City's budget could be approved Monday

Sean Harkins
The City of Alpena’s annual budget will be discussed and likely approved Monday with few cuts to “quality of life” items and some cuts to staff programs.

Alpena Municipal Council will look over a proposed budget with revenue projections at a five-year low. The projection has the city bringing in $8,327,145 of revenue and having $8,750,930 in expenses.

City Manager Thad Taylor said a reduction in state revenue sharing and a stagnant tax base have been major factors in the shrinking budget.

To balance the budget, $423,785 will have to be transferred from the city’s fund balance to cover expenses. The proposed budget also has $270,000 set aside to match grants in the coming years for three projects; the Island Park River Center, Starlite beach improvements and a floating dock project.

After the 2008-2009 fiscal year, the fund balance is projected to be $957,510, lower than Taylor would like.

“We don’t have a lot extra in our fund balance to use in subsequent fiscal years,” he said.

Taylor said if revenue continues to decrease or remain stagnant, the city would have to start cutting some programs and services, as it can’t keep using its fund balance.

Mayor Carol Shafto said it was a challenge to keep certain quality of life services in this year’s budget.

”It’s easy to say ‘Lets have a lean and mean budget’ but in order to do that something’s got to go,” she said.

Shafto said funding for things such as sidewalk snow plowing, the Huron Humane Society, a city gardener and city band are important because it makes living in the city unique. Without those things, people may consider living in a township, where the tax burden is lower.

“All of the things we’re funding are very worthwhile,” she said.

Taylor said officials were able to keep those items in this year’s proposed budget, but some cuts were made.

Training for the police department and the Department of Public Works was cut. The scope of work to be done on city hall also was cut.

Due in part to a decrease in gas tax revenue, some street improvement projects were cut, Taylor said.

He said while no city employees have been cut in this year’s budget, for the past few years new employees haven’t been hired when there is a retirement. Because of this, departments are working understaffed, he said.

All things considered, he said the budget is satisfactory.

“We’re reservedly happy,” he said.

Shafto also said for the situation, the budget looked good.

“I think that we’ve done the best we can do with tight economic times,” she said.

Taylor said city council likely will approve the budget at its Monday meeting, with a few possible tweaks. The council meeting begins at 7 p.m. and will include a public hearing, during which city residents are welcome to comment on the budget.

Sean Harkins can be reached via e-mail at sharkins@thealpenanews.com or by phone at 358-5688.