Mount Clemens staff present FY2027 budget and five-year capital forecast; no vote taken

City of Mount Clemens finance staff on Thursday presented a proposed fiscal year 2027 budget and a five‑year forecast that relies on one‑time revenues, ongoing grant pursuit and planned bonds to sustain major capital projects and street work.

Lori Curtis, who presented historical financials for the general fund, told the commission that revenues are projected to dip in FY27 because a $5,000,000 grant included in FY26 is not expected to recur and because a $1,300,000 transfer from the sale of the ice arena that supported downtown revitalization will not repeat. "The most significant reason for the decrease in revenues is there is a $5,000,000 in grant revenue that was budgeted in fiscal 26," Curtis said, adding that transfer proceeds from the ice arena sale will not be recurring in FY27.

Danielle Kelly, who presented the five‑year forecast and capital plan, laid out planned capital spending from 2027 through 2031 and flagged major 2027 items: completion of the downtown revitalization project, required state election equipment, vehicle replacements, parks improvements and a fire engine purchase offset by a $500,000 grant. Kelly said the conversion of the city’s accounting system from BSNA.net to BSNA Cloud will create a large implementation fee in 2027 and higher annual fees thereafter.

On streets, staff said the city expects a dip in major‑streets fund balance because of recent projects and outlined a strategy of targeted patching and paving to rebuild reserves by 2028. Kelly listed planned projects and rough cost spreads: Crocker Street Bridge (about $1.6 million over three years), North and South Main (about $1.4 million over three years), Wellington Crescent (FY27) and the Shadyside bike path (about $350,000 over three years). She added that Crocker has an identified grant and that staff will continue to seek additional grant funds.

Commissioners asked for clarifications on project timing, how local streets are prioritized and measures used to select candidates for work. Staff described a biennial pavement evaluation (PACER) and a process that factors road condition together with underlying water and sewer infrastructure needs. "Every two years, all of the roads in the city are evaluated by our engineering company, and we then...rate them," a commissioner summarized during questioning.

When asked whether the city should reduce taxes now, Kelly said no, citing a large underfunded OPEB obligation that pressures the general fund and upcoming capital needs. "The city's OPEB system is currently $28,000,000 underfunded," she said, noting it was only about 8.2% funded as of June 30, 2025.

No formal budget vote or adoption occurred at the work session; staff said they will update some numbers (including PACER results and millage calculations) and return the item for a future formal action. The commission then moved to other business and adjourned.