By Meg Peters
Review Co-Editor
Even after completing one of the largest capital improvement projects in downtown Lake Orion, the Village Council is proud to present a balanced budget for the 2015-2016 fiscal year beginning in July.
Council further reviewed the 2015-16 proposed? budget Monday night at a special meeting which will be submitted by the second week of May, according to Village Manager Darwin McClary.
Total proposed revenues in the general fund amount to $1,538,229’including a 2.5 percent wage increase for employees? with total expenditures $15 less, at a total of $1,538,214.
One of the largest projects ever taken on by the village, currently standing at just over $1 million, is the renovation of the new village hall at the old senior center on Church St.
‘It has been a major project, but council has worked very hard to maintain a balanced budget and will continue to work hard,? McClary said.
‘Sometimes that means tough decisions.?
While the general fund is balanced, the village has seen significant deficits to the water and sewer fund over the past several years, McClary said, amounting between $50,000 and $100,000 per year.
The Water and Sewer department ran a net loss of $241,752 this past year due to not only operating losses but also a $194,000 update to the Fairview water main.
Water and Sewer revenues totaled about $1.3 million in the 2014-15 fiscal year, and operating costs amounted to $1.5 million, including depreciation costs. Costs are predicted to increase to near $1.7 million for the 2015-2016 year, according to the budget draft, although this number is subject to change.
‘If we don’t get a handle on it now at some point we will be in a deficit situation,? he said. ‘My recommendation to council is that the water and sewer rates increase.?
While McClary said he couldn’t give a definite amount at this time, a rate increase must be determined before July.
Apart from water and sewer losses, village council also has very limited to no funds budgeted for capital projects in the 2015-16? fiscal year and beyond.
‘We have between $4,000 and $5,000 plugged into budget to do some computer replacement, and that’s going to have to go for police department computers, and that won’t even completely meet the needs of that department.?
McClary compiled a capital project improvement plan that contains nearly $6 million in village needs, however, at this point the village has no means to pay for them.
Included on the list: a computer replacement program for the village, replacing current financial software packages, $110,000 per year for the next four years in improvements to the banks of the Paint Creek river, repairing the gazebo at Children’s Park, police department equipment and major equipment for the Department of Public Works, not to mention street improvements.
According to predictions made by village engineers and the number of main and local roads in the village, McClary predicts close to $700,000 needed per year to invest in street maintenance and sidewalk repair.
‘It could mean a special millage, special assessments, there are no options that are off the table right now,? he said, in order to fund future capital projects in the village. ‘Our roads are crumbling apart.?
Other than the 2.5 percent increase in salary wages budgeted for next year, no departmental budgets were significantly increased or reduced, he said.
Many residents will be pleased to here, he added, that village council has chosen to keep the Green’s Park swim lesson and lifeguard program, which council felt was very important.
The program costs about $17,000 per summer, and the park generates roughly $8,000 to $10,000. The Parks and Recreation budget is about $25,000 annually.
?’We were concerned about the cost of the program, and the fact that we don’t generate enough revenue to offset the cost completely, but council felt it was very important, so the Green’s Park swim lesson and lifeguard program will continue.?
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