COLDWATER, MI (WTVB) – The Coldwater City Council was presented with a proposed fiscal year 2018-2019 budget that has a projected deficit of $289,000 during a 90 minute work session on the budget Monday night.
City Manager Keith Baker says the major reasons for the projected deficit include new debt from the fire department’s aerial truck, increases in retirement costs, continuing capital needs and a reduction in the projected Local Community Stabilization Authority payment from the State of Michigan, which has been caused by a significant jump in personal property values.
The current fiscal year budget has a proposed year end deficit of $170,000 but some budget savings are expected on the removal of the Old U.S. 12 Bridge. Several revenue enhancements are being looked at to cut into the projected deficit.
Right now, the projected budget loss for the 2019-2020 fiscal year is expected to be $348,000.
Overall, projected revenues are expected to be flat for the next three years at $9.29 million this year, $9.33 million in 2019 and $9.8 million in 2020.
The City Council will be presented with a draft budget and they will set a public hearing during their May 29 meeting. The public hearing on the budget and its adoption is scheduled for June 11, 2018.
