LAKEVIEW — For the past few months, Village Manager Shay Gallagher has been crunching numbers and planning for the 2017-2018 fiscal year budget.
Gallagher presented the budget proposal, complete with graphs and a list of themes to Lakeview Village Council on Monday night.
The budget accounts for approximately $956,781 in expenses and $931,430 in revenue, creating a $25,351 deficit, which will come out of the general fund, which currently sits at $392,149
“We are going to run a small deficit,” Gallagher said. “We are also going to have a couple of capital projects such as the extension of 10th Street by the pickle docks and painting the water tower.”
The water and sewer funds both saw changes in this year’s budget in preparation for painting the water tower and the cleaning out bio-solids from Lakeview’s largest wastewater lagoon.
“The lagoons have never been cleaned,” Department of Public Works Director Mike Vellanti noted.
“For both of these projects we are transferring money from the bank into both sewer and water,” Gallagher said. “These are capital projects, so in essence, due to the cost of these projects and the cash transfers into the funds, we will run a capital outlay deficit.”
Gallagher explained that while it is a deficit, the projects will be spending money that the village has generated over time and set aside for projects such as the ones in the works for this year — almost like a sewer and water savings fund.
In the sewer fund, $105,000 is budgeted for capital outlay and $100,000 in the water fund is budgeted for capital outlay.
Both projects don’t have set price tags, but the bio-solids clean out is projected to cost around $70,000 to $100,000. The Village Council unanimously approved Monday having ROWE Professional Services rebid the project and pay an additional $2,000 to the engineering budget.
According to Steve Clark, project administrator with Rowe, the project was originally bid in August 2015.
“Based on our meeting last week, we will be proceeding to revise the original construction documents and anticipate rebidding the project in the next few months. As verbally agreed upon, ROWE PSC is requesting our bidding and construction budget be restored to its original amount,” Clark wrote in a letter to Gallagher.
As for the price to paint the water tower, that will be clear after the inspection is completed and the village knows if the interior needs to be painted alongside the exterior.
Another project in the works this year is based at Lakeview Airport-Griffith Field, and would update sections of the runway and connecting apron. The village is working with Prein & Newhof, a Grand Rapids-based civil engineering company, on the projected and budgeted $290,000 in the airport’s federal grant fund to prepare for the project.
“We get a federal grant every year totaling $150,000,” Gallagher said. “What this money can be spent on is restricted. We can roll over up to four years of this grant to save for a larger project.”
Other than the projects in store for the year, the budget also contained details such as a drop in taxable value from around $23 million in 2015 to $21 million in 2016 due to a change in personal property taxing. According to Gallagher, the state is phasing out personal property taxes and the phase-out for manufacturers took effect in 2016, but the state reimburses municipalities for the loss in property tax funds.
“(Shay) mentioned to me that we got a little bit more back because of the way we are structured,” Village President Ed Winter said.
The Village Council unanimously approved the budget, which will take effect on March 1.
“This is a really conservative budget,” Gallagher said. “I’m projecting high on the expenditures and low on the revenues, and that could help at the end of the year.”