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Chelsea council tables WAVE funding as council weighs use of $799,000 from reserves
Summary
Chelsea council unanimously tabled a WAVE transit service agreement and approved a millage strategy while confronting a proposed $799,000 draw from the General Fund that would lower reserves to about 17.5% of expenditures.
Chelsea City Council on May 4 unanimously tabled consideration of a proposed service agreement with WAVE, the regional transit provider, as council members continued to weigh how to close an $800,000 budget gap for the 2026–27 fiscal year.
City Manager Elle Cole outlined three options WAVE offered: maintain current service at $255,000 annually; reduce service by roughly 20% at $200,000 annually (including an estimated 725–950 fewer door-to-door rides and elimination of some Sunday Community Ride service); or reduce funding to $100,000, a roughly 60% cut that would limit door-to-door service to peak commute hours and end Chelsea’s participation in the Community Connector program. Cole said the options trade off service availability against the City’s fiscal exposure and that WAVE’s board would not pursue new community-specific grants, though the City could independently seek grant funding.
Alan DeVaughn, director of the Chelsea Retirement Community and president of the WAVE board, urged the Council to consider the human consequences of cuts, saying reduced service would have a direct and meaningful impact on residents and staff. Resident Gaye Morgenthaler questioned the draft budget’s projected $800,000 deficit, suggested a voucher system for riders unable to pay fares and argued that other riders should cover their costs; she also raised concerns about the fund balance falling below 20% and said the City was reported to the Department of Justice.
Council members debated fiscal posture and policy choices. Manager Cole said the proposed 2026–27 budget uses approximately $799,000 from the General Fund balance to close the gap, reducing the fund balance from about 29% to roughly 17.5% of annual expenditures. Council approved a millage rate strategy for the Solid Waste and Streets funds for FY2026–27 by unanimous vote, and then voted unanimously to table the WAVE agreement until a future meeting to allow additional analysis and discussion.
The tabling preserves Council flexibility; members said they will revisit the options at a subsequent meeting and consider whether targeted revenue adjustments or further service reductions are preferable to continued one-time use of reserves. No formal decision to change service levels was made at the May 4 meeting.
