FLINT (WWJ/AP) – The contaminated water problems of Flint are well known. But the city is struggling with another problem — a nearly $35 million budget deficit.

Officials say the city’s financial situation was recovering until a switch to the Flint River caused lead to leach from old pipes into some homes.

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Mayor Karen Weaver’s office says a proposed 2016-17 operating budget she presented Monday to the Flint City Council identifies a projected $35 million deficit in the city’s Water and Sewer Fund.

The mayor’s office cites litigation over water rates and her declaration of a water emergency due to the lead-tainted water as factors for the projected deficit.

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Flint’s finance director says many residents concerned about the drinking water aren’t paying utility bills.

Flint was under a state-appointed emergency manager when it switched from Detroit’s water system to the Flint River in 2014 to save money. It has since returned to Detroit’s system.

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