Budget Cuts Hit Berkley After Failed Headlee Override
(Crystal Proxmire, Aug. 14, 2023)
Berkley, MI – On May 2, 2033 voters in Berkley were given the choice of whether to pass a Headlee Override, which would increase taxes to help cover the cost of operating the local government. With 20.19% of voters turning out, the Headlee failed with 1692 in favor and 1942 opposed.
The cost would have been $346 a year for a home with a taxable value of $100,000. That would have meant $2.5 million in the budget to help make up for the increases in costs the city has faced with rising inflation.
Without the additional funding, the City has had to look at making cuts to balance the budget.
Oakland County Times sat down with Berkley City Manager Matthew Baumgarten to find out how the community is dealing with the shortfall, and what residents can expect moving forward.
“This is a place that prides ourselves on our safety, on our services, and on our schools,” Baumgarten said. “Cutting back is hard because residents do feel the changes.”
The library, which is funded through the city budget, has been hit with reduced hours and staffing. Instead of staying open until 8pm, they now close at 6pm, and are closed on Saturdays during the summer months. Thus far at least one open staff position will not be filled.
Another cut has been to chipper service. Previously residents could put fallen branches and tree trimmings to the curb for city employees to load into a wood chipper. Up to 2018, this was a weekly service. Then it was reduced to a monthly service that could be scheduled with a phone call. Now residents must make other arrangements for disposal such as contracting with a service provider.
Removing chipper service saves the city $4,200 per month, Baumgarten said.
The loss of chipper services comes along with the implementation of yard waste tags. To have a bag or bin of yard waste (such as leaves or grass clippings) picked up, residents must attach a tag, which costs $3 each or four for $10. Tags are available at city facilities, including the library and public safety buildings, as well as at Durst Lumber.
Other purchases and projects have been put on the back burner.
For example, while the public safety department is due to have four vehicles replaced, they are only getting two for now.
Plans to create a new surface parking lot on a vacant lot owned by the city on Cummings Street are also put on hold. The half million dollar project would add 45 new parking spots to a busy part of Downtown Berkely, providing relief to neighbors who face parking issues on the residential streets. Baumgarten said the City hopes to revisit the project in the future if finances will allow for it.
Other projects tabled include HVAC updates, replacing DPW vehicles, and curbside leaf pick up.
Even with these cuts, city leaders are still figuring out a $700,000 shortfall. While the city does have some reserves, Baumgarten said they don’t plan to go below 25% fund balance, meaning that if something catastrophic happens they city still has three months worth of operating expenses in the bank.
As new positions open up, the city is evaluating if they are necessary, meaning those on staff will likely be taking on more tasks.
“It’s hard making decisions that impact residents and staff, but that’s what leadership looks like. We try to make the best decisions we can,” Baumgarten said. “Some people think we are cutting services out of revenge. It’s not revenge. It’s not sustainable to spend more than you bring in.”
When asked if the city would try again with the voters, Baumgarten told Oakland County Times “If we do go back, we want to do it in a Presidential election, with a bigger response from the community.”
Learn more about City of Berkley at https://www.berkleymich.org.
