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Mount Clemens approves $5 million downtown allocation and other FY2024–25 budget amendments
Summary
The Mount Clemens City Commission approved a large FY2024–25 budget amendment that recognizes grant revenues and programs and budgets $5 million for downtown revitalization, uses roughly $3.9 million from the Ice Arena sale to cover a $1.9 million general-fund match, and budgets $2 million for riverfront revitalization.
The Mount Clemens City Commission on a roll-call vote approved a comprehensive amendment to its FY2024–25 budget that recognizes new grant revenues and budgets several multi-year projects, city finance staff said.
Dina Kelly, a manager with Plante Moran who presented the amendment, said the package lays out planned revenue and corresponding expenses for projects likely to span fiscal years and explained the city budgets the entire project cost up front so it can roll remaining funds into the next year at audit. "The majority of these amendments are to recognize grant revenues that have been awarded and we have a planned project for and the corresponding expense," Kelly said.
Kelly identified the downtown revitalization as the largest line in the amendment, with $5,000,000 shown as revenue and expense in the current fiscal year; she said that HUD funding plus proceeds from the Ice Arena sale will offset the general fund’s $1.9 million contribution. "We received about $3,900,000 for that sale," Kelly said, and staff said that money will be used to cover the general-fund portion of the downtown project so there is no net cost to the general fund for that work.
Other material items added by the amendment include a $2,000,000 budget for riverfront revitalization and recognition of Macomb County jail permit revenue that arrived after the original budget was adopted. Kelly also explained how reimbursement-based grants are recognized as revenue as costs are incurred and that the city will present roll-forward amendments after the fiscal-year close to move unfinished project funds into the next year.
Commissioners asked for details about several line items. Kelly said the $20,000 opioid-settlement amount reflected a receivable the state calculates as pharmaceutical-company settlements are finalized and that the city must spend those receipts under specific restrictions. On the Ice Arena proceeds, Kelly said bond covenants restrict how the sale proceeds are held and spent and that using the proceeds against capital projects avoids arbitrage complications.
The commission approved the amendment by roll call; commissioners recorded affirmative responses for the motion.
