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Chelsea leaders discuss creating a local police department and weigh funding options including a gas tax

Chelsea City Council · May 19, 2026
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Summary

Mayor Cody Saunders told the council the city faces a requirement to establish a police department after changes to the county contract; he estimated start‑up costs of about $5 million and noted the city currently pays nearly $2 million for contract deputies. The council discussed revenue options, including a local gas tax and education tax.

Chelsea city leaders spent a portion of their May 19 meeting discussing the practical and budgetary implications of establishing a local police department and possible revenue mechanisms to pay for it.

Mayor Cody Saunders told the council that a change in the county’s contract law‑enforcement arrangement has put the city in a position where it must plan to operate its own police department. Saunders said the city currently pays close to $2 million for contract deputies and that building a local department is estimated to cost about $5 million. “We’re estimating $5,000,000 for a police department. We’re already paying close to $2,000,000 for our contract deputies,” Saunders said.

Council members discussed potential revenue sources to cover the shortfall. Saunders and council members listed options that have been or may be considered — including a local gas tax, adjustments to the education tax, and reallocations within the general fund — and said the city will continue reviewing which approach is the least disruptive to residents. The mayor said the city had been given a deadline to have matters in place, although that timeline has since shifted.

One council member urged residents to contact their county commissioners to ask why the contract deputies arrangement was being changed. The council noted there has not been broad public demand for a local police department, and several members said they prefer not to add taxes but are being forced to consider options by external changes.

What’s next: City staff and council will continue to evaluate revenue options at upcoming work sessions; council members encouraged public participation and outreach to county officials. No final decision or ordinance to levy a new tax was taken at the May 19 meeting.