Mount Clemens presents revised 2020–21 budget; commission schedules work session and extends expenditure authority to Oct. 5

City Manager Johnson presented the revised 2020–21 budget to the Mount Clemens City Commission on Sept. 21, summarizing accounting methods, revenue and expenditure totals and several risks and adjustments to be considered before final adoption.

Johnson said the citywide totals are roughly $26.7 million in revenue and about $27 million in expenditures, producing a change in fund balance of about $831,000. He noted two $500,000 transfers: one to an OPB trust required under a Michigan Department of Treasury corrective action plan and another to a sidewalk safety fund to provide working capital to complete planned sidewalk districts in 2021. Johnson said taxes comprise about 29% of total city revenue while charges make up about 45% and grants about 18%.

Johnson also highlighted unknown liabilities tied to replacing privately owned lead water service lines — the state is placing responsibility on water providers to replace any identified lead service lines, but the city does not know how many exist or what total cost will be. He added that enterprise revenues (for the ice arena, parking, water, sewer) have declined due to COVID-19; the commission has authorized advancing up to $100,000 from the general fund to support the ice arena in the short term.

Several commissioners said the volume of changes and late delivery of revised budget books made it difficult to review line items. Commissioner Mener and others requested a separate work session to review line-item backup before adoption. To allow additional time, Commissioner Mener moved (supported by Commissioner Forier) to extend the administration's expenditure authority until Oct. 5, 2020; the motion passed by roll call.

Staff committed to provide the requested line-item detail and to return with the required materials in advance of the special work session and the Oct. 5 meeting where final budget action may be considered.