By Greg Chandler
Zeeland Record
The city of Zeeland is expected to use some of its reserves to balance its budget for the new fiscal year that begins July 1.
Assistant City Manager and Finance Director Kevin Plockmeyer unveiled the city’s budget proposal for the 2025-26 fiscal year to the City Council Monday night.
The budget proposal calls for total net expenditures across all city departments at $71,213,696, the vast majority of it coming from the Zeeland Board of Public Works at $49,431,174. Total net revenues for the new fiscal year are expected to come in at $68,438,968. The city plans to expend $2,686,716 of governmental reserves for various improvement projects.
The general fund budget, the portion most directly impacted by local property taxes, is expected to use $597,077 of fund balance for the new fiscal year due to transfers out for capital improvement projects. The city is expected to spend $10,849,904 in the general fund for the 25-26 fiscal year, an increase of only 0.7 percent from the current fiscal year, compared to revenues of $10,252,827, according to the budget document.
“I would say from a budgeting standpoint, this is a very similar budget to last year,” Plockmeyer said.
The major streets, local streets and municipal street funds will use $758,967 of fund balance this year due to various projects, most notably the reconstruction of Taft Street.
Another $895,000 will come out of reserves in the city park improvement fund for upgrading Hoogland Park. The downtown vision fund will use $265,000 for parking lot improvements. The city plans to use $290,000 of reserves in the city building fund for a chiller replacement at the Howard Miller Library and Community Center and another $45,000 for a feasibility study on a recreation center.
“These are monies we have set aside for that purpose, and now we are spending them,” Plockmeyer said.
The city plans to invest more than $14.4 million into capital improvement projects for the fiscal year, including more than $5.3 million in the electric utility and more than $3.3 in the water utility. The city has invested more than $30 million into capital improvement projects over the last decade, City Manager Tim Klunder wrote in his budget message to the council.
“We see the use of fund balance in this fiscal year as a catalyst for future improvements in the development, not only in our Downtown District but for the community as a whole, and are thankful for the years of careful planning that can allow the city to continue to make these types of investments into the community,” Klunder wrote.
Even with the investment of reserves, the city’s fund balances are expected to remain strong. The city expects to have a governmental fund balance across all departments of $12,837,649 at the end of the 2025-26 fiscal year, including general fund reserves of $5,279,382, Plockmeyer said.
“I think that’s a testament to our department heads, that they budget very conservatively and they only spend what they need, and they only spend it when they need it,” Plockmeyer said.
The city’s millage rate would remain as is at 11.1354 mills under the new budget. The tax rate has stayed at that level since 2010, except during the COVID pandemic when the rate was reduced. With the city’s taxable values up nearly 4.5 percent from the previous year to more than $635 million, each mill will generate $608,264 in revenue for the city, Plockmeyer said.
The city is expected to receive $6,590,399 in property tax revenue during the new fiscal year. It’s also expected to receive another $660,000 in state revenue sharing, Plockmeyer said.
In addition, the city is expected to receive $1,205,318 from the state of Michigan as a reimbursement for lost property tax revenue associated with the phasing out of personal property taxes. The city had been expected to receive $1,231,754 in reimbursement of lost personal property tax revenue during the current fiscal year, but only received $1,183,202, Plockmeyer said.
The budget proposal includes a boost in two special assessments to downtown businesses that are part of the Shopping Area Redevelopment Board (SARB). The downtown special assessment that includes general maintenance, snowplowing and planters, which was recently renewed by the City Council, is expected to be $53,000, while another $37,000 is being assessed for operation and maintenance of the city’s snowmelt system.
The new budget also calls for increased spending for public safety – $3,897,789 compared to $3,628,610 in the current fiscal year. One of the main reasons for the increase is upgraded staffing in the fire department.
“In fiscal year ’25, we added two full-time firefighters … (but) we only had one of those budgeted in the fiscal year ’25. The fiscal year ’26 does include both of those firefighters,” Plockmeyer said.
The Board of Public Works is projecting revenues of nearly $38.8 million in the electric utility this year, a 2.4 percent increase from its fiscal 24-25 projection, with power supply expenses accounting for 78 percent of all of the utility’s electric costs. BPW is forecasting a net operating loss of $1,501,024 for the year. It also expects to use more than $4 million of its cash balance for upcoming projects, with a projected fund balance at the end of next fiscal year of $15,546,549, General Manager Andrew Boatright said.
In the water utility, ZBPW projects a net income of $16,814 and using more than $2 million of its reserves for various improvement projects, which would leave that utility with a fund balance of $9,258,433 at the end of the 2025-26 fiscal year, Boatright said.
Revenues in the water utility are projected to increase 3.9 percent, “partially attributable to the replacement of old, slower water meters with new advanced meters, as well as a 4.9 percent rate increase that effect on Jan. 1,” Boatright said.
Zeeland Record
The city of Zeeland is expected to use some of its reserves to balance its budget for the new fiscal year that begins July 1.
