Kalamazoo reveals FY2026 budget with $1 million planned gap and major street, water and housing investments

Kalamazoo City staff on Monday presented the proposed FY2026 budget to the City Commission Committee of the Whole, outlining major spending on streets, water infrastructure and housing supports while noting a planned $1 million general-fund shortfall that staff say is part of a five-year smoothing plan.

City Manager Moore opened the informational session and noted the budget has been available on the city website since Dec. 1 and that the Commission will hold a public hearing Dec. 15 before final consideration Jan. 5. “This is really an informational and input session,” Moore said, asking residents and commissioners to review details and submit questions.

Chief Operating Officer Lam described the policy inputs used to shape the proposal — the Imagine Kalamazoo vision and a National Community Survey — and highlighted areas where resident priorities outpace perceived service quality, notably safety, the economy and utilities. Lam also outlined program-level proposals including an ongoing home-share feasibility launch and a $500,000 continuation of emergency shelter support for extreme weather funded from the Foundation for Excellence.

“Those inputs then help inform departments’ proposed budgets and their special requests,” Lam said, adding staff will continue outreach and data visualization work to show context for resident perceptions.

CFO Steve Vicencio said the FY2026 budget is 11.4% lower than FY2025 — largely because a one-time $110 million drinking-water project in the prior year does not recur — and that the city expects…