ISHPEMING — The Ishpeming City Council is moving forward with its 2019 budget, despite financial concerns.

During its regular meeting Nov. 7, the Ishpeming City Council held a public hearing about the municipality’s budget and Headlee adjusted millage rate.

In his budget message, City Manager Mark Slown said staff projects general fund revenues of $2.8 million and expenses of just over $3 million.

“If the proposed budget is executed as planned, the Fund Balance will be about $528,950 at the end of 2019,” the message states. “This fund balance level is about 17.6 percent of the 2019 expected expenses — a decline of about 6 percent from 2018. If the General Fund balance goes below 15 percent it would trigger an audit comment and a (Michigan) Treasury Department alarm.”

Former council member Claudia Demarest read a portion of Slown’s budget message during the public hearing.

“According to the city manager’s budget message, city staff worked together diligently and carefully to create this proposed 2019 budget,” Demarest said. “I don’t call this a responsible budget. When you have to take $171,800 out of your fund balance to balance your budget, I don’t think that’s building a responsible budget.”

Councilor and incoming Mayor Karl Lehmann, said the budget should be closely monitored. He also noted that the document could be changed by the council if the need arises.

“I understand Mrs. Demarest’s point and $171,000 is a chunk — and yes, we can balance it by taking money out of the general fund — but if the sustainability isn’t there in four or five years, we are going to be out (of money).” Lehmann said. “Now we talked about how we will ratify the budget because we need to, and as Stewy (Councilor Stu Skauge) pointed out, we can amend it at any time. But I just don’t want to see us forget about it if we ratify it now. I think we really need to look closely at everything we do over the next couple of months.”

According to the city’s website, the council is required to adopt the budget by Nov. 30 of each year.

If the council doesn’t accept or make changes to the budget by that date, then the proposed budget “shall be deemed finally adopted by the City Council,” the website states.

Along with the budget, the council also considered the 2019 tax levy set by Headlee Amendment adjustments at 20.6834 mills for an estimated nearly $2.44 million in property tax revenue.

According to Slown’s budget message, the levy can be broken down into 13.3545 mills for operations garnering about $1.61 million in revenue; 1.9835 mills for about $108,000 in revenue for the police and fire departments retirement fund under Act 345; a public improvement millage of 4.4514 mills that will collect around $537,000; and a .894 mill in a fire equipment millage passed in 2017 that will provide slightly more than $183,000 to pay for the department’s $850,000 ladder truck.

The council also approved the second reading of an amendment to the city’s ordinance governing the storage of inoperable motor vehicles.

Under the ordinance, it is unlawful for any resident or landowner to keep an inoperable vehicle on property within the city limits.

A vehicle is classified as an inoperable motor vehicle if it cannot be operated under its own power; does not have current registration and license plates; and meets all the state requirements for headlights, tail lights, “and all other equipment required for operation on a public highway,” the ordinance states.

Prior to the amendment any violation of the ordinance was considered a misdemeanor, punishable by a $100 fine, imprisonment in the Marquette County Jail for a period not to exceed 90 days, or both.

The amended language changes a violation to a municipal civil infraction punishable by a fine set in the annual fee schedule.

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