City of Tecumseh budget process faces difficulty as revenues continue decline

By JIM LINCOLN

As revenues decline, Tecumseh’s city government continues to tighten its belt.
At a special meeting of the city council and planning commission on Monday,  City Manager Kevin Welch presented a historical overview, as well as the status and projections for the city’s budget.

“What we face is unlike any the city has ever done,” said Welch, speaking of the upcoming budget forming process for 2011-2012. Adoption of a proposed budget is expected by the second Monday in May with the fiscal year beginning July 1.

Welch reviewed historical data that showed the city has 11 less full time employees than the city had in the years 2004-2008; and compared total revenues between the current year, $5,124,000, and the 2007-2008 budget of $5,845,000. Expenses for the current budget is $5,119,000 compared with $5,812,000 in 2007-2008.

On the upside, the city’s fund balances are currently $840,000, up from 2007-2008 when the balance was $811,000, and up from the $221,000 recorded in 2004-2005. On the down side, state revenue sharing funds continue to shrink. State share revenue funds for the current year were $677,000, down from $803,000 in 2007-2008, and down further from the $864,000 received in 2004-2005.

In other historical data, investment earnings were unsurprisingly down, as were building inspection fees, and funding for major highway and local street projects. Gross payroll is projected to be down for 2011-2012 at $3,127,000, compared to $3,420,000 in 2006-2007; while the cost for city employee health care is projected to be up at $953,000 compared to $803,000 in 2006-2007.