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Council hears 2026–27 budget update showing $165,000 projected general fund deficit
Summary
At a public hearing, City Manager Tom told the council the draft 2026–27 budget still shows a $165,000 general fund deficit after minor adjustments; staff outlined millage reductions tied to a Headlee rollback and said no council action was taken at the meeting.
City Manager Tom presented an update on the draft 2026–27 budget during a public hearing, saying the city is still facing a projected general fund deficit of $165,000. "We're sitting still at $165,000," Tom told the council during his presentation.
Tom said two adjustments since the April workshop — a finalized Headlee rollback calculation and a revision to building permit revenue estimates — produced no net change to the deficit figure. He said property tax revenue fell by about $27,000 because of the Headlee rollback.
Staff also reviewed recent changes to the road millage and operating levy: the annual road millage, initially estimated at 1.52 mills, had been reduced to 1.45 last year and will be reduced to 1.37 this year; the operating levy was described as falling from 14.2272 mills to 14.0831 mills after the rollback.
The council opened and then closed the public hearing after no members of the public spoke. Mayor Kramer noted there was "no action at council at this time," so the hearing did not result in an immediate vote or adoption of budget changes. The presentation returned a clear picture of the fiscal gap and the millage adjustments staff says will accompany the coming tax year; additional budget actions or formal votes will be scheduled as needed.
