Alpena council reviews preliminary FY25 budget, hears millage rollback and multiple fee changes

The Alpena City Council opened a public hearing on the preliminary fiscal year 2025 budget on May 19, where city finance staff outlined changes that narrowed the projected general fund deficit and explained a required millage reduction under state rules.

Anna Swick, clerk, treasurer and finance director, told the council the budget draft presented May 5 was updated to include a $50,000 transfer from the perpetual lot care fund, an added $4,200 cost for bagged leaf pickup for FY26–27 and a $17,666 correction for an insurance payment in the major streets fund. Swick said those changes reduced the previously presented FY25 general fund deficit from $907,926 to $857,926 and left a planned reduction from fund balance of $997,178 on the general fund schedule.

The budget presentation also explained the effect of Michigan’s millage reduction fraction (Headlee rollback). Swick said the city levied 15.9827 mills in 2024 but will be able to levy only 15.8436 mills for the 2025 tax levy because a millage reduction fraction of 0.9913 applies to the city operating millage; the downtown development authority’s (DDA) voted millage will drop from 1.9812…