Mount Clemens holds public hearing on proposed 2017–18 budget as DDA project estimates draw questions

The Mount Clemens City Commission opened a public hearing on the proposed 2017–18 fiscal-year budget and 2017 tax-year millage rates, during which residents and a budget reviewer pressed the commission for specifics about funding for a proposed Downtown Development Authority project.

Rick Block, a resident who reviewed the budget at the public library, asked the commission where money for the project would come from and why an explicit funding line was not included in the budget document. "My question is, where are you gonna get the money?" he said, asking for the line-item that would show the bond or financing source.

The commission and staff said contract bids and final estimates are still pending. A commissioner summarized an architect "best-case estimate" for the project as "about $1,300,000," noting that actual RFP responses may be higher or lower. Another commissioner said bond counsel projected annual debt service of "approximately $70,000 per year," with the DDA indicating it would cover roughly "50 some thousand" of that and the city's portion estimated at about "$17,000" (one speaker referenced $18,000 as well).

Commissioners stressed that the project remains exploratory and has not been approved. One commissioner said the DDA will continue to review estimates and bring recommendations to the commission for further action. The chair noted that the public hearing itself does not constitute approval of the budget or of any DDA project.

The commission moved to close the public hearing; no final vote on the budget or the DDA project occurred during the meeting. The DDA is expected to complete bid solicitations and provide final cost estimates before the commission considers any financing or formal approval.

Next steps: staff and the DDA will review RFP responses and return with more detailed cost and financing information before any final decision on issuing bonds or allocating city funds.