COLDWATER, MI (WTVB) – The Coldwater City Council will be asked Monday night to approve a series of proposed budget amendments to the City’s General Fund for the fiscal year ending June 30th which will increase the budgeted deficit from the originally approved amount of over $583,000 to over $977,000.
Interim City Manager Keith Baker says additional budget amendments will be brought to City Council as the year progresses.
In his memo to the City Council, Baker says budgeted property tax revenues are being lowered due to reductions in real property valuations by the Board of Review.
In addition, Baker says building permit income has increased substantially due to the construction at the apartment complex being built off Anderson Drive, the Schmitz Foam facility and continuing work at the Clemens Pork Processing facility.
He also stated the State of Michigan has reduced their previous estimate of revenue sharing.
Baker’s memo went on to say that the reason for the significant increase in the deficit is due to how new fire trucks are being purchased.
The City budgeted to issue $1.2 million of debt in the current fiscal year to purchase a new aerial fire truck and related equipment. The truck has been ordered but it will not be delivered until next fall so the city is removing the planned debt proceeds from the current budget and will include them in the 2018 fiscal year budget.
Overall, Baker says the proposed amendments decrease revenues by $773,000 and decrease expenditures by $379,000 resulting in the projected deficit being increased.
