Council members were presented with more detailed highlights of the budget as drafted by city officials and ask questions of city staff regarding effects the budget would have on various departments.

The city has a projected deficit of about $3 million without the inclusion of additional adjustments to the budget, East Lansing City Manager Ted Staton said.

He said about $560,000 in further cuts likely will need to be made to maintain the city’s minimum fund balance of about $2.7 million.

Already on the chopping block is the city’s sidewalk repair fund, which is losing about $200,000.
The city expects to receive about $1.2 million from state revenue sharing, a $420,000 state
reimbursement for improvements to White Park and a $500,000 levy of a charter-allowed millage.

Staton said, because many of the adjustments included in the plan to balance the budget are one-time adjustments, budgetary conversations in later years might become more difficult.

“There are about $2 million of one-time adjustments and $1 million of annualized changes,” Staton said. “As a consequence, the challenges in the future are more substantial.”

Council members also heard detailed accounts of where some city departments stand currently under the budget proposal, including the Department of Public Works and Environmental Services, East Lansing Police Department and East Lansing Fire Department.

Though the cuts to some departments likely are to be substantial, the staff is working to make necessary cuts without putting the city’s budget or public services in jeopardy, said Todd Sneathen, East Lansing’s director of public works.

“We have a plan, and we’re continuing to move forward with it,” Sneathen said.

Council members also discussed the status of the moratorium on issuing licenses for medical marijuana dispensaries in its work session after budget discussions.

Though an ordinance allowing for dispensaries in primarily office districts of the city was passed March 15 meeting, parties interested in opening dispensaries currently are not allowed to obtain a license to do so under the moratorium. The moratorium is set to expire May 15.

Staton said no applicants have come forward to apply for a license, though the city legally has been able to accept them since the medical marijuana ordinance officially went into effect April 6.

Councilmember Kevin Beard said, because no one currently was waiting to acquire a license to open a dispensary in the city, the moratorium should remain in place to allow more time for city staff
and council to work out the logistics of such issues as enforcement of the ordinance and community education.