Escanaba council approves budget amendment, two major equipment purchases and a $35,000 CDBG loan

The Escanaba City Council on June 19 approved an amendment to the city’s fiscal-year appropriations ordinance, authorized a $35,000 Community Development Block Grant (CDBG) revolving loan to a local business, and approved purchases including a garbage truck and a tractor with a stump-grinder attachment.

City staff told the council the amendment is the annual adjustment required by state law to move money between departmental line items so no single line item is overrun. Staff estimated the year-end result will be a modest surplus of about $20,000 rather than the deficit previously in the adopted budget.

The council also held a public hearing and then voted to authorize Resolution 25-12, a $35,000 loan from the city’s CDBG revolving loan fund for Leverage Chiropractic LLC. Colleen Duflo, representing Northern Initiatives (which manages the regional RLF program for the city), said Leverage has an “excellent payment history” on a prior loan and that the fund is intended for working capital, equipment purchases and job creation for low- to moderate-income workers. Duflo told the council the program generally offers loans around 5 percent interest and that about $500,000 remains available in the regional fund.

On procurement items, the council approved several public-works purchases. It authorized a $315,589 purchase to replace a refuse truck (Loadmaster body and Western Star chassis bids combined) and approved a tractor purchase — a Kubota L5460 for $72,954.04 plus a stump-grinder attachment for $10,200, for a total of $83,154.06. Kent DuBourne, director of public works, said the stump-grinder attachment should allow the city to complete many smaller stump jobs internally and estimated the attachment could “pay for itself in one year” by reducing contract costs.

Council approved a bid of $8,600 to Jeff’s Glass of Escanaba to replace an exterior door at the Civic Center. The council also approved renewal of the city’s property and liability insurance with the Michigan Municipal Risk Management Authority; staff said the renewal carries about a 5 percent premium increase and that the property deductible will rise from $1,000 to $1,500. Staff said a net asset distribution (rebate) from the insurer would be about $42,540 if the renewal is signed.

The council set a public hearing for July 17 on a proposed special-assessment paving project for Second Avenue South off South Nineteenth Street. Staff said the city had received a petition for a 30-foot paved street and one property owner has committed to paying the assessment for the whole project; staff also said cost estimates were not included in the packet and will be provided at the public hearing.

Votes at a glance - Appropriations ordinance amendment (annual budget amendment): approved by roll call (Fluff — yes; Duarte — yes; Moore — yes; Vosha — yes; Mayor Ham — yes). - Resolution 25-12, CDBG/RLF loan to Leverage Chiropractic LLC ($35,000): approved by roll call (DuBois — yes; Bush — yes; Moore — yes; Fluff — yes; Mayor Amel — yes). - Property and liability insurance renewal with Michigan Municipal Risk Management Authority (07/01/2025–06/30/2026): approved by roll call (Moore — yes; Duarte — yes; Fluff — yes; Mayor — yes). - Set public hearing for Second Avenue South improvements (07/17/2025): approved unanimously. - Civic Center west entrance door replacement (Jeff’s Glass, $8,600): approved unanimously. - Tractor purchase (Kubota L5460 $72,954.04 + stump-grinder $10,200 = $83,154.06): approved by roll call (DuBorg — yes; Floss — yes; Moore — yes; Beauchamp — yes; Mayor Amel — yes). - Garbage truck purchase (total $315,589): approved by roll call (Moore — yes; Flau — yes; Bauschau — yes; Grama — yes; DuBois — yes; Mayor Amel — yes).

Why it matters The appropriation amendment completes the city’s annual legal requirement to balance departmental accounts before the fiscal year ends June 30. Equipment purchases and the truck replacement are capital decisions that affect public-works capacity for snow removal, stump grinding, mowing and refuse collection; the CDBG loan uses state-administered funds intended to support job creation and small-business working capital in the community.

What’s next Staff will present detailed cost estimates at the scheduled July 17 special-assessment public hearing for Second Avenue South. The tractor and truck purchases proceed under council authorization; staff noted some equipment may be sold at auction or traded in and that the city may continue to contract for larger stump jobs beyond the attachment’s capacity.