(COLDWATER) - The Coldwater City Council has approved a budget that continues major infrastructure projects while setting aside millions in reserves despite a small planned deficit.
The Fiscal Year 2026-27 budget includes about $13.8 million in revenue and $13.9 million in spending. City officials say the budget's roughly $165,000 deficit will be covered by reserves, with Coldwater expected to end the year with about $7.5 million in its fund balance.
Residents can expect property taxes on the average home to increase about 2.7 percent as property values continue to rise.
Public safety remains the city's largest expense at more than $6.4 million.
The budget also funds several visible projects around the city, including the next phase of improvements at Rotary Park, downtown U.S. 12 streetscape work, resurfacing courts at the recreation center and reconstruction projects on Pearl and Morse streets.
City officials also pointed to continued growth in the local manufacturing sector, including a planned expansion by a major employer that is expected to add 300 jobs.
The spending plan also supports future improvements at the city's wastewater treatment facility and other infrastructure needs.