Part 1: MC Budget meeting outlines major budget deficit

Reaves proposes wage cuts, no raises and paying commissioners just $1 annually

By Barb Pert Templeton

Marine City Manager Michael Reaves gave a budget presentation at a special meeting on April 15 that began at 5 p.m. and lasted an hour and 45 minutes. All seven members of the city commission were present for the meeting.

Reaves began by stating he wanted to break things down so that his information is presented without falling into chaos. As city manager, he proposes the budget, including ideas for cuts and changes, but it still falls to the commission to decided what’s ultimately adopted.

“The deficit is approximately, at this point, $650,000,” Reaves said. “I want to make sure that everyone understands that both revenues and expenditures are at times a moving target, they are a snap shot at the time that we do it and it changes as we move forward.”

For example, Reaves said he told officials a few months ago that the general fund balance was running light with just $300,000 and today that balance is just $29,000 because they had to make transfers to cover different items.

To address the large deficit in the budget, Reaves proposed that there be no wage increases for employees in the city across the board during the next fiscal year. In addition, he suggested pay cuts including having his own annual salary revert back to the rate he was hired at in Oct. 2024. He also proposed that the city commissioners be paid just a $1 each for their work for the next fiscal year.

He went on to state that he’s currently negotiating contracts with two unions and the city’s position is that there will be no wage increase for police or DPW employees. Reaves is currently still negotiations those contracts. The wage freeze suggested includes all city employees including seasonal and part-time.

He also suggested realigning several employees from full-time to part-time status.

“You cannot balance this budget on the backs of the employees,” Reaves said. “Automatically they endure part of this. Government is responsible to provide services not employment and I know people don’t like to hear that but it’s true in this budget here, I can’t make enough cuts.”

Cuts and reductions in staff in Reaves proposed budget include the deputy clerk going to part-time instead of full-time status and eliminating two part-time employees in the treasurer’s office. A part-time person in the special projects office would also be also removed along with the part-time counter help.

“It’s not what I want to do but it’s on the list, it’s a general fund impact,” Reaves said.

Shelve capital improvements, retire the police chief?

In the police department an officer is retiring this summer and Reaves is suggesting the city simply doesn’t fill that spot. In addition, he’s talking to the police chief about his retirement because he’s eligible and has his time-of-service in.

“I’d have to reopen the pension plan to wave the age agreement, I’ve had discussions with him, I would bring him back in a part time role after a bonified separation, I’ve got that in consideration,” Reaves said. “We’re at the point now that employees are choosing departments or each other, let this one go let that one go, it’s not good for moral, it’s not good for anybody.”

“My suggestion is be open, honest and transparent,” Reaves added, especially about the reduction in services that will come from the cuts to the budget.

City goals must also be reconsidered because they require financial components too. Many items shown in the general fund account were tied to Capital Improvement Projects (CIP) and all of those projects have to be shelved now, Reaves said.

As an example, the clerk’s digital filing project to get all the city’s files in order must be set aside now. Staff training, lodging, attending conferences and supply line accounts would all be cut or reduced.

“That doesn’t mean those needs go away by the way, that doesn’t mean we can’t do mandated training or that the CIP go away but we don’t have the funding for them and those lines have been cut,” Reaves said.

As for service-related issues Reaves said that keeping the office open until 4:30 is going to end. The city may have to close one-day a week and they may have to close during the lunch hour.

Part 2 of the story on this website has commissioners weighing in on the budget cuts Reaves is proposing.