The East Lansing City Council will continue reviewing the proposed 2010-11 fiscal year budget when it views presentations on utility, street and solid waste funds during its 7 p.m. Tuesday work session at City Hall, 410 Abbot Road.
Todd Sneathen, director of public works, said all three departments will experience a minimum 5 percent budget reduction. He said the major and local street fund was hit by declining gas and weight tax revenue and the sewage rate could increase by 4.5 percent to offset decreased water consumption.
“Nobody is really happy that we have to do some of these things, but we’re trying to do them in a measure and to prioritize things,” Sneathen said. “People accept the fact that it’s going on and they’re not happy about it, but they understand.”
The city already has eliminated $1.9 million of its two-year, $5 million deficit.
Water consumption is down because people have conserved to save money on bills, and the new housing rate has slowed since the mid-2000s housing boom, said East Lansing city manager Ted Staton. The sewage rate increase would cost the typical East Lansing homeowner an additional $3.80 per quarter. The hike would generate about $100,000 for the city.
Sneathen said the reduction in services for the major and local street fund will force the city to focus on immediate concerns, adding some projects will be delayed until the economy rebounds.
Services such as plowing roads and salting sidewalks will remain important, and maintenance such as cracked sealing, asphalt overlays and significant reconstruction projects also will receive high priority but might be diminished in scope.
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