Adrian commission advances balanced budget plan, approves $50,000 DDA advance

Adrian City Administrator Chad B. opened a special March 23 budget work session saying the proposed budget is a "disciplined operating budget" focused on "police, fire, streets, utilities and essential municipal operations." The commission then heard department-by-department presentations and approved a $50,000 advance to the Downtown Development Authority to cover near-term cash needs.

The budget as presented prioritizes maintaining core services over filling discretionary positions. Chad B. told commissioners the recommendation is "not to fill our marketing or parks and recreation positions in this budget cycle," framing the cuts as restraint intended to prevent the city from overcommitting the general fund. Finance staff said the proposed general-fund recommendation is lower than both the original and amended prior-year budgets.

Nathan Owen, the city's finance director, walked the commission through millage history and the effect of the Headlee rollback referenced in the meeting. He said operating mills have rolled back from about 15 to roughly 13.5299 and that restoring those mills would require a voter-approved override to reverse the Headlee rollback.

Commissioners asked for specifics about revenue assumptions, seasonal staffing and how certain grants and enterprise funds factor into the general fund outlook. Several department heads — including public safety, parks and utilities — explained where capital and operating reductions were proposed and which items remained prioritized for sustaining essential services.

On a separate procedural matter, the commission voted to excuse Commissioners Roberts and Schwarz earlier in the meeting and approved the agenda at the start of the session.

The commission approved Resolution R26-030, authorizing a transfer—structured as an advance—of up to $50,000 from the city general fund to the DDA to cover immediate operating needs until the DDA's anticipated receipt of TIFF funds later in the summer. City staff told commissioners the transfer is intended as an interim, repayable advance; the commission asked staff to return with an invoicing mechanism and further oversight language.

The commission closed the work session after department presentations and public-comment instructions; no in-chamber public commenters spoke during the meeting.