Though the budget the City of Kalamazoo approved Tuesday avoids major cuts to services, it does increase the tax that pays for bulk trash and recycling while cutting the number of bulk trash pickups. And city staff and commissioners say Kalamazoo faces a widening “structural deficit” in its general fund going forward.
The 2016 budget of about $135.5 million passed unanimously at a meeting Tuesday evening.
The city closed a more than $2 million gap in the city’s general fund without cutting services. But Commissioner Jack Urban told the Board on Tuesday evening that the city had to use reserve funds and “one-time pots” of money to fill that hole. Urban said a budget reckoning lies ahead.
“Maybe this is a little too strong, but we’re marching toward a cliff financially in this city and I think it’s time that we all create some awareness about that in the general community and some preparedness for some action,” he said.
Commissioner Erin Knott praised city staff for their “hard work” on this year’s budget. But she said in the long run, the city needs to take in more money to avoid serious financial trouble.
“Our community needs to have revenue enhancements, long-term sustainable enhancements so that we’re not the next Flint or Detroit or our neighbor to the west Benton Harbor, where emergency managers come in and they strip local units of government of the job of governing,” she said.
For bulk trash service, residents will pay 1.8 mills for bulk trash and recycling. That’s an increase from the longtime rate of 1.55 mills.
The city’s new bulk trash contract provides for quarterly pickup plus two extra collections, rather than one collection monthly. City Manager Jim Ritsema says the city is still considering whether to follow a bimonthly schedule – six pickups spaced evenly – or to group some pickups closer together.
“Our staff will be assessing the options available within these parameters and selecting the frequency that best meets the community's needs,” Ritsema wrote in an email.
