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Fraser manager presents FY2026-27 recommended budget citing one-time industrial-park impacts and $54M in liabilities
Summary
City Manager Angeli (Ms. Lewis) presented a recommended FY2026-27 budget with $38 million in recurring revenues, $47.5 million in proposed expenses driven by $14.5 million in capital projects and longstanding pension/OPEB liabilities; council questioned assumptions tied to $9 million in industrial-park bond proceeds and asked for deeper review at the budget workshop.
The Fraser City Manager presented her recommended fiscal year 2026-27 budget on April 9, laying out a plan that staff said includes $38 million in expected revenues and $47.5 million in planned expenditures, driven in part by about $14.5 million in capital projects.
"This is really just an opportunity for me to present my recommended budget," City Manager Ms. Lewis said, walking the council through millage trends, a financial overview and a summary of staffing and capital priorities. She told council the city is projecting a general fund budget of roughly $18 million in expenditures for recurring services and noted a 25% fund balance requirement that staff has factored into their calculations.
The presentation emphasized that recent bond proceeds tied to industrial-park road work skew year-over-year comparisons. Ms. Lewis said the sale of bonds in the current fiscal year produced about $9 million in proceeds that raised last year's receipts and that the city will be spending a large portion of that money during the next budget cycle. "Don't get scared by that number because it's primarily due to the industrial road proceeds," she said.
Council members pressed for clarity on several points. They asked how the revenue/expense gap would be addressed, whether storm sewer work had been included in local road projects and the timing for large capital outlays. Ms. Lewis confirmed that storm sewer components were included for the LED/Schoolcraft street projects and that the industrial-park roads project would be substantially complete by fall 2026, with much of the spending occurring in the middle of the next fiscal year.
The manager also detailed long-term obligations: staff reported pension liabilities of about $29 million and other post-employment benefits (OPEB) of about $25 million, with OPEB funded at roughly 11% of the obligation. She noted the city currently has more inactive pension beneficiaries (125) than active employees.
Council scheduled a budget workshop for the coming week for a deeper dive with department heads. The public hearing on the proposed millage rates and budget drew no speakers and was closed after no public comment.
Next steps: staff will provide more detailed financial backup at the workshop, and the council will consider adjustments following that session before finalizing millage rates and the budget.
