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Ishpeming council adopts 2026 budget after reworking CIP to cover 3rd Street change order
Summary
The Ishpeming City Council voted to adopt the city—udget for 2026 and an amended capital improvement plan after staff identified a $1.4 million nonparticipating change order tied to 3rd Street storm-sewer work; council flagged roughly $700,000 in funding gaps and directed reprioritization and pursuit of grants.
Ishpeming—ouncil members voted to adopt the city—udget for 2026 and an amended capital improvement plan after staff said a July change order for 3rd Street storm-sewer work increased city responsibility by about $1.4 million.
Finance staff told council the general fund is fluctuating seasonally but remains solvent; state revenue-sharing receipts of about $184,000 so far were noted and staff recommended pausing noncritical spending through the rest of the year. The staff presentation explained that some large sewer and water project lines show expenditures over revenues because bond proceeds are being drawn and those outflows will be capitalized on the balance sheet as assets.
The key budget change arose from a nonparticipating change order for the 3rd Street project. Staff estimated the city still faces roughly a $360,000 to $500,000 shortfall toward covering the full amount of nonparticipating costs and said available public-improvement funds could be shifted next year, but that doing so would likely require deferring or reducing other projects. Finance staff said the most readily flexible item was funding previously identified for the library heating project, and council discussed options including grants or short-term borrowing.
Council members asked staff to pursue grant opportunities and other funding sources while finalizing project-scoping decisions. Gray, the finance staff who presented the report, said the city "is starting to coast into our reserves," and urged council to "pump the brake on any noncritical items for the remainder of the year."
Votes at a glance: - Motion to adopt the 2026 budget and amended CIP: approved by voice vote. - Resolution 33-2025 (CWSRF reimbursement pay request): adopted by voice vote. - Resolution 34-2025 (DWSRF reimbursement pay request): adopted by voice vote.
Council ction will be followed by staff work to identify grant matches and, if needed, financing options to address the identified funding gap. The meeting moved to other agenda items after the vote.
