City Council adopts $4.9 million budget

Tecumseh City Council adopted the city’s 2014 Fiscal Year Budget on Monday night, May 6, following a public hearing. City Manager Kevin Welch reported that the budget has General Fund revenues of $4,980,000 and expenses of $4,965,000, with a budget surplus of just over $14,000. The general ad valorem tax rate will be 14.3966 mills.“The tax rate has not changed,” said Welch. “This is obviously a tight budget again.” He said an amendment is still being prepared to adjust the budget at a later date for the Tecumseh Center for the Arts, which was a topic of discussion at a recent study session.In his city manager’s report, Welch also pointed out that city officials have been hearing different potential losses regarding elimination of personal property tax. He attended a recent session in Adrian where Lt. Gov. Brian Calley gave different figures than the Michigan Municipal League had provided.“Most of the managers in Lenawee County are writing a letter to the MML because of the vagueness of the calculations,” said Welch. He informed the council that if the measure passes in the 2014 election, the council would need to pass a resolution for a special tax to industrial customers to make up the loss of revenue tied to police and fire operations. If the council does not approve this, the loss would be well over $235,000 each year to the city, Welch said. Also at Monday night’s meeting, City Council authorized an application for a Tavern License for Salsarias, which is positioned to locate a new restaurant at 148 E. Chicago Blvd., currently housing Ivy Gallery. Valerie Robichaud, Salsaria’s owner, said the business has been in operation for 21 years in its Adrian location. “I’ve been interested in going into Tecumseh for a long time,” she said. “I love the downtown area and the atmosphere of the city. We are very optimistic about the location we are looking at and continue to work with the City of Tecumseh to finalize plans.” In other business, the council members:• Rescinded a resolution adopted in March for a final project plan for Wastewater System Improvements, and approved an Option 2 plan, resolving a technicality required by the state in order to receive grant funds.• Extended a contract with Detroit Salt Company for 2013-2014 at a price of $39.01 per ton. This is the second year the city has worked with the Lenawee County Road Commission on salt purchases. • Approved the closing of South Evans Street from M-50 to Pottawatamie on Saturday, July 20, during the hours of 7 a.m. to 12 midnight to hold a street dance along with food and entertainment activities during the Sidewalk Sales event.• Authorized the signing of a contract with the Michigan Department of Transportation regarding Transportation Economic Development (TED) funds for the Rogers Hwy. project. Total estimated cost will be $484,700; TED funds share is $412,110 and the city’s cost would be $72,590.