Thursday, September 19, 2024
MENOMINEE, MICH. COUNTY – The Menominee County Board of Commissioners is expected to approve a general fund budget of about $10.55 million for fiscal 2025, up 10.5% from fiscal 2024, at its next board meeting Monday, Sept. 23.
A public hearing will be held at the start of the 5 p.m. meeting at the Menominee County Courthouse, 839 10th Ave., Menominee, Mich.
About $6.99 million of the fiscal 2025 budget will come from property tax revenue, said County Administrator Jason Carviou in a presentation before the County Board of Commissioners Sept. 10. This represents an 8% increase from fiscal 2024, he said
Michigan’s Headlee Amendment restricts annual property tax increases for homeowners to the rate of inflation or a maximum of 5% without a referendum allowing for a higher increase.
The projected increase in 2025 general fund revenue reflects inflation, the increase in property values and a number of newly constructed buildings adding to the county’s taxable value, Carviou said. The Headlee Amendment in Michigan, which aims to prevent large spikes in property taxes without voter approval, impacts the county’s overall revenue, he said. Since the 1980s, the Headlee rollback has resulted in a net decrease in revenue to Menominee County of just over $580,000, Carviou said.
Balancing the proposed fiscal 2025 budget, which the Finance Committee has approved, will require a transfer from the county’s fund balance of about $69,000, Carviou said. But the good news is, “We are projecting we’re going to close the 2024 budget with a budget surplus,” Carviou said.
The county’s fund balance, or reserve fund, of about $5 million represents about 49.7% of the proposed budget and is expected to generate about $500,000 in income, up from $400,000 from the prior year, a 25% increase, he said.
Interest rate cuts from the Federal Reserve could reduce the rate of return in the future, but not this year, Carviou said. “It won’t have a huge impact in the forefront because a lot of our money is tied up in CDs (certificates of deposit) and other longer-term investments that are going out several years,” he said.
The 2025 budget is 2% higher than the actual fiscal 2023 budget of $10.3 million, when the county received federal American Rescue Plan Act funds. The county’s budget hovered at $8.7 million to $8.9 million from fiscal 2019 to fiscal 2022, then spiked in fiscal 2023, according to information presented at the Sept. 10 Board of Commissioners meeting. In fiscal 2024, it declined to $9.5 million.
“As our revenue goes up, we’re still not spending a lot of extra money on other things,” because of inflation, Carviou said.
The increase in the 2025 general fund revenue reflects inflation, the increase in property values and newly constructed buildings to the county’s taxable value, Carviou said. The Headlee Amendment in Michigan, which stipulates property tax increases for homeowners aren’t allowed to exceed 5% annually without a referendum, impacts the county’s overall revenue, he said. Since the 1980s, the Headlee rollback has resulted in a net decrease in revenue to Menominee County just over $580,000, Carviou said.
Marijuana revenue from the State of Michigan is expected to generate about $385,000, up from $295,000 in 2024, as the City of Menominee adds two more retail licenses. The state pays the county about $59,000 per retail license, according to a Michigan government website.
Convention and tourism tax revenue is back to pre-Covid levels at $70,930, Carviou said, up about 2.87% from 2024.
Besides property tax increases, the county budget include hikes in several other fees the public pay, such as vital record fees. These fees are slated to increase to $15 from $10, in keeping with what other Michigan counties are charging, said Register of Deeds Marc Kleiman.
Vital records fee hike
The amount collected from the Register of Deed transfer tax when real estate changes hands is expected to decline $30,000 or 25% from fiscal year 2024. “It’s an indicator of what’s happening in the real estate market and what the trends are likely to be moving forward,” Carviou said.
The proposed $443,415 Parks & Recreation budget represents a $55,000, or 14%, increase from the prior year, with a firewood fee expected to generate $2,000 in new revenue. The parks budget for full-salaries is expected to expand by 23%, while the budget for part-time salaried positions is set to increase 14% or $11,120.
The child care fund budget is set to increase 20% to $260,650.
