By Jim Newell

Review Editor

The Lake Orion Village Council voted unanimously to adopt the village’s 2020-21 fiscal year budget and set the tax rates for the upcoming year during its regular meeting on Monday.

The village’s fiscal year runs from July 1, 2020 through June 30, 2021, and, under the village charter, must be approved during the council’s first meeting in May.

The estimated expenditures for all funds are $8,519,568, while the estimated revenues for all funds is $8,098,168.

The budget deficit falls in the Water & Sewer Fund, with estimated revenues of $1,686,529 and expenditures of $2,172, 269, for a $485,740 shortfall.

Village Manager Joe Young, who presented the budget to the council, said the village is also predicting a 20 percent reduction in water and sewer revenues due to the COVID-19 economic downturn.

Young stated that with many of the area businesses closed right now, there is lower water and sewer usage. “We’ll better know what impact that will have once businesses get back up.”

The village is currently in phase two of the water main replacement project, with phases three and four on hold.

“The only fund that we’re drawing reserve fund balance is the water fund, and that’s due in part to the bond issue that we just started paying on this current year, which is a $250,000 principal payment plus interest on the monies that we’re borrowing to upgrade our water mains,” Young said.

In most of the village’s funds, revenues equal expenses; however, the cemetery perpetual care fund is expected to increase by $30,000 and the Downtown Development Authority’s Property Acquisition Fund is expected to have a surplus of $34,340.

The village’s beginning and ending general fund balance is $622,968. The 2020-21 revenues and expenses budgets are each $1,865,828.

The largest beneficiaries of the general fund are the police fund, which will get $390,000. This is the largest transfer from the general fund to the police fund over the last three budget cycles.

The public works fund which will get $370,000 from the general fund.

The police department also has its own dedicated millage, which voters approved 2016, and is estimated to generate $335,000.

The total estimated revenues for the police fund are $880,249. That includes $85,000 “contribution” from the Downtown Development Authority to the police fund.