GLADSTONE — Following a presentation by City Manager Darcy Long and public comment, the Gladstone city commission approved the 2018-2019 fiscal year budget and Community Investment Plan, which outlines projects and equipment purchases for the next five years.

The $15 million budget hinges on the levying of 15.4897 mills, which will be formally adopted by the commission at a later meeting. This millage rate includes a controversial 1.8236 mill millage, authorized by the city’s charter, which has been levied off and on since 2012.

While the budget includes many of the same expenses and revenues that have been included in past budgets, the inclusion of the Community Investment Plan — frequently referred to as the “C.I.P” by staff — means the city is actively saving towards a variety of long-term goals. Included on that list, is the creation of a new facility that would house both city hall and the department of public works. The city is not expecting to work on the project this year, but the budget contains a $20,000 line item to begin saving for the facility.

The city is also contributing more towards roads in the coming year. In addition to the 9th Street corridor project and the replacement of culverts on both 15th Street and 17th Street, the commission has approved $54,000 from the general fund be moved to street funds for chip and seal resurfacing projects.

“The goal is to do more chip and seal there and maintain our streets at a higher level,” said Long, who noted that a single mile of chip and seal costs roughly $26,000.

Upgrades and repairs are also planned in multiple departments in the city, including $100,000 for upgrades at the substation, $106,000 to replace the roof at the water plant, $22,500 for turnout gear for the city’s firefighters, and $15,000 to repair a leaky roof at the public safety building.

However, one of the city’s largest expenses will largely go unnoticed by anyone driving through the city. As in past years, the city will be using $175,000 of its budget to pay for the city’s defined pension liability to the Michigan Municipal Employees Retirement System (MERS).

“If you wonder why the city is not doing certain things — that’s a lot of money,” said Long.

One thing that residents will not see in the budget is an increase to electric rates. The cost of water and wastewater will both increase, with water increasing by 50 cents per 1,000 gallons metered and wastewater increasing by 25 cents per 1,000 gallons. Both water and wastewater will also be subject to a $2 increase in the ready-to-serve charge, which is assessed per meter.

The only topic the commissioners disagreed on in the budget was how much funding should be contributed to the Delta County Economic Development Alliance (EDA). In the past, the city had consistently contributed $7,000 to the alliance, but last year opted to only contribute $2,000, with commissioners expressing concerns the alliance was not adequately representing Gladstone to businesses moving to Delta County. This year, following presentations from the EDA during the budget planning meetings, the budget included $6,000 for the alliance.

“I think it’s more than the money. I think it’s the principle involved that there really is a vote for economic development in the city and across the region, which benefits everyone,” said Tom Butch, who is both a resident of Gladstone and serves as the chair of the EDA, during the public hearing on the budget.

Commissioner Dave Nemacheck, who has been involved with the EDA since its inception, made a motion to increase the funding for the EDA to $7,000. The motion died for lack of a second.

In other business, the commission awarded contracts to Coleman Engineering for both the 9th Street project and the culvert replacements on North 15th and North 17th streets, approved acting as a pass-through organization for two Hannahville 2 Percent grants, and made amendments to the 2017-2018 budget that resulted in zero net affect on the city’s finances.

The commission also set a special hearing on a proposed ordinance that would dictate how the city commission and staff can use technology — specifically iPads and cloud computing — for the distribution of documents within the city. The hearing on the ordinance is set for the April 19 meeting.