Chelsea council moves FY26 operating, water, sewer budgets to public hearing; total proposed budget $261.7 million

City staff presented the proposed fiscal year 2026 operating budget to the Chelsea City Council and the council moved the general fund and enterprise fund orders to second reading and scheduled public hearings.

The budget communication reported proposed FY26 expenditures of $110,809,868 for city operations and $150,891,360 for the Chelsea Public Schools, for a total proposed budget of $261,701,228. The communication said the school budget rose 7.54% year over year, largely financed by additional Chapter 70 funding generated by the Student Opportunity Act; the city’s operating expenditures rose 5.84%.

Deputy City Manager of Finance Michael Mason was named as having held two community budget sessions; the administration said it shared budget materials through televised hearings and local media. Councilors moved to schedule a public hearing on the general fund budget; the council also moved the sewer and water enterprise fund appropriation orders to second reading and scheduled their public hearings. The council set the public hearing for the general fund and related FY26 budget items for the following meeting on June 2 at 7 p.m.

In addition to the general fund order, councilors introduced separate orders to appropriate sewer and water enterprise fund salaries, operations and capital for FY26, and an order allocating $1,710,663 in certified free cash. Those enterprise fund and free cash orders were moved to second reading with public hearings scheduled.