Commission holds public hearing on $388M FY2025 budget; staff proposes $500,000 ARPA set‑aside for emergency shelter

The Kalamazoo City Commission received public comment and a staff presentation on the proposed fiscal year 2025 budget at its Dec. 16 public hearing. City staff described a total budget of $388,000,000, a general fund of $85,000,000 and major capital appropriations, and said the administration is proposing a $500,000 carve‑out of ARPA funds to help create emergency shelter space for people experiencing homelessness.

“Last week we had our budget work session which went a little bit further into detail,” CFO Steve Vicencio told the commission and described the posted interactive budget book. Vicencio said that ARPA funds must be obligated by Dec. 31 and that the proposed budget includes flexibility to meet federal reporting requirements. “This is giving us flexibility to change the federal reporting category,” he said when explaining a consent agenda amendment intended to avoid returning funds to the federal government due to timing of invoices and reporting.

Public commenters urged urgency on homelessness. Shauna Espinosa told the commission that Kalamazoo needs a 24‑hour day and night shelter and on‑site services for children, veterans and residents with mental‑health needs. “We need a 24 hour shelter and these services within it so they don't have to…find a way to go here or find a way to go there,” she said.

Religious and community leaders also praised the proposed $500,000 reallocation. “I want to thank all of you most especially Commissioner Hoffman and Decker for making that change to the budget,” Toby Hannah Davies said, speaking for multiple congregations and community groups.

Mayor Anderson reminded the public that the hearing is informational and that the commission will vote on the budget at its first meeting in 2025, scheduled for Jan. 6. Staff urged residents to review the interactive budget book on the city website for details and follow-up materials.