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The controversy over the budget has been lingering in the air for quite some time, but no solid decisions will be made until the August 14 council meeting.

While many areas of the budget may be affected on small scale, several departments could see major reductions in money and resources in the next fiscal year, including the Downtown Development Authority (DDA) the Department of Public Works (DPW) and the Police Department.

Village Council President Robert Wilcox said the state is cutting back everywhere possible and a major automotive company declared bankruptcy, losing around 45,000 in personal property taxes to the village.

"With rising costs skyrocketing, we've got to deal with this before we dig ourselves a hole and can't get out," Wilcox said. "We are looking at each and every category and we have tentatively agreed on some small items but there are some big items to be decided.

We're looking at every area we spend money and we need to make some tough decisions."

Wilcox noted they have gone through the budget line by line several times to figure out how to get the budget where it needs to be.

"We're looking at any department that we can trim that fat from," Wilcox said.

The subject of cutting funds for the DDA or dissolving it completely has been talked about for some time, according to DDA President Michael Biehl. At one of the special meetings on the subject Biehl said it was evident that certain council members thought the DDA was a luxury the town could not afford.

The DDA works on making changes and improvements to the downtown of Mancelona. They were responsible for town projects such as installing streetlights on State Street, placing flower baskets downtown and demolishing certain unused buildings.

"The DDA is the only group that's been making any improvements in the town," Biehl said. According to Biehl, the DDA has only one paid person, a secretary who earns $200 per month. The others are volunteers.

Biehl is hoping the DDA can work something out with the village to keep the department active and he believes that is still a possibility. He noted the DDA could possibly reroute the money used back to the village.

"We're helping to raise the tax base which returns money to us which we in turn spend in the village," Biehl explained. "The money we receive all goes back to the village. From the beginning we've been telling them we'll do whatever we need to keep the DDA active."

Wilcox said he has challenged the Village Council to research and look closely at the budget to be prepared to make hard decisions and adjustments at the August 14 meeting.

"You hurt people when you make cuts, but we have to do what's best for the village of Mancelona," Wilcox said.

"It's going to be a council decision. It's not my decision. We will bring out everything and discuss it freely. But, no matter what happens we're going to hurt some people."

Hadley Robinson can be reached at hrobinson@michigan newspapers.com or by calling (231) 533-8523.