Bay City manager presents balanced FY2026–27 general fund budget, flags lower state and marijuana revenues and Station 2 remediation

Fiscal Services Director Martini presented the Bay City Commission with the proposed FY2026–27 general fund budget, saying the plan totals $28,949,003 — a 0.57% increase from the prior year — and does not rely on fund balance to balance operations. "It's truly a balanced budget," Martini said as he opened the presentation.

Martini told commissioners the change was partly accounting-driven: a GASB reclassification moved an electric-department administrative payment from 'tax' into 'transfer in,' lowering the tax line and increasing transfers. He said the city expects a small decrease in state-shared revenue this coming year, a decline not seen in over a decade. Martini also reported a sharp decline in marijuana excise receipts, noting collections moved from roughly $948,561 in 2024 to about $432,136 in 2026; the budget conservatively includes $150,000 to cover an ongoing drop‑in center obligation, with any excess earmarked for roads.

On the expenditure side Martini pointed to modest overall spending growth: salaries are budgeted about 2.6% higher (to…