Ortonville- The village is similar to other municipalities in that it is squeezed between rising costs and flat revenues, says Village Manager Ed Coy.
This is apparent when looking at the village municipal budget for the fiscal year ending June 30, 2007 that the council adopted 5-0 at the June 26 meeting. Councilmembers Harold Batten and Bob Flath were absent.
The total amount of estimated revenues for the village for 2006-2007 is $614,744, while the total estimated expenditures for 2006-2007 is $694,946. To make up the difference, $80,202, the council agreed to take $60,133 from their general fund balance and $23,236 from their major streets fund balance. The new budget adds $3,167 to the local streets fund balance.
‘We can’t continue taking from the fund balance,? says Coy simply, adding that the village council is discussing forming a committee to do long-range planning and make a recommendation to council to increase revenue, reduce costs, or both.
‘Like every other employer, health care insurance is the most rapidly rising cost anywhere,? says Coy. ‘Utility increases were also significant.?
The village had a 22 percent increase in their health care insurance premiums last April and Coy is planning for a 20-percent increase next April. He also budgeted for a 10-percent increase in electricity, heating, phone and trash removal bills.
Additionally, village employees (Coy, treasurer/clerk Mary Clark, part-time deputy clerk Ashley Foyt, and the three Department of Public Works employees) all receive pay raises of at least 3-percent and will be given backpay to July 2005 at this rate because they did not receive a raise last year due to ongoing union negotiations.
‘Inflation is becoming more noticeable and we feel employees should be paid the going rate for what they do,? said Coy.