Road commission discusses proposed budget for 2018

ALPENA – The Alpena County Road Commission went over a second draft of the 2018 budget during its meeting on Tuesday.

The proposed budget for 2018 is $6,112,454 in total revenues and other sources with $6,977,943 in total expenditures, so net revenues is proposed at $865,489. The approved budget for 2017 included $5,534,559 in total revenues and other sources and $6,257,905 in total expenditures, so net revenues was $723,346.

“This was the first year of the new transportation funding package so we used the best available estimates and formulas that we were provided,” Managing Director Larry Orcutt said. “It was a good thing so it looks like we’re leaning in the direction where revenues from gas, tax, and registration fees are higher than it was anticipated.”

The $723,346 is a negative number and Orcutt said that is going to come from the 2016 fund balance, which is $3,669,468.

“Instead of our projected fund balance or project net budget at end of this year, it looks like we’ll end up positive, similar to the trend that we have had over the year,” Orcutt said. “We budget conservatively and had several items also that we did anticipate as far as additional revenue that helps lower the negative number and increase our fund balance.”

Orcutt said 2018 is looking promising for the budget and for the road commission as a whole.

“Any revenue that we end up getting goes to the good this year and will be put right back into 2018,” he said. “We are trying to do as much work as we can on our road system to benefit. We have looked at improvement projects and additional maintenance from what we were able to do in the past.”

The $6,977,489 proposed for total expenditures for 2018 most likely will change before the budget is approved in December.

“It’s somewhere in the ballpark of where we want to be,” Orcutt said. “There are some little items in there that we want to explore a little deeper and we may add and we may estimate some more, but I think we’re close to where we want to be bottom line.”

Julie Goldberg can be reached via email at jgoldberg@thealpenanews.com or by phone at 358-5688.