OWOSSO — The city of Owosso has adopted a budget for 2020-21 with general fund revenues totaling $7.621 million and expenditures of $7.845 million.
The budget, approved by city council members during a virtual meeting Monday without discussion, includes a total general operating millage rate of 16.2413, with 3.2605 mills in debt-voted millages.
Council members discussed the budget during a workshop May 12 and a regular meeting May 18.
“This is the end of a very long process,” Mayor Chris Eveleth said Monday, adding that the staff did a “wonderful job” putting the budget together.
The pared-down budget, which limits capital improvement projects, assumes a 20-percent reduction in state revenue sharing because of massive state spending during the shutdown, and a 10-percent drop in Act 51 Michigan Transportation Fund monies due to travel restrictions.
City Manager Nathan Henne earlier told council members he learned in a webinar that state officials are still assessing how much municipalities will receive in revenue sharing from state coffers. He said Owosso’s estimated reductions are within the state’s range so far.
Henne has said revenue sharing will continue to be a “moving target” until the shutdown completely ends.
State revenue-sharing funds comprise about 20 percent of Owosso’s revenues; property taxes contribute 50 percent.
If the budget is passed, general fund projects planned for 2020-21 include office computer upgrades and the purchase of one police cruiser.
Portions of North, Clark, Cedar and Gould streets will be improved at a cost of $2.4 million, depleting most of the remaining $10 million in street bond funds approved by voters in 2016.
Prior to the COVID-19 outbreak, council approved taking out $7 million in state revolving loans for long-term improvements to the city’s sewer and water systems.
Projects include replacing sewer slip linings and manholes; installing new water mains; replacing backwash pumps and the water main at the water treatment plant; and rehabilitating headworks at the wastewater treatment plant.