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Council member sketches $4.2M structural deficit, links parks millage to operations funding
Summary
Councilmember Altman outlined a $4.2 million structural general-fund shortfall and said a parks and recreation millage on the November ballot would generate roughly $2.9 million toward operations and maintenance, narrowing the deficit but not eliminating it.
Councilmember K. Altman used Tuesday's meeting to outline the city's budget context and the parks-and-recreation millage on the November ballot, estimating a $4.2 million structural deficit facing the general fund.
Why it matters: The city hosts a large public university (Michigan State) whose property is tax-exempt; the council said that structural revenue limitations, the loss of a Board of Water and Light franchise fee and rising bond payments have combined to create a multi-million-dollar shortfall.
Key figures: Councilmember Altman broke the shortfall into components: about $1.5 million of longstanding vacancy-related masking, $1.5 million in lost franchise-fee revenue post-settlement, $0.5 million in bond payments for infrastructure renewal and roughly $0.7 million loss in recent state revenue-sharing changes, totaling approximately $4.2 million.
Parks millage mechanics: The park-and-recreation millage on the ballot is intended to dedicate funds to operations and maintenance for parks, recreation facilities and programming. Altman said the millage would raise about $2.9 million and, if passed, reduce the structural deficit to about $1.3 million; if it fails, the city could face deeper cuts for the next budget cycle.
Council priorities and process: Altman said public safety and public works should be priorities if cuts are needed; other council members questioned timing and fiscal choices and debated whether the general fund should absorb operations or if other arrangements (authorities, partnerships) could be explored.
Ending note: The council's discussion framed the November millage vote as a critical near-term fiscal decision; councilmembers asked staff to prepare scenarios for potential cuts if the millage does not pass.
