NEGAUNEE - Without cutting staff and while funding the police department at its requested level, the Negaunee City Council tentatively approved the 2010 city budget Thursday.
The official adoption of the 2010 budget will happen at the next regular council meeting, set for 7 p.m. Nov. 12 at the Negaunee Senior Center.
In order to make up the remaining funds for the police department budget - around $16,000 to make up the remaining difference between what was requested and City Manager Gerald Peterson's recommendation that had not already been made up by council action - the council Thursday voted to eliminate a $100,000 transfer from the city's electric fund to the economic development fund.
That $100,000 was redirected to the general fund to aid the police department and to help build up a larger general fund balance.
City fiscal policy had been to make the transfer to the economic development fund on a yearly basis, a practice that has been suspended for 2010 only.
This redirection brings the total transfer from the electric fund to the general fund up to $467,800.
"You basically are taking your money away from economic development to fund these services, and it'll never come back. Once this is in, it won't come back," Peterson said.
Elimination of the transfer to the economic development fund cuts out required funds for a National Endowment for the Humanities grant application for interpreting historic places, $55,000; funding for a lobbyist in Washington, D.C., $38,400; and funding for the city's annual trip to Washington, $6,000.
An additional grant match for the Negaunee Farmer's Market was also cut, however, the market itself was not cut, being supported by a primary grant.
"Seeing as how the general fund is as low as it is, I see no problem with taking that (transfer) out," Councilman Tom Stanaway said. Stanaway argued that as the city is having trouble coming up with local grant matches, there is little point to having a lobbyist to obtain the grants in the first place.
Eliminating the lobbyist came with mixed reactions.
"They get the doors open," said former councilman Dave Johnson. "There are funds in Washington that do not require matching funds.
"I think this is a lot more serious decision than you think you're making."
Councilman Jim Thomas agreed.
"I want to make sure people understand with this motion, that we're cutting off our nose to save our face," Thomas said. "The grant money that comes in, the lobbyist brings it in. Without that person there, we don't have that contact."
Thomas made the motion to stop the transfer to the economic development fund. Councilman Richard Wills completed the action with a motion to transfer the money from the electric fund to the general fund.
The three council members-elect, Michael Haines, Michael Van Straten and Diana Menhennick - who will take office in December - were asked to weigh in on the transfer and all three agreed that putting the $100,000 into the general fund was the best move for the city.
"I do agree with Mr. Stanaway that moving the money would not be a difficult task," Haines said. "At this time we don't have money to match grants."
"During the campaign it became rather evident by the vote that that is the wish of the people," Van Straten said.
In order to fund the grant matches for the Croix Street reconstruction project, the council also voted to take $150,000 from the fire hall restoration budget and $50,000 from the building improvement fund to the major streets fund. That $200,000 will make up the required grant matches for the project.
Still unfunded in the budget is the city's Street Asset Management Plan, which the council approved earlier this year.
Remaining in the budget are the required grant matches of $75,000 and $25,000 for the Jackson Mine Park and the Miners Park projects.
Although balanced for 2010, the budget may have to be adjusted if more snow falls than normal or if equipment begins to break down.
"What we are finding now is that we are really at bare bones," Peterson said. "Anything that comes up unusual, if we get an unusual winter, we're not budgeted for that. We're not budgeted for water main breaks or sewer main breaks. That goes the same for most of the equipment in the offices."
Rearranging the funds for 2010 has also not solved the problem of the budgets for coming years.
"I do not believe you have a sustainable budget for 2010. Certainly you do not have dollars in there for roadway repair, you do not have the dollars for vehicle replacements that need to be in there. You cannot survive long-term on this type of budget," Peterson said.
Councilman Steve Perucco agreed.
"No matter what we do, it's only going to be adding a Band-Aid to something that's hemorrhaging," he said.