Frasier council approves FY2627 budget after lengthy debate; keeps PA33 police/fire millage at 1.5

Frasier City Council approved the fiscal year 2627 general appropriations resolution after a sustained discussion about how the city should use reserves and the size of the PA33 police and fire special assessment.

Mayor Promodell moved to adopt Resolution 2026-05, the FY2627 budget and millage appropriation act. Council hearings focused on whether the city should use surplus and fund balance for infrastructure projects and pension liabilities, or preserve reserves and rely on the PA33 assessment for public-safety funding. Council members debated options including moving surplus toward MERS/OPED liabilities, earmarking funds for storm-drain projects, or reducing the PA33 rate to give residents tax relief.

After discussion and multiple recorded statements of position, the council approved the budget resolution by voice vote (record in the meeting: 5–2). Immediately afterward, the council voted to retain the PA33 special assessment at the current level of 1.5 (0.75 each billing cycle), also recorded as 5–2.

Council members who opposed keeping PA33 at its current level said the city had an excess fund balance and could lower the assessment or spend down reserves on targeted capital projects; supporters argued that the city faces lingering infrastructure needs, potential near-term cost shocks and pension obligations, and that maintaining the assessment protects the city’s credit rating and readiness for large projects.

Ending: The budget and PA33 were adopted; several council members asked staff to return with strategic long-term plans for reserves, capital prioritization, and a clear analysis of how any future PA33 changes would affect operations and taxpayers.