According to the meeting agenda, the amendment is needed to balance over- and under-expenditures within various departmental budgets for the 2025-26 fiscal year.

The city amends its Appropriations Ordinance annually. The action is required by state law and adjusts budget accounts to ensure individual line items are not overrun.

As outlined in the meeting agenda, the 2025-26 general fund budget was originally adopted with a deficit of $271,988. The amendment increases the use of fund balance by $9,780, bringing the total to $281,768.

Interim City Manager Melissa Becotte said the amended figure will not reflect the city’s year-end results, as the city does not amend down activities that will come in under budget.

Escanaba City Council members approved a rezoning request for the former Delta County Jail site at 111 N. Third St., located behind the Delta County Courthouse. (Google Maps photo)

“I’m estimating that at the end of the year, we should have a surplus of about $100,000 in the general fund,” Becotte said.

Becotte is also amending revenues by $345,000 to account for higher-than-expected Small Taxpayer Personal Property Tax reimbursements, increased property tax revenue, state funding for public safety activities and training and higher interest earnings.

In addition, Becotte is amending the city’s expenditures by $283,930 due to several factors, including a $4,000 increase to the city manager’s appropriation to cover leave-time payouts; a $51,000 increase to the parks appropriation for wages, utilities, plant watering, equipment rental and new playground costs; and a $7,000 to cover costs associated with maintenance, lighting work and pumping the fish cleaning station.

The ordinance includes amendments to the major street fund and local street fund revenues, sanitary landfill fund, parking maintenance fund, library fund, housing rehabilitation fund and grants fund.

Former jail site rezoned

Council members also approved a rezoning request for the former Delta County Jail site at 111 N. Third St., located behind the Delta County Courthouse.

In 2023, the city received a $700,000 Brownfield Redevelopment Grant from the Michigan Department of Environment, Great Lakes and Energy to support redevelopment of the site into a Hampton Inn. Although the hotel was originally projected for completion in April 2025, construction has not yet begun.

The project is being developed by Terrace Bay Hotel Group, led by Jarred and Jen Drown, with Moyle Construction serving as general contractor.

Planning and Zoning Administrator Joseph Walker told council members the zoning issue was discovered during the site’s review process.

“As (the developers) came in to apply for their site plan review, that was the first time that I had realized that the parcel was split into three different zoning designations: unzoned, E-3 and E Commercial,” Walker said. “Following the pattern along the rest of Ludington Street, it makes the most sense to rezone it to E Commercial. Regardless of the hotel project, that is probably what we would do anyways.”

Dayton Moyle of Moyle Construction said this was the last step with the city before plans can move forward, as the site plan approval was contingent on the council’s approval of the rezoning.

In other action, the council:

— Approved the purchase of multiple vehicles for city operations, including two Chevrolet Tahoe patrol vehicles for the Escanaba Department of Public Safety. The MiDeal price for each vehicle is $60,609, plus a $1,400 delivery fee. Council members also approved the purchase of three plow trucks for the Escanaba Public Works Department at a total cost of approximately $849,317.

— Approved a special event application from the Neighbors of the 1200 Block of North 16th Street for the annual Northtown Block Party. The event will include closure of the 1200 block of North 16th Street on Saturday, July 18, from 9 a.m. to 11 p.m. The party itself is scheduled from noon to 10 p.m.

— Entered closed session to discuss a collective bargaining agreement.

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Sophie Vogelmann can be reached at 906-786-2021 or svogelmann@dailypress.net.