Assistant City Manager and Finance Director Kevin Plockmeyer unveiled the city’s budget proposal for the 2025-26 fiscal year to the City Council Monday night.
The budget proposal calls for total net expenditures across all city departments at $71,213,696, the vast majority of it coming from the Zeeland Board of Public Works at $49,431,174. Total net revenues for the new fiscal year are expected to come in at $68,438,968. The city plans to expend $2,686,716 of governmental reserves for various improvement projects.
The general fund budget, the portion most directly impacted by local property taxes, is expected to use $597,077 of fund balance for the new fiscal year due to transfers out for capital improvement projects. The city is expected to spend $10,849,904 in the general fund for the 25-26 fiscal year, an increase of only 0.7 percent from the current fiscal year, compared to revenues of $10,252,827, according to the budget document.
“I would say from a budgeting standpoint, this is a very similar budget to last year,” Plockmeyer said.
The major streets, local streets and municipal street funds will use $758,967 of fund balance this year due to various projects, most notably the reconstruction of Taft Street.
Another $895,000 will come out of reserves in the city park improvement fund for upgrading Hoogland Park. The downtown vision fund will use $265,000 for parking lot improvements. The city plans to use $290,000 of reserves in the city building fund for a chiller replacement at the Howard Miller Library and Community Center and another $45,000 for a feasibility study on a recreation center.
“These are monies we have set aside for that purpose, and now we are spending them,” Plockmeyer said.
The city plans to invest more than $14.4 million into capital improvement projects for the fiscal year, including more than $5.3 million in the electric utility and more than $3.3 in the water utility. The city has invested more than $30 million into capital improvement projects over the last decade, City Manager Tim Klunder wrote in his budget message to the council.
“We see the use of fund balance in this fiscal year as a catalyst for future improvements in the development, not only in our Downtown District but for the community as a whole, and are thankful for the years of careful planning that can allow the city to continue to make these types of investments into the community,” Klunder wrote.
Even with the investment of reserves, the city’s fund balances are expected to remain strong. The city expects to have a governmental fund balance across all departments of $12,837,649 at the end of the 2025-26 fiscal year, including general fund reserves of $5,279,382, Plockmeyer said.
“I think that’s a testament to our department heads, that they budget very conservatively and they only spend what they need, and they only spend it when they need it,” Plockmeyer said.
The city’s millage rate would remain as is at 11.1354 mills under the new budget. The tax rate has stayed at that level since 2010, except during the COVID pandemic when the rate was reduced. With the city’s taxable values up nearly 4.5 percent from the previous year to more than $635 million, each mill will generate $608,264 in revenue for the city, Plockmeyer said.
The city is expected to receive $6,590,399 in property tax revenue during the new fiscal year. It’s also expected to receive another $660,000 in state revenue sharing, Plockmeyer said.
In addition, the city is expected to receive $1,205,318 from the state of Michigan as a reimbursement for lost property tax revenue associated with the phasing out of personal property taxes. The city had been expected to receive $1,231,754 in reimbursement of lost personal property tax revenue during the current fiscal year, but only received $1,183,202, Plockmeyer said.
The budget proposal includes a boost in two special assessments to downtown businesses that are part of the Shopping Area Redevelopment Board (SARB). The downtown special assessment that includes general maintenance, snowplowing and planters, which was recently renewed by the City Council, is expected to be $53,000, while another $37,000 is being assessed for operation and maintenance of the city’s snowmelt system.
The new budget also calls for increased spending for public safety – $3,897,789 compared to $3,628,610 in the current fiscal year. One of the main reasons for the increase is upgraded staffing in the fire department.
“In fiscal year ’25, we added two full-time firefighters … (but) we only had one of those budgeted in the fiscal year ’25. The fiscal year ’26 does include both of those firefighters,” Plockmeyer said.
The Board of Public Works is projecting revenues of nearly $38.8 million in the electric utility this year, a 2.4 percent increase from its fiscal 24-25 projection, with power supply expenses accounting for 78 percent of all of the utility’s electric costs. BPW is forecasting a net operating loss of $1,501,024 for the year. It also expects to use more than $4 million of its cash balance for upcoming projects, with a projected fund balance at the end of next fiscal year of $15,546,549, General Manager Andrew Boatright said.
In the water utility, ZBPW projects a net income of $16,814 and using more than $2 million of its reserves for various improvement projects, which would leave that utility with a fund balance of $9,258,433 at the end of the 2025-26 fiscal year, Boatright said.
Revenues in the water utility are projected to increase 3.9 percent, “partially attributable to the replacement of old, slower water meters with new advanced meters, as well as a 4.9 percent rate increase that effect on Jan. 1,” Boatright said.
––––––––––––––––––––
Subscribe to the Legal News!
https://legalnews.com/Home/Subscription
Full access to public notices, articles, columns, archives, statistics, calendar and more
Day Pass Only $4.95!
One-County $80/year
Three-County & Full Pass also available
