Two-Year Budget is Plan, Not Solution

As the city of Ferndale moves its budget talks forward, there are some new changes, and some impeding ones, that the council will consider. The adoption of a two-year budgeting process is one change that the mayor said is not a solution, but he said it's a plan on the way to finding a solution.

“It’s not a magic wand. It doesn’t eliminate the city’s deficit by a dime,” said Ferndale Mayor Dave Coulter. “It’s just a budget tool that forces a community to look further down the road and to deal with what is to come now. It forces you to plan for those things earlier.”

Coulter started pushing for a two-year budget as soon as he was appointed to the mayor's seat in January, prior to his taking over the council in February. He took over for former Mayor Craig Covey, who ran for and won a seat on the Oakland County Commission.

Coulter, a former Oakland County commissioner, budgeted two years out while he worked in Pontiac. It was something he wanted to bring and instill here in Ferndale.

He said a two-year budget helped the commission maintain stability while others faced last-minute big cuts. He said the Oakland County Commission could see it coming.

Since two-year budget plans help adjust to reflect any economic changes, Coulter said he was able to avoid big cuts by making little cuts along the way. “As (Ferndale) prepares for this year’s budget, we are really preparing for next two years," he said.

The effect of the millage vote

The City Council is currently holding weekly budget review meetings at 6:30 p.m. Wednesday at City Hall to discuss the budget and find a plan of action. The council is essentially running four budgets, however, due to the Headlee Override proposal on the May 3 ballot. Council members are working on a budget that factors in a "yes" vote on the proposal and a budget that factors in a "no" vote.

Ferndale is currently facing a $2.3 million shortfall. City officials said a Headlee Override would be a temporary tax to levy 3 mills this year, about 6 percent, and 2.5 mills for the next four years, about 5 percent, then come off the tax rolls in five years.

If the Headlee Override does not pass, interim City Manager Mark Wollenweber said Ferndale would have to cut 20 to 24 more employees, on top of the 40 it cut last summer.

If the Headlee Override passes, Wollenweber said the gap would be considerably smaller and that services wouldn't see a drastic cut. He said the budget would be clearly manageable and that services would be similar to what they are now.

“It’s grim,” said Coulter if the millage doesn't pass.

Coulter said that if the Headlee Override does not pass, the chopping block would be full. The city would see cuts to ambulance transport, the recreation department, the Gerry Kulick Community Center and considerable cuts to public safety.

Coulter said the most important thing residents can do to prevent “drastic cuts across the board” is to support the millage May 3.

“I am not saying residents should not vote whichever way they want," Coulter said. "But if they want to keep the services as they are, even at this level of basic, then (vote) yes," Coulter said. "Or (vote) no (and) get out the ax and start cuts.”