ESCANABA, Mich. (WZMQ) – On Thursday, Escanaba’s City Council approved is operating budget for the 2024 – 2025 fiscal year.
City Manager Jim McNeil describes the budget as “pretty balanced,” with the same 17.442 millage rate as last year’s budget. There are also General Fund budget cuts, which he attributes to higher pension contributions and inflation.
The budget also includes several major infrastructure projects, like water and wastewater utility replacements. The City is planning for as much paving work around those replacements as possible.
The City is utilizing low-interest loans to help with storm sewer replacements and additional paving projects. McNeil says Water and Wastewater funds are also being used to supplement grant funds.
“While grants are paying for lead service line replacements and water main replacements, we’re also looking at replacing valves and hydrants in those areas,” he said. “Often, we’re struggling to control water in those areas. We’re also looking ahead, as we set utility rates, at service lines that we’re going to have to replace post-grant and the other work that has to be done. By 2026, we have approximately $60 million in grant funds to spend, but all those grant funds do drive other needs that we’ll have to use non-grant dollars for.”
The City Council will meet on May 23 to approve a tax levy. On June 3, they will set utility rates. In the meantime, residents are encouraged to review the 2024 – 2025 Budget Message, which is available on the City’s website.
“We have a short-term and long-term plan that we really hope leads to affordability over the long term,” said McNeil.
