The Howell City Council met Monday night and approved a deficit elimination plan that was the result of timing issues and changes in the interpretation of a grant agreement.

Due to timing issues, the City did not receive a refund from CSX Railroad for the cost over-estimation in time to eliminate the deficit in the McPherson Park Grant Fund. Council earlier approved a revised M-DOT contract for a grant to reconstruct portions of McPherson Park Drive in order to include the $65,000 paid for the CSX railroad crossing reconstruction as an eligible expense. $49,924 was received October 22nd, which was lower than the deficit, and the shortfall of $1,501.22 will be made up by the general fund.

During Monday night’s meeting, a new resolution was approved by Council. City Manager Shea Charles tells WHMI Council adopted a resolution for the deficit elimination plan. He says it was just a timing issue that resulted in the small deficit and the plan approved by Council eliminates that. Based on revised project costs, the City anticipates receiving an adjustment from the state. When all of the final accounting is completed, an additional budget amendment will be required. (JM)