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Ishpeming finance director outlines positive 2026 outlook, council adopts third-quarter budget amendments
Summary
Financial Director Gray presented a 2026 budget preview showing modest general-fund padding and major grant receipts for water projects; council approved third-quarter 2025 budget amendments covering general fund, streets, water/sewer, and public improvements.
The Ishpeming City Council on October 8 received an overview of the proposed 2026 budget and voted to adopt third-quarter 2025 budget amendments after a presentation from Financial Director Gray.
Gray told the council the city is projecting a modest year-end surplus in the general fund (about $25,000 projected at the time of the report) and highlighted major fund balances across water, sewer and DDA accounts. He cautioned that the apparent surplus in some enterprise funds is affected by Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) accounting practices and flagged upcoming SRF-related debt service as a future budget pressure. Gray noted federal grant receipts in September, including DWSRF grant revenue recorded in the water fund.
Gray also outlined options for increasing general fund revenue over the medium term, citing the potential of an available marijuana license and distribution-license discussions, and floated the idea of a library or emergency-services millage in future years as long-term revenue options. He recommended conservative spending through Q4 and continuing quarterly or monthly budget briefings between staff and council.
After discussing fund-level details, council considered and approved the city’s proposed third-quarter budget amendments. The amendments adjusted revenues and expenditures across multiple funds (including added grant revenue tied to the skate-park LEO grant and a Core & Main credit tied to a meter-replacement project) and updated public-improvement and winter-maintenance projections. The council voted to approve the package as presented.
Gray emphasized the amendments present a clearer near-term financial picture and that several capital projects are already budgeted but will reduce certain fund balances as they are executed; he said the city should continue to plan for SRF debt service and for long-term replacement funding for water and sewer infrastructure.
