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Houghton approves budget

Garrett Neese/Daily Mining Gazette Houghton Police Department vehicles are seen in the lot Thursday. The Houghton City Council approved a budget for the upcoming fiscal year Wednesday, including funding for an additional police officer.

HOUGHTON — The Houghton City Council approved a budget with more than $4.6 million in general fund spending at Wednesday’s City Council meeting.

“Everything is pretty close to where it was, except we did budget more for police, to hopefully get an additional officer,” said City Manager Eric Waara.

Police spending is projected at $1,064,900, up from $891,300 in last year’s budget. The council has discussed adding …

Other spending includes $260,000 in paying off a State Infrastructure Bank (SIB) loan from the state for work done to remedy damage from last year’s flood. That money will offset reimbursements coming back from the Federal Emergency Management Agency.

All funds are balanced, except for the employee benefit fund, which has a budget deficit of $86,750 as part of an effort to reduce the fund balance.

“We’d like to get the fund balance down, because we’re not a savings account,” Waara said.

The city budgeted for a wage increase of 3 percent. The employee benefit rate was set at 77%.

In major and local street funds, much of the money that would normally go to paving projects is being reserved for match funds for potential projects through the Federal Highway Administration and other agencies.

“We didn’t specifically budget that to any particular paving project,” Waara said. “We just don’t know when these repair grants are going to hit.”

The city also budgeted for water and sewer rate hikes that would take effect mid-year. The rate increases, the first since 2012, will go toward debt load on the second phase of sewer and water upgrades in the city as part of a $4 million USDA Rural Development project in 2020-21.

The Downtown Development Authority revenues included funding from the Michigan Economic Development Corp. for its project to install a pier between the Portage Lake District Library and Lakeshore Center.

Through the Tax Increment Financing Authority, new sidewalks will be installed near Walmart. Storm sewers will also be added in some subdivisions.

The city’s millage rate is unchanged.

The council also approved the city’s five-year Capital Improvement Plan Wednesday. It includes projects such as the $4 million pier placemaking project, which is scheduled to take place during the 2020-21 fiscal year. Financing will come from a mix of MEDC and Rural Development.

Also estimated for 2021-22 is the relocation of city offices and addition of new parking in 2021-22 at a cost of $4.5 million. In March, Midwest Loan, an upstairs tenant in the City Center, approached Houghton about buying the building as part of its expansion plans.

The move would be financed through sale proceeds and a bond.

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