MARQUETTE — Ishpeming city officials will continue to take a conservative approach to budgeting to reduce a projected dip into its general fund balance in 2021.

The Ishpeming City Council voted unanimously to approve a 2% spending decrease across all departments as part of its 2021 budget during a special meeting on Nov. 30.

The spending cut was negotiated down from an initial recommendation of 6%.

The city’s general fund has projected revenues and transfers in of $2,841,915 with expenditures and transfers out of $3,041,783, resulting in a reduction of fund balance of $199,868, City Manager Craig Cugini said. If the projected budget holds true, the fund balance at the end of 2021 would be $597,291.

Cugini said other efforts to blunt the projected budget shortfall include a reduction of Department of Public Works overtime by 20%; a 5% reduction in vehicle and operational fuel consumption; and a reduction in energy and other utility consumption by 5%.

“We are looking into some software they will assist in workflow management and fleet management which should aid in future budget decisions and understanding where additional operational efficiencies can come from in the future,” Cugini said in a recent email. “…We take a conservative approach to budgeting, and we will continue to look for ways to increase revenues while also looking at areas we can trim expenditures to try to improve overall performance.”

Cugini noted that reducing the size of the budget cut from 2% to 6% would leave the city with less of a cushion for unforeseen expenses.

We do not know what unexpected costs may occur in the year which could drive the budget the other way. “By changing the budget from a 6% reduction to a 2% reduction,” Cugini said. “The council essentially took the approximate (sum) of $60K flexibility from the manager in managing the budget contingency.”

He said the projected 2020 deficit of $143,000 has decreased from $143K to $100K through improved operational spending.

Councilors were initially at odds about the amount the budget should be reduced, but settled on 2%.

Initial concern over the operational budget of the Ishpeming Carnegie Public Library was also expressed by members of the council, specifically the past practice of using the city’s public improvement fund budget line item to purchase reference materials and books.

Cugini explained that changes to the way the budget is laid had led to a miscommunication.

“The Library Director and Board were concerned that the budget showed a cut “Specifically to Books” from the previous year’s budget “specifically as a transaction line in the “Public Improvement Fund.” The confusion is that the library used to draw funds from four different budget funds,” Cugini said. “Now they will pull solely from the general fund.”

He said the library director and the library board have proposed $20,000 for books, $2,500 for periodicals, $3,000 for DVDs and $3,500 for CDs in their 2021 budget. The budget was amended to include $29,390 for that purpose.

The total library budget is $221,000 minus staff and utilities costs, leaving a discretionary budget of $39K, he said.

The city will also make a concerted effort to improve roads in 2021, he said.

Unless the council changes course, officials will commit $400,000 toward the improvements, with $95,000 of that total earmarked as a match for a $375,000 grant from the Michigan Department of Transportation, Cugini said, leaving $305,000 other street improvements at the council’s discretion.