By VICKIE FEE

Journal Staff Writer

MARQUETTE — The Marquette City Commission unanimously approved the Fiscal Year 2025 budget this week, with thanks and accolades for City Manager Karen Kovacs and the whole city staff for presenting a balanced budget without any loss of services.

Monday night’s meeting included a legally mandated public hearing.

The budget vote was preceded by a presentation from Planning Commission Chairperson Sarah Mittlefehldt and a budget overview from Kovacs.

Mittlefehldt said she dug into the archives and looked at the city’s first zoning ordinance, which was four or five pages long. The recently updated zoning updates ran several hundred pages. The planning commission is closing in on completing the city’s master plan. A public hearing will be held on the final draft on Oct. 1.

Kovacs explained that the 2025 budget doesn’t include any capital improvements that would draw from the general fund. Work will continue that has already been paid for from preveious budgets and grants. Any new work, other than emergency situations, would be paid for by grants.

Kovacs came onboard as city manager in June 2021. Commission members credit her with turning things around for the city.

“When we first discovered our budget crisis, things looked bleak. Staff has made a lot of tough and smart decisions. Honestly, I didn’t think I’d see a balanced budget achieved during my time on the board,” Commissioner Cody Mayer said.

“A balanced budget after the last couple of years, wondering if we’d be able to maintain services is amazing,” said Commissioner Paul Schloegel.

“This is the first time we are not projected to take money out of our fund balance,” Kovacs noted. “We’re setting the stage for a strong financial future.”

The city approved a $96.8 million budget, plus some other specialty funds. General fund revenues are $24 million, with $20.9 million of that unrestricted. Most of the city’s revenues come from property taxes.

“Not including grants, we have had a 3% increase in taxes and state-shared revenues.”

Wages, pensions, and debt service equals about $24 million. There is no flexibility on those, she said.

“In 2025, we will pay down $6 million in debt. We have $62.9 million in debt outstanding. We’ve done a lot to be proud of, but we’re taking the opportunity to pause on more debt,” Kovacs said.

Water, sewer and storm water costs will increase to $7.85 monthly for an average household, which adds up to less than $100 per year, she noted.

If the city gets to a point where the fund balance is too high, the commission will look at capital expense priorities.

“There are 120 projects in the capital improvement plans that are ranked in order. The top 11 projects total $7.8 million. The total of the other ranked projects is about $53 million in today’s dollars,” Kovacs said.

In other business, the commission approved the appointment of two people to complete unexpired terms on the Arts and Culture Advisory Committee. Travis Gerhart was appointed for an unexpired term ending June 1, 2027, and Athena Stanley was appointed for an unexpired term ending June 1, 2026.

Vickie Fee can be reached at 906-228-2500, ext. 542. Her email address is vfee@miningjournal.net