COLDWATER, MI (WTVB) – The Coldwater City Council formally adopted the city’s operational budgets for the 2025 fiscal year on Monday night.
The budgets included the City’s general operating funds, special revenue funds, tax increment financing authorities of the Downtown Development and Local
Development Funds, and budgets for the Coldwater Board of Public Utilities.
City Manager Keith Baker said the City began fiscal 2024 with a budget deficit of $512,000. The budget was amended twice. The first was to account for revenue increases in interest on investments and for building permit increases. The second accounted for the distribution of funds by the State related to adult use marijuana facilities.
Eventually, the original budgeted deficit was replaced by an estimated surplus of $5,000.
Finance Director Tom Eldridge says the fiscal 2025 budget of nearly $13 million will start with a small deficit.
Baker pointed out in his report that property taxes for the average City residential home owner will increase by five percent. The rate at which property tax values in Michigan change is determined by an inflation rate multiplier that is based on annual changes in the U.S. consumer price index.
Baker concluded his report by saying, “The City is in a financially strong position over the short term with an operating fund balance reserve of over 45% of expenditures.”
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