Kalamazoo City Commission adopts $388 million 2025 budget, approves millage and component budgets
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Summary
The Kalamazoo City Commission unanimously adopted a $388 million fiscal 2025 budget, including an $85 million general fund, approval of component unit budgets and a $500,000 addition for emergency shelter services; commissioners discussed ARPA deadlines and fund‑balance planning.
The Kalamazoo City Commission on the first business meeting of 2025 adopted a $388,000,000 annual appropriation resolution that sets millage rates and approves component‑unit budgets for the year.
CFO Steve Vicencio told commissioners the proposal reflects a yearlong process of retreats, work sessions and a public hearing and includes a balanced $85,000,000 general fund. Vicencio said the commission amended the proposal in December to add $500,000 for emergency shelter services and noted the budget package also includes DDA, EDGA, EDC and Northside Cultural Business District authority budgets.
Commissioners discussed maintaining a 15% fund balance and the timing of a large bond payment in 2026 that could affect near‑term reserves. On ARPA spending, Vicencio said most subgrants include mid‑2026 due dates so staff can reprogram funds quickly if projects stall; a subset of projects was extended through Dec. 31, 2026, where staff had higher confidence of completion.
Commissioner Prado highlighted that $110,000,000 of the total is drawn from drinking‑water state revolving funds for capital projects, and said removing that amount shows a modest year‑to‑year operating decrease; other commissioners praised the emphasis on capital investment to address long‑deferred infrastructure needs.
The commission voted to adopt the appropriation resolution and approve component budgets and fee schedules. Mayor Anderson said the adoption is one of the body’s most significant annual duties and thanked staff for preparing the plan.
