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Finance staff presents deficit‑elimination plan after $625,005 equipment‑fund shortfall
Summary
City finance staff reported a $625,004.96 equipment fund deficit from 2024, said the city has recovered roughly $303,000 year‑to‑date, projected a 2026 year‑end deficit near $156,000, and requested council approval to submit a state‑required deficit elimination plan after EDC board review.
A finance presenter (speaker 1) summarized an equipment fund deficit that originated in 2024 of $625,004.96 and said the city’s deficit had improved by about $303,000 so far in 2026. “The deficit fund balance, was $625,004.96,” the presenter said, and described a state‑required deficit elimination plan that must be submitted to the state of Michigan.
The presenter walked council through projections showing an expected 2026 year‑end deficit of approximately $156,000 and an anticipated return to surplus in 2027–2028 if the plan proceeds as forecast. The presenter said he will bring the formal plan to council at the Aug. 17 meeting after the Albany and EDC boards review it; the EDC director (speaker 8) separately outlined an EDC plan showing a $64,021 deficit and proposed consolidating administrative overhead into the EDC fund with an administrative services contract to reimburse staff time.
Council discussed assumptions, depreciation treatment and contingency plans for capital purchases; staff noted the plan depends on conservative capital expenditures in 2027–2028 and potential property‑sale revenue for the EDC plan. The council did not object to staff seeking board review and returning with a finalized submission to the state.
