Gaylord city budget to reflect addition of Elkview Park

Gaylord City Hall is shown.
Gaylord City Hall is shown.

GAYLORD — The Gaylord City Council began work on the 2024-25 budget with a scheduled working session this week.

City manager Kim Awrey expects council to conduct a public hearing on next year's spending plan at the panel's first meeting in June.

The city has a fiscal year that begins on July 1 and ends on June 30. Currently, the city is operating under an $11.5 million budget for 2023-24 and that amount will increase by about $2.5 million to $14 million in 2024-25.

"Our general fund is going up from about $5.2 million to $6.3 million," said Awrey. "The major reason is a Sparks grant ($700,000 from the Michigan Department of Natural Resources) to build the new Elkview Park. The (park) is out for bid now. We will open bids on May 14 for the project. Our hope is that construction starts in June and everything is wrapped up by the fall."

The total cost for the park, located on the corner of Commerce Boulevard and Elkview Drive next to the building housing the Otsego County Commission on Aging, is expected to be about $1.3 million.

Awrey said water and sewer (wastewater) rates are expected to go up by about 3 percent next year.

"Over the last two years we were increasing those (rates) close to 8 percent. We have the need for about a $10 million upgrade to our wastewater treatment plant but is is not to increase the capacity as we are at about half of capacity. We have inefficient processes that are close to 20 years old and they need to be upgraded," she said.

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Awrey said the city is studying strategies to complete the modernization and how to fund the improvements and probably won't begin the project until the 2025-26 fiscal year.

Awrey said the city has experienced an increase in shared revenue from the state due to population growth. She estimates the city's cut of marijuana taxes to be the same as the $531,000 received this year or slightly less.

The city has spent all of its $385,000 in American Rescue Plan Act funds on a project to improve an undersized sanitary sewer line on Fifth Street, she said.

Contact Paul Welitzkin at pwelitzkin@gaylordheraldtimes.com.

This article originally appeared on The Petoskey News-Review: Gaylord city budget to reflect addition of Elkview Park

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