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Highland Park reviews $13.6 million proposed operating budget; revenues rise only $80,000
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Summary
At an April 20 workshop, Highland Park officials presented a proposed $13.6 million general fund budget for 2026–27, citing only an $80,000 projected revenue increase and contract-driven cost pressures—while setting aside roughly $400,000 for capital and noting a major permanent pension millage reduction.
Council President Thomas called the Highland Park City Council workshop to order Monday evening and the mayor turned the presentation over to Carl, who walked council through the proposed fiscal 2026–27 operating budget.
Carl told the council, “We have a $13,600,000 general fund, our general operating budget.” He said projected revenues are up about $80,000 from the prior year and that the budget leaves little room for capital spending because most increases are contractual. Carl highlighted rising costs associated with union wage provisions for fire and police, a rubbish contract increase of about $30,000 and two scheduled elections costing about $50,000 that were not in last year’s budget.
The budget team also noted the city lost a $20,000 community development block grant reimbursement for code enforcement. In addition, Carl said, “The county is now charging us 80,000, $83,000 a year, for the collection of taxes,” an expense reflected in the proposed budget until the city’s treasurer situation changes.
Carl characterized statewide tax changes as reshuffling revenue: the state eliminated sales tax on gasoline and replaced it with an earmarked gas tax for roads, which reduced the city’s general revenue sharing by about $30,000 even as road-specific funding to localities increases. He said that shift—combined with lower projected property tax growth tied to falling inflation—helped produce the modest net revenue gain.
On pensions, Carl described a significant change: the city previously collected roughly $2.8 million related to pension millages but now expects to need about $600,000 because of a state contribution that funded plans. Carl said that will translate into what he described as an “about 15 mill ish decrease” for taxpayers as the pension levy is sharply reduced.
The proposed budget includes a capital public improvement set‑aside. Carl said the city has set aside about $260,000 previously and can add another $100,000 in the proposed budget—bringing the capital reserve close to $400,000 for small equipment and infrastructure starts.
Why it matters: the plan stabilizes operating services while limiting near-term capital work; council members pressed staff for line‑by‑line detail to understand whether any noncontractual reductions are feasible and to confirm figures before the public hearing and subsequent vote.
The mayor said the next step is a public hearing followed by a vote on the budget. Councilors and staff agreed to return with additional detail and timeline information at forthcoming meetings.
