In a recent city commission meeting, officials discussed the fiscal year 2025 budget, revealing a proposed total budget of $497 million, marking a significant increase of $71.5 million or 16.8% from the previous year. The general fund, which constitutes approximately 45% of the total budget, is set at $223 million, reflecting a 5.9% increase from fiscal year 2024.

Key highlights from the meeting included a decrease in general fund revenues by $524,000 attributed to a decline in milli trade, alongside an increase in the fund balance by $878,000. The commission also approved $353,000 in matching funds for safety improvements at grade crossings, as per resolution 20222336.

The capital improvement plan saw adjustments, with $60,000 reallocated from the grant program. Notably, the estimated cost for electric rehabilitation projects surged from $19 million to $27 million, attributed to rising material and contractor costs. The commission emphasized that these adjustments are not unusual, especially in light of updated estimates from engineers.

The proposed millage rate for the general fund is set at 5.2443, reflecting a slight decrease of 1.2% from the previous year. However, the overall property tax burden is expected to rise by 7.25% due to an increase in the city's assessed property values.

The meeting concluded with a reminder of the upcoming public budget hearing scheduled for next Thursday, where final adoption of the budget will take place. The commission expressed gratitude to staff for their efforts in managing the budget amidst challenging economic conditions.