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Extra state funding helps city’s budgets – Council keeps admin raises & restores employee HSA contributions

Submitted by on May 27, 2020 – 12:36 amNo Comment

A surplus of state funding has added a boost to the city of Alpena’s current fiscal year budget, and is making the future a little brighter as well.

During a special meeting Tuesday night, the municipal council learned that a new sales tax and revenue sharing estimate from the state of Michigan is nearly $61,000 higher than the previous estimate.

In addition, city clerk, treasurer and finance director Anna Soik told council she recently received an additional $260,768 from the state, for personal property tax reimbursement. Nearly $36,000 is earmarked for the Dial-A-Ride program, but the remainder lowers the city’s current estimated general fund budget deficit from nearly $236,000 to around $87,000. And, a savings in employee wages may turn the entire deficit into a small surplus by the end of the fiscal year, Soik said.

A combination of the estimated revenue sharing for the new fiscal year budget starting July 1, combined with some reorganization of finances within the building department have created a surplus for the new year as well. That’s despite a consensus by council last night, to keep administrative employee raises at 2%, and add back into the proposed budget a health savings account payment for each employee of $500.

Soik says she will continue to keep a close eye on revenue sharing payment estimates out of Lansing. The municipal council is expected to approve a new fiscal year budget when it meets Monday evening.