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Fraser council adopts FY 2026–27 budget and keeps PA 33 public-safety tax at 1.5 mills after heated debate
Summary
Council approved the Fiscal Year 2026–27 budget and millage (resolution 2026-005) and separately confirmed PA 33 at 1.5 mills after fractious debate over using surplus funds versus maintaining the special-assessment funding for police and fire. Councilors raised competing priorities including storm-drain work, OPEB/MERS payments and long-term capital needs.
Fraser City Council voted to adopt the Fiscal Year 2026–27 budget and corresponding millage resolution (2026-005) after extended discussion over the city’s fund balance, proposed capital priorities and the use of PA 33 public-safety revenues.
City Manager (speaker 5) outlined budget changes including adding $1,000,000 for storm-drain maintenance, wage corrections for senior services and a $30,000 public-safety UTV purchase funded from the gambling forfeiture fund. Finance staff said the beginning general-fund balance is roughly $9.9 million and that using $1.8 million would leave about $8 million at the end of the next fiscal year.
The council’s debate focused on whether the city should use existing surplus to fund projects or continue levying PA 33 at 1.5 mills. Council member Baranski objected to taxing residents while the city held a multiyear surplus, saying it was poor fiscal stewardship to raise taxes "because people are used to it." Council members Bransky, Shornack and Mayor Pro Tem O’Dell argued keeping the millage stabilizes funding for likely upcoming infrastructure projects and avoids sudden tax spikes if costs rise.
After discussion the council approved the budget and later approved a separate resolution continuing PA 33 at 1.5 mills. When members asked for vote counts, the record included a council statement of "5-2" on at least one major adoption vote; the meeting minutes show the budget and the PA 33 resolution both passed.
Councilors asked staff to develop clearer long-term spending plans and examine options to direct surplus dollars toward OPEB/MERS reductions and priority capital projects. Several council members said they want engineering cost estimates returned in June to better inform decisions about storm-sewer projects and neighborhood complete-street work.
The council then moved to subsequent agenda items. There was no public comment that changed the outcome recorded in the meeting.