The Menominee County Library Fund is slated to increase about 9% to $453,500, due to a 14% increase in salaries, or $30,216. A fund balance transfer of $5,700 will allow the library to maintain a $25,000 line item to purchase new books, Carviou said.
With a budget of $546,759, the Menominee Regional Airport fund achieved a strong year in fuel in fiscal 2024, by generating a $98,249 profit on sales of $260,497, Carviou said. Prepaid sales increased 300% or about $15,000, he said.
Personnel costs rise
City personnel costs expected to rise include salary and wages, up 7.8% and health insurance increases of 8.6%, as reported in the Peshtigo Times earlier this month.
These salary and wage increases are considerably higher than the 2.5% increase in 2024, Carviou said. “It’s almost three times as much of an expense this year as it was in previous years,” he said.
A 63% increase in commissioner’s salaries pushes up the stipend $4,000 to $10,500 annually, while the board chair’s salary increases $5,000 to $12,000 annually.
In supporting the increase for commissioners, County Board Chair Larry Phelps said he’s been pleased with how well the board is working together. “Rarely, seldom, does it come to where all hell is breaking loose here,” he said. He praised the board for its transparency and said, “I’m happy with the board. I’ve been here for eight years, and I couldn’t be more satisfied with the board.”
Operating costs rise
Other expenses also are going up. Operating expenses, such as software and licenses, are expected to rise over 25% to $25,000, while equipment purchases are budgeted for $35,000, up about 40%.
The road patrol budget of about $2 million, represents a 1.9% decrease from 2024, because two new squad cars instead of three are in the budget, Caviou said. Most of the road patrol fund comes from property tax revenue, he said.
About $110,000 is allocated for the purchase of two sheriff’s squad cars at $55,000 per vehicle. The sheriff’s office also has requested $15,000 for law enforcement academy sponsorships to recruit sheriff’s deputies.
In the sheriff’s office, the uniform budget is $20,000, representing a 42% increase from a year ago, and was negotiated as part of a collective bargaining agreement.
New body cameras leased for $7,400 will be paid for by a Hannahville Grant for the first three years, Carviou said.
Medical insurance costs for prisoners are expected to rise 25% to $150,000, while prisoners’ food costs are budgeted at $190,000 up 9% from the prior-year budget.
The Michigan Indigent Fund, which provides legal defense representation based on need, is budgeted for $741,995, a decrease of $28,252, or about 4% from a year ago. The count reimburses defense attorneys at a rate of $125 per hour for misdemeanor offenses, $140 per hour for felonies and $150 per hour for life offenses.
Wilson man sentenced for drug delivery
In other Menominee County news, Menominee County Prosecutor Jeffrey Rogg said he encouraged Edward Lee “Uncle Pork” Britton, 63, of Wilson, who was sentenced to three to 20 years in prison for delivery of methamphetamine, to agree to testify in other upcoming drug cases.
41st Circuit Court Judge Mary Barglind presided in the drug delivery case that involved an apparent sting operation in 2023, according to Menominee County court documents. A confidential informant from the Upper Peninsula Substance Enforcement Team purchased 1.1 grams of methamphetamine from Britton at a residence in Wilson in 2023. Britton offered to sell the informant more of the drug at a discount, and the informant purchased from him on two occasions in May and June 2023, the documents indicate.
After obtaining a search warrant June 20, 2023, $100 in marked UPSET money was seized from Britton, according to a summary of court documents provided to a reporter. At the same time, authorities seized undisclosed quantities of methamphetamine along with guns and drug paraphernalia.
“Mr. Briton now has seven felony convictions in three different states,” Rogg said, noting that he could have received more prison time but Rogg agreed to a “downward departure” in the sentencing because Britton said he would cooperate in testifying against other alleged drug dealers in cases Rogg plans to prosecute in Menominee County.
“We are making a real difference in the fight against drug use and trafficking in our community,” Rogg said in giving credit to UPSET and his own staff.
