By Maggie LaNoue – Contributing Writer – December 26, 2025
Albion City Council unanimously approved the city’s fiscal year 2026 budget at its December 15 meeting, adopting a financial plan that focuses on the city’s General Fund while keeping major infrastructure costs in separate accounts.
The General Fund is the city’s primary operating fund, paying for everyday services such as police and fire protection, administrative staffing, parks and recreation, code enforcement, and general city operations. For fiscal year 2026, total General Fund spending is projected at approximately $5.9 million.
Interim City Manager Doug Terry said the past year required adjustments due to several unusual expenses.
“This has been an unusual year,” Terry said. “With all the construction that has taken place, the elevator, and a few other things, those expenses have shown up. We have had to make adjustments, but fortunately we have had cash reserves that have more than been able to take care of those. We’re ending the fiscal year with a balanced budget.”
The elevator project Terry referenced is part of ongoing work to restore full accessibility at City Hall, allowing council meetings to return to the upstairs chambers once the project is complete.
Public safety accounts for the largest share of General Fund spending, followed by administrative and payroll-related costs.
Additional portions support streets and lighting, parks and recreation, code enforcement and planning, and other general services. Large capital projects such as the water tower, water mains, and major road construction are funded through separate enterprise and capital funds and are not paid for through the General Fund.
On the revenue side, income tax remains Albion’s largest source of General Fund revenue, followed by property taxes and state revenue sharing. While projected income tax revenue for 2026 is slightly higher, city officials indicated that the increase reflects conservative forecasting rather than a change in tax rates.
Both General Fund revenue and spending are modestly lower than in 2025. City officials explained that this is primarily due to the absence of one-time income that boosted last year’s totals, including proceeds related to the Maple Grove property and certain grants that required local matching funds. The city has intentionally reduced participation in grant programs that require local matches while ongoing construction projects continue.
During discussion of the amended 2025 budget, Vivian Davis, council person for Albion’s Fifth Precinct, asked for clarification about unused balances shown in several budget categories.
“I was reading through the special revenue funds and I can see the revenue, appropriations, and the net,” Davis said. “I see there’s a net that has not been used. So is that going back into the General Fund, or what happens to that money?”
City staff explained that unspent money remains in its designated fund and carries forward as a cash balance into the next fiscal year. Terry added that recreation funding, which is part of the General Fund, will continue to be reviewed through an application process that considers participation and usage from the prior year.
By approving the budget unanimously, council finalized a plan that maintains day-to-day city services, reflects a return to more typical revenue levels, and keeps large infrastructure projects properly separated from the General Fund.
