Gigi Ferro

The primary discussion centered on the balanced budget proposal for the year 2026. The proposed capital outlay totals $3,457,764, which includes significant expenditures for the upfitting of Western Stars purchased in 2025 and the purchase and upfitting of six Peterbilt tandem trucks, along with a replacement mulcher head. Detailed schedules outlining primary and local projects for 2026 were reviewed. Concerns were raised regarding the projection for Neighborhood Road Funds (NRF), estimated at $1.5M, potentially lower than the original $3M projection due to the timing of Corporate Income Tax and Wholesale marijuana tax collections, which may delay the receipt of funds until late 2026. The Manager noted that the budget is currently balanced, and efforts to grow the fund balance will depend on actual funding receipts.

The meeting included motions to accept the agenda and approve payroll and vouchers for payment, subject to audit. The manager reported on ongoing negotiations and the status of the MDOT contract, giving credit to staff for their performance during significant snow events. A foreman report indicated that some road crews have worked continuously due to severe weather, necessitating the use of V-plows on certain routes.

Discussions covered financial matters, including the approval of payroll and vouchers totaling $603,960.03 subject to audit. Staff reports included updates on significant year-over-year decreases in October Motor Fuel Tax (MTF) funding, potential impacts from ongoing litigation regarding marijuana tax funds, and the initiation of year-end closing procedures requiring immediate submission of outstanding invoices. Operational reports noted thanks to mechanics for fleet maintenance during winter operations and updates on training new employees. In New Business, the 2026 Meeting Schedule was approved, which necessitated moving the January 1st meeting to Wednesday, December 31, 2025. A public hearing for adopting the 2026 Budget, 2025 budget amendment, and officer designation was scheduled for December 31, 2025.

The agenda was modified to include a road agreement from Rudyard Township under new business. The Board approved payroll and vouchers for payment, subject to audit, noting significant overtime hours and major expenses including debt payments and insurance. Key new business involved signing road agreements with Bruce Township for 12 Mile Road and with Rudyard Township for Prairie Road, sharing financial responsibility for both. Furthermore, the Board approved the renaming of Lee Road on Neebish Island to Laitinen Road to honor a long-residing family. Staff reports included updates on year-end reporting, managing weather-related issues, and equipment repair. The Manager reported on attending the Northern Michigan Association of Road Commissions conference, noting expected reductions in MTF payments and updates on MDOT contract negotiations. The session concluded with a closed session to discuss strategy for collective bargaining agreement negotiations, followed by authorization granted to the Manager regarding the bargaining parameters.

The public hearing was convened to discuss the 2026 Proposed Budget/General Appropriations Act. Following the review of the 2026 budget, which had no changes presented, the hearing was closed. The Board subsequently approved the General Appropriations Act for 2026. A review of the 2025 year-to-date performance indicated projected expenditures exceeding revenue by approximately $1.056 million, citing factors such as reduced MTF funding, timing of truck purchases, an error excluding a bridge replacement from the budget, high equipment maintenance costs, and prioritized needs over certain capital outlay purchases. The Board approved the 2025 Budget Amendment #1 and Resolution 2025-05 concerning an optional fund transfer. Furthermore, the Board appointed the Manager as Chief Administrative Officer and the Office Manager as Fiscal Officer for 2026, granting transfer authorization for budget line-item deficits not exceeding 30% of the total budget.