HOUGHTON — The Houghton City Council reviewed sewer, water and other funds during its second budget work session Wednesday.

In parking, revenue from parking permits is projected to rise from $100,000 to $150,000. Most comes from the expiration of Michigan Technological University’s agreement with the city on parking spaces at the Lakeshore Center. Instead, the university will now buy annual city passes for a smaller number of spaces.

“We’re going to sell them 90 permits in bulk and they will distribute them as to the users of the Lakeshore Center as they see fit,” City Manager Eric Waara said. “The old agreement had them exclusive rights in this very specific area.”

Some will also come from a proposed increase in parking permit rates. Waara said that would come before the council this summer.

The city is budgeting to hire a parking enforcement officer at a rate slightly higher than in previous years. Incomes and expenses related to the new electric vehicle charging stations are being budgeted as pass-throughs. Charging costs will be based on the going rate of a kilowatt-hour. The city will be working with the provider ChargePoint, Waara said.

“If we’re going to get a bill for $10 from (Upper Peninsula Power Co.), and a bill for $1 from ChargePoint as a handling fee, the bill the person is going to pay is going to be $11.25,” he said. “…We want to make a little bit on this to cover maintenance on it, but we’re not looking at this as raising money.”

The city is installing chargers on the deck across the street. Future expansion could occur on the Ambassador deck.

In employee benefit, the city is budgeting for a 3% wage increase across the board. The city’s employee benefit multiplier is 88%, unchanged from last year.

Health insurance costs are projected to go up 9.46%. Starting in the upcoming fiscal year, employees will start paying a flat amount towards their insurance plan.

In the sewer fund, revenues are expected to increase from $1.91 million to $1.9245 million. Portage Township’s sewer system on Green Acres Road will come online next year, adding a projected $25,000 in sales. Michigan Technological University is budgeted for a gain of $35,000 with the return to in-person learning. Another $25,000 will come from the leachate collection system on Huron Creek, which has been restored after being damaged in the 2018 flood.

The biggest project is replacing the sewer on Blanche Street.

In water, revenues are expected to go up 3% to $1.1948 million, driven by a $40,000 increase in MTU sales.

The sewer and water increases will be offset by additional costs paid to the Portage Lake Water & Sewage Authority, City Manager Eric Waara said.

Waara said he thought the city should be raising the water rates about 1% a year, rather than in larger increments in conjunction with USDA Rural Development funding for projects. The city had increased rates two years ago for Phase III of the city’s water and sewer improvements.

With increased taxable value, Tax Increment Finance Authority (TIFA) and Downtown Development Authority (DDA) tax revenues are up — by about $30,000 in TIFA and $18,000 in DDA.

Projects in the TIFA district this year include more repaving on Sharon Avenue, aesthetic improvements to the M-26 corridor and pavement repairs on Razorback Drive near M-26. Ongoing maintenance activities are also planned for Bresnan Plat and Springwood.

In the DDA fund, money will go towards continuing the facade minigrants program. It will also include spending for upcoming activities: website and business planning for life after the deck and expenses related to the cruises docking in Houghton this summer.

The council will formally approve the budget in June. Waara said additional revisions might be brought before the council prior to the budget’s passage.