Alma City holds public hearing on proposed FY2026 budget, outlines millage rates and capital projects

The Alma City Commission held a public hearing on May 13, 2025, to review the proposed fiscal year 2026 city budget and related property tax millages and then closed the hearing after public questions.

City staff presented proposed millages that would fund general operations and specific functions: a proposed general-fund millage of 14.2244 mills; a transportation millage of 0.8 mills (unchanged from the prior year); a Voda Street millage of 3.5 mills; a library millage under Public Act 164 of 0.9874 mills (applied citywide); and a Downtown Development Authority millage of 1.9467 mills within the DDA district. The staff presentation said the proposed general fund budget would total $6,275,000 in both estimated revenues and expenditures.

The staff overview broke the general-fund expenditures into functional totals: community development (economic development, downtown maintenance, planning and zoning) at $225,000; community safety (police, fire board contribution, public safety inspection) at $2,902,000; property maintenance (buildings/grounds and Riverside Cemetery) at $465,000; transportation-related general-fund items (sidewalks, Act 51 public works, street lighting) at $295,000; recreation and parks at $332,000; executive administration (commission, manager, clerk, IT, elections, HR, engineering) at $1,041,000; and fiscal services (financial administration and assessing) at $915,000. The presentation described a balanced general fund at $6,275,000.

Staff also reviewed enterprise and component funds: major streets ($1,025,000); local streets ($800,000); local street village ($125,000); recreation grant programming ($150,000); State Street Plaza ($102,000, with a caveat that the number could change depending on a building sale); transit services ($1,785,000); wastewater utility ($2,100,000); water distribution ($2,325,000); refuse ($905,000); Downtown Development Authority ($90,000); and Allen Public Library ($915,000). Capital projects described in the presentation included replacement of one patrol vehicle, sidewalk replacement programs (two years of work in designated neighborhoods), additional downtown LED street-light conversions, park capital improvements ($80,000), downtown tree removal and replacement (phase 3), elevator/door/roof work at wastewater lift stations, pump and control replacements, and equipment such as a zero-turn mower and maintenance trucks.

Staff noted a programmed parking-lot reconstruction (Parking Lots 4 and 8 and adjacent alleys) estimated in the materials at $1.8 million; the presentation said the estimate was discussed at the EDA meeting and that full reconstruction likely would require bond financing if the city pursues it. Wastewater capital items and some lift station projects also were identified as likely bonded projects. Staff said the budget as presented does not rely on drawing down the city’s fund balance for operations and that, under the commission’s fiscal policy, fund balance would be used only for capital in constrained circumstances.

Commissioners asked for and staff agreed to provide additional details not given on the record, including an exact current reserve/fund-balance amount; the staff member said that figure was not available off the top of their head and would be provided at a later meeting. A member of the public asked about the reserve fund and about prorating ready-to-serve charges (that public comment is recorded separately by the commission).

The commission opened and then later closed the public hearing on the proposed FY2026 budget and related millages; the transcript shows the hearing was closed by a voice vote and the motion carried. The hearing record in the meeting did not show final adoption of the budget during that item; it recorded the staff presentation, public questions, and the closing of the hearing.

Why it matters: the proposed millages and the budget outline how the city plans to fund operations and capital work in FY2026, including several projects that could require bond financing if the commission decides to proceed with full reconstruction work. Residents wanting to comment or review the budget are likely to see follow-up materials and a later formal adoption vote.

Ending note: staff said it will bring back requested clarifications (reserve balance and any additional details) at a future meeting and that a separate public hearing was set for May 27, 2025, on a Community Development Block Grant application tied to wastewater laboratory improvements.