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Big Rapids adopts 2017 budget and approves sanitation, sewer rate increases
Summary
The Big Rapids City Commission adopted the city's 2017 general appropriations budget, approved a 4.5% sanitation rate increase and a roughly 6% sewer commodity increase, and discussed fund-balance use to cover a multi-million-dollar gap.
The Big Rapids City Commission adopted the final 2017 budget on a roll call vote after staff described updated revenue and expenditure totals.
Finance staff told commissioners that total budgeted revenues across all funds are $35,573,300 and total expenditures $40,143,300, with general fund revenues of $13,732,100 and general fund expenditures of $14,232,100. Staff said the gap between revenues and expenditures would be covered by the city’s fund balance and that the administration expects spending to come in below budget historically.
The budget package includes a $300,000 transfer from the sewage disposal system fund to the sewer replacement fund and maintains city operating millage at 12.2334 mills. The Act 345 retirement tax remains 1.4934 mills, the dedicated library millage falls from 0.9688 to 0.9619 because of a Headlee adjustment, and the DDA millage remains 1.8942.
Commissioners then considered two rate ordinances tied to contracts and a rate study. The commission approved an ordinance to raise sanitation rates by 4.5 percent to reflect the contract with Republic, a change city staff estimated would increase the average residential bill by about $1.19 per month (trash plus recycling). The commission also approved a sewer-rate amendment reflecting a rate study by Bedzinski (Andy Campbell), which included a roughly 6 percent increase to the commodity charge; staff said that equates to about $0.46 per unit or roughly $2.07 per month for the average residential user.
Discussion before the votes focused on process and transparency. Commissioners asked how the $5 million difference between total revenues and expenditures would be covered; staff replied the city would use fund balance (a savings account) and emphasized past practice of spending below budget. The budget resolution passed on the recorded roll call.
The commission adopted both ordinances by the roll-call votes required for ordinance changes. Staff said the sanitation increase results from contractual escalation clauses and the sewer increase implements the consultant’s recommendation required for debt compliance and sound long-term planning.
The commission closed by thanking staff and acknowledging the amount of work that went into the budget and related rate studies. The final budget materials and line-item reports were provided to commissioners and will accompany the audit.
