Presque Isle council reviews draft 2027 budget, weighs surplus use

The Presque Isle City Council held a workshop on the preliminary 2027 budget, which proposes a $20.13 million operating budget, a 0.81% reduction from 2026, and a property tax requirement down $216,000. Officials presented two surplus options, $0 and $185,000, and walked the council through a tax rate calculator showing mill rate impacts. No votes were taken; the council discussed surplus levels and directed staff to continue refining the numbers.

Key points

• The draft 2027 budget cuts the operating request by $163,774 (0.81%) from 2026 and reduces the net municipal appropriation by $635,776 (6.90%).
• The capital improvement plan request of $604,700 was reduced by about $2.5 million, an 80% reduction, with funds redirected to future years, TIF, reserves, grants, and private investment.
• Staff presented two surplus options: $0, which yields a $20.21 mill rate (0.04% reduction), and $185,000, which yields a $19.99 mill rate (1.26% reduction).
• The council directed staff to plug a $1 million surplus figure into the tax rate calculator to see the effect, though no decision was made.
• Staff noted an additional $612,000 could be funded through an amended TIF program pending state DECD approval, and that roughly $2.09 million remains under budget from the prior year.
• Councilors praised the budget position as the strongest in a decade and raised concerns about avoiding a tax rate "yo-yo" effect for residents.

Next steps

• Staff will continue refining budget figures and the tax rate calculator as the council works through the budget over the next two months.
• The city plans to amend its TIF eligible program and seek state DECD approval to free up about $612,000.
• Councilors can contact department heads directly with budget questions during the review period.

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