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Ishpeming council adopts 2026 budget, shifts funds after $1.4M 3rd Street change order; approves city-hall boiler replacement
Summary
The Ishpeming City Council adopted the 2026 budget with an amended CIP after staff flagged a $1.4 million nonparticipating change order on 3rd Street that created a roughly $360k–$700k funding gap; the council approved replacing city-hall boilers and directed an RFP for a library hot-water system.
Ishpeming — The City Council voted to adopt the 2026 city budget and an amended capital-improvement plan on Nov. 4 after staff warned a $1.4 million nonparticipating change order on the 3rd Street project has created a material funding gap.
Gray, the city’s finance presenter, told council the 3rd Street change order passed earlier in the year is entirely a city responsibility and has left an estimated shortfall of about $360,000–$500,000 in identifiable funds, noting the city had previously identified roughly $750,000 for storm-sewer work and other related project line items.
"That 1.4 that got passed for storm sewer in July is all city responsibility," Gray said during the discussion, and he urged caution on noncritical spending for the remainder of the year.
The budget debate included a direct discussion of how to cover that gap. Staff recommended several options, including diverting some…
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