Mount Pleasant budget cut by $960,000; Mayor Holton announces departure from position

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Nearly $1 million will be slashed from Mount Pleasant’s 2011 operating budget without many cuts to public services.

City commissioners approved $960,000 in changes to the budget at Monday’s meeting, which Mayor Jim Holton announced would be his last.

The budget was primarily decreased through early retirements rather than large reductions in services as originally feared, Holton said. In terms of public safety, only one part-time firefighter position was eliminated.

“We have to keep that service there,” he said. “We can hold our own through these hard times.”

Reductions were planned in response to declining state revenue sharing. Although Mount Pleasant received a minimal decrease of about $12,000 this year, it lost $400,000 in 2009, according to city financial records.

Mount Pleasant Finance Director Nancy Ridley said the $400,000 figure went mostly unaccounted for the previous year, resulting in a need for a reduction to the city’s budget next year.

“We’ve gotten more than we anticipated,” she said of state revenue sharing for 2010.

Mayor steps down

Holton will not seek reappointment as mayor in January, citing business matters – including the future expansion of Mountain Town Station, 506 W. Broadway St. – as a factor. He will still remain a commissioner through next year.

“It’s a major development for us,” he said of the expansion.

Holton owns both the restaurant and the Mount Pleasant Brewing Company, 614 W. Pickard St.

Holton said Vice Mayor Bruce Kilmer is a very worthy candidate to take the mayor’s position next year. The city commission will officially select a new mayor and vice mayor Jan. 3.

Commissioners were praising of Holton and his performance in office the last two years.

“I think you’ve done a wonderful job, Mr. Mayor,” said Commissioner Sharon Tilmann. “Good luck in the future.”

Mount Pleasant Center

City Manager Kathy Grinzinger presented the commission with a report detailing the future of the Mount Pleasant Center, 1400 W. Pickard St.

The state of Michigan has offered the city an opportunity to purchase a parcel of the property, which includes 27 buildings in the southern portion.

The Saginaw Chippewa Indian Tribe is being offered the two remaining parcels of property, which consists mostly of rural land.

“The state does not intend to maintain and secure this property, Grinzinger said. “There will be additional work sessions and opportunity for public comment in the coming weeks.”

The purchase price for the parcel of property is about $50,000 and maintenance costs are estimated at $125,000 per year. If the city decides to demolish the property and then redevelop it, costs could be as high as $4 million, Grinzinger said.

She said the center would provide an opportunity for the city to develop jobs and improve the condition of the property, which has remained vacant since September 2009.

Both the city and tribe have until April 25, 2011 to complete an assessment of the center.

“We anticipate a decision being reached by mid-March,” Grinzinger said.