on an older building, but we?re thinking of replacement or perhaps an addition,? said Bruning. ?We?re anticipating future demands and future needs.?
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Hall anticipates running a deficit which will reduce reserves, but the reserves are expected to remain at an adequate level.