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Allegan opens FY26 budget hearing; proposes modest utility increases and seeks grants for neighborhood work
Summary
City staff presented the FY26 budget with total expenditures of $20,911,852, a proposed 1.5% sewer rate increase and 8% water increase (about $3.50/month per resident), and announced grant applications for Rossman Park ($2.5M) and MDOT TEDF funding for Walnut Street; the public hearing drew no public comments.
City Manager Dai presented an overview of the proposed FY26 City of Allegan budget at the May 12 council meeting and opened a public hearing; no members of the public offered comments and the hearing was closed.
Dai reminded the council how property-tax dollars are distributed among taxing jurisdictions and reviewed the proposed fiscal measures: a sewer-rate increase of 1.5% and a water-rate increase of 8%, which staff estimated would raise the average combined residential utility bill by approximately $3.50 per month. He also said the total expenditures shown in the budget document are $20,911,852 and that the property tax millage used for planning will not exceed 16.368.
As part of the city manager’s communications, staff said council will consider two grant-related public hearings on May 27: a Michigan Economic Development Corporation application seeking $2,500,000 for Rossman Park neighborhood water-infrastructure improvements and an MDOT Transportation Economic Development Fund (TEDF Category B) application (approximately $250,000) for Walnut Street resurfacing and water-main replacement. Dai and other staff emphasized that grant awards are not guaranteed and that it may be necessary to value-engineer or scale projects if funding is partial.
Outcome: Public hearing opened at 7:09 p.m. and closed after no public comment. The budget will proceed through the approval timeline toward the council’s May 27 action; staff said they will return with answers to any written public comments received and that council can amend the budget during the legally required process.
