Lapeer commission moves $600,000 to general fund, consolidates housing grant accounting

The Lapeer City Commission approved a budget amendment to transfer $600,000 from the capital permit fund into the general fund to maintain the city's fund balance and to consolidate accounting for housing grant revenues and expenses into the general fund housing department.

Finance staff explained the $600,000 originated from an easement payment that was not previously earmarked for projects and that shifting the funds preserves the fund balance target the Commission previously adopted. Kelly Hannah said grant revenues and associated expenses will continue to be tracked on dedicated line items within the general fund housing department to preserve compliance and auditability. "There will be specific line items in the housing department to track the grant revenue as well as those grant expenses in the general fund," Hannah said.

Commissioners discussed projected declines in income tax revenue, tracking of grant receipts year-to-year, and how the consolidation affects transparency; the amendment passed on roll call with unanimous recorded support from voting commissioners.

Separately, the Commission approved a bill listing for Feb. 17, 2026 totaling $1,200,617.89 by roll call. Both votes were recorded on the public record.

Staff will implement accounting changes and reflect housing grant activity in the general fund with specific line items and will present any required reporting to the Commission as part of future budget materials.