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Milan Mayor Kym Muckler underlined the city's stark financial future but also highlighted positive efforts under way to meet the challenges in her State of the City address.
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Striking a balance between realism and optimism in her first State of the City address Monday night, Milan Mayor Kym Muckler underlined the city's stark financial future but also highlighted positive efforts under way to meet the challenges.
"The most urgent test facing our city is our financial picture," she said. "It's certain that our budget will require vigilant stewardship."
Providing a brief overview of the past year, Muckler detailed a dramatic downturn in the housing market that resulted in far less than projected tap-in fees that were intended to offset the annual $1 million bond payment of the $13.7 million Waste Water Treatment Expansion bond. The tap-in fees fell roughly $700,000 short of projections.
Last year's council responded to the ensuing crisis by making approximately $600,000 in budget cuts.
Muckler went on to summarize the impact of Automotive Components Holdings LLC's appeal of its real and personal property tax bill that if the Michigan Tax Tribunal upholds could cost the city as much as $900,000 in revenue.
"This would devastate our already strained budget," said Muckler, adding, "While this year's budget will be a challenge for us, the news isn't all bad."
In the past year, the city grew its fund balance, or rainy day fund, more than $212,000, raising it from 1.5 percent of the general budget to 5.4 percent.
"While this is good news," Muckler said, referring to the fund balance increase, "it should be tempered with some caution."
She stressed that the city made several one-time cuts to grow the fund balance and that the city's auditor has recommended the fund balance be maintained at an even higher percentage, between 20 and 25 percent.
After assuring that the city would "constantly" review its budget to keep costs down while maintaining services, Muckler turned an optimistic eye on the coming year.
"While the financial crisis is not over," she said, "our recover is in sight."
She pointed to the new 22,000-square-foot Integrated Health Associates medical facility scheduled to break ground on Arkona Road later this month and Martin Transportation Systems' renovation of the former AutoLign building that is expected to bring in 125 jobs to Milan.
"We continue to aggressively pursue industrial, commercial and business investment in Milan," she said. "Our city is now on the radar screen."
Outlining an informal agenda for the coming year, Muckler said her administration has started work on a "continuity" plan to enhance the city's current emergency management plan; started a review of the city's practices and procedures; will continue to research ways to make Milan more environmentally responsible; and will pursue state and federal grant and aid opportunities to offset costs for infrastructure repairs.
"Although there are many tests and challenges ahead, we will address them one by one," she said. "Despite the dismal economic projections of the experts we see on the nightly news, I believe we can take control of our own destiny, right here in Milan, by empowering our most valuable asset - our residents."
She went on to urge residents to shop locally, encourage visitors to attend local events such as the fireworks and the fair, and to volunteer.
"We, all of us, are Milan. We are the stakeholders here," she said.
Staff Writer Brian Cox can be reached at 429-7380 or bcox@heritage.com.
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