The county Road Commission will be spending more to maintain existing roads in 2008, but overall projections for both revenues and expenditures are down compared to this year.

The Road Commission will hold a public hearing on the proposed 2008 budget at its meeting Tuesday afternoon, beginning at 1:15 p.m. Copies of the budget are available at the commission office on Eckerle Road, just south of Suttons Bay. The commission is expected to adopt the proposed budget at its Dec. 18 meeting, including any changes made during or after the public hearing.

Clerk Joe Nedow, who prepares the annual budget with manager/supervisor Herb Cradduck and engineer James C. Johnson, said there are two categories for maintenance spending on primary (numbered) and local county roads: heavy maintenance, and routine maintenance. Heavy maintenance includes rebuilding a road, such as repaving its surface. Routine maintenance is for upkeep, like the commission’s annual seal coating work, crack sealing and sweeping projects.

In the proposed 2008 budget, the commission will increase routine maintenance spending 17 percent to $820,000 for primary roads. Maintenance for local roads remains the same for 2008 at $1,300,000.

Nedow said the commission moved up some heavy maintenance projects on primary roads in 2007 due to Gov. Jennifer  Granholm’s 21st Century Jobs Today program. Improving and resurfacing County Road 669 and 616, with a total estimated cost of $1,200,000, was paid through the county’s participation in the program. The Road Commission committed federal funding it receives for aid-eligible roads for the next four years.

For 2007, the commission received $1,477,000 in federal aid through the state jobs program. The funds went toward improving 669 from 616 north to M-22, and improving 669 from County Road 675 to 669 as it turns north to M-22. For 2008, the commission has $1,303,000 coming from the jobs program for resurfacing County Road 633 from Cherry Bend Road to Lakeview Hills Road, and improving N. Bar Lake Road.

“When those projects are done, we won’t have any federal aid funding available until 2012 or 2013,” Nedow said. By improving 669 from 616 north to M-22, the Road Commission has created another north-south all-season route between M-22 and M-72 that will allow heavy truck traffic during the weight and speed restriction period that occurs toward the end of winter.

The Road Commission is projecting overall revenues of $6,069,500 for 2008, down almost 13 percent from $6,961,500 in 2007. Overall expenditures will decrease 11.8 percent to $6,142,800 from $6,961,000. Nedow said the expected fund balance as of Jan. 1, 2008 is $640,000 and would drop 20 percent to $510,700 by Dec. 31, 2008 if the proposed 2008 budget goes through as planned.

The commission anticipates receiving 3 percent less through the state’s gas and weight tax disbursements, known as Michigan Transportation Funds (MTF). In 2007 the county expected to receive $2,610,000, and for 2008 Nedow estimates $2,533,000 in MRF support.  The decrease is attributed to people not driving as much, or purchasing new cars and trucks.

The only two revenue areas with increases are in the state trunkline contract, which jumps 15.4 percent to $750,000, and in property tax revenues received by the commission .5-mill levy. The commission anticipates receiving $997,500 in property tax revenues, up 5.5 percent from $945,000 in 2007.

Nedow said the increase in state trunkline funds will go mainly to an anticipated increase in tree removal and maintenance along state roads in the county.

Under expenditures, the commission expects to spend 24 percent less in its capital outlay fund. Some $350,000 is earmarked in 2008, down from $460,000 for 2007. The commission plans to purchase two new snowplowing dump trucks  at a cost of $140,000 each; a new crew-cab pick-up truck for $30,000; and a new “broce” road  sweeper broom for $40,000.

The commission will spend 1.7 percent more in 2008 for fringe benefits and insurance, going from $983,000 to $1 million. The commission is currently exploring coverage changes with representatives from the worker’s union to see if the cost can be reduced without significantly changing  health insurance coverage for its employees.

Nedow said the budget numbers as presented, especially the revenue figures, are preliminary and could change.