Delta County Administrator Emily DeSalvo told the Delta County Board the county’s finance committee has been discussing contingency plans should the board opt against asking voters to restore the county’s operating millage to its original rate.

The proposed fiscal year 2027 budget totals $13,672,945, while projected revenue stands at $13,594,304. These projected numbers leave an estimated budget deficit of $78,192.

DeSalvo said the revenue estimate is preliminary and based on anticipated grant funding, recent budget history and projected changes in other funds.

While the projected deficit is relatively small, DeSalvo said the county has already made numerous cost-cutting and revenue-generating adjustments in recent years.

Delta County commissioners hear from the county's administrator, Emily DeSalvo, as she discusses the finance committee's contingency plans for if the Headlee Override is not taken to a vote or not passed this November.

“$78,000 doesn’t seem like too much (to come up with) when you’re looking at a $13 million operating budget,” DeSalvo said. “But the more we are limping along and trying to tighten our budget, the more we’re going to have to start moving to tier one, tier two, tier three, if we’re not gaining any additional substantial revenue within the general fund.”

The finance committee’s contingency plan includes several tiers of options, ranging from measures with minimal public impact and to actions that could have a higher impact on county services and operations.

In order to reduce expenses, DeSalvo said the county could consider a hiring freeze for nonessential vacant positions or delaying the hiring process to reduce personnel costs, which make up a significant portion of the county’s general fund expenditures.

“If you want to capture that revenue rather quickly or reduce the expenditures rather quickly, that’s going to be the main area with the biggest impact directly,” DeSalvo said.

Another cost-cutting measure would defer non-emergency capital maintenance by postponing facility maintenance, vehicle repairs and technology upgrades that do not present immediate safety or compliance concerns.

DeSalvo also discussed the option to implement stricter limits on county-funded travel, professional development expenses and departmental overtime.

“In looking at the options that the board has in instituting some of those to close that gap, as I said, a lot of it we’ve already been doing,” DeSalvo said. “I think that explains why I felt it necessary to present the board with the option of the Headlee Rollback amendment and it being on the ballot.”

To generate additional revenue, the county could increase fees in departments that provide public services, including the clerk’s office, building and zoning department and treasurer’s office.

DeSalvo emphasized that none of the measures have been or are planned to be implemented and are being discussed only as potential contingency plans if the board does not pursue a Headlee Override or if the override does not pass voter approval.

Administration and the finance committee are expected to provide additional information about the proposal in the coming weeks.

“Finance will look at some of those details and have a better idea of how to communicate the numbers to the public, so if they choose not to roll this back, or override it, then (numbers would show) this is what it means to them,” Commissioner Christine Williams added.

The board is expected to decide at its Aug. 4 meeting whether to place the Headlee Override proposal on the November ballot.

The Headlee Amendment, approved by Michigan voters in 1978, requires local property tax rates to be rolled back when property values increase faster than inflation, limiting the amount of revenue local governments can collect without voter approval. The proposal is being considered because of declining tax revenue resulting from the Headlee Rollback in fiscal year 2025.

If approved for the ballot, voters would be asked whether to restore Delta County’s operating millage from 4.9804 mills back to the statutory rate of 5.4500 mills, allowing the county’s general fund to capture the full millage approval rate as authorized in 1976.

Although state law requires the proposal to appear on the ballot as a tax increase, supporters note it would restore the previously approved millage rate rather than establish a new tax.

Additional information about the Headlee Rollback and the potential override is available in Tuesday’s meeting agenda on the county’s website.

In other business, the board:

— Approved a Request for Proposals (RFP) for renovations within the Delta County Service Center to outfit offices for the Delta County Dispatch Center. The selected firm will provide architectural, mechanical, electrical, structural (if required), communications, security and related engineering services necessary to prepare construction documents and assist the county through project completion. Proposals must be submitted to the county no later than Aug. 11 at 10 a.m. Funds for the project will come out of the Delta County 911 millage fund, according to DeSalvo.

— Awarded a bid to the Samuels Group, based in Wisconsin, in the amount of $64,587 for renovations at the Delta County Service Center to create office space for a tenant. Funds will come out of the general fund.

— Approved a request to fill the grant funded position of Court Services Liaison/ Drug/Sobriety Court Case Manager that was vacated by the resignation of the current case manager. The board also approved a lump sum pay out for the current case manager.

— Approved a request to fill the full-time union position of front office clerk at the Delta County Sheriff’s Office with an updated job description after the recent resignation for the position. The updates to the job description are proposed by the union to reflect the actual duties of the clerk since moving to a full-time position within the union, according to the county.

— Approved a request to fill the deputy civil clerk position that was vacated by the resignation of the current deputy civil clerk, as well as a lump sum payout for the current deputy civil clerk.

— Approved a side-by-side purchase in the amount of $14,931.95 for the Delta County Parks.

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