Dubbed 'Bare Bones' City Budget Approved
By Karen Gould

The City of Mackinac Island, meeting Wednesday, March 29, adopted a 2006-07 fiscal year operating budget of $2,157,365. Residents skipped a public hearing on the budget, but 11 were on hand when Council formally adopted the budget later in the afternoon.

Council added $53,803 to its general fund operating budget for this year, which Mayor Margaret Doud described as "bare bones."

"We've certainly cut everything we can out of it," she said.

Council has been discussing the need to tighten city spending since last October, when it instituted a purchasing department to establish a check and balance system for spending with all departments required to fill out a requisition for any purchases.

The major impact on the budget came from a 17 percent projected increase in utility costs, including those coming from Edison Sault Electric Company and the city's own Department of Public Works, both of which are expected to bill the city a total of $70,000 for the coming year. Three-percent wage hikes for city employees were also factored into the budget.

The city has eliminated all capital fund projects, but has budgeted $100,000 for legal fees, which in part would be used for an ongoing investigation into a proposed 16 percent rate increase from Edison Sault Electric. The city is protesting the hike, but no suit has been filed.

Projects slated for this year include renovating the former medical center building into apartments, possibly for police housing. The city plans to obtain a loan for the construction work and later sell its two Rowe House condominiums in the Mission to help fund the renovation. It has budgeted $1,000 for architectural fees.

Other larger expenses facing the city this year are street light globe replacements, repair of the walkway between Main and Market streets near the city restrooms, and a new roof on the restroom building. At this time, no road repair projects have been scheduled.

A comparison of the initial and amended operating budget for 2005-06:
                                                    Amended
2005-06 Funds         2005-06         2005-06               Difference
General Fund           $1,902,485     $2,103,562       +$201,077
Library Fund             $     51,561   $     49,000       -$     2,561
Major Street Fund     $   121,450     $   183,450       +$   62,000
Local Street Fund     $   168,482     $   124,766       -$   43,716
Cemetery Fund         $     16,300   $     16,365       +$         65
Capt Proj. Fund         $     50,000   $     0               -$   50,000
Building Dept. Fund $     82,800   $     86,635       +$     3,835
A comparison of the final 2005-06 budget to the new 2006-07
budget:
Yearly Comparison 2005-06         2006-07               Difference
General Fund           $2,103,562     $2,157,365       +$   53,803
Library Fund             $     49,000   $     48,636       -$       364
Major Street Fund     $   183,450     $   205,000       +$   21,550
Local Street Fund     $   124,766     $   135,000       +$   10,234
Cemetery Fund         $     16,365   $     17,600       +$     1,235
Capital Proj. Fund     $             -     $             -           $           -
Building Dept. Fund $     86,635   $     84,100       -$     2,535