The Chelsea City Council held a public hearing for its proposed about $4 million FY 15-16 operating budget as well as the city’s utility rates on Monday, May 4.
No one in the audience spoke during the public hearing, which followed two work sessions in the last two months.
The proposed millage rate for the FY 2015-16 is expected to remain steady at 11.2 mills for general operations, 1.22 mills for streets, 0.7355 for solid waste, and 1.6727 for the Downtown Development Authority.
“These are the same millage rates as the prior fiscal year – and overall, have remained the same since 2009. The city has continued to manage resources to offset tax and revenue decreases encountered over the past several years,” according to information provided by city staff.
The city’s largest general fund expenditures continue to be
- Salaries and wages
- Defined benefit pension expenses
- Post retirement employee benefits
- Infrastructure improvements
The projected pension and OPEB expenses are $1.239 million in FY 2014-15 and $1.291 million in FY 15-16.
The city’s cash fund balance is expected to be $900,000 at the end of the FY 2014-15 and $900,000 is budgeted for the FY 15-16.
“The city’s cash fund balance remains steady and within policy objectives due to careful planning and prioritizing of capital expenditures,” according to information form city staff.
The proposed utility rate changes are proposed for electric rates which include a 3-percent increase and $1 charge for state-mandated energy optimization projects. There are no changes proposed for water or wastewater rates, which are $6.76 for a ¾-inch meter and $6.44 per 1,000 gallons for water per month and $17.10 for a ¾-inch meter and $7.44 per 1,000 gallons per month for wastewater charges.
Council Member Melissa Johnson brought up a discussion about money distribution in the city’s community promotion department, which shows a proposed amount of $29,050, about $25,000 of which has been designed for the ChelseaMich marketing efforts. She suggested that some of that money be redirected to improve the city’s own website for better community interaction or for traffic calming devices. No vote was taken.
The City Council is expected to vote on the proposed budget and utility rates and set the millage on Monday, May 18 and publish the final, approved budget on the city website by Friday, May 22.
