City commission begins budget discussions
by Angie Asam, Staff Writer
The Onaway City Commission met Jan. 6 and held the first of many budget workshops as the city, like so many others, is facing tight budget constraints with decreased revenues. During the two-hour portion of the meeting the commission spent discussing the budget the talk centered very much around possible ways to cut costs and the possibility of raising additional revenue through a sewer rate increase.
The reason for the discussion on cuts and a raise in the sewer rate is the city will have a projected general fund deficit of $27,000 in the new budget year. The deficit is a result of not only decreased revenue due to low property values but state revenue sharing has also been significantly cut due to the state of the economy and the state?s budget.
Revenue sharing from the state remains an unknown but city manager Joe Hefele has, for discussion purposes, budgeted a reduction of about $9,000. ?I am quite nervous that I am being optimistic at that. I hate to panic, though, and budget the maximum cut of $46,000. Doing so could mean eliminating employees, or even an entire department. I?d rather budget a reasonable cut and hope the legislature will be reasonable,? said Hefele.
Hefele went on to say difficult decisions will continue for the board as it waits to hear what the actual reduction in revenue sharing will be. ?We are focusing on blight patrol, infrastructure improvements, housing renovations and beautification projects in an effort to create a community that people will want to move into and live in,? said Hefele.
Although that is the goal, some increases in the cost of living in Onaway may be necessary as the city simply cannot afford to continue making improvements without sufficient operating capital and manpower. Hefele believes that the sewer fund should be supporting itself and should not have to rely on the general fund for a bailout. That is the reason for the suggestion of a sewer rate increase as a way to help the fund deficit.
?I see three possibilities when it comes to deficit elimination ? eliminating services, increasing revenue or some combination of the two. Again these are tough decisions,? said Hefele. THE CITY commission, along with depar
IN OTHER CITY COMMISSION NEWS: ? Commission appointments were made as Bernie Schmeltzer will serve as deputy mayor and will serve on the ambulance board. Mayor Gary Wregglesworth will serve along with commissioner Chuck Abshagen on the fire board. Smeltzer, Abshagen and commissioner Jessie Palmer will serve as board of review. Commissioner Ron Horrocks will be the alternate on the ambulance board and alternate for board of review.
? The commission authorized Hefele to sign a tolling agreement to extend the statute of limitations on potential suits associated with the ferric chloride acid release at the wastewater treatment plant.