COLDWATER, MI (WTVB) – The Coldwater City Council unanimously approved the city’s Fiscal Year 2026-27 budget on Monday, during its regular meeting.
The adopted General Fund budget projects total revenues of approximately $13.78 million and expenditures of about $13.86 million, resulting in a modest planned operating deficit of roughly $165,000.
This includes $560,000 in capital spending and $125,000 for sidewalk work. Despite the small shortfall, the city maintains a robust financial position with an estimated ending fund balance of $7.5 million, more than 50% of annual expenditures following a stronger-than-expected surplus in the current fiscal year.
Property taxes for the average residential homeowner are projected to rise by 2.7%, driven by growth in real property values, while overall city property tax revenues are expected to increase 4.4%.
Payment in Lieu of Taxes (PILOT) from the Board of Public Utilities will grow 4.8% to $3.95 million. State shared revenue is anticipated to decline slightly for the second consecutive year to $1.53 million.
On the spending side, Public Safety remains the largest category at over $6.4 million, followed by Public Works. The budget supports continued infrastructure investments, including phase two of the Rotary Park project, downtown streetscape improvements on US-12, multi-surface court resurfacing at the recreation center, and multiple road reconstruction projects on Pearl and Morse streets funded partly by 2025 road bonds.
City officials highlighted ongoing manufacturing growth, including a major employer expansion expected to add 300 jobs, alongside population increases.
Capital needs persist for aging equipment and infrastructure, with a planned wastewater treatment facility expansion moving forward. The city will levy 11.3798 mills for operations (a Headlee reduction) and 1.3333 mills for retirement costs.
Budget documents emphasize conservative planning, cost controls on personnel and legacy pension obligations, and preparation for potential reductions in future state reimbursements, while positioning Coldwater for sustainable growth.
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