South Haven council adopts FY2026–27 budgets and sets 2026 millage

The South Haven City Council on Monday approved four resolutions adopting the city’s fiscal year 2026–27 budgets and setting the 2026 property tax millage.

The council voted unanimously to adopt Resolutions 2026-9 (component unit funds), 2026-20 (general, special revenue, debt service, capital, fiduciary funds), 2026-21 (enterprise and internal service funds) and 2026-22 (property tax millage). Mayor Annie Brown called the roll for the recorded vote; all seven members present voted yes.

Why it matters: The resolutions lay out the city’s spending and revenue plans for the coming fiscal year and establish the taxable millage rate that will be applied to property assessments.

During discussion Councilmember Mary Hosley pressed staff about projection variances in the budget packet, citing licenses and permits where the original budget figure of $982,600 contrasts with a projected $1.5 million while year-to-date receipts through Feb. 28 were about $600,000. "So I was just curious ... whether these are estimates, and we'll get the reconciliation in June," Hosley said.

City staff, including City Manager Kate Hoer and finance staff member Michelle, explained the apparent gap reflects the short-term rental program spanning two years while the city’s budget is prepared on a one-year basis. Hoer said the city uses modified-accrual accounting and that some fees and two-year license receipts will be allocated to the year in which they were paid. Hoer also confirmed that beach fines and concessions are included in the beach maintenance fund revenue estimates.

The council did not amend the resolutions; after staff explanations the council proceeded to a recorded roll-call vote and approved all four measures.

What’s next: The city will reconcile actual receipts after fiscal year close and may consider budget amendments if necessary.