Ishpeming City shares potential solutions to depleting general fund

ISHPEMING, Mich. (WLUC) - Ishpeming City shared that its main operating fund has been on a steady decline since 2019 during a presentation Wednesday evening.

Ishpeming City Manager Randy Scholz says the general fund has run a deficit year to year. During the presentation, Ishpeming City Finance Director Grant Getschow explained that the general fund is one of 20 separate funds the city has, which aren’t treated the same.

The general fund comprises general administration, police and fire, parks and recreation, the library, the cemetery and equipment maintenance.

Getschow expressed concern that the state could correct the fund itself in a few years if the fund dipped below a certain threshold. He says the city and residents won’t have much of a say if that happens.

The presentation discussed solutions like reducing wages, staffing levels, or services. The city could also pursue more development to increase the tax base.

However, Getschow says a solution to a balanced general fund budget would take a multi-faceted approach. He also says fiscal priority would be determined by the need for mandated and non-mandated services.

Scholz says they want to be transparent with the community.

“Trying to understand government financing is very difficult,” Scholz said. “We deal with it every single day, so it’s very novice to most people. It’s not something they deal with every day, so we’re trying to communicate it in a way they can understand.”

Scholz invites residents to review and discuss the presentation at an open house on Thursday at 10 a.m. at the Ishpeming Senior Center.

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