Ishpeming Finance Director Jim Lampman, center, clarifies budget issues during a special meeting of the Ishpeming City Council on Monday as Mayor Pro Tem Mike Tonkin, left, and Councilwoman Lindsay Bean look on. The council set an initial date of next Monday to go over a portion of the city’s 2020 budget. (Journal photo by Lisa Bowers)

ISHPEMING — There will likely be some tough talk surrounding the city of Ishpeming’s 2020 budget.

The Ishpeming City Council voted during a special meeting Monday to schedule the first of several work sessions for next Monday to tackle anticipated revenues and requested department expenditures for the coming year.

A 2020 budget message from interim City Manager Steve Snowaert includes increases in health care costs, a larger portion of the city’s coffers to fund the Municipal Employees’ Retirement System pension and flat revenues in the list of looming concerns for the city in 2020.

“(O)ur 2019 general fund fund balance (is) projected to go down $191,085,” Snowaert’s budget message states. “We have reviewed the requests from department heads for the 2020 budget and cut over $100,000 from those requests, however the 2020 general fund budget is expected to go down $198,085.”

Finance Director Jim Lampman said the annual state required contribution to employee retirement has risen exponentially over the last several years.

“When I started (with the city) six years ago, our required contribution to MERS was about $300,000,” Lampman said. “Now, when we look at the 2020 budget we are pushing $800,000, and it’s going to continue to grow. So it’s just going to continue to be a challenge each year to balance it.”

Councilman Mike Tonkin said this year’s budget talks are pivotal in order to ensure the future financial health of the city.

“Everybody knows the gorilla in the room with the MERS and the health insurance and things like this,” Tonkin said. “And some of this stuff has got to be taken care of this year and if we do it this year, we can honestly say we did what we could and some of us are going to get flack for it. There is a lot of trust that people put in, and we have to do what’s right, at least what we think is right.”

The budget news is not all bad, Lampman said. A projected shortfall for 2018 in the city’s general fund of nearly $177,000 did not occur, instead the city added almost $8,200 to the fund at the end of that year.

The city, according to Snowaert, has built its general fund balance in 2013 from $172,000 to a projected balance of roughly $702,750.

Councilman Pat Scanlon stressed during the Monday meeting that keeping the residents apprised of the situation and continually working to address problems is key.

“The most important thing is to get the public comfortable with the idea that we are doing the best we can with the money we have,” Scanlon said. “And I think after this budget work session, maybe we will have a little bit more credibility.”

Lisa Bowers can be reached at 906-228-2500, ext. 242. Her email address is lbowers@miningjournal.net.