Kalamazoo city commissioners reviewed the proposed 2027 budget November 9, with a public hearing set for November 16 and consideration on December 7.
City Manager Malcolm Hankins and city staff presented the proposal during a Committee of the Whole work session. The proposed budget totals $328.6 million, down 4.6% from the 2026 adopted budget of $344.4 million. The budget book attributes the decrease primarily to lower capital spending. General fund spending is proposed at $88.4 million. The city’s operating property tax rate stays at 12 mills, and the solid waste millage stays at 1.8 mills.
Capital investment totals $102 million. That includes $52 million for the water system, about $20 million for wastewater and $23.6 million for major streets. The budget also anticipates increases of about 8% in both water and wastewater rates, with approval expected in December and new rates taking effect January 1, 2027.
Several other topics came up during the presentation:
- North side flooding: Public Services Director James Baker described drainage work in response to April’s flooding, including a new relief sewer and neighborhood drainage improvements. He said contracts to begin design could come before commissioners as soon as November 16, with construction running into 2028.
- Dangerous structures: The proposal increases funding for demolitions and for securing vacant buildings. Staff said the need likely exceeds what the city can currently take on.
- Trees and storms: Forestry funding focuses on removing hazardous trees and planting new ones. The weather and emergency events line also grew, so the city can respond without mid-year budget amendments.
- Public safety: Staff said most of the public safety budget goes to personnel. Chief David Boysen said the department is hiring and expanding officer wellness efforts.
- State funding and staffing: State revenue sharing is projected to decline, which the budget book describes as one of the city’s biggest challenges. The budget includes more than 700 allocated positions, including new utility billing and water dispatch roles.
The book projects general fund spending to exceed revenue in 2027 while the fund balance stays above the city’s 15% target.
The proposed budget and community survey results are available at kalamazoocity.org/2027budget. Residents can speak at the November 16 public hearing, contact commissioners ahead of the December 7 vote, or review the full proposal online.
