COLDWATER, MI (WTVB) – The Coldwater City Council formally adopted operational budgets for the 2021 fiscal year on Monday night.
The budgets cover general operating and special revenue funds, tax increment financing authorities for the Downtown Development and Local Development Funds and budgets for the Coldwater Board of Public Utilities.
The general fund budget has a bottom line of over $10-point-2 million dollars.
City Manager Keith Baker says even though the City is budgeting a deficit of $247,000, the city remains in a financially strong position with an operating fund balance reserve of over 40 percent of expenditures thanks in part to Coldwater being a public power community.
He added the city has to be wise with their limited funding mechanisms in order to pay for increasing pension liabilities.
Baker says the City will continue to examine capital spending and will delay big ticket purchases as long as it can be done safely.
The City began the 2020 fiscal year with a budget deficit of $271,000. The budget was amended twice to reduce the deficit down to $104,000.
