By Candice Williams
The Detroit News
ALLEN PARK, Mich. — The city of Allen Park is preparing its 2012-13 budget for presentation during Tuesday’s 7 p.m. City Council meeting, which is expected to garner the attention of state officials who have been keeping an eye on the city’s financial troubles.
“We have to go forward to see what we can do and see what position the state is going to take,” said Mayor William Matakas.
The city may have to cut as much as $4.2 million for the 2012-13 budget, he said. It faces a $1.6 million deficit, and voters recently rejected a two-year, 4-mill tax that would have raised $2.6 million annually to help pay off debt from the failed Unity Studios.
One measure the City Council might consider is subcontracting police and fire services with a neighboring community, Matakas said. The city mailed a letter Thursday to the cities of Dearborn, Taylor, Southgate, Lincoln Park and Melvindale, as well as the Wayne County Sheriff’s Office.
“Whatever the proposal, we could bargain and see if (the Allen Park police and fire departments) could match the savings that could be afforded by a subcontractor,” he said. “We’re entitled to do that.”
Contracting out to another community will lead to longer response times and higher insurance rates, said Craig Hickey, vice president of the Allen Park Professional Firefighters.
The Fire Department, with a closed contract until 2013, offered earlier this year $2.8 million in cuts in exchange for a three-year contract extension. The city rejected it, Hickey said.
“Instead of working with people that were willing to work with you, they want to get into the contract or gut it completely,” he said.
The city will also consider changing its trash pickup schedule.
Caleb Buhs, spokesman for the state Department of Treasury, said submitting a proposed 2012-13 budget isn’t a requirement, but the state is interested in the city’s plans.
“We’re still communicating with the city to see what their next step is going to be,” Buhs said. “Obviously, they have a deficit moving forward.”
Resident Denise Hunt said she likes that the city is considering subcontracting police and fire services. She said the legacy costs, including pension payments, are too high.
“We’re a city that should not be here,” Hunt said of the city’s financial state. “We’re doing everything we can to stay out of bankruptcy, or having anyone come in. We’re so close to being in a position where it can be OK.”
The City Council meets at City Hall, 16850 Southfield Road.
cwilliams@detnews.com, (313) 222-2311
Copyright 2012 The Detroit News