Salaries and wages are expected to be frozen on Mackinac Island for the coming budget year, excluding contract work, and cuts are being made to all areas as the city strives to reach a balanced budget. The full city council held a working session to discuss the budget Tuesday, March 23.

During the meeting, Council agreed to make all maintenance staff hourly and could seek bids for snowplowing. Council agreed to consider eliminating summer greeters, who welcome visitors to the Island.

The city set the meeting to discuss its projected $68,000 budget deficit for the fiscal year beginning April 1.

The city is facing a 2% drop in taxable values from one year ago, which are impacting the city's revenue.

“This is the first drop in I don't how many tens of years,” said finance chairman Mike Hart. “It indicates the state's depression.”

The city could balance the budget by moving a fund balance from the 2009/2010 budget into the new 2010/2011 budget, said Kelly Bean, assistant to Mayor Margaret Doud, who has been working with Mr. Hart on the budget.

Alderman Jason St. Onge suggested the city consider raising rental bicycle license fees, which are now $25, but no action was taken on the suggestion.

Budget talks did not always go smoothly during the special work session, however, such as when Mr. St. Onge left the meeting during a dis- with Police Chief Jim Marks over the early return of a seasonal Police Department employee, clerk/dispatcher Mary Marquis. Mr. St. Onge said residents are asking why she has returned to work three weeks earlier than last year, to which Chief Marks responded that she is preparing the office for the summer, and started work when the boats started running. She lives off-island.

If the job requires a March 1 start, said Mr. St. Onge, then it should be given to someone who lives on the Island, as weather, not date, determines when the boat starts each year.

Chief Marks said he could lay her off, if that was what the city council wanted.

The exchange continued with raising voices until Mr. St. Onge left the room.

Alderman Armin Porter suggested that seasonal hires be approved by an overseeing committee, an idea that Council then approved. What committee will approve what hires was not specified, with the Public Safety Committee and Finance Committee both mentioned. Council ultimately decided it should be the “proper” committee.

Chief Marks said he apologized if he had made a mistake, but Mayor Doud reminded the city council the police department is operating $10,000 under budget.

At Mr. Porter's suggestion, Council also approved changing all maintenance staff to hourly employees and will consider snowplowing bids later, after talking with the Department of Public Works, which might be able to plow city property, rather than continuing to do the work in-house.

Hiring a contractor might save the city some money, Mr. Porter said, even though the DPW is also a city agency .

Seasonal greeters on city streets to ease downtown congestion and assist visitors should be eliminated, Mr. Porter also suggested, because he doesn't like the program and has heard complaints from residents .

Tourist bicycle license fees pay for the workers. Before taking a vote, Mayor Margaret Doud said she would talk with the city attorney to see if anything else can be done with the money. Last year, the city received $33,939.

Council held a second work session Tuesday, March 30, and is expected to adopt the budget Wednesday, March 31, at 5 p.m.