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Houghton holding special council meeting

There will be a special session of the Houghton City Council tonight at 5:30 related to a finding in the audit for Fiscal Year 2021, which ended last June. Manager Eric Waara says the problem is a minor one. A pass-through fund, which doesn’t have money allocated to it unless money has to flow from one account to another related to a grant, or other similar arrangement, was never debited roughly $15,000.

The fund had spent more than it had taken in, according to the auditor. Now governmental accounting standards require that deficit to be reported to Treasury. They in turn require the municipality to file a deficit reduction plan. So, in other words, we have to send them a letter that tells them how we plan to eliminate that deficit, even though it was an accounting deficit on paper.

The city switched firms and had to ask for an extension to file the audit with the State of Michigan. By the time it could be fully reviewed the deadline to submit a remediation plan was quickly approaching. Waara says that the issue could not wait until the regular council meeting scheduled for Wednesday, March 9th.

Waara says this issue has come up in the past.

We had this happen about 10 years ago, and it was kind of the same thing. The city’s fiscal year ends on June 30th, which is right in the middle of a construction season.

Last summer was a hectic time construction wise. A rash of projects to repair damaged infrastructure from the Father’s Day Flood, including the boardwalk near the Nara Nature Preserve and a culvert on Sharon Avenue, near Memorial Drive were combined with an ambitious effort to resurface roughly $1,000,000 of local roads. The Michigan Department of Transportation had projects happening on Townsend Drive and the Portage Lake Lift Bridge.

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