The Chelsea Standard
A Heritage Newspaper
Weekly Publication
City Council OKs budget for 08-09
By Edward Freundl, Staff Writer
PUBLISHED: June 12, 2008
As expected, the Chelsea City Council gave its blessings Tuesday to a general fund budget of $4.8 million for the 2008-09 fiscal year, based on a total tax rate of 15.0549 mills.
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That is broken down into 13.0994 mills for the general operating fund; 1.5200 for municipal streets; and 0.4355 for solid waste.
These rates are unchanged from the current fiscal year, and went unchallenged at a public hearing at the council's last session on May 24.
As part of her budget calculations, City Administrative Services Director Kim Garland projected state revenue sharing of only $300,000; reflecting the continuing decline in state funding since the beginning of the decade.
The projected general fund cash balance is $900,000, or 18 percent of the general fund budget; widely accepted municipal guidelines call for a cash balance in the 20 to 25 percent range.
City Manager John Hanifan said the coming year "presents a lot of challenges," and that he was proud of the work that city staff put into the spending plan without calling for a tax increase.
"I'm pleased to submit a budget that's based on goals and objectives that were set by the council," Hanifan said.
"I'm also pleased that the budget includes no millage increase."
The city expects to fund several major projects this year, including replacement of an obsolete telephone system for city offices and the police department at an approximate cost of $15,000; seven new wells to monitor discharge from the landfill, $25,000; and installation of a new transformer at an electrical substation, $175,000.
Also offsetting revenues is a projected expenditure of more than $960,000 for insurance and benefit costs.
The council also approved a millage rate of 1.6727 for property within the Downtown Development Authority district, to be used to fund DDA operations for the year.
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