Cedar Springs council reviews $12 million proposed budget, officials propose 3.1% utility rate increase

The Cedar Springs City Council on March 20 received a detailed presentation of the proposed 2025–26 fiscal budget that would total about $12 million, include roughly $5.3 million in capital outlay and propose a 3.1% increase in water and sewer rates effective July 1.

Presenters said the total budget is inflated by one‑time capital costs and noncash items such as depreciation and estimated that the operating budget, excluding those items, would be about $7 million compared with $6 million this year. ‘‘The new well is producing 550 gallons per minute,’’ the presenter said, noting staff are intentionally operating it below maximum while integrating it into the system.

The proposal includes a $3.5 million bond to fund city hall renovations, with a second bond closing anticipated around the start of the fiscal year in July. A $600,000 project for the "Heart of Cedar Springs" park is in the capital plan; staff said a trust‑fund grant is expected to cover approximately 50% of that cost ($300,000).

Staff outlined personnel changes meant to streamline operations: the utility billing clerk position is posted with a first resume review on March 27; internal promotions were discussed and Rebecca Johnson was named for promotion to assistant city manager effective July 1. The presentation also detailed a records‑digitization plan and a request for proposals due March 27, with an initial budgeted amount of $100,000 for scanning and a separate set of fees for preparation and ongoing record management.

On public‑safety and utility spending, the budget reflects about $831,000 for police services (an estimate supplied by Kent County) and proposed increases in fire contract equipment funding with Nelson Township from $5,000 to $10,000 annually, pending final negotiation. The equipment fund includes a $60,000 purchase for a Kubota and sidewalk plow.

For utilities, staff proposed a 3.1% rate increase for both water and sewer to keep pace with inflation and rising operating costs. Russ Johnson, the city’s lead utility operator, told the council that chemical and hauling costs have risen and that the wastewater plant currently treats about 800,000 gallons per day; he said the plant’s treatment capacity is roughly 2.4 million gallons per day (4.1 million hydraulic capacity), indicating room for anticipated development. ‘‘We can do an aggressive flush now that well six is online,’’ Russ Johnson said, explaining how the added capacity reduces system strain.

Council members asked questions about storage space in the newly acquired building for DPW equipment, timing and structure of the bond, and the drivers of utility‑rate changes. Staff replied that a staging building will be retained for signage and that the second part of the bond (for renovations) is expected to close in July.

No formal council vote on the budget itself was recorded at the workshop; the meeting did include a procedural vote to adopt the meeting agenda, which passed with five in favor. Council members closed with comments praising staff for the presentation and the work required to prepare the city for the new building and projects.

Next steps: staff will continue budget refinement and contract negotiations, respond to the digitization proposals due March 27, and bring any necessary resolutions, bond documents and proposed rate changes forward for formal consideration in subsequent meetings.